Trai's new tariff order: Broadcasters brace for subscription revenue dip

Experts say a near 37 per cent drop in the individual price of a channel (from Rs 19 to Rs 12) will hit broadcasters hard since cost of content acquisition has been growing over the past few years

As broadcasters and the sector regulator clash over tariff amendments prescribed by the latter, experts and industry executives estimate a 10 per cent fall in subscription revenue because of this. At a time when advertising revenues are down because of the general economic slowdown, a hit in subscription revenue, say experts, hardly augurs well for the industry.

The Telecom Regulatory Authority of India (Trai) has suggested twin conditions on bouquet pricing – one is a 33 per cent discount cap and another is a ceiling on the maximum retail price (MRP) of any channel in the bouquet up to three times