“Recharging DTH”
Scaled down licence fee will help, but there is no escaping competition
The Union Cabinet’s approval of a revised scheme for the Direct-to-Home (DTH) television distribution sector beginning with 100% FDI brings a measure of calm to an industry buffeted (प्रभावित; to hit something or someone repeatedly, usually hard) by technological change and revenue pressures this year.
Under the new norms, the licence period will go up to 20 years from the present 10, and, importantly, the fee has been reduced to 8% of Adjusted Gross Revenue, after setting off service tax, as opposed to 10% on Gross Revenue now.
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The proposal for a reduction in the licence fee has been on the backburner (ठंडे बस्ते में; a condition of being low priority; postpone an action) for six years since the regulator, TRAI, recommended it. The DTH operators have also been facing a challenge from high bandwidth Internet and new generation entertainment providers using Over The Top (OTT) channels that are chipping away at (लगातार झूझना; to break off tiny pieces of something little by little) their urban viewer base so valuable to advertisers.
Many broadcasters now have a live Internet presence, and newer screen casting technologies pair mobiles to large screen TVs. In such an environment of flux (बदलाव/निरंतर परिवर्तन; continuous change), some existing players have combined technologies, incorporating (शामिल; to include something as part of something larger) DTH, Internet service and OTT.
There is relief among the DTH players on the licence fee decision, although the Indian Broadcasting Foundation would like to see further liberalisation (उदारीकरण; allowing more freedom in laws, systems, or opinion) — the removal of cross media ownership restrictions.
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Significantly (गौरतलब/उल्लेखनीय ढंग से; in a way that is easy to see or by a large amount), a legal challenge against the existing annual licence fee in the Supreme Court was recently posted for hearing in February 2021. The DTH operators have been arguing that, since TRAI issued the New Tariff Order (NTO) for television last year, they have become mere carriers (केवल/मात्र वाहक; a person or thing that carries something which is not large or important) of channels and bouquets (गुलदस्ता; a group of flowers that have been attractively arranged so that they can be given as a present or carried on a formal occasion), with no pricing powers for these.
Any high fee would, therefore, be anomalous (असंगत/विषम; different from what is usual, normal or standard), in their view. The broadcasters, on the other hand, have approached the courts against the amended NTO issued in January, which increased the available channels for a mandated network capacity fee paid to platforms like DTH, reduced the maximum price of pay channels in bouquets, and curbed price rigging (धांधली/ हेराफेरी; the dishonest or illegal activity, in order to get the result you want) using bouquet arrangements.
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These are measures that strike a blow for (के पक्ष में महत्वपूर्ण कार्य करना; to do something that supports or defends something) the common man. While major platforms accepted the network fee provision (प्रावधान/नियम ; a statement or a law that a particular thing must happen or be done), the channels have baulked (रोक लगाना/बाधा डालना; to be unwilling to do something or to allow something to happen) at regulation.
India is one of the biggest single markets for audiences, with an estimated 200 million cable and satellite households, and regulation favouring the consumer is warranted. In fact, the recent controversy surrounding fake audience numbers for channels points to the need for scrutiny (जांच/छानबीन; the careful and detailed examination of something in order to get information about it) of the methods adopted.
What broadcasters, including state-run Doordarshan, must realise is that audiences are won by the power of authentic programming and entertainment. In a diverse cultural milieu (वातावरण/परिवेश; the environment in which someone acts or lives), with a vibrant (जीवंत; energetic, exciting) public sphere (सार्वजनिक क्षेत्र; a range or area of activity) and a sporting tradition, there is space for everyone, and the best combination of technology and pricing will win the viewer’s favour.
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