New Tariff Order (NTO) 2.0 for TV Broadcasters

[SVK]

NTO 2.0: Broadcast tariff hike might lead to customer churn from TV to OTT, DD Free Dish - Exchange4media

TV customers are already paying higher subscription fees under NTO 1.0 due to the addition of the Network Capacity Fee

www.exchange4media.com

The unbundling of general entertainment and sports channels from bouquet will lead to an abnormal increase in the price of TV channels, which will accelerate the subscriber churn from TV to OTT platforms at the upper end of the pyramid and from pay platforms to DD Free Dish at the lower end, say experts.
In a bold move, the broadcasters have decided to keep their driver channels outside the bouquet under New Tariff Order (NTO) 2.0. Sony Pictures Networks India (SPNI), Star India, ZEEL, and Viacom18 have filed new Reference Interconnect Offers (RIO) to comply with NTO 2.0.

 

[SVK]

Advertisers worried as NTO 2.0 may affect reach of select TV channels

Some advertisers say they may go slow on their TV ad spend and wait for NTO 2.0's impact on the subscriber base of flagship and niche channels to be more visible

bestmediainfo.com

Experts believe this is likely to impact the advertising revenues of select channels, especially niche channels, as the price-conscious consumer may rationalise her TV package, leading to a reduced reach for some channels.
...
The NTO 2.0 has put a cap on the MRPs of channels that wish to be a part of bouquets. Hence, broadcasters are pricing their flagship channels above Rs 12 as they cannot be a part of any bouquet. The demand for flagship channels across the country will thus increase the monthly cable bills of the end consumer. This is indirectly encouraging a-la-carte channels.

 

[mreccentric]

My cable television is showing a blue screen from yesterday as a strike against NTO. There is an issue with TRAI.

 

[SVK]

NTO 3.0: Row escalates between broadcasters & cable operators over distribution agreement - Exchange4media

The two factions released statements over the weekend after broadcasters disconnected channel signals to cable operators who refused to sign fresh distribution agreements under NTO 3.0

www.exchange4media.com

 

[igloo]

Creating a new mess each time just to promote jiotv?

 

[mreccentric]

Indirectly, it seems like the OTTs are benefited by this. But, why?
The cable television is already costlier, and i have seen a few friends who are not subscribing cable television or any DTH. Some of them started using TV on mobile, and internet for information. Why is this change?

Isn't there a vested interest behind? Anything new or a change that comes in the country, there will be the hands of the ruling government in it is what i say.

 

[doineedto]

It is pretty simple. Most of the urban crowd has moved past traditional television. Only the elder population watches traditional TV. If you glance the details, only the MSO's have a problem with NTO 3.0. These guys are holding on to a losing business, and know that if the prices are hiked, they will start losing subscribers at a faster pace and everyone will move to OTT. Thus the revolt.
The prices are increased for DTH providers too, but they don't share profits with LCO providers, and thus can take a hit in revenue.

The cable television is already costlier, and i have seen a few friends who are not subscribing cable television or any DTH. Some of them started using TV on mobile, and internet for information. Why is this change?

Basic human nature! You can control what and when you watch content on OTT. Why would anyone want to watch cable when they have a better alternative? Nobody complained when traditional phone calling was replaced by free WhatsApp calls. The tech industry keeps churning and industries have to keep up with it.

 

[mreccentric]

Over 'reliance' on Internet. I know that lot of things have changed for LCO over the recent years. The bringing in of these kind of selective viewing and increased tariff structure will make the viewers depend on the internet for all the news and stuffs. And, only a pro-party stuffs will be available for free, and in my humble opinion this is same as internet/television not being neutral.

 

[igloo]

Finally a normal all channel plan is now costlier than 470 pack of jio.
Why are live tv channels from ott pack subscription left out of trai pack regime when dth n cable TV are under it?
Shouldn't this be same regardless of medium if channel name is same?
Why this arbitrage to benefit a new provider each time?

 

[doineedto]

@mreccentric By that logic, we are over-reliant on washing machines, refrigerators and what not! Content and platform are two different points altogether. Here we are talking about the platform of consuming content. Internet or television are both platforms. The actual content is controlled by the media houses irrespective of where you watch it. A similar argument can be made when televisions with 24x7 content replaced newspapers as primary mediums. Your point of content neutrality has nothing to do with the platforms.

@igloo OTT does not come under the ambit of Cable Television Networks (Regulation) Act. To put it simply, it outlines the regulations for fair play of cable networks. Hence OTT cannot come under it. The OTT space is currently open for all. You can start your own OTT service and charge whatever you want. That doesn't mean that you are benefiting as a new provider.

Edit: I do not actually subscribe to TV. This is just my understanding