With the Telecom Regulatory Authority of India (TRAI) tariff regulations coming into effect, select pay TV channels have confirmed leaving DD Free Dish, Storyboard18 has learnt.
According to TRAI regulation, a pay TV channel must convert to free-to-air (FTA) if it is on a free TV platform such as DD Free Dish.
This is a requirement of TRAI’s new tariff regulation, which was upheld by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in December 2024.
The regulation has been a point of contention with broadcasters and the Indian Broadcasting and Digital Foundation (IBDF), arguing that it violates constitutional rights.
The IBDF claims that DD Free Dish is distinct from other distribution platform operators (DPOs) because it does not require a subscription fee.
Additionally, IBDF argues that the regulation could reduce channel reach.
Prior to the TDSAT order, the Supreme Court dismissed broadcasters’ appeal against TRAI’s tariff orders in November, affirming the Kerala High Court’s decision that TDSAT should handle such matters.
Going by the regulation, the status of a channel should be the same across all platforms and no pay TV channel can remain as an FTA on a free platform.
Many TV channels are pay TV channels on other platforms but broadcast as FTA TV channels on DD Free Dish.
With new rules coming into effect, pay TV channels will have to convert to FTA TV channels on other platforms as well, to continue broadcasting via DD Free Dish and will have to be dependent only on advertising revenue, tells a channel executive on the condition of anonymity.
While the select entertainment channels have confirmed to Storyboard18 their decision to leave the DD Free Dish platform, the Authority hasn’t clarified if this mandate stands only for free TV platforms or for digital (like YouTube).
That apart, TRAI has notified that broadcasters must align their offerings with TRAI’s directive by January 3, 2025, or face consequences.
Globally, research indicates that pay TV is in decline and ad-supported TV/video is on the rise. In the past as well, top Indian channels have gone off and on Free Dish. The list includes Star Plus, Sony, Zee, and Colors.
Challenges for High-Definition Channels
It is to be noted that Prasar Bharati, last week, revised its e-auction policy for DD Free Dish slots, allowing high-definition (HD) channels to participate in the bidding process.
But with the latest TRAI tariff regulations, these HD channels too must convert to FTAs.
Both developments come at a time when DD Free Dish is pushing to double its subscription base while focusing on high-end premium households. Till now, Free Dish is widely used in rural and semi-rural households.
The pubcaster plans to increase DD Free Dish slots this year, with the number of slots to go up by 40. Meanwhile, it is getting a new transponder to increase the number of slots as the demand remains high, sources close to the development have confirmed to Storyboard18.
Over the years, DD Free Dish has become increasingly popular due to its ability to reach a vast rural population. The platform added about 21 million subscribers within a span of 5 years (till 2022) and reaches more than 45 million households currently.
Sanjiv Shankar, joint secretary, Ministry of Information and Broadcasting, last year shared his plans of increasing DD Free Dish’s reach to 5 crore home in 2025.
This growth, according to the experts, is driven by less expensive television sets, economic issues, and the addition of new channels to the platform. The platform currently hosts channels showing drama, movies, news, music, and regional and foreign content, making it more diverse and appealing over the years.
Additionally, advertising on Free Dish offers cost benefits as the pricing of pay channels is typically 35 percent to 40 percent higher. Further, close to 67 percent of the population in India resides in rural areas, and approximately 37 percent of FMCG consumption comes from these consumers- hence offering brands a vast universe to tap into.
DD Free Dish DTH service is owned and operated by Prasar Bharati and was launched in December 2004. It is the only FTA DTH Service where there is no monthly subscription fee from the viewers.
To use DD Free Dish, one only needs to purchase a set-to-box and a small dish antenna, along with accessories. The total cost of this is around Rs 2,000.
Read more: DD Free Dish pushes to double subscriber base; to focus on premium households