Rating agency ICRA forecasts the revenues for the Indian Pay TV industry to witness a contraction in the range of 1-3% in FY2026. India’s Pay TV subscriber base is feeling the pressure of competition from OTT platforms, YouTube, and DD Free Dish, driven by affordable mobile data and diverse regional content offerings.
In 2024, a steady decline was observed, particularly in urban markets, with an estimated 5-7% drop in subscriptions. As of September 2024, the total active pay TV subscriber base in India (specifically DTH – Direct-to-Home) is around 59.91 million according to TRAI data— which is a notable decline from 62.17 million subscribers recorded in June 2024.
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Not only are revenue margins tight for the Pay TVs, but the costs are increasing, whether for content acquisition, CapEx, or OpEx, Sukhpreet Singh, Chief Revenue Officer at Dish TV told Storyboard18.
To tackle this challenge, Dish TV is trying to rationalise the kind of content it offers to the subscriber base so that it can manage content costs effectively, while it also continues to raise such concerns in the appropriate forums regarding what the government and regulatory authorities can do.
“This is done through a deep understanding of our base and various analytics, which help us identify exactly who consumes what, at what point in time. We analyse when people need sports, when they stop watching sports, when they consume only a small number of channels, and when they watch a broader range of content,” shared Singh.
Dish TV has also launched Zing Super FTA Box, a standard definition (SD) DTH connection specially made for Free Dish users who occasionally want to watch some paid channels, to cater to price-sensitive audiences while offering a superior experience compared to FTA alternatives.
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Optimising operational expenditure has become a continuous effort for Pay TVs, especially to combat the high content acquisition costs.
“We are driving efficiencies across our entire chain, from pre-content processing to the final delivery at the customer’s home. Similarly, we are focusing on better technology that demands relatively lower CapEx. It is a difficult balance to maintain, and it will take time, but we are actively working on all these areas,” said Dish TV executive.
The rapidly escalating content acquisition costs are undeniably one of the most pressing challenges for Pay TV operators today. With the increasing demand for marquee properties — particularly in live sports, premium reality shows, and high-impact entertainment content — the cost of securing such rights has surged dramatically. This has placed immense pressure on the business models of Pay TV platforms, directly impacting their profitability and long-term sustainability, pointed out Vikram Malhotra, Founder and Chief Executive Officer, Abundantia Entertainment.
Compounding this challenge is the aggressive competition from OTT platforms, many of which have global scale, deep financial backing, and the agility to bid competitively for exclusive content rights. This often puts Pay TV operators at a distinct disadvantage, especially when it comes to acquiring premium sports or blockbuster entertainment properties. Additionally, the challenge is amplified by the need to keep subscription costs accessible for viewers while simultaneously investing in high-quality content to drive retention and growth.
To remain competitive, Pay TV operators must rethink their content acquisition strategies, experts suggested.
Positive Southern Market and Need for Collaborations
Experts point out that despite the fragmentation in content distribution and consumption, Pay TV in India continues to command a substantial user base, particularly in non-metro cities and semi-urban / rural regions, where linear television remains the primary source of entertainment.
According to Malhotra, India is inherently a content-hungry nation, and with evolving consumption patterns, the growth of Pay TV hinges on its ability to adapt, innovate and stay relevant.
“Pay TV continues to hold significant growth potential, especially in Tier-2, Tier-3 cities, South India, as well as rural markets where broadband infrastructure is still evolving. The key to sustaining and driving growth for Pay TV lies in adopting a content model which is platform-agnostic, genre-agnostic and language-agnostic, to stay relevant in the evolving entertainment ecosystem,” he summed up.
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Experts note that South India accounts for close to half of the Pay TV subscriber base, irrespective of the fact that the region has lesser population than Hindi speaking market. In the South market, it is also to be noted that television remains an affordable medium as the average revenue per user remains lower ( between Rs 200- Rs 250) as compared with Hindi markets, where it ranges between Rs 250- Rs 300.
Pay TV also faces lesser heat in the Southern market as DD Free Dish is yet to gain a significant foothold in the region.
Additionally, to stay afloat, Pay TV is suggested to invest in youth-centric programming to resonate with audiences across tiers as it retains a loyal audience base in smaller towns and rural regions where demand for relatable content remains high.
Further, strategic collaborations with content creators, production houses, and IP (Intellectual Property) owners to develop exclusive content for Pay TV networks can further enhance its appeal and keep viewers engaged, Malhotra added.
While OTT platforms continue to grow, Pay TV has the opportunity to co-exist and thrive by evolving its content strategy, enhancing viewer experience, and creating a hybrid ecosystem. All it needs to focus on is the right balance of diverse content, technology, and strategic partnerships.