In a major development, most of the television broadcasters have switched off signals to cable operators, going off air for nearly 45 million subscribers in India.
Television Broadcasters Switched Off Signals To Cable Operators
This list of broadcasters includes service providers like Disney Star, Zee Entertainment Enterprises and Sony Pictures Networks India.
The move seems to be impacted by the fact that the television broadcasters have increased their bouquet and popular channels’ prices between 10-15%, under the new amendments to the tariff order, or NTO 3.0.
With this move, the cable operators will feel a pinch from their low-income consumers, especially in small towns, and are not willing to implement the same.
Some Intact Operators
Unlike others, Viacom18 Media Pvt Ltd which is owned by Reliance Industries has stayed away from taking this call for its network of channels.
It is noteworthy here that Reliance owns cable television distribution companies such as DEN Networks Ltd and Hathway Cable and Datacom Ltd.
In a statement, the secretary general, Indian Broadcasting and Digital Foundation(IBDF), Siddharth Jain said, “Broadcasters had taken a price increase after four years post the release of new NTO guidelines by TRAI. Most DTH and cable operators, whose base adds up to 80% of India’s PayTV customers, have already started implementing the new prices and they’ve had to increase consumer prices by approximately 5% after four years. Some cable operators did not sign fresh agreements, thus forcing broadcasters to disconnect their services after serving due notice,”.
Here, IBDF is an apex body of television broadcasters.
Other players like DEN and NXTDIGITAL Ltd did not respond to the media queries on broadcasters switching off signals.
How Did This Happen?
The Fastway Media Cable Network Pvt Ltd and GTPL sent Notices to customers saying pursuant to the new tariff order issued by Trai and the resultant massive increase in prices by the broadcaster, the channel had been disconnected by the broadcaster.
Further, the notice mentioned, “We are putting our best efforts to protect your interest against the massive increase in prices and taking all possible measures, including a legal challenge to avoid any major increase in prices for you. We request your cooperation and support in this protest against the unreasonable price increase,”.
The broadcasters were allowed by the sector regulator to increase the prices of channels, which are part of a bouquet, to Rs 19, from earlier Rs 12, under the new amendment or NTO 3.0.
Notably this new pricing was effective from 1 February.
According to this, most broadcasters have increased their bouquet and popular channels’ prices between 10-15%.
They claim that it’s the bare minimum as there has been no price increase over the last four years.
On the other hand, DTH (direct-to-home) players, who, unlike the cable industry, don’t have local cable operators, have decided to take some hit on other costs, and pass on only a 5-9% increase to subscribers.
In the meantime, the cable industry is concerned with the price hike.
In the same regard, the All India Digital Cable Federation (AIDCF), a lobby group of the multi-system-operators (MSO), had already petitioned the Kerala High Court against NTO 3.0.
They have asked for interim relief from disconnection notices issued by broadcasters.
Notably, the court has listed the matter for hearing on 20 February.
