Almost Half of All DTH Subscribers Ready to Pay More for New Transparent Framework by Trai: Report

There has been mixed reactions to the introduction of the new Trai tariff regime. While some sections are criticising the new move as it has led to higher prices of the channels, others deem it as a good move for the long term

Highlights
  • The subscribers are more likely to move to OTT apps now, after the Trai tariff regime
  • Almost half of the subscribers, used the individual channel selection method to curate their subscription

The subscriber migration deadline of March 31 is already past us now and the dust is starting to settling down in the TV and broadcasting industry as things grow smooth again. As for the subscribers, most of the TV viewers have been in a divide when it comes to the new Trai tariff regime since it has increased the monthly rental prices for TV even though it has brought transparency to the pricing framework. A new study by YouGov has revealed even more insights about the consumers’ sentiments towards the new Trai tariff regime. The study also asked the subscribers whether they were okay with the new increased prices of TV channels since it meant a more transparent system. Subscribers were also asked questions regarding OTT apps.

Half of the Lot Paying More in DTH Subscriptions Post Trai Regime

As per the market study, 92% of the total people studied know about the latest Trai order, and around three-quarter of these people (76%) have already changed their subscription to plans which are favoured by Trai. In North India, about 3 out of 5 people (62%) termed the new Trai mandate to be a favourable implementation. However, approximately one-third of residents in South India, or around 32% said that they were not entirely convinced about the new regime. More than half of the total people, 54% of the lot said that they would likely be spending on more on their DTH subscription in the coming days because of the new Trai tariff regime.

YouGov divided the people into three classifications and found that 54% landed under the first tag – who were feeling that they were paying more post the introduction of the new Trai mandate. Around 32% of people were actually in favour of the new order from a monetary perspective since according to them, they were able to enjoy fair pricing for their channels and transparent fees. Lastly, around 14% of the subscribers said that they had no change in their bills and were essentially paying the same amount every month even after the new rules.

People More Likely to Move Online After New Trai Tariff Regime

It is worth noting that only a few days back, Velocity MR had also conducted a market study to grasp the market sentiment about the new Trai regime which had revealed similar stats. In the survey, around 55% of subscribers had said that were satisfied with the new tariff regime as it brought more transparency in the industry. Same was the case with the YouGov study as well since even the subscribers who thought were overpaying said that the new regime brought changes that were welcome.

The YouGov research also highlighted that 49% of the public thought they were more likely to watch OTT content online after the introduction of the new tariff regime. Two in five people also felt that they would resort to the internet to watch TV content. YouGov also revealed that only around 23% of people responded with affirmative when they were asked about whether or not this would increase their TV viewing time.

Tata Sky Emerges as Most Popular DTH Platform Among Masses

The study also took a glance at the channel selections of the subscribers. The study showed that 52% had individually selected channels, 24% had added all FTA channels along with very few pay channels and 24% had bought a bundle pack. Movies, News, GEC channels, sports and music were the top channel choices in that order for the subscribers. When it came to packs, 46% selected the Star Value pack, and 32% went for the Zee Family Pack Hindi. The numbers were low in South India, as only 21% of subscribers chose Hindi channels.

Also, Tata Sky emerged as the top DTH provider in India with almost 30% of people saying that they were subscribed to the platform. However, 46% also admitted to saying that they would probably switch their service provider with the standardised rates in place now.

Commenting on the new study, YouGov India GM Deepa Bhatia said that the new implementation is likely to affect advertisers as it will change viewership patterns. As such, the advertisers will have to revise their media plans keeping in mind the consumer behaviour. She also said that people were more likely to move online to consume content now.

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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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Nitin Kumar GargEsmailTroysudhakarSun Viewer Recent comment authors
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Esmail

TRAI should have simply imposed a single revenue stream model on the broadcaster’s channels, so that they may either be FTA ad-supported and earn revenue from advertisers or be ad-free and be paid channels, not earn from both sides. This would have solved the problem and all flagship channels od Star, Sony, Viacom 18, Zee, etc would have become FTA since advertising revenue is way higher than what they earn through subscription fees.

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Mumbai
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Jio
DTH
Tata Sky
Troy
Troy

The entire market study is fake. Just to show the viewers that everyone favours the new tariff structure when the reality is just the opposite. Shame on TRAI and this government.

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