ITV

Tag: NTO 2.0

  • AIDCF informs TRAI it will provide detailed submission for NTO 2.0 soon

    AIDCF informs TRAI it will provide detailed submission for NTO 2.0 soon

    MUMBAI: The All India Digital Cable Federation (AIDCF) has submitted a letter to the Telecom Regulatory Authority of India (TRAI), as per the judgement of the Kerala High Court, stating that it is collating information from member companies to make a detailed submission on the amended new tariff order (NTO 2.0), requesting TRAI not to take any further action.

    AIDCF secretary general Manoj Chhangani said it has informed TRAI that the federation would be sending the detailed representation in the next two weeks.

    The federation filed a writ petition in the Kerala High Court against certain provisions of NTO 2.0 regarding logical channel number, network capacity fee (NCF), multi-TV home connection.  The high court has stayed the clause relating to placing of channels on Electronic Programme Guide (EPG) in NTO  2.0. In the amended order, the authority had mandated that the channel of a language in a genre will be kept together while placing channels on EPG. Such EPG layout is to be mandatorily reported to the TRAI and no change in this can be done without prior approval of the authority.

    “In the above view of the matter, the amended provision in Regulation 18(4) of the Principal Regulation 2017 shall stand stayed. With regard to the other impugned provisions, the petitioners are permitted to file a detailed representation before the TRAI pointing out the objections to the  amendments producing all relevant data which will be duly considered by the TRAI and appropriate remedial steps shall be taken after due consultation with all stakeholders as required by law. Till such time, the provisions  except  the  provision  with  regard  to  freezing of the placement of channels in perpetuity  shall  be permitted  to  be operated,” the judgement said.

    Meanwhile, the Maharashtra Cable Operators Federation (MCOF) requested TRAI yesterday to defer the implementation of the amended tariff order (NTO 2.0) in view of the crisis created by Coronavirus. MCOF president Arvind Prabhu said that they are awaiting response from the regulatory body.

  • No assessment made on impact of NTO 2.0 on DD Free Dish: I&B minister

    No assessment made on impact of NTO 2.0 on DD Free Dish: I&B minister

    NEW DELHI: No assessment on the impact of new tariff order (NTO 2.0) on the public broadcaster Prasar Bharati’s free DTH platform DD Free Dish has been carried out by the Telecom Regulatory Authority of India (TRAI), revealed I&B minister Prakash Javadekar in response to a question by Congress MP Manish Tewari in the parliament.

    Tewari had asked whether TRAI has conducted an assessment of how regulations issued on 1 January 2020 impact the growth and popularity of Doordarshan’s Free Dish platform, to which Javadekar responded, “No such assessment has been conducted by TRAI.”

    He also added that the main objectives of the regulatory framework are to establish a harmonised business process in the sector, ensure level playing field, bring in transparency in TV channel pricing, reduce litigations among stakeholders and provide equal opportunities to smaller multi-system operators (MSOs).

    He also noted that TRAI notified the regulatory framework on 3 March 2017 for broadcasting and cable services after due consultation with the stakeholders. “In order to address the issues faced by the consumers, while balancing the interest of broadcasters as well as the distribution platform operators (DPOs) to create a level playing field, TRAI, after due consultation with the stakeholders, issued amendments to the regulatory framework for broadcasting and cable services sector on 01.01.2020.” 

  • Marketing world cautious over NTO 2.0, Coronavirus

    Marketing world cautious over NTO 2.0, Coronavirus

    NEW DELHI/ MUMBAI: It has been less than a year since the dust around NTO had settled, which even resulted in a dip in TV ad spends last year, and the hay has once again been unsettled with uncertainties raised by NTO 2.0. With broadcasters taking up the case legally against the new pricing regime, the marketing world has to deal with a new set of confusions.

    Elaborating on the situation, Carat SVP Vinita Pachisia notes, “Advertisers usually earmark budgets for each medium before the new financial year begins. A change in the tariff regime will again disrupt the viewership. Last year when the NTO was implemented it took almost 6-8 weeks for the data to stabilise and for the advertisers to use it for plan evaluations. The new NTO amendments could again lead to similar fluctuations as it aims to bring in more viewership options to the audiences at a lower cost and higher FTA channels access. This in turn will lead to the advertisers to rethink on the advertising options before committing any spends.”

    According to Update Geotarget MD and founder Sharad Alwe, marketers are looking for alternate and effective mediums to deliver impactful messaging as people are moving to other platforms.

    He says: “It is no secret that since NTO 1.0, the availability of broadcast channels in GEC and movies genres has dropped appreciably in households. DTH has also shown a slight downtrend and is undergoing consolidation. Viewers are either happy with the mandatory Free-To-Air channels that come with the base NCF package, or, in the case of metros and Tier 1, some are moving to OTT.”

    Havas Media CEO India and South East Asia Anita Nayyar shares similar sentiments, “The ad spends (on TV) will get affected given the changes in NTO 2.0. The total cost to choose the channels will impact TV viewing. The other platforms will tend to gain viewership as they become more viable for the viewer's pocket.”

    Godrej Consumer Products Ltd VP and head media services Subha Iyer says that there have been cuts on ad spends. “It (NTO 2.0) will definitely cause an impact when we consider the fact that consumer offering in the form of multiple bouquets, pricing, etc. will go through another round of change. In the current scenario, one has to plan for multiple events affecting all of us with their implications in the market, business as well,”

    However, Nayyar believes what is impacting media planning and ad spends more than NTO is the novel Coronavirus COVID-19. She says, “There is a lot of caution on ad spends in the market. The cumulative impact is far higher than the NTO impact. And the YES bank fiasco is just adding fuel to fire. Advertisers are waiting and only undertaking crucial spends.”

    Pachisia also adds, “Currently the market sentiments are very low due to the present situation of Coronavirus across the world. Advertisers have been affected due to the ban on imports and this in turn has affected the advertising spends. The furore on IPL is another major factor to consider here. Hence it would be very difficult to gauge right now if the advertising spends have reduced due to NTO 2.0 or all the other current factors in the market.”

    The whole industry is in a jittery considering the ongoing climate of crisis and the advertisers prefer  to tread the waters extremely carefully. Alwe and Pachisia feel that there is going to be a structural shift in the advertising market shares.

    Alwe says, “While TV has always been the traditional medium for national awareness, marketers we speak with are constantly looking for a smarter way to deliver their message. Hyperlocal geo-targeting, multilingual communication and ROI are what marketers expect from their media plan. We believe that while TV, digital and print will continue to have their presence in a media plan, marketers will look for other options to complement their traditional strategy, and there will be a structural shift in market share.”

    Pachisia concludes, “The new NTO amendments would definitely force advertisers to rethink their strategies, resulting in a realignment of media plans which would definitely impact spends on TV. Clients who have specific quarter-wise budgets may look to spend it on other mediums till such time that the data settles and is comparable. The niche genres are already facing stiff competition from the OTT platforms and factors like these, and so many amendments to the NTO, are fuelling the decision to some extent.”

  • Tata Sky seeks to amend its writ petition against TRAI in the tariff order case

    Tata Sky seeks to amend its writ petition against TRAI in the tariff order case

    MUMBAI: The direct-to-home (DTH) platform Tata Sky has sought to amend the writ petition which was filed earlier before the Delhi High Court against the new tariff order introduced by The Telecom Regulatory Authority of India (TRAI). Alongside the ongoing case, Tata Sky seeks to amend the present petition by adding a challenge to the new amendments which was brought by the regulatory body at the beginning of 2020.

    Tata Sky has mentioned that following amendments are “arbitrary, irrational, unreasonable, without jurisdiction and seek to be expropriatory”.

    The petitioner has submitted that the reduction of Network Capacity Fee (NCF) is irrational and unreasonable as it does not ensure reasonable profit to the DTH platform. According to the petitioner, the TRAI has not carried out any tariff determining exercise before making the amendment regarding NCF.

    TRAI has also reduced the chargeability of the NCF in respect of every additional television to only 40 per cent of the original NCF, in a "multi-tv household".  It has also asked to reduce the carriage fee chargeable by a DPO against a new television channel from 20 paisa for Standard Definition (SO) per channel per month for a penetration upto 5 per cent, to a cap of maximum Rs 4 lakh for SD Channels. Such caps are also prescribed for HD Channels.

    “Through the capping of the Price of a Pay-Channel which could be put into a bouquet, the Distribution Fees available to the DPO has also been unreasonably and irrationally reduced,” the petitioner submitted.  It also added that the amendment would reduce  the  capability  of  a  DPO  to  form  bouquets  of channels which are priced above Rs 12 by the broadcaster. Moreover, a compulsory free carriage of Doordarshan channels has also been mentioned as unreasonable.

    “The Petitioner submits that the Impugned Amendments 2020 reduce the revenue generated by the Petitioner No.1 in such manner that even the basic right of the Petitioner to recover the basic cost of its network has been negated. The Petitioner submits that during the course of the present petition before this Hon'ble Court, the Respondent has failed to prove, establish or even display the advantages of the 2017 Regime,” it says.  

    Hence, Tata sky has sought to make additional grounds which may be allowed to be included in the main writ petition. According to the company, the impugned amendments 2020 do not take into account relevant matters and takes into account irrelevant issues like foreign consumers to subscribe television channels on the ala-carte basis by making bouquet of channels expensive. The DTH network is thus being made available to the consumer in such manner that it would not be able to even recover its operational or capital costs.

  • Amid uncertainty over NTO 2.0, DPOs start complying with new NCF

    Amid uncertainty over NTO 2.0, DPOs start complying with new NCF

    MUMBAI: The amended new tariff order (NTO 2.0) comes into effect from today (1 March) amid ongoing legal battles. Although most of the broadcasters have not published their updated Reference Interconnect Offers (RIOs), many of the distribution platform operators (DPOs) have started complying with the regulations bringing change in network capacity fee (NCF).

    Along with other amendments, the Telecom Regulatory Authority of India (TRAI) had brought changes in number of channels permitted in Network Capacity Fee (NCF) and applicable NCF for multi TV homes. The authority also reduced the maximum NCF charge to Rs 130 (excluding taxes) for 200 channels. It also added that NCF for more than two hundred SD channels, should not exceed Rs 160.

    “The network capacity fee, per month, for each additional TV connection, beyond the first TV connection in a multi TV home shall, in no case, exceed forty percent of the declared network capacity fee,” it added.

    Tata Sky has also declared its updated NCF. The DTH operator will now charge Rs 153.40 per month for the first 200 SD channels, inclusive of all taxes and Rs 188.80 per month for more than 200 SD channels, inclusive of all taxes. For each secondary connection, it has fixed a NCF of Rs 61.36 per month for the first 200 SD channels, inclusive of all taxes, Rs 75.52 per month for more than 200 SD channels, inclusive of all taxes.

    Airtel Digital TV will charge now the same amount as Tata Sky is charging. However, it is charging Rs 52 ( without taxes) for the primary connection and Additional NCF of Rs 30 (taxes extra) for more than 200 channels.

    “The network capacity fee, per month, payable by a subscriber (each set top box) for 200 SD channels is Rs 130. The NCF, per month, payable by a subscriber (each set top box) for more than 200 SD channels is Rs 160. For determination of channel count 1 HD channel is equivalent to 2 SD channels as per regulations,” Siti Networks stated.

    “The television channels notified by the central government shall be mandatorily available to all the subscribers and shall be in addition to the number of channels available in the network capacity fee. Network capacity fee, per month for each additional TV connection, beyond the first TV connection in a multi TV home shall be forty per cent of the network capacity fee of the Parent STB. The STB with maximum number of channels would be treated as Parent STB,” it added.

    Moreover, IndusInd Media & Communications Ltd (IMCL) has mentioned in its website that pricing of some of its packages will be revised downwards with effect from 1 March. It has also mentioned about the new NCF.

  • MSOs share different outlooks on impact of NTO 2.0

    MSOs share different outlooks on impact of NTO 2.0

    MUMBAI: All the stakeholders of the broadcasting sector had a tough time coping with the new tariff order (NTO), which was implemented last year. While TRAI brought amendments to the new price regime, touted as NTO 2.0, on 1 January, it has again sent tremors across the industry. The changes have irked broadcasters but multi system operators (MSOs) have different opinions on NTO 2.0’s impact.

    The NTO had a drastic impact on the players in the cable industry resulting in a dip in subscriber base. However, Siti Networks nodal officer for broadband and video verticals Vishwa Bandhu Sharma feels that the new provisions will not disrupt MSOs again.

    He told Indiantelevision.com, “There was a lot of subscriber loss when NTO 1 came in effect. Multi-TV homes stopped using their second and third TV sets. But with NTO 2.0, we are expecting them to activate those TV sets again.”

    Speaking about the impact that the reduction of prices will have on the industry, Sharma shared that the ARPU would remain more or less the same because of the discount on the NCF. He said that he is expecting people to move to more a-la-carte selections for channels that have good content but are not a part of the new bouquets.

    While Sharma believes that MSOs will benefit from NTO 2.0, one of the major MSOs, not willing to be named, opined that the changes will affect the top and bottom lines of both MSOs and local cable operators (LCOs).

    “Discount of 60 per cent on additional TV will result in revenue loss for both MSO and LCO. The loss will be 12-15 per cent and will reflect in the top line and bottom line. Even if 10 per cent STBs (second TV) are recovered, the loss will be 8-10 per cent,” the executive from the other MSO stated.

    TRAI also said in the amended regulation that broadcasters shall not be permitted to give any discount for adoption of bouquets to DPOs in the 15 per cent category as permitted in Interconnection Regulations 2017. According to the executive, this will result in the reduction in bottom line of the MSOs. Additionally, it will increase disputes between the broadcasters and MSOs.

    While DD channels have been excluded from NCF, the executive said: “We have invested in infrastructure for building channel capacity and delivering it to subscribers. We cannot charge placement from the government but our right to charge NCF subscriber should not be withdrawn.”

    Siti Network’s Sharma also added, “When broadcasters were given a chance to rework their prices, they took it to the maximum level and also charged a premium rate. They also included their low base channels in the bouquets, even with bouquet price at 50-60 per cent off. Of course, it (NTO 2.0) will be a disadvantage because now to include those channels in the bouquet, they will have to reduce the price or they will have to leave the channel out for a-la-carte selection. People will not be subscribing to lesser popular channels, and that’s why they are not happy.”

  • After NTO implementation, Indians ditching TV for OTT: survey

    After NTO implementation, Indians ditching TV for OTT: survey

    MUMBAI: People are migrating to online media for content after Telecom Regulatory of India (TRAI) came up with the New Tariff Order (NTO), says a survey. According to a research done by YouGov, around half of Indian DTH subscribers (48 per cent) said the amount of time they spend watching original online content (on Netflix, Amazon Prime, Hotstar, etc.) has increased after the implementation of the TRAI tariff order last year. Almost as many (42 per cent) said the same for time spent watching television content digitally.

    The latest findings seem to validate its previous survey done in 2019. As per that survey, when the order was first passed, half of the 1020 respondents (49 per cent) indicated their inclination to spend more time online watching original content as a result of this amendment.

    TRAI is all set to implement the proposed NTO 2.0 starting 1 March 2020. Though the regulatory body argues that the new tariff order has benefitted the end consumer, the reality seems to be different.

    As per the earlier order, users were to choose channels they liked and pay standardised rates for only those they watch. Although this move was meant to enhance the customer’s television viewing experience, people did not seem too happy with its execution.

    The TRAI guidelines seem to have adversely impacted the business of television and 43 per cent said their TV-viewing time has decreased in the last year.

    Furthermore, one in six (16 per cent) claimed to have unsubscribed from a DTH connection or network because of the TRAI rule, and one in five (21 per cent) have unsubscribed and moved entirely online for content.

    Men were more likely than women to disconnect their cable connection (19 per cent vs 13 per cent) while the youngest generation, GenZ, were more likely than the rest to not just unsubscribe but migrate online as well (26 per cent).

    NTO 2.0 is likely to make subscriptions affordable by offering consumers 200 channels with the base slab of Rs 130 as opposed to 100 channels offered earlier. The data shows that the majority of respondents (60 per cent) favour the revised order, 14 per cent disapprove of it and 26 per cent have no view in this regard.

    Support could be due to the fact that people positively perceive this change and more than half (56 per cent) feel it will empower them to choose the channels they like. Although people largely support it, many (36 per cent) feel the new amendment will confuse consumers by giving them too many options to choose from.

    Following the introduction of the TRAI regulatory framework last year, 40 per cent TV-viewers selected channels individually and paid for each, 37 per cent bought a bundle pack and 23 per cent opted for free-to-air channels with few additions.

    The ones who bought a bundle pack were more likely to say they paid more than they used to earlier as compared to the ones who selected channels individually or kept all free channels- who instead were more likely to say they paid lesser than before (29 per cent and 30 per cent, respectively).

    If the new TRAI rule comes into force, most people (38 per cent) are still likely to individually select channels. The proportion of people wanting to buy a bundle pack as well as keep free channels is similar, at 31 per cent each, suggesting that people are equally receptive to each of the offerings.

    YouGov India general manager Deepa Bhatia said: “YouGov’s survey last year rightly predicted the likely impact of the new regulation on consumer viewership. The latest findings validate this prediction. The new order is likely to disrupt the business further and hence it is even more important for advertisers to study the changing consumer needs and behaviour and reallocate their media budgets accordingly.”

  • NTO 2.0: Ambiguity persists as arguments continue in Bombay, Kerala High Courts

    NTO 2.0: Ambiguity persists as arguments continue in Bombay, Kerala High Courts

    MUMBAI: Ambiguity continues in the ecosystem with just one day left for the implementation of new tariff order amendments (NTO 2.0).

    On Friday’s hearing in Bombay high Court, no conclusion was reached regarding interim relief. The Telecom Regulatory Authority of India (TRAI) will continue its argument on Monday.

    According to sources close to the development, TRAI has been directed not to take any coercive step. Although there is no any conclusion yet, a decision will mostly be taken on Monday.

    Earlier, broadcasters’ argument was that the entire regime is set to kick in from 1 March. Since it is around the corner, they have moved the court seeking a stay. If they implement it before hearing, the entire petition becomes infructuous.

    In response to the argument, TRAI counsel said on Thursday that it’s not the entire amended interim regime that is kicking off from 1 March. The TRAI counsel added that broadcasters’ obligation to declare new prices became effective from 15 January, but they did not make any progress on it without any stay order. If they declare prices, then only other stakeholders in the industry will be able to comply with the regime, as TRAI noted.

    The Bombay High Court also asked TRAI to take instructions on deferment of NTO 2.0 as they did for the 2017 regime before the Madras High Court on Wednesday. After TRAI expressed its unwillingness to defer NTO 2.0, the hearing on interim stay started on Thursday.

    In another case, the Kerala High Court has passed an interim order directing the TRAI not to take steps that are detrimental to the interest of the All India Digital Cable Federation (AIDCF) members. Although on Friday’s hearing no judgement was passed for interim relief, the decision of interim protection has been reserved.

    In another development, Discovery has moved its petition to Delhi High Court which was heard today. The next hearing for the petition has been scheduled for 19 March.

  • Bombay High Court to hear TRAI’s plea in NTO 2.0 case tomorrow

    Bombay High Court to hear TRAI’s plea in NTO 2.0 case tomorrow

    MUMBAI: The Bombay High Court today heard the arguments of the broadcasters in their case against the Telecom Regulatory Authority of India (TRAI) for the New Tariff Order   or NTO 2.0. The bench will hear pleas from the lawyers of TRAI tomorrow.

    In the previous hearing held yesterday, the court asked TRAI to take instructions on deferment of NTO 2.0 as they did for the 2017 regime before the Madras High Court.

    The petitioners are against the ‘impugned provisions’ from the new price regime which was implemented last year. At the beginning of 2020, the industry watchdog modified certain provisions (described as impugned provisions) of the new price regime which were implemented last year. TRAI prescribed twin conditions on pricing; the sum of the a-la-carte rates of the pay channels (MRP) forming part of a bouquet shall in no case exceed one-and-a-half times the rate of the bouquet of which such pay channels are a part.

    Recently, TRAI asked broadcasters and distribution platform operators (DPOs) to take necessary steps to ensure a smooth rollout of the amended new tariff order from 1 March. Both broadcasters and DPOs had been directed to publish the required information on their website to provide consumers sufficient time to exercise their choice of channels and bouquets before the implementation.

  • Bombay HC asks TRAI to take instructions on deferment of NTO 2.0

    Bombay HC asks TRAI to take instructions on deferment of NTO 2.0

    MUMBAI: The Bombay High Court has asked the Telecom Regulatory Authority of India (TRAI) to take instructions on deferment of (new tariff order) NTO 2.0 as they did for the 2017 regime before the Madras High Court. According to sources close to the development, the regulatory body has been asked to submit a deferment plan.

    TRAI has to respond at the next hearing scheduled on 27 February. As per the sources, today’s hearing went on for more than two hours and TRAI will continue its argument tomorrow. At first, broadcasters argued for the interim relief which was slightly opposed by TRAI.

    “The court asked why it can’t be deferred for one more month and within which the court can complete the hearing. If this can’t be deferred for one month, then court will decide on the interim relief tomorrow itself,” one of the sources said.  

    TRAI's counsels will take instructions from TRAI on the plan to defer NTO 2.0 just like they voluntarily deferred 2017 NTO before Madras HC.

    At the beginning of 2020, the industry watchdog modified certain provisions (described as impugned provisions) of the new price regime which was implemented last year. TRAI prescribed twin conditions on pricing.

    They were:

    1. The sum of the a-la-carte rates of the pay channels (MRP)forming part of a bouquet shall in no case exceed one and a half times the rate of the bouquet of which such pay channels are a part.

    2. The a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

    Recently, TRAI asked broadcasters and distribution platform operators (DPOs) to take necessary steps to ensure a smooth rollout of the amended new tariff order from 1 March. Both broadcasters and distribution platform operators (DPOs) had been directed to publish the required information on their website to provide consumers sufficient time to exercise their choice of channels and bouquets before the implementation.