Cable TV Tariff Hike: MSOs Pass On Rising Costs

Kolkata, Oct 1 (PTI) Multi-Service Operators (MSOs) in the cable television industry have begun implementing tariff hikes ranging between 5-10 per cent from October 1, following a rise in broadcaster tariffs that started in August, according to industry officials.


Leading operator Siti Cable has already rolled out the hike, effective from October 1, while other MSOs are either in the process of implementing the increase in a month and actively deliberating over how best to minimise the impact on subscribers.

The goal is to absorb a significant portion of the broadcaster-led increase while passing on only a fraction to consumers.


"We have not yet raised our tariffs, but it has become inevitable. 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 per cent, though other broadcasters have hiked rates by more than 10 per cent, and in some cases, by as much as 20 per cent," Meghbela Broadband Co-founder Tapabrata Mukherjee told PTI.

He said that his firm, along with local cable operators, will absorb around 10 per cent of the cost increase on their ends.


Indian Cablenet Co Ltd's director, Suresh Sethia, echoed this sentiment, stating that Siti Cable had kept its tariff hike minimal to counter competition from mobile users, particularly the younger demographic who favour short-form content on platforms like YouTube, Facebook, and various OTT services.


"Our price hike ranges between 5-10 per cent across different packages," Sethia explained.


Other operators are expected to follow suit within a month to adjust to the increased costs, a trend that Mukherjee also confirmed.


Sethia noted that social media content poses serious competition for traditional cable services.

Discussing the broader landscape, Mukherjee said that of the 1.5 crore set-top boxes initially installed after the new system was rolled out by the government, but now only about half of them remain active today.


Sethia added that the total number of cable connections in Bengal has declined to around 68 lakh, down from one crore four years ago.


In response to this shifting consumer behaviour, the cable TV industry is innovating to retain its subscriber base.

Siti Cable has launched Tubers TV, a platform where users can submit short-form content up to eight minutes in length, which has gained popularity.


Meanwhile, Mukherjee mentioned that his company has introduced IPTV, offering cable TV, internet, and telephone services bundled together for added convenience.