New pricing formula for TV channels may make it 13-23% costlier for viewers: ICRA

The framework for the pricing of TV channels, which aims to give subscribers the right to choose what they watch and pay for, is turning out to be a liability. It could force most subscribers to cough up 13-23 per cent more than what they’ve been paying all along, a new study by ICRA said.

“Any subscriber who wishes to view two or more of popular general entertainment channels (GEC) and sports channels is likely to either witness an increase in the monthly bill by 13-23 per cent or a substantial reduction in the number of pay channels to be viewed,” said Sakshi Suneja, Assistant Vice-President, ICRA.

“While earlier, a monthly budget of Rs. 230-240 could give the subscriber access to 250-300 channels, the same budget will now fetch only three GECs and one sports channel, in addition to FTA (free-to-air) channels. Subscribers can, however, lower their monthly bills by up to 15 per cent if they opt for only sports, news and movie channels, a choice which was not available in the previous tariff regime.