The television industry is currently witnessing one of its most intense debates in the recent memory. The issue at the centre is the Telecom Regulatory Authority of India’s (TRAI) consultation paper on the regulation of Application-based Linear Television Distribution (ALTD) and Free Ad-Supported Streaming Television (FAST) services.
The consultation paper has been released with an aim to create a regulatory structure for ALTD and its subset FAST services. However, the proposal has pitted traditional television broadcasters and Connected TV (CTV) players literally against each other.
Before moving ahead, it is important to understand what is meant by ALTD and FAST services. ALTD is a service that, among other content, delivers linear TV channels through the internet. FAST, meanwhile, is a specific subset of ALTD that basically streams scheduled television channels using internet via smart TVs, apps and websites. Some of the examples include Samsung TV Plus, LG Channels and Xiaomi TV+.
In its consultation paper, TRAI pointed out that these services are similar to traditional television as they stream regular TV channels across genres. The only difference is that these are free services unlike paid OTT platforms.
Following the floating of the TRAI consultation paper, the simmering divide between the traditional pay TV players and the ALTD-FAST services has come to the fore.
Several DTH operators and broadcasters like Airtel, Dish TV and Zee have said that FAST services are being allowed to distribute TV channels without adhering to rules that are mandatory for DTH and cable services.
However, other industry players like Jio Platforms and Tata Communications, which are focusing on digital distribution, have argued that broadcasting rules should not apply to internet-based services.
What Jio, Tata said
Jio Platforms said that FAST services are essentially an extension of the OTT ecosystem and these cannot be categorised a traditional broadcasting. The company stressed that the content in FAST services is being delivered over the internet, and is not being broadcasted. Just because content on a channel is being delivered in scheduled format like traditional channels does not mean an OTT platform becomes a broadcaster, it added.
Jio also mentioned that the Information Technology Rules, 2021, already bring OTT platforms under their purview and essentially remove the requirement for a separate regulatory framework for FAST services.
Tata Communications, on its part, said app-based distribution channels represent the broadcast evolution currently underway and these should not be subject to a tighter regulatory framework.
Traditional players’ views
Zee Entertainment Enterprises Limited, in its remarks, said FAST services are essentially similar to traditional TV channels as they carry scheduled programming with linear feeds without the option to view content on demand and skip ads.
Zee argued that two different regulatory frameworks cannot be allowed to exist for what is essentially the same service. It called for platform-neutral regulation across traditional television broadcasters and digital delivery platforms.
It further sought to portray a clear difference between OTT platforms and FAST services, stating that while the former is mostly on-demand, the latter is linear television delivered over the internet and not through terrestrial and satellite networks.
The company pointed out that while broadcasters and DTH operators have to adhere to a myriad set of rules and restrictions, FAST platforms face diluted scrutiny.
DTH operators also supported a regulatory framework for FAST services, contending that these platforms distribute content free or at a lower price. Traditional broadcasters and DTH operators, on the other hand, have to comply with strict pricing, carriage fee and quality of service guidelines, said Airtel.
The leading DTH player claimed the current system is creating a situation where premium content is moving towards internet platforms and exclusive content is being restricted to the ecosystem led by broadcaster-led streaming platforms.
Airtel further demanded that if a channel is being made available for free on FAST platforms, the same should not be a paid channel on DTH platforms.
Another leading DTH operator, Dish TV said app-based distributors should be covered by the same regulatory framework that covers traditional broadcasters, as the former have essentially become television distributors because they aggregate and distribute live channels with scheduled programming across devices and apps.