IBDF calls for regulatory changes in the broadcasting sector

The Indian Broadcasting and Digital Foundation (IBDF) has formally requested the Telecom Regulatory Authority of India (TRAI) to reconsider the regulation of the broadcasting sector, according to news reports. This move comes in response to challenges such as a decline in paid subscribers and increasing competition from DD Free Dish and OTT platforms.

Major broadcasters, including Sony Pictures Networks India, Zee Entertainment, Viacom18, and Disney Star are advocating for the removal of financial constraints, such as price caps, upper limits, discount restrictions, and constraints on channel bundles for both broadcasters and distribution platforms.

In its communication to TRAI, the IBDF has purportedly emphasized the need for service providers to have the autonomy to establish prices for their television channels and distribution services. They should be permitted to engage in negotiations regarding interconnection terms and conditions based on market dynamics, as reported.

TRAI's New Tariff Order (NTO), introduced in 2017, mandates that broadcasters offer their channels at the same rate to all distribution platforms. Prior to this, broadcasters and distributors had the freedom to negotiate content agreements and set prices themselves.

Additionally, the All India Digital Cable Federation, which represents cable TV distribution companies like Hathway Digital and DEN Networks, has also approached TRAI. They have urged the regulator to revert to the pre-NTO system, in which broadcasters declared the wholesale rates of TV channels, while distribution platforms determined the retail pricing.