Cable Operators Announce Tariff Hikes of 5-10% Due to Rising Broadcaster Costs

From October 1, Multi-Service Operators (MSOs) in the cable TV sector have started raising tariffs by 5-10%. This follows an increase in broadcaster tariffs that began in August. Siti Cable, a major player, has already implemented these changes. Other MSOs are either planning to introduce similar hikes soon or are discussing ways to lessen the impact on customers.

Representative image

Operators aim to absorb much of the broadcaster-led cost increase, passing only a small portion to consumers. "We have not yet raised our tariffs, but it has become inevitable. We've been absorbing increased costs for the past two months, but we can no longer sustain it. On average, we will raise tariffs by 5-6 per cent, though other broadcasters have hiked rates by more than 10 per cent, and in some cases, by as much as 20 per cent," said Meghbela Broadband Co-founder Tapabrata Mukherjee.

Impact of Social Media and OTT Platforms

Suresh Sethia, director of India Cablenet Co Ltd, noted that Siti Cable's minimal tariff hike is a strategy to compete with mobile users who prefer short-form content on platforms like YouTube and Facebook. "Our price hike ranges between 5-10 per cent across different packages," Sethia explained. This trend is expected to be adopted by other operators within a month.

Mukherjee confirmed this trend and highlighted the competition from social media content for traditional cable services. He mentioned that out of the 1.5 crore set-top boxes initially installed after the government's new system rollout, only about half remain active today. Sethia added that cable connections in Bengal have decreased to around 68 lakh from one crore four years ago.

Innovations in Cable TV Services

In response to changing consumer preferences, the cable TV industry is innovating to retain subscribers. Siti Cable has introduced Tubers TV, allowing users to submit short-form content up to eight minutes long, which has gained popularity. Meanwhile, Mukherjee's company has launched IPTV services that bundle cable TV, internet, and telephone services for added convenience.

The shift in consumer behaviour towards digital platforms poses challenges for traditional cable operators. However, these companies are adapting by offering new services and keeping tariff hikes minimal to stay competitive. As the industry evolves, operators continue to seek ways to balance cost increases with customer satisfaction.