At a time when the service providers across industries are looking to increase their average revenue per user (ARPU), Tata Play (formerly known as Tata Sky) is reducing it. The company is reducing the cost of channel bouquets and packs for its users in order to retain them in an over-the-top (OTT) content dominated era. But this is not going to happen for everyone. Only select customers will see a drop in the price of the channel packs. So what’s really happening, and how Tata Play will execute it? Let’s find out.
Tata Play Reducing Price of Channel Packs, to Result in Savings of Up to Rs 100
To make the services more affordable, Tata Play is cutting the price of channel packs for users starting previous Saturday. This move will supposedly save between Rs 30 to Rs 100 for customers on a monthly basis.
Because of the state the pay-TV industry is in due to the high churn rate, NTO 2.0, and the bad state of the economy, Tata Play believes that it would be best if the price of channel bouquets went down. Tata Play has over 19 million active subscribers right now.
Harit Nagpal, Managing Director, Tata Play, told ET that more people are downsizing their plans today instead of upsizing. Thus, the company will be strategically dropping the price of the bouquets, packs, and channels for select users, which might compel these users to recharge more.
Nagpal said that this wouldn’t happen randomly. The change in pricing for the users will be done based on their usage history, and the only channels/packs from their bouquet that they don’t consume will be dropped. This will give these users peace of mind for only paying for services they really want to watch, resulting in savings. This is a good move from Tata Play at a time when the churn rate of the pay-TV industry is only rising every month that goes by.
