DTH Players To Face Profit Issues Due To TRAI Guidelines

|

TRAI's latest tariff and interconnection regulations might not a good news for the DTH operators. The new regulation will need six to eight more months for effective implementation due to challenges related to revenue sharing between multiple system operators (MSOs) and local cable operators (LCOs).

DTH Players To Face Profit Issues Due To TRAI Guidelines

 

According to the India Ratings, tariff order is likely to de-risk the business model of MSOs and LCOs. As the revenue stream will contain fixed network capacity charge from subscribers and content commission from broadcasters, thereby effectively passing through content cost.

DTH players, on the other hand, could see their profitability being impacted in the next six to twelve months since they have already sold long-term plans until the end of 2018. Also, the DTH companies won't be allowed to withdraw or reprice a plan that's already in use plan.

The firm also pointed out that after the removal of the 15 percent discount cap on bouquet price versus a la carte (pick-and-pay) channel pricing, broadcasters have started offering 20 percent to 60 percent discount to the channel pricing.To avoid any hike in the final consumer price. Despite similar costs, consumers will have access to fewer channels compared to the previous tariff regime.

The research firm also highlighted that broadcasters' business model will change from B2B (selling content to distributors) to B2C (selling content to consumers) as broadcasters will now market their channel bouquet to end customers rather than rely on MSOs.

The statement comes right after the sector regulator (TRAI) is planning at imposing restrictions on discounts offered by broadcasters on channel bouquets.

Furthermore, the firm opines that allowing a fixed discount on total prices of a selected la a carte channels would empower end-customers to choose their preferred channels (even across broadcasters) and also reduce their monthly payouts.

Our Thought

 

There is no doubt that offering bouquets at cheaper prices are beneficial for subscribers. But still, there are chances that consumers often get confused and opt for packs suggested to them, rather than exercise their freedom to choose specific channels.

Most Read Articles
Best Mobiles in India

Read More About: DTH trai

Best Phones

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Yes No
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more