Make pay TV ad-free: Cable industry tells TRAI

The cable industry has called on the Telecom Regulatory Authority of India (TRAI) to enforce ad-free programming on pay TV channels, arguing that subscribers are subjected to advertisements for 25%-35% of viewing time despite paying for the service.

According to sources in the industry, in this background, pay TV subscribers in India shell out, on average, as much as ?19 per month per channel (plus taxes) for most of the popular channels. Yet, their viewing experience is inundated with excessive advertisements.

“Viewers often endure 15–20 minutes of ads per hour of programming, meaning a three-hour movie can stretch into a four-hour ordeal. What this situation means to the viewers is that they are paying money to watch advertisements for as much as 25%-35% of the time,” sources told exchange4media.

They asserted that this practice violates Rule 7(11) of the Cable Television Network Rules, 1994, which limits ads to 12 minutes per hour, including up to 10 minutes of commercials and 2 minutes of channel self-promotion.

Although this rule was challenged by the News Broadcasters Association in 2013, the case remains unresolved in the Delhi High Court.

Industry leaders warned that pay TV risks becoming obsolete as OTT platforms offering ad-free content lure away subscribers.

They emphasised that eliminating ads for paying customers could enhance viewer satisfaction, rebuild trust in the pay TV model, and help channels compete more effectively with OTT services. Without reform, the industry faces an accelerated shift of subscribers to digital-first platforms.

“Today, audiences demand not only high-quality content but also the freedom to enjoy it without interruptions. With this shift in preferences, pay TV can only remain relevant if it reevaluates its business models and adapts to the new era of entertainment consumption,” an industry expert said.

Of late, Over-the-Top (OTT) platforms have reshaped viewers' relationships with content and advertisements worldwide.

Subscription-based services like Netflix and Amazon Prime Video have popularised the concept of ad-free content.

“Even YouTube, which primarily operates on an ad-supported model, offers its premium subscribers an ad-free experience for a subscription fee. These platforms operate on the principle that if consumers are paying for content, they deserve an uninterrupted experience. This approach has gained traction globally, with countries like the United States, the United Kingdom, and Japan embracing ad-free OTT services as a standard.

“In India, the deep penetration of internet services through mobile devices has made these platforms accessible to millions which have influenced the consumer to ask themselves – why am I paying money to cable/DTH operators when I can watch shows online either for free (with ads) or at the same or less subscription cost (without ads)?” sources said, adding that to remain relevant, Indian pay TV industry must address this issue head-on.

The cable industry has urged TRAI that making pay TV channels advertisement-free would not only provide the viewer with a seamless viewing experience but also offer a greater value proposition.

“Besides increasing customer satisfaction, it will also enhance trust in the pay TV model. Moreover, ad-free pay TV channels would be able to compete effectively with OTT platforms, reclaiming lost ground in the entertainment market. Failure to adapt even now would accelerate the migration of pay TV subscribers to digital-first platforms,” they said.

They said that pay TV channels in India continue to monetize their content heavily through advertising and it was unjust to consumers.

“This dual-revenue model - earning from both subscription fees and advertisements - is not only unjust to consumers but also predatory. Recent changes in TRAI tariff regulations granting price forbearance to broadcasters have worsened the situation where a higher subscription fee is being charged from subscribers and a premium is also being charged from advertisers for advertising on pay TV channels. The consequence of this is being witnessed in the form of a 33% drop in pay TV subscribers from 180 million in 2018 to 120 million in 2024,” as per sources, cable industry told TRAI.

They added that consumers demand more value, transparency, and control over their entertainment experiences than ever before.

“With the rise of digital platforms like Amazon (Prime Video and MX Player) and YouTube (YT Premium) offering viewers a choice between ‘ad-supported free content’ and ‘ad-free paid content,’ alongside platforms like Jio Cinema, Xstream Play, and Discovery+ providing some content for free and additional content via subscription, expectations have risen across all forms of media, including Pay TV.

“Therefore, when Indian consumers pay ?19 per month per channel (plus taxes), they expect premium-quality programming without the intrusion of advertisements. Yet, in its current form, pay TV struggles to meet this standard,” they said.

To ensure a fair and consumer-centric approach, regulators must seriously consider mandating the removal of advertisements from pay TV channels, cable operators said, adding that this measure would align Indian broadcasting practices with global trends, protect consumer interests, and create a level playing field for all content providers.

“The Indian pay TV industry stands at a crossroads. Regulatory oversight must prioritise the needs of the modern viewer, ensuring that pay TV remains relevant and competitive in an era dominated by digital content. This is possible by making them ad-free for paying subscribers and mandating that advertisement revenue accrues only through FTA Channels.

“Adopting this consumer-centric framework would not only allow the pay TV industry to regain its relevance but also thrive in the evolving entertainment landscape,” they said.

Channel pricing has been a bone of contention between broadcasters and cable operators for many years.

Recently, broadcasters have unveiled revised Reference Interconnect Offers (RIOs), reflecting mixed trends in pricing.

JioStar emerged with the highest bouquet rates, raising prices by 18%. Its Star Value Pack (SVP) Hindi and Hindi Basic SD packs are now priced at ?110 each, up from ?60 and ?34. JioStar offers 83 channel packs with 134 channels, including SD, HD, and FTA options, alongside regional language bouquets. Popular channels like Star Plus and Colors Hindi remain at ?19 a-la-carte, while Star Bharat rose from ?12 to ?15, and Star Plus HD increased from ?22 to ?25. Meanwhile, some prices dropped, such as Colors Cineplex, from ?19 to ?15.

Zee Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India (SPNI, now Culver Max) also revised prices, with bouquet costs rising by 12%. Zee’s All-in-One Hindi SD Pack now costs ?53, up from ?47, while SPNI’s Happy India Smart Hindi Pack increased from ?48 to ?54. Notable changes in a-la-carte pricing include Sony Pal doubling from ?0.50 to ?1 and Zee Café slashing rates from ?10 to ?3. The price hikes stem from TRAI’s NTO 3.0, which allowed maximum channel prices in bouquets to increase to ?19. However, TRAI has deferred further price hikes until June 2024 to ensure stability during the upcoming Lok Sabha elections.