NEW DELHI : The Telecom Regulatory Authority of India (Trai) may insist that television consumers have actually benefited from the fine-tuning exercise that was its new tariff order (NTO) but on-ground realities seem to be different. A new survey by market research company YouGov shows that people have actually increased their viewing time on video streaming platforms post NTO, some have even unsubscribed their DTH (direct-to-home) connections and moved completely online for content.

According to the research done by YouGov in 2019, when the order was first passed, half of the 1,020 surveyed respondents (49%) indicated their likeliness to spend more time online watching original content. And truly, a year later around half of Indian DTH subscribers (48%) said the amount of time they spend watching original online content (on platforms like Netflix, Amazon Prime, Hotstar and others) has increased after the implementation of the Trai order. Almost as many (42%) said the same for time they spent watching catch-up television content online.

Video streaming platforms seem to be the beneficiaries of what has been an adverse impact on the business of television where 43% of those surveyed said their TV-viewing time has decreased in the last year. Further, one in six (16%) claimed to have unsubscribed from a DTH connection or network because of the Trai order, and one in five (21%) have unsubscribed and moved entirely online for content.

The YouGov survey was conducted among around 1,000 respondents in India between 17-24 February, 2020. The new tariff regime first implemented in February 2019 allowed consumers to choose the TV channels they want and pay only for them at maximum retail prices (MRPs) set by broadcasters as opposed to the bouquets offered earlier. The NTO was aimed at allowing consumers to choose a-la-carte channels and hence bring their cable bills down as it mandated that each channel should be priced individually. However, it resulted in the opposite, raising the price for like-to-like entertainment.

Men were more likely than women to disconnect their cable connection (19% versus 13%) while the youngest generation- GenZ (those born between 1995 and 2002) were more likely than the rest to not just unsubscribe but migrate online as well (26%).

NTO 2.0, as it is referred to after the amendments introduced by Trai this January, offers consumers 200 channels with the base slab of Rs. 130 as opposed to 100 earlier. The data shows that the majority of respondents (60%) favour the revised order, 14% disapprove of it and 26% have no view in this regard.

More than half (56%) feel it will empower them to choose the channels they like. Although people largely support it, many (36%) feel the new amendment will confuse consumers by giving them too many options to choose from.

Following the introduction of the Trai regulatory framework last year, 40% TV-viewers selected channels individually and paid for each, 37% bought a bundle pack and 23% opted for free-to-air channels with few additions, the survey findings show.

The ones who bought a bundle pack were more likely to say they paid more than they used to earlier as compared to the ones who selected channels individually or kept all free channels- who instead were more likely to say they paid lesser than before (29% and 30%, respectively).

In fact, if the NTO comes into force, most people (38%) are still likely to individually select channels. The proportion of people wanting to buy a bundle pack as well as keep free channels is similar, at 31% each, suggesting that people are equally receptive to both offerings.

“YouGov’s survey last year rightly predicted the likely impact of the new regulation on consumer viewership. The latest findings validate this prediction. The new order is likely to disrupt the business further and hence it is even more important for advertisers to study the changing consumer needs and behaviour and reallocate their media budgets accordingly," Deepa Bhatia, general manager, YouGov India, said in a statement.

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