- Trai's new tariff regime fully became effective from April 1
- OTT content players are reducing prices to compete with each other
Since the start of 2019, there has been a long debate on the new pricing scheme introduced by Trai for the broadcasting sector. Trai believes that the new framework will allow users to choose what they want to watch, but both Cable TV and DTH subscribers are complaining that their monthly TV bill saw an increase as they’ve to choose the channels individually. A new report by Velocity MR (market research and analysis company) reveals that both the Cable TV and DTH subscribers are ready to migrate to OTT platforms instead of paying monthly TV bill. With the OTT pricing war intensifying in India, it will be extremely tough for DTH players to retain their subscriber base as more than 80% of customers are ready to subscribe to OTT platforms which is not a good thing.
Mixed Reaction to Trai Tariff Regime
The subscribers were asked questions about the new Trai tariff regime and how it had affected the pricing of channels, their viewing habits and more. Jasal Shah, MD & CEO of Velocity MR said, “The opinion on the new Trai rules weighs slightly more to the positive side as more than 50% say that it allows them to choose the channels that they want to watch and hence the cost per channel is not an issue. But an equal majority of about 40% claim that by the new regulation they get fewer channels for the same price they had paid earlier. In other words, TV subscription costs have become expensive. Close to 5% are not even aware of this new regulation.”
Shah also stated, “The New rule might drive consolidation in the broadcasting industry as content will be the king and critical divergence. Meanwhile, Netflix, Hotstar, Amazon Prime and other such streaming services may be the inadvertent beneficiaries, as the move may bring in more subscribers to the OTT platforms, as the viewers could shift due to the rising subscription bills.”
80% Subscribers Likely to Opt for fewer Channels or OTT Services
As per the study published by Velocity MR, 80% of the people had said that they would either opt for lesser channels or switch to OTT providers like Netflix, Amazon Prime etc. The study also highlighted that the average spend on cable or DTH connections in a month was Rs 350. In the metro cities, the study showed that almost 60% of the subscriptions were from DTH providers and 40% were cable TV. The survey also revealed that the average time users spent watching TV at homes or consuming online video content was pegged at 2 hours. 60% of the subscribers also had a broadband connection at home, and Airtel emerged to be the top broadband provider. Also, 70% of the people admitted to watching Amazon Prime videos at least once a week and Netflix was said to be the platform with the best original content.
Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.