While many distribution platform operators (DPOs) feel the pay-TV consumers are not ready for a price hike, TV broadcasters maintain that the hike is nominal and will not pinch the consumers hard.
Leading broadcasters had recently come out with new rates for TV channels. The broadcasters have hiked the MRP of several channels and bouquets. This has not gone down well with the DPOs. Sony Pictures Networks India chief revenue officer, distribution & head, sports, Rajesh Kaul states that the price of base bouquets has seen a 10% increase which is not very high because the price hike is coming after three years.
“The price of the base bouquet, which is opted for by 80% of the consumers, has increased by 10%. This is a very nominal increase since we have not been able to hike the rates in the last three years. The ARPU increase at the consumer level will be 10-12%,” he stated.
He also stated that this hike will not lead to a churn in the pay-TV universe which has stabilised in the last 5 to 6 months.
A top distribution executive from a leading media company said that the broadcasters are looking at an inflation-linked increase in prices which is not more than 8 to 10%.
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