Many TV channels to be closed for 'this reason'!
TRAI decides MRP of every channel, TV channels to have an impact on revenue
JULY 27 (WTN) - There was a time when Doordarshan used to be the only TV channel in the country. But, there was a change over time, and there are hundreds of TV channels in the country nowadays. However, it is true that there are a large number of TV channels in India. However, it is not necessary that all TV channels are benefiting. At the same time, after an order from TRAI (Telecom Regulatory Authority of India), a large number of TV channels in the country are on the verge of closure.
Actually, TRAI has instructed TV broadcasters to follow the New Tarrif Order (NTO 2.0) immediately. Now, if this order is implemented, a large number of financially endangered TV channels can be shut down. However, Information Broadcasting Minister Prakash Javadekar, in a meeting with members of the IBF in the month of May, assured that NTO 2.0 would not be released yet. But, even after this, such instructions have been issued.
Actually, TRAI has fixed the MRP of each channel to a maximum of Rs 12. At the same time, TRAI has also set a discount of 33 percent on the channel bucket. Following this TRAI order, broadcasters say that NTO 2.0 will affect their channel pricing ability and cause huge losses.
According to the information, if NTO 2.0 is implemented, doing so may close about 100-150 channels in the next few years. In fact, under the new tariff order, the channel which does not have much reach, cannot be monetized and can get Portfolio Benefit or Bucket Advantage. In such a situation, more than 100 channels can be closed due to new orders of TRAI because following the new rules, running them will not be a financially profitable deal.
Actually, channels without access do not get much advertisement. In such a situation, subscription revenue remains the only support for the channels to keep themselves in existence. Now that NTO 2.0 rules are in force, and channels cannot cost more than MRP, it would be very difficult for many channels to exist.
It is clear that if TRAI does not change the rules of NTO 2.0, it will not only affect the English channels, but also many regional channels. However, TRAI's rule of NTO 2.0 has been challenged in the Bombay High Court by the Indian Broadcasting Foundation (IBF) and the Film and TV Producers Guild of India. But, the court completed the hearing in the case, and the decision was heard, As well as, no interim relief has been given to the broadcasters. Anyway, now, it has to be seen what will be the decision of the court in the case of NTO 2.0? And, is the court's decision relieving the channels or not?
