India’s public broadcaster Prasar Bharati is reportedly raising concerns over a possible cartel-like arrangement being at play after observing a significant decline in the bidding prices during the recent auctions for slots on DD Freedish, its popular free-to-air direct-to-home (DTH) platform.
According to internal sources, the sharp drop in slot prices during the latest round of e-auctions has set off alarms within the organization, prompting suspicions that certain broadcasters or media networks could be colluding to artificially depress prices. This has led to concerns that the platform’s revenue potential is being deliberately undermined.
What Triggered the Concern?
DD Freedish conducts periodic e-auctions for satellite TV channels to secure slots on its platform. In recent years, these slots have been in high demand, especially from regional and entertainment channels, as DD Freedish reaches over 50 million households, largely in rural and semi-urban areas.
However, in the latest auctions, Prasar Bharati officials noted that the bidding prices were unusually low, compared to the aggressive competition seen in previous years. This dip has raised suspicions that certain participants may have formed an unofficial cartel, coordinating among themselves to bid conservatively, thereby securing slots at lower rates.
Potential Revenue Loss
A cartel-like arrangement, if proven, could result in substantial revenue losses for Prasar Bharati, as DD Freedish slot auctions have been a critical source of non-governmental revenue for the public broadcaster. Any manipulation in this process could affect the broadcaster’s financial health and limit its capacity to expand and improve services.
What Could Happen Next?
Prasar Bharati is likely to launch an internal review or seek regulatory intervention to assess whether anti-competitive practices are at play. The broadcaster may even request the Competition Commission of India (CCI) to investigate potential collusion among bidders.
Additionally, there is speculation that Prasar Bharati could revise the auction process in upcoming rounds by introducing stricter bidding rules or vetting mechanisms to ensure fair competition and protect the platform’s market value.
Industry Reaction
While no official statements from major broadcasters have been made, industry insiders believe that rising competition in the DTH and OTT space might be prompting channels to re-evaluate their spending on platforms like DD Freedish. However, any deliberate price-fixing, if proven, could damage the credibility of the bidding process and lead to stricter oversight on future media auctions.
Why This Matters
DD Freedish is a vital medium for rural India, offering free access to TV channels without monthly subscriptions. Any disruption in its operations, or a compromise in its financial stability, could impact millions of viewers who rely on it for information, news, and entertainment.
As Prasar Bharati steps up its vigilance, the outcome of this investigation could reshape the dynamics of free-to-air television in India, with potential long-term effects on both broadcasters and viewers.
