MSOs welcome regulation on content aggregators

Notification prevents content aggregators from bundling of channels belonging to different broadcasters

Multi system operators (MSO) have welcomed the Telecom Regulatory Authority of India  (Trai)’s notification preventing distribution agencies, also known as content aggregators, from bundling channels of various broadcasters.

“Until now, we had to take some channels that were not doing well but were part of a package. As a result, we ended up paying for those channels. In return, we had to pass on the cost to the end user. Now, we will be in a better position to negotiate the deals with broadcasters. This, in turn, will allow us to provide customers channels they want at fair rates,” said Tony D'silva, chief executive at IMCL. Major aggregators in the country include Media Pro Enterprise India and IndiaCast Media Distribution.

According to officials, since MSOs are in touch with their customers (directly or through local cable operators), they have a better idea of demand for channels.

The flip-side of the notification, which Trai released on its website on Monday, is that the smaller networks will no longer be able to bundle their channels with the larger ones and get a presence on distribution platforms. “They will have to create a proposition (to be present on platforms),” said D’silva.

Trai had also mandated broadcasters to sign reference interconnect offers with distribution platform operators and allowed broadcasters to appoint authorised agents to market their bouquets. These agents could be the old aggregators. However, the regulation does not say anything about the same agent being authorised by two or more broadcasters to sell channels to distribution platforms. “For all you know, a content aggregator will now say if you take package A and package B together, you will get a discount of x per cent. This way, he is still selling the channels as per the regulation,” said an executive from a leading MSO. The notification stipulates that only broadcasters can enter into contracts and interconnection agreements with distribution platform operators. A time frame of six months has been set for the broadcasters to amend their RIOs and enter into new interconnection agreements.