Top Story

e4m_logo.png

Home >> Media - TV >> Article

Govt should facilitate cable industry to charge subscription, if it wants no ad cap on Pay TV channels: NCTA

21-January-2015
Font Size   16
Govt should facilitate cable industry to charge subscription, if it wants no ad cap on Pay TV channels: NCTA

The recent statement of the Minister of Finance, Corporate Affairs and Information and Broadcasting (I&B), Arun Jaitley, against ad cap for TV or print media has caused a lot of stir in the industry.

Welcoming Jaitley’s stand, the National Cable and Television Association (NCTA) has written  an open letter  to him on the issue of 12-minute per hour ad cap stipulated for TV news channels by the Telecom Regulatory Authority of India (TRAI).

The association’s president, Vicky Choudhry, has requested the minister to clarify if he meant to have no ad cap for Pay TV channels as well. “In case, there is no ad cap on Pay TV channels, we presume there will be no ceiling on their prices as well and they will be free to charge any rate for their channels offered in bundle packages,” he said in the letter.

There are 220 Pay TV channels in the country, where the government and the industry regulator have facilitated 480 per cent profit accrued on their business operations the letter stated. 

The NCTA said if the government wanted no ad cap on Pay TV channels and prices to be kept in forbearance (free to charge whatever they want to), it should facilitate the Cable TV industry and other distribution platforms such as DTH and IPTV to charge subscription from customers -- keeping provisions for at least 150-200 per cent profit, after the basic cost of last-mile operations, billing and collection is met with.

The letter further stated that it made sense to have higher profit margins for this distribution value chain, if Pay TV broadcasters were allowed no ad cap on their channels, no price ceiling on bundling unwanted channels with popular ones and split a single channel into four, thereby facilitating a handsome profit of over 480 per cent on their recycled content.

“The present government has left everything in forbearance and open to the market forces. Hence, we too would like to earn a handsome profit on our last-mile business operations as Pay TV broadcasters have been doing and have further been allowed to do so without limit. Therefore, the cable TV subscription charges per TV set/ month will be Rs 750, excluding taxes, applicable from April 1, 2015. Also, the ministry should carry out a large-scale campaign across the country and inform 600 million satellite/ cable TV users to pay an average of Rs 600 per month, instead of the present Rs 165.” the letter stated.

This will also ensure much higher service tax and the applicable SH and edu cess collections, giving a boost to the economy, the letter stated. 

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

WhatClicks promises to be an unbiased, objective, third-party audit firm that will work with advertisers and agencies alike to help build an effective and integrated digital strategy.

V-Guard Industries, a household name for consumer electrical appliances in India, has revamped its logo in order to reflect the strength gained by the brand over the years. The company has also unveil...

The report reveals that there has been nearly 5 times more growth in video consumption in the last 12 months, with 96 percent of all usage being focused on long form video