Other over the top platforms (OTTs), including Netflix, are gradually ending the cable TV business from the Indian market. According to a recent KPMG report, by the fourth quarter of 2019, the number of active subscribers of cable and satellite has decreased from 12 to 15 million. According to the report, subscription revenue grew by 8.1 percent to Rs 463 billion in the financial year.
KPMG reported in its report that the digital cable segment grew by 197 million users at the end of 2018, but by the end of the quarter, its active subscriber user base had reduced by around 12 to 15 million users. The main reason for this decline in digital cable’s user base is believed to be the renewal of the subscription. Because of the new tariff order, the user preferred to go to other sources of entertainment such as OTT platform.
Because of changes in the rules, users also faced problems like increase in cable bill. Talk about average revenue per user, where cable and DTH saw an increase of 10-25 percent in the last quarter of 2018, but there was no increase in the first three quarters of 2019.
2/ @TataSky had sent my mother an SMS, “As per the new TRAI tariff order, in the next few days it will migrate you to the best fit plan which has your current key channels. In case you want to choose your new packs/channels yourself click here….”
— Rita Banerji ✍ ⚖ (@Rita_Banerji) April 9, 2019
Netflix had plans to invest Rs 600 crore annually in its original content, while Amazon Prime had planned to invest Rs 2,230 crore in 2017. Episodes on a global platform such as Amazon and Netflix for many original series costs between Rs 1-2 crore. For example, one episode of Amazon Prime’s Mirzapur costs Rs 1-2 crore.