New Delhi: Indian Broadcasting Foundation (IBF), a national organization of TV broadcasters and other entities in the field of television, set up in 1999, highlighted the broadcasting industry’s criticism to the tariff order released recently by Telecom Regulatory Authority of India (Trai). IBF consists of 40 major broadcasters with more than 250 TV channels.
Trai recently pegged tariff for addressable systems at 35% of the rates prevailing in non-addressable markets and lowered the earlier ceiling of 50%. This, according to broadcasters, squeezes their position as content creators for the benefit of carriage operators.
According to IBF’s official release, Trai has given in to unjustified demands of certain DTH players who had been arguing for a hefty discount on content cost. The order, said the release, destabilizes the existing arrangements between broadcasters and operators, by paving the way for reopening concluded contracts and brings in uncertainty.
While average revenue per user (ARPU) for Pay TV ranges from Rs800 to Rs2,500 per month in other countries, it is short of Rs200 per month. IBF’s release highlighted that while consumers spend roughly Rs150 for each movie ticket, ARPU at less than Rs200 for over 100 channels is unjustified.