DD FreeDish reaches 49 mn homes, YouTube grows 63% of TV's reach in India: FICCI-EY Report

Amid the ongoing decline in India’s traditional television industry, DD FreeDish has witnessed significant growth, reaching an estimated 49 million homes in 2024, according to the FICCI-EY M&E Report released on Thursday.

The FreeDish platform, operated by Prasar Bharati, now hosts 179 channels, including 37 Doordarshan channels, 12 e-Vidya channels, and 33 Swayam Prabha channels, catering to a wide audience seeking cost-effective entertainment options.

According to the report, a survey among 200 FreeDish dealers revealed that 65% reported an increase in their customer base, while 15% found demand stagnant, and only 5% observed a decline.

Consumers in rural and semi-urban areas are increasingly opting for FreeDish, driven by better content quality on Free TV, with channels like Dangal TV and Goldmines ranking among the most-watched entertainment platforms, it said.

Additionally, many users prefer a one-time investment of ?300–?500 for setup over recurring Pay TV subscriptions, especially in areas where internet connectivity remains a challenge.

While FreeDish thrives, the overall television industry continues to shrink. According to estimates, the sector saw a 4.5% decline in total revenues in 2024, dropping from ?711 billion in 2023 to ?679 billion this year. This follows a 2% decline in 2023, marking the second consecutive year of contraction.

Advertising revenue was hit particularly hard, falling 6% to ?294 billion as brands reduced TV ad spending by 12% due to lower audience engagement. Distribution revenue also suffered a 3% dip to ?385 billion, as Pay TV households declined by 6 million, bringing the total down to 111 million subscribers.

Growing preference for free-to-air (FTA) Channels

As per the report, the number of television channels in India grew to 936 by June 2024, up from 899 in December 2023. The growth was primarily driven by an increase in Free-to-Air (FTA) channels, which rose from 532 in September 2022 to 574 in June 2024. The shift suggests that viewers are looking for alternatives to expensive Pay TV subscriptions.

“Notably, news channels dominate the TV space, comprising 40% of all channels, followed by general entertainment (19%) and movies (13%). Within the Pay TV category, 50% of channels focus on general entertainment and movies, highlighting the ongoing battle for audience retention,” it said.

MSOs and LCOs under pressure

The television distribution landscape has also faced disruption. The number of Multi-System Operators (MSOs) shrank to 880 in June 2024, compared to 998 in December 2023 and 1,702 in December 2020. The decline is attributed to rising distribution costs and increased adoption of OTT platforms, which have reduced demand for traditional cable services.

Additionally, Local Cable Operators (LCOs) have been severely affected, with a TRAI survey indicating that 49% of respondents reported a decline in their subscriber base since 2018, while 35% saw a drop of over 40%. As more consumers shift towards digital and mobile-first content, the traditional distribution model is becoming less profitable.

YouTube emerges as a dominant entertainment platform

YouTube has surged in popularity, reaching 476 million users in India in 2024—more than double the audience in the United States, the report said.

“YouTube’s reach in India has grown to 63% of TV’s reach in 2024 (it was 61% in 2023), driven by increased internet adoption in HSM states like Bihar, Jharkhand, UP, Uttarakhand, Rajasthan and northeast where 95% of its users consume content in local languages,” it said.

It said that the YouTube user base in India is expected to reach over 800 million by 2029 on the back of growth in mobile, wireless and wired broadband, providing a formidable proposition to compete with television.

With a significant portion of Pay TV content available on free platforms like YouTube and OTT services, many viewers are cutting the cord to avoid monthly subscription fees, it said.

Additionally, children’s content has seen a notable shift from traditional TV to YouTube and Connected TV platforms, as younger audiences prefer the on-demand availability of their favourite shows.