Broadcasters worry new Trai order on Free Dish channels will hurt business

New Delhi: Television broadcasters are concerned about the fallout of a recent directive that the Telecom Regulatory Authority of India, or Trai, has issued for broadcasting and cable services

In a notification, the authority has said that an otherwise pay channel available for free on DD Free Dish, the direct-to-home platform owned by public broadcaster Prasar Bharati, must be declared free-to-air on other distribution platforms (such as Tata Play, Dish TV etc.) as well, so as to ensure a level-playing field

Such a mandate, experts argue, could hurt the revenues and reach of TV channels at a time when they are already offering their content at nominal rates across the pay TV universe

Besides, Prasar Bharati doesn't fall under the regulatory ambit of Trai, they added

Mandating pay channels to be free-to-air across all platforms may directly impact broadcasters' subscription revenues, potentially reducing their ability to generate income from these channels. Broadcasters may need to pivot towards alternative revenue streams such as increased advertising, as the direct subscription model for impacted channels becomes less viable," Ayan Sharma, head of public policy and advocacy at law firm BTG Advaya, said

The combined impact of Trai amendments and the draft broadcast regulation bill (which seeks to regulate broadcasting services including OTT content and digital news) could potentially be a concern as increased regulatory scrutiny and compliance requirements may strain operational flexibility and resources, Sharma added

A senior executive at a broadcast network called this a bizarre decision attempted to please distribution platforms. “Private broadcasters are a soft target. Only when there is forbearance at all levels, will the consumer benefit," the executive said. He was referring to the fact that on one hand, the network capacity fee, which is a rental fee charged by distributors, has been tweaked to account for factors such as the number of channels, different regions, customer classes or any combination thereof. On the other, challenges for broadcasters are mounting

Broadcasting Amendments

The recent amendments notified by Trai on the broadcasting and cable services framework present significant challenges for broadcasters, agreed Ameet Datta, partner, Saikrishna & Associates, a legal firm. “This could lead to substantial revenue losses and market distortion as broadcasters will be forced to provide premium content for free, undermining their ability to monetize effectively. Additionally, these amendments seem to favour distribution platforms and cable operators by allowing them access to premium content without carriage fees, increasing their viewership and advertising revenues while diminishing the bargaining power of broadcasters," Datta pointed out