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Nithya Subramanian

NEW DELHI, June 11

IF you thought that buying a set-top box (STB) to watch pay channels would put an end to frequent price changes, then you could be in for a shock. For, the proposals being considered by broadcasters could well be a case of first dangling the carrot and then showing the stick.

In a bid to push STBs into living rooms in the metros where the conditional access system (CAS) comes into play from July 15, pay broadcasters are planning to announce invitation prices for various popular channels. However, industry sources said that these prices would be valid for a short duration after which the broadcaster would be free to revise rates.

The Government has been stressing that to ensure a smooth rollover to CAS, prices of pay channels should not be revised for three-six months. But, after the transitional period, consumers could once again be subjected to price hikes.

At a meeting of the Indian Broadcasting Foundation (IBF), the apex industry body, broadcasters decided to work along with multi-system operators (MSOs) to offer invitation price or early-bird schemes.

Sources in the broadcasting industry said the idea was to keep the prices extremely low initially to push STB sales. "The plan is to get as many boxes in place as possible in the initial three months. And to do that, the prices must be attractive," said an official from the industry. Also, broadcasters have decided to try and adhere to the Government's diktat of keeping the monthly cable bills below Rs 200, at least for the initial few months.

But industry analysts say that once there is a good penetration of STBs, the probability of viewers discontinuing a particular channel due to price hike is low. "If a person is used to watching a particular set of pay channels and has already invested in a STB, it is unlikely that he/she will decide not to subscribe to those channels when prices are raised. The situation may not be any different from what it is today, where broadcasters arbitrarily tinker with subscription rates," they added.

While broadcasters did not specify the quantum of discounting on offer for those who buy into these schemes, it is being rumoured that prices could well be as low as a few rupees for popular entertainment channels.

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