Monday, March 20, 2023
MediaNews4U
  • Exclusive
  • #InHerOwnWay
  • #OneChangeForHer
  • Advertising
  • Media
    • Television
    • Radio
    • OTT
    • Cable & DTH
    • Print
    • Digital
  • Marketing
  • Campaigns
  • Analysis
  • Opinion
    • Think Through
    • Prescience 2023
  • People
  • Events
    • Leader Speak
    • Straight Talk
    • Gamechangers
No Result
View All Result
MediaNews4U
  • Exclusive
  • #InHerOwnWay
  • #OneChangeForHer
  • Advertising
  • Media
    • Television
    • Radio
    • OTT
    • Cable & DTH
    • Print
    • Digital
  • Marketing
  • Campaigns
  • Analysis
  • Opinion
    • Think Through
    • Prescience 2023
  • People
  • Events
    • Leader Speak
    • Straight Talk
    • Gamechangers
No Result
View All Result
MediaNews4U.com
No Result
View All Result
Home Cable & DTH

From cord-cutting to cord-never: Behavioural change – more than cost – driving cable and DTH churn

We asked Raj Nayak, Priya Mukherjee, Anuj Gandhi and Pankaj Krishna: Are people moving away from cable and DTH? If yes, is cost the driver?

by Smitha Sapaliga
February 6, 2023
in Cable & DTH, Exclusive, Featured
Reading Time: 6 mins read
A A
From cord-cutting to cord-never: Behavioural change – more than cost – driving cable and DTH churn
Share Share ShareShare

At a kirana store in Kodambakkam, Chennai, a small colour TV set used to play soaps and religious channels from dawn to dusk until recently. The owner says he and his co-owner wife shifted to watching content on YouTube on the mobile, as  the monthly tariff went up to Rs.350 for his cable TV connection and he wasn’t interested in all the channels offered in the package. Similar instances are perhaps not uncommon, whether in households or kiranas in Khar Danda in Mumbai, or Halasuru in Bengaluru. 

This was happening even before NTO 3.0 kicked in on 1 February 2023, when broadcasters were allowed by the sector regulator to increase the price of channels that are part of a bouquet from Rs. 12 to Rs. 19. According to the Indian Broadcasting and Digital Foundation, a body of television broadcasters, almost 80pc of distribution operators have agreed to the latest NTO. Broadcasters themselves see the hike as an “overdue correction”. Several distributors do not agree. AIDCF (All India Digital Cable Federation) members have gone to court. A final Kerala High Court order is listed for 8 February 2023.

Irrespective, cord cutting is a reality, with cost being a (dis)incentive. 

Are people moving away from cable and DTH? If yes, is cost the driver?

Medianews4u.com asked media experts to weigh in. 

‘One will have to wait and watch’ 

Raj Nayak
Raj Nayak

“I think it’s quite complicated. While the price hike was kind of inevitable with an increase in input costs, at the same time the fact is we as a country are so price sensitive, and that kind of coupled with the current environment could become a deterrent for consumers. Free platforms like Free DTH and digital platforms are already eating into the pay share of content, which makes this transition trickier. However, broadcasters too have invested significantly on creating and on the delivery of world class content, and with the spectrum of content which is available to the pay broadcasters ranging from GEC to movies to sports, these will definitely be exciting times to look forward to. I guess one will have to wait and watch on how the landscape evolves.”

–  Raj Nayak, Managing Director, House Of Cheer Networks.

‘Expect hybrid model to evolve in future’

Priya Mukherjee, Group President - Network Development, India TV
Priya Mukherjee

While India is a price-sensitive market, there are many other drivers that have, over the years, moved viewership to digital: appointment viewing, both the young and old now wanting to catch entertainment or sports or news on the go, ease of availability and accessibility through apps. Plethora of choice in digital content availability and increased bandwidth are just some of the factors.

However, broadcasters are realigning to this new trend by parallelly pushing content delivery through digital as well. Even MSOs and DTH platforms are evolving through technology to meet this need – examples being hybrid set top boxes and providing triple-play options to a single home.

Also given that a majority of the Indian viewership still comes from rural India and the fact that ease, less stress and speed of making a choice of what to watch still lies with cable and DTH, we can expect a hybrid model to evolve in the future.

With the advent of 4G and 5G in the near future, the mode of viewing will change through connected and Smart TV. Linear TV is still going to be around, as we also see more C&S being added to the mix from tier 3/4 towns which will drive growth for traditional distribution platforms.

–  Priya Mukherjee, Group President – Network Development, India TV

‘People churn out because of changes in viewing behaviour’  

Anuj Gandhi
Anuj Gandhi

Traditional (TV) businesses have had a massive churn in the subscriber base in the last few years. Since 2019, the first big hit happened during NTO 1.0, then it was Covid and then things kept adding on which led to general erosion of numbers on traditional business, both cable and DTH. The fundamental viewing habits in the last four years have also changed. For example, if you take 200 million homes with TV in this country, currently it is down to approximately 110 million, and let’s take FreeDish as 50 million, we still have a gap of about 40 million unexplained numbers. 

The reality is, in the last four years people have churned out of cable and DTH. Pricing may have a little bit of a role but majorly it’s the behaviour pattern of people changing. One fundamental big change is that people are spending six to nine hours on alternate screens. They are watching so much of YouTube and few apps (Hotstar, Netflix or Amazon Prime, the ones they have subscribed to), that linear is no more needed. There is also a fundamental on-demand situation, to watch everything when you want and the cable and DTH doesn’t satisfy that ecosystem.  

The biggest gamechanger to the lower economic group is FreeDish, especially in North of India and YouTube in the first place. It’s the best ocean today that people would like to sail on and you can’t compete with that. And if social media is added on top of that like Instagram Reels, Whatsapp etc. – any type of engagement with any audio visual medium – then linear is bound to fall. 

The linear ecosystem is falling all over the world and there is no drastic change for India. In some cases like the US it is because of pricing but in other cases it’s just the convenience and change of behaviour. Also, in the last three years, the prices of broadband has crashed. The moment all broadband plans moved to unlimited data, the world changed. 

Finally, there is a concept of ‘cord never’. People talk about ‘cord cutting’ but there is a phenomenon of ‘cord never’ and India has also seen that. Especially GenZ who are starting their job and moving out or getting married and moving out, they are not even taking a cable and DTH connection. Nowadays when people move to a new place they too opt out of taking the connection. 

In India, the business is large. When we say cable and DTH will lose, even if they lose 10pc of 105 million there are still 90 million homes. It’s not a small market. It is still a very big market which cannot be ignored but it is not growing.

–  Anuj Gandhi, Former Group CEO, IndiaCast

‘Ceaseless drop in Cable and Satellite (C&S) homes’ 

Pankaj Krishna,
Pankaj Krishna

If we were to go by the last consecutive findings from the Chrome DM Subscriber Establishment Survey (SES), we witness a ceaseless drop in Cable and Satellite (C&S) homes from 185 million to just over 165 million households since 2020. However, the reason behind this substantial drop is more than just rising subscription costs. An integral one being the digital transition from linear viewing to active online consumption, be it on YouTube or OTT. This ‘vibe shift’ should come as no shock to anyone from the cable and broadcast industry. The much-talked about phenomenon has seen another bifurcation amongst this viewing class, namely cord-cutters and cord-trimmers.

As these streaming platforms evolve, it is essential to understand the incremental reach (Digital as a percentage of Cable & Satellite) that allows publishers/advertisers to seize and capture an appeal with a huge, engaging audience. For example, the incremental reach for Aaj Tak across all platforms i.e, Smart TVs (YouTube, apps, browsers etc.) and Smartphones (YouTube, OTT, native apps, browsers etc.) and operating systems (Android, Tizen), reached over 79pc during the month of December ’22!

The rise of OTT is inevitable at this point. One key factor being the superior content library that eclipses the daily soaps on routine televised slots. Consumers are increasingly becoming more susceptible to the quality-over-quantity model offered through various content online, which has since gained massive traction across rural and urban pockets in India. The dubbing aspect has further driven the OTT market. It maintains a tested approach for media companies to localise an aspect within the ecosystem for an entirely new demographic. The ‘Pan-Indian’ wave has also jump-started the rising demand for content from the southern markets across Hindi- speaking belts.

–  Pankaj Krishna, Founder & CEO, Chrome DM.

Tags: 5GAnuj Gandhicord-cuttingNTO 3.0OTTPankaj KrishnaPriya MukherjeeRaj Nayak

Related Posts

Infectious Advertising appoints Ashish Naik as Executive Creative Director

Infectious Advertising appoints Ashish Naik as Executive Creative Director
by MN4U Bureau
March 20, 2023
0

Infectious Advertising has announced the appointment of Ashish Naik as Executive Creative Director. Prior to this, Naik was associated with...

Read more

coto and Collective Artists Network launch reward-based referral programme ‘coto Gains’

coto and Collective Artists Network launch reward-based referral programme ‘coto Gains’
by MN4U Bureau
March 20, 2023
0

Coto, a web3 social community platform for women, has partnered with Collective Artists Network to launch a reward-based referral programme,...

Read more

LATEST NEWS

coto and Collective Artists Network launch reward-based referral programme ‘coto Gains’

coto and Collective Artists Network launch reward-based referral programme ‘coto Gains’

March 20, 2023
Shubman Gill appointed brand face for MuscleBlaze

Shubman Gill appointed brand face for MuscleBlaze

March 20, 2023

ANALYSIS

Smriti Mandhana and Mithali Raj rank high in popularity and likeability: Report
Analysis

Smriti Mandhana and Mithali Raj rank high in popularity and likeability: Report

by MN4U Bureau
March 17, 2023
0

According to the Brand Endorser Report by Hansa Research, Smriti Mandhana and Mithali Raj are the most likeable and popular...

PEOPLE

Infectious Advertising appoints Ashish Naik as Executive Creative Director
Advertising

Infectious Advertising appoints Ashish Naik as Executive Creative Director

by MN4U Bureau
March 20, 2023
0

Infectious Advertising has announced the appointment of Ashish Naik as Executive Creative Director. Prior to this, Naik was associated with...

Katonic.ai elevates Subhrajit Mohanty as VP of Engineering

Katonic.ai elevates Subhrajit Mohanty as VP of Engineering

March 20, 2023

MARKETING

Shubman Gill appointed brand face for MuscleBlaze
Featured

Shubman Gill appointed brand face for MuscleBlaze

by Editorial
March 20, 2023
0

MuscleBlaze, a sports nutrition brand announced the appointment of Shubman Gill as its new brand ambassador for endorsing the brand’s...

Subscribe to Newsletters

ADVERTISING

Mullen Lintas appoints Sharon Picardo as Executive Director and Head of Mumbai
Advertising

Mullen Lintas appoints Sharon Picardo as Executive Director and Head of Mumbai

by Editorial
March 20, 2023
0

Mullen Lintas, the creative agency of the MullenLowe Lintas Group, has appointed Sharon Picardo as Executive Director and Head of...

Avance PR bags the PR mandate for Amara.ai

Avance PR bags the PR mandate for Amara.ai

March 20, 2023
Wavemaker's Simantini Ghosh joins Carat India as VP - content

Wavemaker’s Simantini Ghosh joins Carat India

March 18, 2023

PRINT

The Hindu Lit For Life makes an on-ground comeback after a 3-year hiatus
Events

The Hindu Lit For Life makes an on-ground comeback after a 3-year hiatus

by Editorial
February 15, 2023
0

The Hindu Group’s flagship event Lit For Life will be held at The Music Academy, Chennai on February 24 and...

Manorama Online@25: A Celebration of Digital Diversity

Manorama Online celebrates 25 years of operations with expanded digital presence

February 8, 2023
DB Corp Q3FY23: Ad revenue up 29 pc at Rs 11,233 mn

DB Corp Q3FY23: Ad revenue up 29 pc at Rs 11,233 mn

February 4, 2023

THINK THROUGH

Think Through: IPL 2023 on Digital – Innovations that will change sports viewing forever
Exclusive

Think Through: IPL 2023 on Digital – Innovations that will change sports viewing forever

by Smitha Sapaliga
March 10, 2023
0

IPL 2023 promises to be a one-of-a-kind experience this year for its fan base in India and across the globe....

Contact Us :

UPLIFT MEDIANEWS4U DIGITAL PVT LTD

No. 194B , Aram Nagar 2, JP Road

Versova, Andheri West

Mumbai - 400061

Umanath.V
+91-99400-17868
[email protected]

© 2019 medianews4u.com

No Result
View All Result
  • Exclusive
  • #InHerOwnWay
  • #OneChangeForHer
  • Advertising
  • Media
    • Television
    • Radio
    • OTT
    • Cable & DTH
    • Print
    • Digital
  • Marketing
  • Campaigns
  • Analysis
  • Opinion
    • Think Through
    • Prescience 2023
  • People
  • Events
    • Leader Speak
    • Straight Talk
    • Gamechangers

Medianews4u.com © 2019 - 2023 All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist