KOLKATA: A parliamentary standing committee on communications and information technology has expressed concern over TV channel pricing and ‘bundling of unwanted channels’ following an appeal by a national body of cable operators and Kolkata-based operators.
The latter wants pricing authority to be handed back to MSOs and operators from the broadcasters who now have the sole power to fix channel price and bouquets, which, they claim, has been unfair and put a financial burden on consumers.
An appeal was filed at Calcutta High Court by All Bengal Cable TV and Broadband Operators’ United Forum convenor Tapash Das in 2023, which alleged that broadcasters were offering discounts for channels clubbed together in bouquets but raising prices for those available ala carte. It has resulted in a significant hike in subscription charges, forcing many to opt out of cable subscription, pointed out Das. This followed a similar appeal by the All-India Digital Cable Federation (AIDCF) that said pay channel prices have been hiked by up to 600% after implementation of the New Tariff Order (NTO) in 2019 and a further hike of 200% was effected after the implementation of NTO 3.0 in 2023.
The standing committee has asked the Centre to bring in a comprehensive Act for regulating the industry.
The Kolkata-based forum has pointed out that most broadcasters have formed bouquets that included seven-eight unwanted channels clubbed with two-three popular ones. “Subscribers now pay for channels that they don’t want, defeating the purpose of migrating to the package and a la carte system. Broadcasters also demand MSOs and operators to sell bouquets to 90% of subscribers without breaking the channel combinations on offer. This needs to be broken and pricing right should be handed back to MSOs and operators who can form bouquets as per the needs of consumers. This will not only eliminate unwanted channels and reduce subscription fee but also help to get back subscribers who have opted out after the recent price hikes,” said Das.
Steps are needed to check the erosion of cable subscriber base that has been rapidly declining since 2019, said Suresh Sethia, director of SitiCable, Kolkata’s largest MSO. “Measures like price regulation should help to increase subscription and ensure flexibility in choosing channels which was the purported aim of NTO. Neither has happened since broadcasters have been given the sole right to fix charges that have risen steeply under packages,” said Sethia.
He added that the standing committee move could help to correct this anomaly and ensure that subscribers can choose and pay for channels they want.
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