Cable operators to TRAI: Give us the power to unbundle channel bouquets

The issue of bundled channel packages has been a persistent point of contention for years, with broadcasters and Distribution Platform Operators (DPOs) continuing to clash over how these packages are structured. Despite ongoing debates, no clear resolution has emerged, as both sides remain firm in their positions.

Cable operators have once again approached the Telecom Regulatory Authority of India (TRAI) seeking intervention. The core of the dispute lies in the belief that consumers are being forced to subscribe to pre-made bundles that often include channels they have little interest in, all in the name of discounted prices. They argue that if broadcasters have the right to create bouquets, DPOs should have the flexibility to break them apart and offer more customized, consumer-friendly options.

However, some broadcasters believe that a more collaborative approach is the solution. They suggest that bouquets should be designed jointly by both parties, rather than solely by one side.

Speaking to exchange4media, a senior cable industry expert, who wished to remain anonymous, said that India’s cable TV industry is at a “crucial juncture.” He added, “If the current bundling system continues unchecked, consumer dissatisfaction will only rise, leading to faster migration toward unregulated digital platforms. To restore balance in the broadcasting ecosystem, TRAI and the Ministry of Information and Broadcasting must take decisive action to empower DPOs and safeguard consumer interests.

“By allowing DPOs to de-bundle broadcaster bouquets, policymakers can uphold the fundamental principle of consumer choice, ensuring that cable TV remains a sustainable and competitive option for subscribers. This reform would align the industry with international best practices and mitigate the ongoing decline in cable TV subscribers, thereby strengthening the long-term viability of the sector.”

Broadcast expert Rajiv Khattar believes that creating channel packages at the DPO level is beneficial, as they better understand local requirements and can serve consumers more effectively.

However, Kailash Adhikari, Managing Director of Sri Adhikari Brothers, argues that a joint decision works best. He stated, “Both parties (broadcasters and DPOs) can sit together. If the DPO provides feedback to a broadcast network about which channels are performing well and which are not, they can then devise their packages accordingly. This is something that both sides can work out together.”

Another industry veteran noted that since it is the DPOs who directly reach the consumer, they understand the packages that the consumer prefers better than the network does. "The network knows its audience from a content perspective, aiming to attract as many viewers as possible and determining content preferences. But the DPOs have a better understanding of what the consumer actually wants and likes overall,” the expert said.

In January this year, all major broadcasters released revised Reference Interconnect Offers (RIOs) with channel bouquets across various genres, including general entertainment, movies, infotainment, kids, and sports. According to the cable industry, channel prices have increased by 18-22%. While DPOs signed the RIOs due to concerns over the potential withdrawal of signals, they expressed unhappiness over the price hikes.

The cable industry has also said that by strategically pricing individual channels at exorbitant rates while offering heavy discounts on pre-made bouquets, broadcasters make it financially unviable for consumers to subscribe to individual channels (a-la-carte).

“Broadcasters inflate a-la-carte prices of popular channels, making them unaffordable as standalone options. At the same time, they offer steep discounts (up to 45%) when these channels are included in a bouquet, pushing consumers to purchase unnecessary channels bundled with their preferred ones. As a result, consumers are essentially forced into purchasing large packages, even if they only want a few specific channels.

“Additionally, broadcasters include popular channels (such as leading entertainment or sports networks) with lesser-viewed channels that most consumers would not voluntarily subscribe to. This artificially inflates viewership figures for non-popular channels, allowing broadcasters to charge higher advertisement rates, even if the channels are rarely watched. This manipulation distorts the value proposition for consumers and unfairly impacts the industry,” a cable industry expert told exchange4media.

Another industry veteran, advocating for the right to create or de-bundle channel bouquets, stated that TRAI should also regulate channel prices and introduce a fair mechanism to prevent unjustifiable pricing. Expressing dissatisfaction over being mandated to carry broadcaster bouquets "as is," the expert emphasized that this forces consumers to subscribe to entire bundles, even if they only want select channels.

“Just as TRAI’s telecom reforms empowered consumers to pay only for the services they need, DPOs should also be allowed to de-bundle broadcaster bouquets to align with consumer demand and choice. Consumers must not be forced to subscribe to expensive bouquets due to arbitrary price hikes. Broadcasters should be required to publish detailed pricing models that justify channel pricing and clearly outline the cost difference between a-la-carte and bundled options. Consumers must be provided with accurate comparisons before making their purchasing decisions,” the expert said.

As the debate continues, the call for greater flexibility and consumer choice has only grown louder, prompting both sides to reconsider how television subscriptions should evolve.