Trai Tariff Rule: DTH, Cable TV Users Choose OTT Platforms Courtesy of Increased Monthly TV Bill

More than 50% of DTH and Cable TV users complained that their monthly TV bill has gone up by at least 25% which is the reason why Trai is considering options to lower the bills

Highlights
  • Trai already confirmed the subscriber migration is fully over
  • The telecom regulator is now looking options to reduce TV bill of users

In a couple of days, we will be fully two months into the new broadcasting regime introduced by the Telecom Regulatory Authority of India (Trai). Even after two months, some DTH, Cable TV users are facing issues related to migration and their monthly bill. There’s no doubt that the new regime has increased monthly TV bill for most of the subscribers and even Trai has admitted that. Tired of the increased monthly TV bills, both DTH and Cable TV subscribers are choosing OTT platforms over their current TV connection. OTT platforms such as Hotstar, Sun NXT, ZEE5 and others are also airing their respective television channels live on their respective apps. For example, if a subscriber chooses Sun NXT monthly or yearly membership, then he/she will be able to watch all the content of Sun TV Networks on the web with ease. Sun NXT app is available for Android TV, and Android, iOS smartphones. A report by market research and analysis company Velocity MR also states that the same- TV subscribers are switching to OTT platforms.

Trai Admits Increase in Monthly TV Bill for Consumers

Ever since the new tariff regime came out, Trai kept on saying that the new regime will bring transparency and also reduces the monthly bill to the subscribers. However, in a recent interaction with ET Telecom, the sector regulator revealed the new regime has increased the monthly TV bill of users and it’s currently looking to bring down the tariffs so that it can save the consumers from switching to OTT platforms.

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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vkkkAkhilRajesh Recent comment authors
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vkkk
vkkk

my monthly DTH prices have been surged from 280 to 700 INR, useless this has to be banned and old system was good to get channels as per connection whatever that would be provided. MODI JI look into this, this is why you have sent so many satellites to increase prices

City
hyd
DTH
hathway
Akhil
Akhil

Actually this trai rule is very wrong.. My perception is.. Does all dth/ cable operators have same quality? Same price? Same service? Same channels? If it is not so how the new trai regime is justifiable.. If everything is not standardized, why the consumer should suffer. Now, it’s a lot of inequality to the users.. If quality : Some dth / cable can’t provide the same quality as other dth provider, but he is paying the same.. If price: All dth / cable operator has own prices for set top box, which means the viewing medium is different.. Some operator… Read more »

City
Vijayawada
DTH
Sun Direct

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