Trai Tariff Regime: More Than 80% Subscribers Admit to Choosing OTT Platforms Over Cable TV in the Long Term

The new Trai tariff regime has invoked contrasting reviews regarding the new direction with some people believing that there is increased transparency in the industry

Highlights
  • Subscribers spent an average of two hours per day on television or online content consumption
  • 60% of the subscribers also have a broadband connection in their homes

The industry trends have made it clear that the new tariff regime brought by the Telecom Regulatory Authority of India (Trai) has shifted the industry towards a new direction. There have also been mixed sentiments regarding the new tariff regime, with some believing it to be a positive change and others feeling that it has forced the prices to shoot up. However, to get a clear picture of what the consumers think, Velocity MR, a prominent market research and analysis company announced the results of their pan-India study which took note of current TV viewing, spending patterns and sentiment of consumers. The survey covered 2,010 respondents across Indian cities including Delhi, Kolkata, Mumbai, Hyderabad, Bangalore, Chennai, Ahmedabad, and Pune. The report says that more than 80% of subscribers are looking to switch to OTT platforms over Cable TV in the long run.

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.

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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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Akhil
Akhil

I like this new scheme from trai. I am from Kerala and i pay only 250 per month. I get to watch premier League and champions League in hd plus English and infortaiment channels in hd along with my regional language channels. I was against the new trai regime at first, but I was wrong. You just need to be clever at selecting broadcaster boutiques and individual pay channels. Only choose what you really watch. You will be fine. And about Netflix and Amazon, i don’t think they have much future in India unless we get really cheap and superfast… Read more »

City
Kerala
Operator
BSNL
DTH
Dish TV
aman
aman

dth going nowhere as unlimited broadband plan with good speed still above 1500. for streaming requires smart tv which r to expensive and very less people own. once jio launch than some affordability come. still dth packs available for 150 with all basic channel there.

City
delhi
Operator
airtel
DTH
dishtv
Arena
Arena

Yes…dth won’t die. But DTH will become cheaper., They might tie up with local broadband players and offer hybrid STB boxes like DTH for tv + Internet for OTT . But majority choose ott if everything becomes affordable.

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