In the digital era, there is no dearth of content and platforms for customers. With availability of a plethora of entertainment options at enticing prices through OTT and social media, the humble cable TV industry has suffered in more ways than one. Today, the subscriber base of the cable TV industry is declining as customers are shifting to other alternatives which seem more convenient to them. According to a recent report by FICCI, while overall TV connections will grow at a healthy pace to reach 206 million homes by 2025, there will be a decline in the number of pay TV homes. From 131 million homes using cable and DTH in 2020, it has fallen to 120 million in 2022 and is estimated to go further down to 116 million homes by 2025.
Why are cable TV and DTH facing an existential crisis? Will the cable TV industry bite the dust or is there still a ray of hope for them to rise into power? exchange4media connected with the cable TV industry veterans to get a broader view on what future lies ahead for the oldest television distributors.
DD FreeDish killing cable TV?
According to industry experts, the number of cable tv subscribers has fallen by over 20 % compared to pre-Covid times. While the advent of OTTs and TRAI regulations on cable and DTH industry have been spoken about often, there is another low-key monster that’s slowly spreading its claws to clutch DPOs, and that is FreeDish.
A senior official from the cable industry, who did not wish to be named, told exchange4media that one of the biggest challenges for the cable operators today is the availability of free satellite channels i.e. DD FreeDish.
Prasar Bharati’s DD FreeDish, an Indian free-to-air satellite television provider, came into existence in 2004 but with just around 30 channels. It now has around 180 channels. This government-owned service is taking private players under its wings which leaves the local cable operators and DTH providers in the lurch.
“One of the biggest challenges for the cable TV industry is the DD FreeDish. The free channels are making customers switch from cable. The platform is easily being misused as unencrypted channels are available there. The misuse is evident and it will promote piracy,” the official said.
Experts feel that there is a lack of government support to the cable industry.
Rise of OTT platforms and government restrictions on DPOs
The evident rise of OTT platforms in the last few years has adversely affected cable TV and led to its slow decline forcing industry experts calling for a fair competition.
Speaking to exchange4media, Shaji Mathews, independent consultant and former COO, GTPL Hathway, said the cable industry is not getting the kind of support OTT platforms get.”
“Cable TV subscribers have fallen by around 20 % compared to pre-Covid times. The advent of OTT is responsible for the decline. There is a lack of sensitivity towards cable TV and it is not getting the required support from the government,” Mathews said.
The cable industry also blames broadcasters and TRAI regulations binding DPOs in terms of content, prices and mandatory discounts. They feel it is not the same with OTT platforms who are riding freely on the back of a self-regulatory framework.
“Broadcasters are to blame here because their channels are available at OTT platforms at a much cheaper rate compared to what they offer to cable TV operators,” another senior cable industry official said on the condition of anonymity.
Citing an example, he said, “An OTT platform provides five TV channels along with its digital subscription at a cheaper price but those same channels cost a bomb to the cable TV operators. There has to be a fair competition. This is also responsible for cable TV subscribers switching to OTT as its offers are more attractive price-wise,” he said.
TRAI regulates cable TV and DTH which binds them in terms of prices, network capacity fee and discounts but there is no such rule for OTTs, which is unfair, said experts.
Experts said there are no government/TRAI regulations binding OTTs like there are for DPOs.
Total number of Cable TV subscribers is declining. Broadcasters are the source of all content which is sold at a cheaper rate to OTTs. If they will sell their content at a cheaper rate to OTTs, then cable will definitely suffer, said experts, suggesting that the same content should be sold at the same pricing.
The way forward to strengthen the cable TV industry
Experts called for fixing the disparities between OTT and cable TV in terms of rules and regulations binding them. They demanded that if there can be a self-regulatory mechanism for OTTs and FreeDish, then why is it not the same for cable and DTH?
“Regulatory disparities need to be fixed. There needs to be fair pricing and competition,” said an expert.
To revive the cable Tv industry, the TRAI Cable and Television Rules binding it should be amended, particularly the rule that allows broadcasters to create bouquets which cannot be changed.
There is a need to break this system of broadcasters’ bouquet. Bouquet rights should be with DPOs, said a senior official.
“For example, if the a-la-carte price of five channels is Rs 100, then in the broadcasters’ bouquet the same is priced at Rs 55. This bouquet also has non-working channels and they usually push the channels which are not in demand. But a customer will pay Rs 55 and take the package because it is cheaper. Here broadcasters earn but cable tv operators suffer,” he said.
According to Shaji Mathews, the only way to revive the cable industry is to bring a hybrid service where cable tv and broadband are provided to the customers through one set top box only.
“This system exists in some countries like Korea and Taiwan. We need that technology in India if the cable tv industry is to be strengthened,” he said.
Mathews, however, added that customer loyalty still remains with cable TV and there is a possibility of the industry growing in the next 3-4 years.
“Life is difficult so TV should be easy. Cable TV has been and still is the easiest platform,” he said.
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