DTH Companies Say They Will Raise Prices Gradually, Not In One Go: Report

DTH operators have decided to pass on the price increase by TV broadcasters to their subscribers in gradual manner instead of a one-time lump sum hike, according to a report in The Economic Times.

According to the New Tariff Order (NTO) 3.0, consumer tariffs have been increased by Rs 25-50 per customer with effect of February 1. However, industry sources say NTO 3.0 is likely to take two months to get fully implemented on the ground.

Broadcasters have been complaining that the price of TV content has not seen any increase since 2019 despite a spike in content acquisition and production costs.

A Tata Play spokesperson was quoted as saying that the company will increase the price over a period of 4-6 weeks.

"Prices will increase by 5-6 per cent for most customers, after remaining the same for the last 4 years. Despite broadcasters taking a higher hike, we can keep the price hike to its minimum because the network carriage fee and the tax components of the price are not being increased," the spokesperson told ET.

A top-level official with another leading direct-to-home (DTH) firm said the industry has decided to implement the price hike in parts.

"DTH operators will not go for a price hike at one go to reduce the burden on customers. In any case, the price hike will get implemented when the subscription package of the customers is up for renewal," he told the publication.

Another TV broadcasting executive said that this wasn't as much a price hike as it was a price correction "because broadcasters have not been able to increase prices since February 2019".

According to a Ficci-EY 2022 report, the average revenue per user (ARPU) for TV subscriptions stood at Rs 223 net of taxes.