Important TRAI issues regulations for content aggregators

[IndianMascot]

TRAI has today notified amendments to the existing regulatory framework with regard to distribution of TV channels from broadcasters to Distribution Platform Operators (DPOs) viz. Cable, DTH, HITS and IPTV operators.

This has been done to address the market distortions caused because of the present role assumed by the authorised agents (aggregators) of the broadcasters, which were also amply reflected during the Phase I and Phase II of digitisation of cable TV sector.

The slient provisions in these amendments are:

• Broadcaster is defined as an entity having the necessary Government permissions in its name.
• Only the broadcaster shall publish the Reference Interconnect Offers (RIOs) and enter into interconnection agreements with DPOs. However, in case a broadcaster, in discharge of its regulatory obligations, is using the services of an agent, such authorised agent can only act in the name of and on behalf of the broadcaster.
• The broadcaster shall ensure that its authorised agent, while providing channels/bouquets to the DPOs, does not alter the bouquets as offered in the RIO of the broadcaster.
• In case an agent acts as an authorised agent of multiple broadcasters, the individual broadcasters shall ensure that such agent does not bundle its channels or bouquets with that of other broadcasters. However, broadcaster companies belonging to the same group can bundle their channels.

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[IndianMascot]

TRAI’s lifeline for content aggregators


TRAI on Monday notified amendments to its regulations barring content aggregators from bundling of channels belonging to different broadcaster groups and mandated broadcasters to themselves sign Reference Interconnect Offers (RIOs) with Distribution Platform Operators (DPOs). The broadcasters have, however, been allowed to appoint authorised agents to market their bouquets, which could be the existing aggregators.

The concerns flagged by TRAI vis-à-vis the business of content aggregation were:

1. Top three content aggregators – MediaPro Enterprise India, IndiaCast UTV Media Distribution, MSM Discovery – controlled 58.6% of the total pay TV market.
2. Content aggregators forced all-channel bouquets on the DPOs, validated by the fact that even though the largest bouquets offered by the aggregators in their RIOs are in the range of 13 to 20 channels, the agreements entered into are for a package of channels consisting of almost all the channels they are authorised to distribute.
3. Content aggregators grossly discriminated against independent DPOs, charging 62 per cent to 85% more than DPOs which are established by broadcasting groups.

The outcome of the amendments to the TRAI regulations could be the following:

1. End of the era of clout wherein aggregators used to bundle channels of various broadcaster groups into package cluster and thrust them down the DPOs throats.
2. Making it obligatory for broadcasters to publish RIOs will result in relative transparency of pricing of channels.
3. The margin of discrimination against independent DPOs may substantially get narrowed.
4. The existence of content aggregators gets erased from the regulatory point of view. The regulations make the broadcasters responsible for the actions of content aggregators, now described as authorised agents of broadcasters.

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