Bundling preferred by 96 percent, rules may hurt niche channels

MUMBAI: In the battle between bundles and barriers, viewers seem to know what they want. A study by the Esya Centre has found that a striking 96 percent of consumers prefer bundled television channel packs provided prices remain constant highlighting a gap between viewer behaviour and the current regulatory framework shaped by the Telecom Regulatory Authority of India (TRAI). Consumers cited better value for money, reduced search effort and the ease of discovering new content as key reasons for favouring bundles. For many households, bundled packs also serve a practical purpose balancing varied viewing preferences under a single subscription without the hassle of piecemeal selection.

But bundling, the report argues, is more than just convenience. It acts as a financial cushion for the ecosystem, allowing popular channels to effectively support niche or experimental content. This cross-subsidisation helps broadcasters manage demand uncertainty and sustain investment across genres. Restrictions on bundling and pricing flexibility, therefore, may not only affect present-day consumer welfare but also future content creation.

At the same time, structural challenges are mounting for smaller broadcasters. TRAI’s carriage rules require channels to cross a 20 percent subscriber threshold in a market to avoid carriage fees. Channels falling short must either pay to be carried or risk being excluded altogether, a hurdle that disproportionately impacts niche and language-specific content.

Distributors retain significant control in this equation. They can refuse to carry channels below the threshold and, in some cases, even those above it, citing limited network capacity. This makes carriage less of a guarantee and more of a negotiation. Added to this are placement and promotion fees, which further increase costs for smaller players despite caps on carriage fees.

The report underscores a key mismatch: subscriber numbers are being used as a proxy for value in a country where diversity defines demand. Survey findings show strong appetite for differentiated and language-specific programming, including content beyond dominant regional languages. Yet, channels serving these audiences often face higher costs and limited reach under the current framework.

Non-Hindi and regional channels, in particular, have become more expensive, potentially restricting access to diverse content. Over time, this could narrow the content pool as smaller broadcasters struggle to remain viable.

In effect, while consumers are clearly leaning towards bundled simplicity, regulatory constraints on bundling and carriage may be quietly reshaping what makes it to their screens tilting the balance away from diversity and towards scale.