DD Freedish e-auction: How Pay TV channels turn FTA all of a sudden

New Delhi: On the first day of the 7th annual e-auction for DD Freedish on Monday, top broadcasters – JioStar, Sony and Zee – bought a slot each for their general entertainment channels (GECs) despite labelling them as “Pay” channels in their respective reference interconnect offers (RIOs).

While JioStar secured a slot for Colors Rishtey at Rs 18.35 crore, Zee Entertainment paid Rs 18.55 crore for Zee Anmol. Sony Pictures Networks India too secured a slot for Sony PAL for Rs 18.5 crore.

Broadcast industry experts told BestMediaInfo.com that the top GECs' return to DD Freedish was not due to any surprise change in strategy but a result of Zee breaking out and picking the first slot for Zee Anmol.

“There has always been a common understanding among the top broadcasters. This time Zee broke out. This apparently would have forced others to return to the free platform,” said an industry veteran.

Following this, the RIOs of all the successful bidders will have to be amended in line with the TDSAT order mandating channels to be either free or pay across platforms.

The top broadcasters realised that the subscribers were not ready to pay if similar content is available on Freedish or digital mediums. They realised that they should behave according to the market. That is where the course correction comes from.

In the end, this forbearance will benefit the end consumer who will have more content choices at no cost.

“The top broadcasters must have seen how Freedish-only channels were cornering most of the ad revenues coming to the free platform. They claimed leadership on the back of the massive viewership coming from DD Freedish,” the industry veteran said, adding that the move would have sent a shock among the channels that made their business models around the free platform.

The top broadcasters have been leaving and returning to DD Freedish allegedly due to pressure from pay cable and DTH operators.

When asked if the pressure does not exist anymore, a distribution expert said, “The TDSAT ruling has removed the grey area and left no scope for any ambiguity. Earlier, the MSOs were able to offer better LCN and inclusion of channels in attractive bouquets. Now, the broadcasters may refuse to pay for placement on pay platforms, resulting in a loss of revenue for the pay platforms.”

“These channels can be a part of the free bouquet, which is largely driven by consumer demand. The Pay platforms may ask them to pay for inclusion in the free bouquet, but it is highly unlikely that the broadcasters will agree, considering their presence on DD Freedish. So, the pressure would now turn towards Pay platforms,” the distribution expert added.

The mad rush for the DD Freedish slot began with the narrative that the top channels were earning Rs 500 crore in ad revenues because of their presence on the free platform.

An industry veteran vehemently denied the number, saying it is impossible.

“This was a false narrative floated a few years ago when Smriti Irani was the I&B minister. Had that been the case, the regular FTA channels would have reached that level by now,” the industry veteran said.