• Welcome to DreamDTH Forums
    An online community for the television enthusiasts!
    Log in or Register

TRAI's digital telecast move won't help many

Bapun Raz

Staff member
Administrator
Joined
3 Nov 2010
Messages
30,745
Reaction score
48,983
Against preliminary anticipations , Telecom Regulatory Authority of India's (Trai) recommendation to adapt digital telecasting for cities with more than a million population by March 2013 may not be as beneficial to direct-to-home (DTH) players. When implemented, these measures are expected to fuel a tariff war among DTH players thereby reducing overall profitability. Currently, non-digitsed subscribers form a larger portion of the total pay TV subscriber base. Over 80% of pay TV subscribers prefer cable, followed by digital reception (around 18%) and a small percentage of internet based TV connections. A shift to digitised viewing experience should ideally present a large subscriber base for DTH operators and cable companies offering digital services. The only glitch is in the form of Trai's another recommendation that proposes to increase the share of broadcasters in earnings of DTH play-ers. Currently, broadcasters retain 14% of the average revenue per user (ARPU) of DTH companies and multi-specialty operators (MSOs). Trai has proposed to raise this to as high as 45% after complete digitisation. Fallout of this decision will be that DTH operators, in particular , would have to increase their prices of channel packages to compensate for higher outgo to broadcasters. But while doing this they may risk to lose subscribers, given highly competitive situation. At present, there are 1,000 multispecialty operators (MSOs), 55,000 local cable operators (LCOs) and six DTH operators. Analysts feel that this could lead to a price-war among incumbents thereby lowering the sector's profit margins. One way to avoid this is a strong focus on high definition (HD) content, which commands nearly three times better ARPU than regular digital content. But this is easier said than done, because though HD content gives operators higher revenue, it demands more capital expenditure. Therefore, only those players with higher market share can benefit from HD investments. For instance, Dish TV, which has the highest market share of 32% in the digital industry, would find it relatively easy to implement the HD strategy. The company has begun offering 30 channels in HD format. In case of MSOs, a lot would depend upon their promptness in acquiring LCOs as higher subscriber volumes could be the only way to reduce the impact of higher revenue outgo to broadcasters.
 
Thread starter Similar threads Forum Replies Date
DreamDTH.com Article VK Digital onboards TRAI Channel Selector App DreamDTH Articles Discussions 0
DreamDTH.com Article Kerala Vision Digital TV, GTPL Hathway, and DEN Networks onboard TRAI Channel Selector app DreamDTH Articles Discussions 0
DreamDTH.com Article TRAI empanels 6 new Auditors to carry out audit of Digital Addressable Systems (DAS) DreamDTH Articles Discussions 0
DreamDTH.com Article TDSAT disposes of VK Digital plea as withdrawn against TRAI show cause notice DreamDTH Articles Discussions 0
Sri_ADTV Breaking TRAI tariff order 2019 Airtel Digital TV clarification Airtel Digital TV 5
S Sad News Manthan Digital did not implement any TRAI Regulations till now Digital Cable TV 10
Shubh Breaking Respite for Tata Sky, Airtel Digital TV, Discovery as TRAI assures no action till 30 Jan General DTH News & Discussions 212
Anish Pai Breaking NXT Digital / In Digital new A-La-Carte & Packages w.e.f 29th Dec (New TRAI Tariff) Digital Cable TV 41
Nikhil Shirvankar Good News In Digital Mumbai Updates Individual Channel Pricing, Under New TRAI Regime, in EPG besides channel name Digital Cable TV 16
Prashant Shridhar DTH Updates TRAI/TDSAT TDSAT directs Reliance Digital TV to pay Rs 7.5 cr to Antrix to avoid transponder suspension.... Reliance Digital TV 2
R TRAI seeks stakeholders response on Digital Terrestrial Broadcasting TV Channels News 1
hike Hathway leads in digital pay & local channels; Ortel leads in analogue: TRAI TV Channels News 0
M.J.Sadiq TRAI notifies tariff order for digital cable, DTH General DTH News & Discussions 5
M.J.Sadiq Hathway rides high on digital wave as TRAI looks into MSO monopolies Digital Cable TV 2
DreamDTH.com Article Siti Networks continues to be No.1 MSO at June end: TRAI Data Digital Cable TV 0
S GTPL KCBPL Users now can use Trai Channel Selector App Digital Cable TV 0
Akash Solanki Dr. P. D. Vaghela appointed TRAI Chairperson TV Channels News 0
DreamDTH.com Article TRAI advises Star India to maintain status-quo and refrain from pushing non-compliant January RIO DreamDTH Articles Discussions 0
Akash Solanki TRAI advises Star India to maintain status-quo and refrain from pushing new RIO TV Channels News 4
DreamDTH.com Article TCCL overtakes Fastway in subscriber base to become 7th largest MSO at March end: TRAI Report Digital Cable TV 0
DreamDTH.com Article Pay DTH subscriber base rises above 70 million in the quarter ended March 2020: TRAI report General DTH News & Discussions 0
DreamDTH.com Article TRAI expands panel of DAS auditors to 36 in August DreamDTH Articles Discussions 0
ydm1996 DEN Cable Removed from TRAI Channel Selector App DEN Networks 3
Nagesh channanjappa Trai new update Sun Direct 3
DreamDTH.com Article TRAI amends 24th July NTO 2.0 directive to extend deadline up to 26th August DreamDTH Articles Discussions 0

Similar threads

Top Bottom
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock