TRAI granted a breather to the broadcasting industry by allowing them to sell their existing plans to subscribers till January 31, 2019. Broadcasters like Times Network, Viacom18, and ZEEL have already launched value packs and drawn up fresh à la carte price lists. The TRAI tariff order mandates broadcasters to declare their channel pricing as well as whether a channel is free-to-air (FTA) or paid, leading to greater transparency across the value chain.
The tariff order has changed the structure of the broadcasting industry to B2C (selling à la carte to consumers directly) from B2B (selling a bouquet of channels to distributors). This will create a system that will lead to greater transparency among broadcasters, distribution platform operators (DPOs) and subscribers.
Under the new system, the revenue sharing arrangement between broadcasters and DPOs will be on a cost per subscriber basis. Now, the carriage fee will be calculated on per subscriber basis and will decrease if the market share increases. In the current regime, cable operators and DTH players still have the right to create the package, but the differentiation will come from their services and value-added offerings such as movies on demand.