Cable TV Giants Implement Tariff Hikes Amid Rising Costs

Cable television's Multi-Service Operators (MSOs) are raising tariffs by 5-10% from October 1 due to increased broadcaster fees. Some operators have already hiked prices, aiming to absorb part of the cost to minimize consumer impact. The industry faces competition from mobile platforms and shifts in viewer preferences.

Cable television's Multi-Service Operators (MSOs) are set to increase tariffs by 5-10% starting October 1, following a surge in broadcaster fees that began in August, according to industry insiders. Leading the way, Siti Cable has already implemented the hike, while others are in deliberations to roll it out within the month.

The aim is to mitigate a significant portion of the broadcaster-induced cost increase while transferring only a fraction to subscribers. 'We have not yet raised our tariffs, but it has become inevitable,' said Tapabrata Mukherjee, Co-founder of Meghbela Broadband. '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%, though other broadcasters have hiked rates by more than 10%, and in some cases, by as much as 20%.'

Director of India Cablenet Co Ltd, Suresh Sethia, noted that Siti Cable's minimal tariff hike is aimed at countering competition from mobile users who favour short-form content on platforms like YouTube, Facebook, and various OTT services. Other operators are expected to follow suit within a month to adjust to the increased costs. Mukherjee confirmed this trend while discussing the decline in active cable connections and the industry's innovation efforts to retain its subscriber base. Siti Cable launched Tubers TV for user-generated short-form content, and Mukherjee's company introduced IPTV for bundled services.

(With inputs from agencies.)