Reports state that over 70 percent of Tata Sky’s 5 million-odd subscribers either cancelled or reduced their monthly TV billings in May.
Tata Sky is reportedly exploring ways to help its customers reduce cost of TV subscriptions, thereby retaining its subscribers to the DTH network. According to a report by NDTV, Tata Sky is set to revise subscription packs basis customer behaviour data that it has observed on its app or website for the past month. As per the data, over 70 percent of the 5 million-odd Tata Sky DTH subscribers logged on to the website to either cancel their subscriptions or reduce monthly costs, as the Covid-19 pandemic impacted both salaried and self-employed individuals alike.
In a bid to reduce the drastic fall of subscribers on its DTH network, Tata Sky is reportedly looking to “rationalise” monthly costs for users with billing of Rs 350 or lesser. This rationalisation process will be undertaken by using Tata Sky’s internal analytics engine to identify the said users, and then use the data to optimise the packs or channels selected, in a bid to reduce the overall monthly expenses and encourage users to not cancel their subscriptions right away. As a result, many users may soon be contacted and offered cheaper alternate plans by Tata Sky itself. According to reports, Tata Sky will give a prior notice of 15 days before reducing the cost of the subscription packs.
Reports by various publications indicate that Tata Sky may have already lost over 1.5 million subscribers during the Covid-19 pandemic period that began in March. In a bid to ebb the outflow of subscribers, Tata Sky’s new strategy to optimise the plans may reduce monthly costs by up to Rs 100. However, it remains unclear right now if such a strategy would ultimately help the DTH operator retain its user base. Even apart from the pandemic, users have been reportedly unsubscribing from DTH networks, as adoption of OTT platforms and online content viewing continue to rise.
It now remains to be seen if a similar trend is being observed by other operators such as Airtel DTH, Dish TV and others as well. Tata Sky has been attempting to target a crossover of users as well by offering Android TV boxes, in a bid to combine the benefits of both DTH channels and OTT content.