After implementation of New Tariff Order by Telecom Regulatory Authority of India (TRAI) led to an increase in Cable TV monthly bills for TV Viewers / Subscribers in India. As a result, these subscribers are not renewing their monthly subscription package due to high price of channels. So they are moving to cheaper or in some cases free video streaming services.
As per CIRIL report, about 25 % increase in subscribers’ monthly TV Bill which have an impact on Cable TV / Direct to Home (DTH) market with Cable / DTH Operators witnessing an unprecedented 25 % fall in TV Viewers / Subscribers in the April – June quarter.
According to TRAI report, DTH services had an average active subscriber base of 545 Lakhs in the quarter ended 30 June, a 25 % drop from 75 Lakhs active subscriber base reported in January-March quarter. This coincides with the new tariff order implemented by the regulator from 1st April, 2019.
There are several challenges faced by Cable TV / DTH Operators during the transition to the new tariff regime where TV Viewers / Subscribers were to pay only for what they watched.
OTT applications such as Zee Entertainment’s Zee5, Star India’s Hotstar and Sony’s SonyLIV has already impacted the subscriber numbers as these platforms allowed TV Viewers / Subscribers to watch TV shows for free. The paid versions of these apps were charging a fraction of the average bill customers were paying for their DTH subscription.
On Demand Content
Industry Experts feel that there are number of subscription drop in Cable / DTH sectors since there is a clear shift happening towards on demand content. High speed and low cost mobile Internet has led this by shifting consumption to mobile devices.
With Netflix, Amazon & Hotstar, consumption has moved to mobile devices. Netflix launching its mobile only plans just for the Indian market. With cheaper data and 4G speeds, people’s consumption is shifting towards mobile devices.