Both SPNI and ZEEL have raised the prices of their base bouquets by over 10%. Jio Star is anticipated to implement a significant hike due to its strong presence in general entertainment and sports. The new pricing is effective February 1.
SPNI’s Happy India Smart Hindi pack now costs ₹54, up from ₹48. However, the bouquet now also includes a Hindi movie channel, Sony Max 1. Meanwhile, Zee Family Pack Hindi SD now costs ₹53, compared to ₹47 previously, and includes English entertainment channel Zee Cafe.
The price hike comes at a time when the pay-TV industry has declined to fewer than 100 million homes, down from 120 million to 95 million in recent years. According to TRAI’s latest Performance Indicator Report, the combined paid active DTH base of four private operators – Dish TV, Airtel Digital TV, Tata Play, and Sun Direct – shrank by 2.26 million to 59.91 million as of September 2024.
Distribution platform operators (DPOs) are concerned that annual price hikes by broadcasters will add to their burden, as subscribers have multiple alternatives, including premium OTT services, DD Free Dish, and YouTube, which continue to gain traction across various consumer segments. However, TV broadcasters argue that they have no option but to increase bouquet rates despite fears of a shrinking pay-TV universe. They point out that the advertising revenue of major broadcasters remains under pressure due to slower growth in advertising expenditure (AdEx) and a shift in advertising strategies toward digital platforms. “The pay-TV universe will continue to decline even if we don’t implement the rate hike, but at least we can protect our revenue by increasing the average revenue per user (ARPU),” said a senior TV broadcasting executive on condition of anonymity. This marks the third consecutive year of bouquet price increases following the Telecom Regulatory Authority of India’s (TRAI) amendment of the new tariff order (NTO) after a protracted legal dispute between broadcasters and the regulator.
A cable TV official, also speaking on condition of anonymity, described the price hike as a “double whammy” for DPOs, who bear the brunt of consumer dissatisfaction. “Price hikes by broadcasters will definitely increase churn. So far, DPOs have shielded consumers from the full impact by keeping the network capacity fee (NCF) at a reasonable level,” he added.
The NCF is the fee consumers pay to DPOs for transmitting content through their networks. Bouquet rates are passed on by DPOs from consumers to broadcasters after retaining a commission.
Broadcasters are also adhering to the recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order, which declined interim relief regarding pay channels on DD Free Dish. The regulation mandates that free channels on Prasar Bharati’s DD Free Dish cannot be classified as pay channels on addressable platforms like Hathway Cable and Tata Play.
