10 March 2019
New Tariff Order to Provide Bigger Challenge to Standalone and Niche Channels
Given the Broadcasting Television industry is still a B2B2C business. It is not yet a B2C business unlike OTT major stakeholders believe that Stand-alone and niche channels will face a big challenge in the advent of the new tariff order and regulations by TRAI as in television one still goes through a distribution platform. Therefore, the Consumer Choice could come into trouble as they will have to shell out a lot more for niche channels and standalone channels as opposed to channels being offered by distributors in a bouquet. Given that Ads are completely dependent upon reach of channels, low rung channels which are available on standalone basis such as travel and living, business news channels, and lifestyle channels being offered on a standalone basis will get lesser and lesser reach and hence, produce lower potential for advertisement despite being wanted by the Consumers. Such Broadcasters now turn to digital as a test to see how speciality content is being viewed. Consumption on digital, in general, has increased manifold and the impact of that on getting higher revenue needs to be seen as it gives more freedom to consumers.