This move by the big broadcasters will force customers to shell out more money for lesser channels. It will also have huge ramifications for everyone in the TV broadcasting value chain. The tariff hike might lead to drop in channel reach which will also impact advertising revenue. The distribution platform operators (DPOs) might see a drop in their paid customer base as consumers might look at alternative options like OTT and DD Free Dish.
Alarmed by the decision of the broadcasters to keep out popular channels from the bouquets, the TRAI decided to postpone the NTO 2.0 implementation date to 1st April. There are multiple views as to why the TRAI decided to extend the NTO 2.0 implementation date. One view is that the tariff hike would have backfired badly on the regulator.
The timing of the decision has also raised a question if the postponement was done keeping the upcoming assembly elections in mind. Another view is that the industry needs more time to move the customers to the new pricing regime. One view is also that the TRAI is buying more time to clear the mess created by NTO 2.0.
