Major broadcast networks have announced a price hike for their channels at the start of the new year, with players like JioStar increasing their rates by 18%. As a result, JioStar now has the highest channel bouquet rates. Other players, including Zee Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India (SPNI), have also revised their rates, with an average increase of 10%.
An 18% price hike is unusually high, the largest in the last seven years, according to Karan Taurani, senior V-P at Elara Securities. He notes that most broadcast players typically raise their bouquet rates by 7-9% annually. This is a smart strategy, particularly for the newly-merged entity, as it is the most logical way to drive up revenues. Both Viacom18 and Disney Star had been incurring losses from their premium sporting content, which they had been offering for free, Taurani added.
This could indicate that the brand is aiming for a premium positioning, leveraging properties such as Star Gold Network, Colors TV, and Star Sports,” said an official from a rival channel.
JioStar has also unveiled 83 channel packs comprising 134 channels — 85 of which are standard definition, 44 high definition and five free channels. The value pack for standard definition is now 110, up from the combined Star India (60) and Viacom18 (`34) Hindi pack rates.
JioStar has unveiled 83 channel packs, offering a total of 134 channels, including 85 in standard definition, 44 in high definition, and five free channels. The value pack for standard definition channels is now priced at 110, up from the combined rates of Star India (60) and Viacom18 (`34) for their Hindi packs.
JioStar has broken the 19 ceiling for two individual channels, Colors Kannada and Maa TV, raising their subscription rates to25. These channels are available only on an a-la-carte basis.
SPNI’s Hindi bouquet rate has increased from 48 to54, while ZEEL’s Hindi channel bouquet pricing has risen from 47 to53.
“There won’t be a major churn in subscribers either, especially not in urban markets. Even though networks like Zee and Sony may lose more subscribers than JioStar, the impact of the price rise will be positive from a revenue standpoint,” observes Taurani. The only negative fallout of the new pricing could be in terms of advertiser interest, since even the smallest drop in viewership could keep advertisers away. Financial Express