Dish TV Expects 20% Reduction in Content Charges After Introduction of New Trai Tariff Order

DTH provider, Dish TV has said that courtesy of the new Trai tariff order, the content charges are expected to come down by as much as 20% for the company. The provider has also said that since the new Trai order has taken aback the MSOs (Multi System Operators) by a shock, the DTH platforms will benefit as they will get more subscribers. There is likely a hint of truth in this prediction, as a lot of MSOs have been unprepared for the implementation of the new tariff order, the result being that the subscribers have been facing many problems and are ready to switch to another DTH provider, given that the service is satisfactory.

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New Tariff Regime Good for Dish TV in the Longer Run

In the Q3 earnings conference, Jawahar Goel, Chairman and MD of Dish TV said that the company could not discuss the new payouts to the broadcasters as it will start happening next month. Further, the CMD said that the company expects reduced content cost by around 20% owing to the introduction of the new tariff regime. In his statement about the same, Jawahar Goel said, “Currently, our pay channel cost is 35-38%. In the case of D2h, it is roughly around 40%. If we are paying Rs 2300 crore, we are expecting content cost on a net basis will be around Rs 1800 crore.”

It is also worth noting that Dish TV was one of the earliest adopters of the new Trai tariff regime, however, even after quick adoption of the new pricing scheme, the platform failed to leverage it to its advantage in the form of subscriber addition. When asked about this by Television Post, Dish TV India Group CEO, Anil Dua said that this was a short term trend and that the new tariff order is right in the long term.