Television (TV) broadcasters in India are expected to see a 300 basis point (bps) increase in operating margins, reaching approximately 15% by the fiscal year 2027, according to a report by Crisil Ratings. The expansion of digital offerings and economies of scale are driving this improvement, helping profitability edge closer to pre-pandemic levels.
However, the long-term success of the sector will depend on how well broadcasters can compete with digital platforms, as consumer preferences continue shifting towards on-demand digital content.
Digital surge reshaping the industry
The Crisil analysis, covering TV broadcasters that account for nearly 90% of industry revenues, indicates that revenue growth has been largely stagnant from 2022 to 2025. This slowdown is attributed to consumers increasingly opting for over-the-top (OTT) platforms like Netflix, Hotstar, and Amazon Prime, as well as free digital content on YouTube and Instagram.
With broadband penetration on the rise and digital platforms offering greater engagement and convenience, traditional linear TV broadcasting is expected to remain stable or see marginal declines.
Broadcasters adapting to digital trends
To capitalize on digital consumption, many TV broadcasters have launched their own digital platforms, offering content such as live sports, news, and entertainment via mobile apps and smart TV applications. This has helped them capture a larger share of ad revenue, particularly from sectors like fast-moving consumer goods (FMCG), automobiles, e-commerce, and real estate.
“The ability of digital platforms to deliver personalized, data-driven advertisements is attracting more advertisers and shifting ad spending away from traditional TV,” said Ankit Hakhu, Director, Crisil Ratings.
Broadcasters are also exploring new revenue models, including subscription-based services and paywalls for premium content, as they compete with digital-only platforms for both viewership and revenue.
Financial Outlook: Profitability and Revenue Growth
Crisil Ratings projects that digital revenues for broadcasters, which grew at an average of 15% from 2022 to 2025, will continue to grow at a double-digit rate over the next two years. By fiscal 2027, digital is expected to contribute nearly 25% of total revenue.
“With rising digital revenue and stable fixed costs, broadcasters are spreading content costs across a wider consumer base,” said Varun Marwaha, Associate Director, Crisil Ratings. “This will improve operating margins to 16-18%, bringing them closer to pre-pandemic levels.”
The return on capital is also expected to improve to 10-12% by 2027, though it will remain below the 12-15% levels seen before the pandemic and the 15% peak of the past two decades.
Despite these positive trends, broadcasters face increasing competition from digital-only platforms. The industry’s future growth and profitability will depend on how effectively traditional TV players can innovate, adapt to changing consumer behavior, and differentiate their digital offerings from established streaming giants.
As digital transformation continues to reshape the media landscape, broadcasters will need to balance traditional TV operations with an aggressive push towards digital monetization to maintain their financial health and market relevance.