DPOs to seek MIB intervention over live TV channel streaming on OTT

Distribution Platform Operators (DPOs) are set to approach the Ministry of Information and Broadcasting, urging an advisory that would prevent OTT platforms from streaming live TV channels. According to sources close to the development, the draft for this request is nearly finalised and will be submitted soon.

"Allowing TV channels on OTT platforms is significantly undermining both the cable and DTH industries," said a senior industry expert.

This reflects growing concerns that unchecked competition from streaming services could jeopardise the traditional cable and DTH markets , according to industry insiders.

Since 2021, the number of subscribers for the four major direct-to-home (DTH) service providers has decreased by 7.6 million.

According to the TRAI’s Indian Telecom Services Yearly Performance Indicators 2023-2024, the active pay subscriber base for these providers was around 61.97 million as of March 31, 2024, down from 69.57 million on March 31, 2021.

This decline has been consistent over the years. The subscriber base stood at 69.57 million in March 2021, decreased to 66.92 million by March 2022, and further fell to 65.25 million by March 2023. As of March 31, 2024, the active subscriber count was 61.97 million, continuing the downward trend in the DTH sector . In recent years, the landscape of television consumption has undergone a seismic shift.

Tata Play Limited has a 32.53% market share of total net pay active DTH subscribers followed by Bharti Telemedia Ltd. with 28.45% as on 31st March, 2024. Dish TV India had 20.46% share while Sun Direct 18.57% share as on 31st March, 2024.

Meanwhile, as on 31st March 2024, there are 880 MSOs registered with MIB. As per data reported by MSOs and HITS operators, there are 11 MSOs and 1 HITS operator with a subscriber base greater than one million. GTPL Hathway led the list with 9.11 million subscribers followed by Siti Networks Ltd. with 5.30 million subscribers and Hathway Digital Ltd. with 5.29 million subscribers. Thamigzha Cable TV Communication Ltd. has 3.81 million subscribers, and Kerala Communicators Cable Ltd. has 3.50 million subscribers.

Digitization, which was already a pressing concern for distribution platform operators (DPOs), has posed a significant threat to traditional pay TV.

The vast array of content available online and the convenience of on-demand viewing have fundamentally changed how audiences engage with media. This shift has become even more pronounced with the recent surge in live channel offerings on OTT platforms, intensifying worries among cable providers about their ability to retain subscribers and remain relevant in this rapidly evolving environment.

According to a study, as many as 84% of households have more than one person watching CTV. With different viewer types watching different content on CTVs, the OTTs have also expanded their offerings. It’s not very different from TV in that sense - on linear television one would switch between channels, and now they switch between OTT, Gaming, and FAST channels.

The cable industry is now grappling with profound uncertainties regarding its long-term viability.

The rise of these platforms not only offers viewers more choices but also enhances accessibility, allowing them to watch their favourite programmes from anywhere at any time. In this context, cable operators find themselves at a critical crossroads, facing the daunting challenge of adapting to a landscape that is shifting beneath their feet.

“The shift toward streaming is likely to drive consumers away from traditional services, further eroding their subscriber bases. This concern highlights the urgent need for action, as the industry faces the risk of losing its foothold in an increasingly competitive market,” said another expert who did not wish to be named.

“The draft that will be submitted to MIB outlines these concerns,” they said,

It's interesting to note that not only DPOs but even larger networks are being impacted by their own presence on OTT platforms. Ironically, their earnings from YouTube channels are cutting into their pay TV subscriber base, as viewers increasingly prefer watching catch-up content on connected TV.

However, broadcasters disagree with this stance.

According to a broadcast veteran, no live channel is being streamed on OTT platforms.

“No live channel is being streamed on OTT platforms. What’s available are selected pieces of content, for which broadcasters hold the copyrights. Anyone with copyright ownership can exploit it across any platform, and no one can restrict that,” said a broadcaster familiar with the developments.

“This isn't the first time cable operators have raised this issue. But since the Ministry of Information and Broadcasting (MIB) understands the underlying rights, they can’t force broadcasters not to capitalise on their own content,” said a broadcaster familiar with the developments,” he added.