Satellite & Cable

February 14 , 2003
Cable TV viewers likely to pay 200 per month

Geetanjali Wadhwa

NEW DELHI -- Indian cable TV viewers might have to pay only Rs. 200 per month once the conditional access (CAS) regime kicks off from July 14 this year! Once CAS is operational, consumers will no longer have to pay for poor quality signals of 90-odd channels. An announcement is likely by next fortnight. A task force, with representatives of broadcasters, multi-service operators, local cable operators and consumer interest organisations, will decide on the price band for the basic (FTA) tire of service.

A set-top box (STB) will be mandatory for accessing pay channels. An analog set-top box will cost between Rs. 2,000 and Rs. 3,000, and a digital one will range between Rs. 6,000 and Rs. 10,000. The service will be extended to Hyderabad and Bangalore, besides Chennai, Kolkata, Mumbai and New Delhi.

The final cable TV bill will depend on what the Indian government fixes as the maximum price band for free-to-air channels. These channels will not require a set-top box for viewing. Some of the existing free-to-air channels include DD, Aaj Tak, MTV, BBC, Sab TV, Sahara and Sun TV. However, consumers will have to buy pay channel bouquets from broadcasters such as Star TV and Zee TV. There are three major bouquets - Star, Zee-Turner and Sony- including the smaller ESPN-Star Sports and Modi Networks.

A recent survey conducted by ORG-Marg on the preferences and perceptions of consumers toward CAS revealed that the majority of consumers in New Delhi and Mumbai support CAS. The study captured that over 70 percent of the respondents perceived the cost of the STB as a prime area of concern. The other apprehension is the possibility of an increase in the prices of individual channels, leading to an increase in the total monthly cable subscription.

The study measured the brand equity index (BEI)of individual pay channels, where Star Plus and Aaj Tak scored the highest. The BEI of Star Plus and Aaj Tak were found to be 3.9 and 3.3, respectively.




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