NTO 2.0 to have nil or marginal impact on subscription revenues: Sun TV Network

NTO 2.0 to have nil or marginal impact on subscription revenues: Sun TV Network

The implementation of NTO 2.0 even if it were to happen would have nil or marginal impact on the subscription revenues of Sun TV Network, Sun TV Network’s management stated during the Q2 FY 21 concall earlier this month.

Even if it is implemented we will have literally no impact or very marginal impact, so I think NTO 2.0 is not a concern at all as far as subscription revenue is concerned,” said Sun TV Network’s R Mahesh Kumar.

The company reiterated what it had stated earlier this year during the Q1 FY 21 concall wherein it had stated that it would figure out a way to ensure that its ARPUs are not impacted by NTO 2.0 by figuring out a methodology.

Sun TV had back then further stated that the methodology would be very tactical and unique to the situation of the broadcaster in the marketplace with the view that even if NTO 2.0 was to be implemented it would still continue to get the fair share of the value-added.

Sun TV Network and Zee Entertainment both have stated that the impact of NTO 2.0 would not be much on them. As of now, you have around five NTO 2.0 Reference Interconnect Offers in the public domain with Odisha Television and Mavis Satcom among those notifying NTO 2.0 bouquets.

Neither of them has either taken any sort of hit in pricing with OTV sticking to 2019 prices giving the bouquet discounting was set at 15 percent back then itself in 2019 while Mavis Satcom has increased the price of its bouquet from Rs 6 to Rs 8 to get in line with the twin bouquet formation conditions of the Tariff Amendment Order 2020.

The judgment in the NTO 2.0 case was reserved by the Bombay High Court in late October after concluding the arguments. The judgment in the case is awaited.

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