Channel price hike: Are broadcasters and cable operators nearing a compromise?

Industry experts say broadcasters may give some leverage and consider the concerns of cable operators

by Aditi Gupta
Published - June 19, 2024
3 minutes To Read
Channel price hike: Are broadcasters and cable operators nearing a compromise?

With the Lok Sabha elections over, broadcasters may now contemplate raising TV channel prices. However, they are also expected to take into account the concerns of cable operators, who have strongly opposed any price hikes since the new tariff order was implemented in February 2023. Though the Telecom Regulatory Authority of India is yet to say anything on the matter, sources say both the sides are working on reaching a common ground.

“The authorities seem to be tight-lipped on what is to come next, but broadcasters and cable operators are in talks about the new RIO agreement, which could be entered into soon,” said a source close to the development.

To ensure that the elections were covered smoothly, TRAI in April asked broadcasters to put on hold the price hike of TV channels till the new government was formed.

According to a senior industry expert, there is no word from TRAI on the matter yet but the price hike is likely to remain on hold till the end of this month.

“TRAI had refused to intervene. There is silence there so far. We have to wait till the end of this month. Till then, there may not be a price hike in channels,” he said.

Another expert said that broadcasters may give some leverage and consider the concerns of cable operators. If that happens, the new RIO agreements will be finalised soon.

“Talks seem to be moving in a positive direction with both parties, cable operators and broadcasters, moving towards a common ground,” said another industry source.

e4m reached out to TRAI before publishing the story but no response was received.

Cable operators have been on tenterhooks over the channel pricing and have been demanding that they should not be forced to buy the bouquets fixed by broadcasters at increased prices as that is increasing their operational cost, increasing financial burden on consumers and then causing them to migrate from cable to OTT.

In this television scenario, it is important to note that one of the big broadcasters had recently mentioned that the focus should be on strengthening the pay TV ecosystem and even expressed hope that NTO 3.0 and tariff forbearance will help achieve this goal.

“We remain hopeful that NTO 3.0 implementation and tariff forbearance will strengthen the Pay TV ecosystem and pave the way for sustained growth in subscription revenues,” ZEEL MD and CEO Punit Goenka had said during the Q4 earnings call.

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