Are you a TV addict? Then, here’s some bad news: Starting February 1, watching TV will cost you more than it does now. According to various news reports, TV broadcasters are implementing inflation-linked increases in TV channel bouquet rates to offset rising content costs and a subdued advertising environment. TV subscription rates for the consumers are expected to rise by 5-8% due to this hike in bouquet rates by broadcasters such as Disney Star, Viacom 18, Zee Entertainment, and Sony Pictures Network India. Usually a reversed tariff rate come into effect from February 1.
This isn’t the first instance of broadcasters hiking prices. Rates have been increasing for the past two consecutive years. In January 2024, leading broadcasters raised their base bouquet rates by 10%, which invited criticism. Viacom18 implemented the highest increase of over 25%, citing the addition of Indian cricket rights and the growth in the market share of general entertainment channels. The new pricing is set to take effect in February 2024.
Why The Increase?
TV broadcasters argue that they have no choice but to increase bouquet rates, despite concerns over a shrinking pay-TV user base. They say they are feeling the pressure, as advertising revenue for major broadcasters is under strain due to slower growth in advertising expenditure (AdEx) and a shift in advertising strategies towards digital platforms.
How Much More Will You Have To Pay?
According to The Economic Times Report, Both SPNI and ZEEL have raised the prices of their base bouquets by over 10%. Jio Star is anticipated to implement a significant hike due to its strong presence in general entertainment and sports. The new pricing is effective from February 1.
SPNI’s Happy India Smart Hindi pack now costs ₹54, up from ₹48. However, the bouquet now also includes a Hindi movie channel, Sony Max 1. Meanwhile, Zee Family Pack Hindi SD now costs ₹53, compared to ₹47 previously, and includes English entertainment channel Zee Café.
The Price hike comes at a backdrop of the time when the pay-tv Industry has declined to fewer than 100 million homes, down from 120 million to 95 million in recent years. According to TRAI’s latest Performance Indicator Report, The total paid active DTH base of four private operators- Dish TV, Airtel Digital TV, Tata Play, and Sun Direct – shrank by 2.26 million to 59.91 million as of September 2024.
