DTH cos hope to break even with carriage fee

[ajuravi007]

NEW DELHI: With mounting losses plaguing DTH operators, Tata Sky and [COLOR=blue! important][COLOR=blue! important]Dish [COLOR=blue! important]TV[/COLOR][/COLOR][/COLOR], both the players have now resorted to charging carriage fee from new channels for shoring up their revenues.

According to industry sources, the two players have already made an estimated Rs 20-25 crore from the plethora of new channels that bank on them for quick access to a huge subscriber base. Says Dish TV managing director Jawahar Goel: ”I agree carriage fee is being charged by the DTH players. I believe Dish TV would be able to earn up to Rs 50 crore this year by charging carriage fee.” He added that Dish TV expects to earn about Rs 100 crore by next year, which the company believes will help balance its losses.

Analysts believe that with three new DTH players launching their services, the DTH subscriber base is going to expand further. This, in turn, will help broadcasters have access to a larger subscriber base. Since content is delivered directly to the consumer, the fear of under-reporting of subscribers to mint money is also thwarted. “Like the cable industry, DTH players will have to bank on both carriage fee and subscription fees to become profitable in the long run,” said a media analyst with a consulting firm.

Says Tata Sky MD Vikram Kaushik: “We have a limited capacity and we can carry a fixed number of channels. But the number of channels is growing everyday. Hence, we have started charging a carriage fee to accommodate channels that are not already on our platform. Also, if a new channel wants instant access to our 2 million subscriber base, we charge a carriage fee from that broadcaster.”

DTH cos hope to break even with carriage fee- Media-Media / Entertainment -News By Industry-News-The Economic Times

 

[kunal_janu]

Charge from them.. Why us

 

[ajuravi007]

I hope some how TRAI comes forward in reducing the channel packages to the DTH customers and hope it happens very soon.

 

[boygr8]

Yeah then become like DD DTH.......free for us.And that means end of intl channels, those who dont have any interest in Indian viewership.

 

[amish]

Charge from them.. Why us


Carriage fee is charged to broadcaster not the customer.

Also, if a new channel wants instant access to our 2 million subscriber base, we charge a carriage fee from that broadcaster.

 

[Vivek Sharma]

that why Tata Sky has been adding crap chaneels such etv and news 24

 

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[boygr8]

yeah thats what he is saying that why then charge the subscription from us when they are already charging hefty carriage fees . Why dont they become a free DTH operator or a highly subsidized

 

[kunal_janu]

yeah thats what he is saying that why then charge the subscription from us when they are already charging hefty carriage fees . Why dont they become a free DTH operator or a highly subsidized

Thats exactly what i mean, if u r already getting some charges from the channel, why charge the same from us.. Double Munafa (Double profit):wall:

 

[amish]

thats this new world! squeeze money out of everyone, providing good and quality service is not necesary

 

[SVK]

We need to have more clarity about which channels are charged1. Less popular channels may be paying carriage fee, but then Tata Sky should have carried such channels in FTA mode as TATASKY is just acting like a "carrier medium" to this channels (like DD Direct+). Atleast this channels should ask TATASKY to convert them into FTA2. Are new but interesting channels like 9X, Imagine, Good Times also paying? If Yes, then TATASKY should not charge customers for this channels (although I think this channels will never pay)

 

[dhoni]

Charge from them.. Why us

You are right. We are being ripped a lot from Installation charges to monthly subscribition and Chidabharam happily puts tax on everything

 

[kunal_janu]

Channels have to pay money to be carried on specific platforms..I was at News24 office, had a discussion with their asst. manager, I said the channels TRp are so high then why does he still pay carraige fee.. He says that he has to because otherwise the reach of the channel will become less and the TRP's will go down..About why khali is being shown more, he said sometimes they have to show him to fill in the free time, But when it comes to news then they show quality..

 

[G.Viswanathan]

dth players has to charge only the subsribers. if they charge carrier fee then most of the channels will be out from the dth platform and it will make the subsribers to loss the channel.

 

[shaileshs]

A carriage fee charged from the broadcaster making it more feasible and economical to the customers is not a bad move unless the broadcaster will not be willing to pay the carriage fee resulting in removal of channel.

 

[raddy]

dth players has to charge only the subsribers. if they charge carrier fee then most of the channels will be out from the dth platform and it will make the subsribers to loss the channel.

Your post looks very strange.
So you don't want to pay less to watch your favorite channels?
So you are ready to pay for each and every channel you watch?
Nobody running business as a service, so we don't have to sympathize them.
New Channels may initially have to pay Carriage Fees from their pocket, that too if they aren't from a big media house.
After establishing or channels from big media houses would automatically get the revenue for paying the Carriage Fees.
But my only concern is, channels pay carriage fees to how much operators
But eventually once DTH market matures, only few players would be in the field.
So that won't be a long term problem.