TV broadcasters have hiked the costs of their channels and bouquets following the notification of the New Tariff Order (NTO) 3.0 in November 2022.
Trai restored the MRP cap of ’19 and eliminated the dual situations, which had been launched to create a linkage between the worth of particular person channel costs and bouquets.
The lately launched FICCI-EY report acknowledged that TV subscription revenue declined for the third 12 months in a row. It contracted 4% to ‘39,200 crore in 2022 attributable to a discount of 5 million pay-TV properties and stagnant consumer-end ARPUs.
According to Crisil, the current tariff hike by DTH operators will result in 6-8% development of their revenue to ‘19,500 crore in fiscal 2024, which is roughly 95% of the pre-pandemic revenue in fiscal 2020.
It added that the online subscriber addition within the DTH sector is predicted to stay flat over the medium time period attributable to subscriber migration to digital and DD Free Dish platforms, and stiff competitors from cable operators.
Crisil Ratings Director Naveen Vaidyanathan stated DTH’s month-to-month common revenue per consumer (ARPU) is predicted to develop 7-8% to ‘300-305 this fiscal. “This would enhance the sector’s revenue, though it’ll nonetheless be 5% wanting fiscal 2020 ranges. Over the subsequent few years, the sector ought to proceed to develop reasonably, pushed by the expectation of additional revisions in tariffs. That stated, various platforms obtainable to customers for watching content material may maintain internet subscriber additions flat.”
The CEO of a prime cable TV firm stated that the subscription revenue of MSOs will enhance by 4 to six% following the tariff hike.