Discount Capped on Channel Packs The major issue with the new Trai DTH rules is the discount cap and the disparity with which Trai has dealt with DPOs (Distribution Platform Operators), DTH companies and the broadcasters. For the DTH companies, there has been a limit set on Rs 160 NCF, which is the maximum that can be charged from the consumer, no matter how many channels they watch or subscribe to. On the other hand, for the broadcasters, there is no discounting allowed on the channel packs. Further, the pricing of the channel, which can be included in a channel pack has been brought down to Rs 12 per month. Meaning that if a channel is to be included in a pack, then it will have to be priced Rs 12 or lower. To recall, the first blow came to the broadcasters when Trai tariff regime came into play. For the Pay-TV broadcasters, it was the first hit as the subscribers gravitated more towards free channels and these channels lost advertising revenue and subscription revenue both. Now with this further rule change, although the a-la-carte channels have been given a priority, alienating these channels from the packs is going to mean a further slump in subscription for the channels. This could mean a further loss of revenue for the broadcasters, and this is what the companies are worried about. Trai Places Strict Rules on Making Channel Packs Now Trai has also set a cap on the carriage fees which is charged by the DPO for carrying the channels, and this has been set at Rs 4 lakh, but even this is a little relief for the broadcasters. Further, there is the stringent rules regarding the making of channel packs like the one-third pricing rule for the channel inside a bouquet, or the fact that the individual channel cannot be priced more than one and a half times of its price in the bouquet. Overall, it can be said that the new Trai DTH rules are good for the consumers as they will reduce the Multi TV pricing and the NCF charges too in the case of too many channels. But, for the broadcasters, these rules hurt the companies and bring in too stringent regulations. The severity of the issue is so much that the broadcasters guild, the Indian Broadcasting Foundation (IBF) and big broadcasters like Star India have filed a petition in the Bombay HC.
