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Things will be different the next time multi-system operators (MSOs) and direct-to-home (DTH) players sit across the table with broadcasters for renewal of channel contracts. Thanks to the price defreeze proposed by the Telecom Regulatory Authority of India (TRAI) after nearly seven years. The regulator on Monday released a notification, offering a 27.5 per cent inflation-linked hike to stakeholders in the tariff ceiling. The hike can be implemented in two phases: 15 per cent from April and the remaining 12.5 per cent from January 2015.
Broadcasters in particular have welcomed the move. With the 15 per cent hike April onward applicable to the analogue business, broadcasters are happy that they can at least increase their ARPUs.
“CPS deals in DAS areas will not be impacted with this tariff ceiling hike. But if the MSO or DTH player has a RIO deal, be it in the DAS or non-DAS region, the rates will go up,” informs Media Pro COO Gurjeev Singh Kapoor.
For those wondering how rates can head north in DAS areas when the tariff ceiling notification is for non-addressable areas, here’s the logic. With RIO rates on digital platforms being 42 per cent of those on analogue platforms, a 15 per cent increase in analogue rates is bound to raise RIO rates for digital. Hence, while the hike in tariff ceiling is for non-DAS areas, the same is applicable to DAS areas as well. “This is the best thing that has happened to the industry, as we now have a platform to increase the ARPU and ask for more from consumers,” says Kapoor.
Broadcasters to hike rates in both DAS and analogue areas | Indian Television Dot Com
