New TV channel pricing could lead to MSO, LCO consolidation

Mumbai: The Telecom Regulatory Authority's (Trai) new tariff regime, which got here into impact from February 1, may result in consolidation among the many multi-system operators (MSOs) and native cable operators (LCOs) shortly, says a report.

As per the brand new tariff regime, viewers can choose and select the channels they want to watch and pay for less than these chosen channels, relatively than the sooner system of paying for a bundle of channels that had been being pushed to viewers at a set fee.

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The brand new pricing coverage is geared toward bringing in transparency and empowering the viewers who had been earlier provided packs by DTH and cable operators with out a lot alternative.

"Content material value will now be a pass-through for distributors and be borne by broadcasters, which was earlier being shared between broadcasters and distributors in a mutually determined ratio. This might result in an enchancment in margins of distributors which may even result in consolidation amongst MSOs and LCOs within the coming months," Care Ranking stated in a report Tuesday.

The report additional famous that distributors, who’re already dealing with strain because of growing penetration of OTT gamers, could begin providing heavy reductions to fight competitors and maintain, which might profit subscribers whose invoice quantity can come down.

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The company additionally expects content material to drive the channel choice and unpopular channels could go off the air if they’re unable to generate sufficient subscriptions and advert income.

"Some unpopular channels with low rankings, which had been earlier provided in a bundle with different in style channels, will now be at a drawback. If they’re unable to generate sufficient subscription and promoting income, they may go off the air," the report warned.

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