Industry representatives point out that CAS and DTH can co-exist, if the two don’t compete with each other. UK and other countries in Europe, for instance, have been able to accommodate both cable TV (via the set-top box) and DTH for many years.
But the recent turmoil in Europe’s pay TV market is mainly due to the emergence of yet another platform -- digital terrestrial.
Also even as broadcasters have had to shell out big money for content rights, particularly for sport events, they could not increase the subscription rates, thereby making it a survival battle.
According to analysts, for India if content is the same on the two platforms, DTH is unlikely to take off. Besides UK and other European markets where both cable and DTH have survived, in the US too the DTH platforms complement cable TV.
Others in the industry also believe that CAS, if implemented in a proper way, could actually improve the chances of DTH in India.
According industry sources, there’s an excellent probability for CAS and DTH to co-exist. However the government should not relax the 20 per cent sectoral cap norm for broadcasters in DTH. This cap on broadcasters would prevent channel owners from subsidising DTH as against CAS to make DTH more attractive for TV viewers.
However, as things stand now, the 20 per cent sectoral cap is one of the entry barriers for broadcasters in DTH. As for the number of homes in India which are likely to go for both CAS and DTH connections, is a miniscule 1 per cent.
Even in Europe, according, the same set of people do not usually go for two boxes (CAS and DTH), though the monthly rates for the two are comparable. But, in future, there’s a possibility of the same home receiving both DTH and CAS signals.
Source: Financial Express