Broadcasters may take legal route against TRAI's pay channel directive
TRAI has highlighted that the broadcasters have been charging DPOs with subscription fees for pay channels, but are also paying DD Free Dish to carry the same channels
TRAI’s new directive to broadcasters to make pay channels available on DD FreeDish free for all distribution platforms (DPOs) has caused unrest among broadcasters who may take the legal route against it as it could allegedly threaten their revenue model.
In its regulatory framework for cable and broadcasting services, TRAI noted that the continuation of carriage of pay channels by DD Free Dish is leading to a situation where broadcasters, on one hand, are charging subscription-free for their pay channels from licensed DPOs but are paying DD Free Dish for the carriage of the same channels.
Currently, 75 private television channels that are permitted by MIB, are available on the DD Free Dish platform. Out of these, 20 channels are declared as 'pay' channels by their respective broadcasters under the provisions of the Tariff Order 2017. However, these 20 channels are accessible to DD Free Dish consumers without any monthly subscription fees.
TRAI has said that the price of a pay channel should be uniform across all the distribution platforms in order to ensure the level playing field among DPOs and non-discrimination among customers.
“Accordingly, the Authority has decided that a channel, which is permitted by MIB and is available at no subscription fee on DD Free Dish platform, shall not be declared as pay channel for addressable distribution platforms,” it said.
A broadcast expert, on the condition of anonymity, said that this directive of the telecom authority was “wrong” and “not sustainable”, adding that broadcasters could definitely move the court against this.
He said that broadcasters have an upper hand if they move the court, as TRAI does not have jurisdiction over DD Free Dish.
“Rather than looking at a long term vision of making the broadcasting sector self-sustainable and growth oriented, so that it can compete with OTT, they have come out with this kind of unsustainable regulation. Broadcasters will definitely seek a legal recourse as this will have an adverse impact on them,” he said.
On the issue of price forbearance of channels, wherein TRAI has allowed cable operators/distributors to form their own channel bouquets without a price capping, another broadcaster said that “it is wrong, because this forbearance may not be passed on to subscribers.
“If the holistic forbearance is not done, and you are doing at the distribution level only, it is not going to help, because the forbearance has to be holistic, from top to bottom. Customers may not be given the proper benefit of this. This only benefits the distributors,” he said.
