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

Going by the words of Dish TV, CMD, Jawahar Goel, the new tariff regime will work in favour of DTH players in the long term

Highlights
  • Unprepared MSOs mean that the DTH providers will gain additional subscribers
  • Dish TV unsatisfied with the 20% margin being given by the broadcasters

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.

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.

The Unpreparedness of MSOs to Help DTH Platform Gain Additional Subscribers

Dish TV, CMD, Goel also said that as the customer grow reluctant of spending more on their cable or DTH subscription, small broadcasters who do not offer worthy content will be pushed out of the market. He further added, “You must have seen there are around 15-20 Hindi movie channels. They are surviving on connectivity as well as the capacity to buy content compared to lower established players. I think they will go out from the market. So, I think movie buying rights will get reset.”

Overall, Goel expressed that the sentiment towards the new Trai tariff regime is positive for Dish TV as the order will reap benefits in the longer term. He again mentioned that the unpreparedness of the MSOs would work in favour of DTH operators gaining more subscribers. He also said that since DEN and Hathway are also prepping themselves for the adoption of the new Trai order, it will take Jio another two or three months to enter the market. Until now, Jio has not made any considerable dent in the market, he added. However, as per the CMD, Dish TV is not happy about the revenue share with the broadcasters. Speaking about the same, he said, “We are not happy with this 20% margin that is being given by the broadcaster. So, we are negotiating with them, talking to them. These things will start happening after the broadcaster gets a first or second weekly report of their channel viewership. Thereafter the new discussion will start happening.”

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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.

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ArenaManiSunny | LucknowVilasM S Recent comment authors
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Vilas
Vilas

D2h also selected random channels which I have not subscribed for. Tata Sky is way too better than other operators. Even the STB interface very much neat and clean on Tata Sky.

DTH
Tata sky, d2h
Mani
Mani

Tata sky also forcing 100+ FTA channels to users which we don’t wanna watch, they said this is absolutely free without NCF but I don’t want these crap, Airtel digital TV is lot better.

Arena
Arena

Lol…if they give it for free then what’s your problem? Tatasky is not maniSky to decide. Add everything you watch to your favourite list.

M S
M S

Dish tv has randomly subscribed to some channels which i don’t even watch. They have disabled the option to create your own package both on website and App, Customer care dosent have a clue whats going on and most of the time dose not connect. Don’t know whom to balme, TRAI or Dish TV.

DTH
Dish TV
Sunny | Lucknow
Sunny | Lucknow

My Dish TV apna pack was activated on Feb 2 (same day) . There is an option to create your own pack. They’ve fixed a lot of free channels in the base pack, I think around 150 but you won’t be charged anything more than Rs. 154 for them. They won’t affect your final NCF.

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