Breaking TRAI Asks Broadcasters To Publish New ALC & Bouquet By 10/08/2020

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IBF stand on NTO rubbish, says TRAI Chairman R S Sharma

TRAI Chairman R S Sharma has rubbished the IBF’s (Indian Broadcasting Foundation) claims that amendments in the NTO 1.0 and NTO 2 .0 will severely impact broadcasters interests and viability of the pay TV industry.

Sharma has said that TRAI has taken the right steps in the interests of the audience and industry and no one should be compelled to watch channels they don’t want to see. “Our own data points that 90% of the people watch only about 50 channels out of the 800-900 channels in the country’’ said Sharma as he added that as compared to television, OTT platform allows much more freedom to watch content and one of the reasons for the audience shifting away to OTT platforms.


IBF stand on NTO rubbish, says TRAI Chairman R S Sharma - Exchange4media
 
SC already held 20% discount cap valid in NTO 1.0 case. So, HC removing 33% cap seems not possible.
Let me give you with an example. With reference to NTO 1.0, Star Value Pack has 15 channels with total price of Rs. 75.10 excluding tax if we add the a la carte price of each channel. However, package price on platform is Rs. 49 excluding tax which translates to 65.33% discount. As per NTO 2.0 a broadcaster can't give a discount of more than 33% on a bouquet as per my understanding. If court allows broadcasters to give them as much discount as they want more than 33% and put a cap of Rs. 12 on channel prices, it will be beneficial for us as now we have 200 channels available for Rs. 153 NCF so the channels won't exceed. Just a greedy thought.
 
With reference to NTO 1.0, Star Value Pack has 15 channels with total price of Rs. 75.10 excluding tax if we add the a la carte price of each channel. However, package price on platform is Rs. 49 excluding tax which translates to 65.33% discount.
Your math got wrong. When ₹75 worth is given for ₹49, there's only 35% off.
 
Let me give you with an example. With reference to NTO 1.0, Star Value Pack has 15 channels with total price of Rs. 75.10 excluding tax if we add the a la carte price of each channel. However, package price on platform is Rs. 49 excluding tax which translates to 65.33% discount. As per NTO 2.0 a broadcaster can't give a discount of more than 33% on a bouquet as per my understanding. If court allows broadcasters to give them as much discount as they want more than 33% and put a cap of Rs. 12 on channel prices, it will be beneficial for us as now we have 200 channels available for Rs. 153 NCF so the channels won't exceed. Just a greedy thought.


They are not giving 65.33% Discount

I m going to Explain
MRP of Their Bouquet is Rs 75
But they are giving at Rs 49

So it's means they are giving Rs 26 Discount on Their MRP which is Rs 75

So 26/75 = 34.66%
 
They are not giving 65.33% Discount

I m going to Explain
MRP of Their Bouquet is Rs 75
But they are giving at Rs 49

So it's means they are giving Rs 26 Discount on Their MRP which is Rs 75

So 26/75 = 34.66%
So this means, Star just need to increase the pack price to Rs 51 and they are compliant with NTO 2.0?
No benefit of NTO 2.0 to subscribers from pack prices point of view. Also broadcasters will come up with a pricing model for ala carte channels where in subscribers will be forced to subscribe to a bouquet for economic benefit.
 
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