When COVID crisis began, Distribution Platform (MSOs/DTH and HITS) Operators witnessed a sharp drop in collections from subscribers. After months of lockdown and controlled movements, major multi-system operators (MSOs) are seeing stability in their collections from June end.
According to a survey done by business intelligence enterprise titled ‘Cable TV Fitness Check’ published in late May, the collection dropped for 84 per cent of cable operators, which was attributed to the unwillingness for digital payment and the lack of infrastructure, coupled with the social distancing norms.
However, they have recovered the collections once the opening up started. Moreover, many new consumers have opted for digital payment. Hence, the payment collection issue has stabilized. While 10- 15 per cent of total collection dipped at the beginning of the pandemic, the scene has changed June onwards leading to 100 per cent recovery in the collection. Some of ther MSOs say that the collection dropped by 20-25 per cent in March-April. While it recovered, there is still five to six per cent lag. However, they mention that it is still facing an issue on the side of placement and marketing.
However, there are some MSOs who say that two to three per cent recovery is still left, the collection is not difficult at this moment. There was 15 per cent drop in collection till May as the stringent lockdown made it difficult for last mile operators to reach the consumers. There is also an accepted fact that there is surge in digital payment from consumers which is yet to reach its peak. While it was 30-35 per cent pre-Covid time, it has now reached 80-85 per cent.
With recovery, MSOs are likely to benefit from the growth in digital payments that they have witnessed during the pandemic. However, commercial establishments like hotels, bars, restaurants and guest houses which form part of hospitality industry are yet to take off and this revenue stream is still showing losses.
