As broadcasters persist in raising channel prices under the pretext of the New Tariff Order (NTO), consumers are increasingly feeling the strain on their finances, with the affordability of entertainment slipping further beyond their grasp. Amidst this scenario, Disney Star stands out, capitalizing on the opportunity to implement these price hikes. By integrating its sports content forcibly into its portfolio, Disney Star is aggressively pushing forward with these increased prices.
Despite losing broadcasting rights to major sports properties, the broadcaster has strategically utilized the immensely popular Indian Premier League (IPL) as leverage to enforce higher pricing demands on Multi-System Operators (MSOs). However, recent developments in the industry suggest that this aggressive maneuver could provoke a backlash from MSOs, disrupting Disney Star’s plans and potentially undermining its revenue streams.
According to industry sources, major MSOs, in response to Disney Star’s opportunistic pricing tactics, are taking proactive measures to counter the broadcaster’s demands. Before the IPL season, MSOs are reportedly planning to disconnect Disney Star channels and Star Sports from their offerings, signaling strong resistance to these price increases. The exclusion of Disney Star channels from DPO packages will introduce uncertainty regarding viewership and advertising revenue potential on the linear feed of Star Sports channels, especially during the IPL season.
For Star, known for its aggressive pursuit of revenue maximization, being excluded from DPO packages could result in potential losses in both viewership and advertising revenue. With MSOs restructuring their channel packages, the absence of Disney Star channels could lead to a decline in the number of viewers tuning into their content.
When approached for comment on this issue, T Panesar, CEO of Hathway, expressed the view that Disney Star’s price increases are unjustified, prompting MSOs to remove Disney Star channels from their new DPO packages.
Another senior industry leader, speaking on condition of anonymity, criticized broadcasters for their greed in unjustifiably raising prices every year, coupled with the forced bundling of channels, which further damages the already shrinking cable TV base in the country. He added that this decline in viewership would directly impact the advertising revenue generated by Star channels, particularly during high-demand events like the IPL season.
Cable TV consumers have already experienced significant price hikes (ranging from 50 per cent to 70 per cent, and in some cases even more than 100 per cent) over the last four years, and they are not prepared for any further increases. Continuously raising channel prices year after year would be unfair to customers, depriving them of entertainment, which is an essential part of their lives.
