Star India's new RIO: Transparent dealings between broadcaster & platforms

Star TV India has come out with something that no other broadcaster has attempted in India yet: in an industry-first initiative, it has introduced a new transparent tariff structure with cable platforms based on uniform pricing instead of bilaterally negotiated deals. It has released a revised Reference Interconnect Offer for Digital Adressable Systems (RIO), which, it is believed, will result in openness in pricing for consumers and empower both, the viewers and platforms.

Star will henceforth conduct all its dealings and business with Cable platforms in the DAS Phase 1 and 2 Markets of India, on the basis of this published, transparent RIO which even includes all details of the incentive structures available to platforms. 

The company intimated TRAI about its revised Reference Interconnect Offer (RIO) for Digital Addressable Systems yesterday.

Star TV India CEO Uday Shanker says “this new initiative… is aimed at empowering consumers with greater choice, and platforms with the ability to customize their offerings as per the needs of their viewers… (and) will usher in a new era of transparency in the domain by providing a clear and transparent way for the broadcaster to work with the operator community, thereby improving the health of the entire digital eco system."

The revised RIO will be in force for one year with digital platforms in Phase 1 and Phase 2 markets. The channels are all offered on a basis that allows the platform payouts to vary as per their choice of content and incentives. The incentive would be based on the number of STAR channels carried, the number of viewers and the ease of access to these channels.

Platforms that still opt out of the revised RIO will have the option to choose and take channels as per the original list price.

When asked if Star might possibly withdraw or change its incentives mid-way through the year, Mr Shankar said, “We don’t foresee any reason to change the incentives unless there is a  material change in the regulations.”

On whether the revised RIO will apply to DTH operators too, Mr Shankar said, “The scheme is currently for Cable platforms in Das 1 and Das 2 markets. We are currently evaluating whether we should extend it to other platforms.”

This industry-first  initiative will go a long way in ushering in a transparent system that offers better choices for consumers and could also rid the industry of the broadcaster-platform disagreements that have riddled it in the past.

Shankar said, "Star's focus has always been to put consumer interests first and foremost,  without hurting the viability of either the broadcaster or the platforms.”

Given the positives, it would come as no surprise if other broadcasters, who are doubtless watching this industry-first initiative closely, also follow suit.

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