Article Star’s RIO policy is a positive development to increase ARPU

Deepu

Deepu

EntMnt Legend
Finest Member
The sunset of analogue cable TV in smaller towns of India should act like a shot of adrenalin to DTH growth. Just how positive the mood is among the direct-to-home (DTH) operators is best reflected in a statement of Dish TV managing director Jawahar Goel: “As cable is not aggressive and struggling with its own on-ground issues, there is an increase in demand for DTH.” Goel also feels that the content cost for multi-system operators (MSOs) is set to climb due to Star India’s RIO (reference interconnect offer) policy. DTH will be able to raise subscription prices, thus leading to higher average revenue per user (ARPU).

Read more at: http://www.televisionpost.com/interview/stars-rio-policy-is-a-positive-development-to-increase-arpu/ | TelevisionPost.com
 
DashMajor

DashMajor

EntMnt Knight
So we needs to get ready to pay more:

Q. Star is offering its channels only at RIO rates to the MSOs. Following this, MSOs are hoping to increase the consumer ARPU as their content costs are going to rise. Will Dish TV and other DTH companies increase their subscription prices?

Yes, we look at this as a positive development as DTH is a premium product and commands 10–15 per cent price premium than cable. In the distribution industry, it is a huge anomaly that 60 per cent of the subscription revenue comes from DTH and just 30 per cent comes from the top 5–6 MSOs of the country. With the RIO model, ARPU is going to increase as the content cost will go up for MSOs; they will be forced to increase their pack prices. This will give DTH a headroom to increase subscription prices and, thus, ARPU.
 
DashMajor

DashMajor

EntMnt Knight
So Broadcasters kneel down against dishtv ?

Q. Dish TV had earlier taken the IndiaCast-distributed channels on RIO and stated that this would drive down the content costs. Content costs fell by what percentage?

This is too specific a question. However, to give an answer, we were able to achieve what we wanted not only with IndiaCast, but with the other broadcasters as well. We have already signed a deal with Zee and Star and the increase in our overall content cost is going to be in single digit.
 
DashMajor

DashMajor

EntMnt Knight
Until next 5 years nothing gonna happen with Siti Cable and dishtv:

Q.TRAI has come out with a DTH licensing regulation that mentions cross-media restrictions. If government accepts that, will Dish TV be impacted as Essel Group also owns Siti Cable?

The licence was extended and the government is working on the renewal policy. The ball is in the government’s court.
 
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