'Pay TV in India is evolving, not declining'

While some reports suggest pay TV is fading, industry leaders argue that despite digital growth, it remains a profitable and steady medium.

During a discussion on the "Future of Pay TV" at the curtain-raiser of FICCI Frames 2025 and the launch of the FICCI-EY M&E Industry Report on Thursday, senior industry experts asserted that pay TV is evolving, not declining, as they debated its future.

According to Nachiket Pantvaidya, Chief Executive Officer of Sony Entertainment Talent Ventures India, pay TV continues to perform well and should not be blamed for the lack of groundbreaking content.

"There has always been a cataclysmic content event driving pay TV. That is what we are all searching for—game-changing content solutions. You can’t blame the distribution medium for the lack of a content explosion. The real question is: What will spark the next big boom?

"The numbers look strong. The people responsible for distribution are doing well. The country is growing economically. Just as you can’t blame a theatre owner for a lack of new films, you can’t blame pay TV distributors for the absence of groundbreaking content. The real issue is that we are recycling content across languages rather than creating something truly innovative. That is the real crisis of the moment. Pay TV remains robust," he said.

Sharing his views on whether enough investment is being made in good content, Sumanta Bose, Head of Cluster, Entertainment (Star Plus and Bharat, Bengali, Marathi, and Gujarati), JioStar, stated that there is no set formula for creating successful content.

"You can analyse the numbers, but a good story that resonates with viewers is only evident in hindsight. Unfortunately, content creation lacks foresight—it’s always post-facto whether something becomes a hit or not. So, I don't think it's an issue of investment. It’s a challenge we need to solve collectively," Bose said.

Pantvaidya further emphasised that investment in content goes beyond money—it requires both structured processes and time, which are currently lacking. While ?40,000 crore is being invested in content, with 85% allocated to pay TV, the key issue is whether enough time and structured processes are in place. He highlighted the cyclical nature of the industry, where every few years, new buzzwords emerge predicting the decline of pay TV, yet the industry continues to grow.

"Despite fluctuations in performance, consumer engagement remains strong, and distribution systems are robust. Cable operators' declaration rates have increased significantly since the 1990s, and advancements like addressable set-top boxes, digital systems, and DTH expansion further strengthen the sector. Mergers and acquisitions in the DTH space also indicate industry consolidation and growth.

"Our understanding of the pay TV medium is often superficial and unidimensional. It is thriving in ways that are not always visible at first glance," he said.

Speaking on the relevance of pay TV, Arjun Nohwar, Co-Chair of the FICCI Media and Entertainment Committee and SVP & Country GM – India & South Asia at Warner Bros. Discovery, addressed misconceptions, stating that pay TV is essentially an "agglomeration of channels" and is not defined by set-top boxes or distribution platforms, which are merely delivery mechanisms.

While the distribution landscape is evolving with the growth of cable TV and DTH platforms, he stressed the need to differentiate this shift from the supposed "demise of television," which he argued is an incorrect assumption.

He pointed out that while the methods of content consumption are changing, "pay TV content and overall minutes of consumption are not declining." Referring to a report that suggests pay TV has declined in India, he cautioned against taking such conclusions at face value, stating that they do do not capture the full picture.

The discussion reaffirmed that pay TV continues to play a crucial role in India's media ecosystem. While digital platforms grow and evolve, pay TV remains a resilient and profitable segment, benefiting from robust distribution systems, strong consumer engagement, and ongoing industry innovations.