Economy

Cable TV, DTH services getting dearer: Crisil report

crisil-DTH & Cable TV

As per Crisil report on Monday, Cable TV and Direct-To-Home (DTH) services bills are likely to increase for most subscribers. The new norms of Telecom Regulatory Authority of India (TRAI), which came into force on Feb 1, would give benefit to over-the-top (OTT) platforms.
The report says that the channel price and network capacity fee (NCF) announced by distributors and broadcaster as per TRAI’s new guidelines could increase the monthly bill of most subscribers of TV channels.
A senior Director, Ratings at Crisil, Sachin Gupta, said, “The impact of the new regulations means a variation on monthly TV bills. As per current pricing, the monthly TV bill can go up by 25 per cent for the viewers who opt for the top 10 channels instead of those who opt up to top five channels and the subscription revenues of broadcasters would jump by 40 per cent to Rs 94 per month per subscriber as compared to current price of Rs 60-70.
At present, the distributors are charging NCF at the cap rate of Rs 130 per month while the broadcasters have priced subscription at the cap rate of Rs 19 per month for the most popular pay channels.
Nitesh Jain, Director, Ratings at Crisil said, “Due to these new guidelines, OTT platforms would get benefit due to shifting of many viewers as well as low data tariffs also encourages viewership on OTT platforms.

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