Trai NTO 2.0 Implementation Might Affect TV Segment Revenues

Trai has rolled out new tariff order with new provisions which was challenged by multiple broadcaster and federations. However, currently the NTO 2.0 has been sub-judice, and as per a new report by FICCI-EY 2020, it is estimated that the TV Segment revenues might take a hit of Rs 1,500 crore to Rs 2,000 crore. Trai in NTO 2.0 has announced specific provisions which might result in loss of Jobs. In brief, the decision of applying a cap on price discounts will create a scenario in which people will go for weaker and niche channels which would result in loss of jobs.

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Reduced NCF Will Impact TV Revenues

As mentioned in the new NTO 2.0, Network Capacity Fee or NCF has been reduced for multi TV connections. Also, many DPO’s are already following the revised NCF fee stated in Trai NTO 2.0. However, as per reports, it is expected that the reduction in NCF fees will have an impact of Rs 500 crore in revenues. Apart from NCF fees, the reduction in pay channels that can be added in the bouquet from Rs 19 to Rs 12 will also lower the revenues.

NTO 2.0 Provision Will Increase TV Subscriptions

As per the estimates, it is expected that the provisions of NTO 2.0 will bring back lost TV subscription which the industry lost because of the older provisions. The latest provisions which include long term package discounts, reduction of NCF in Multi TV connections has lowered the price of TV subscription. So, the new provisions mentioned in the NTO 2.0 will become an aid in adding new TV subscribers.