.jpg)
India’s DTH and cable industry is already experiencing a sharp decline in subscribers, with recent TRAI data reporting a significant drop of 2.2 million users. Stakeholders anticipate that the return of the Big Four networks to Prasar Bharati’s Free-to-Air (FTA) service, DD Free Dish, will further accelerate this trend, posing a greater challenge to the pay TV sector and potentially leading to an even steeper decline in its subscriber base in the coming months.
Recently, top broadcasters - JioStar, Zee Entertainment, Sony - bought MPEG-2 slots on DD Free Dish during the e-auctions bringing back channels - Star Utsav, Colors Rishtey, Zee Anmol, and Sony PAL on DD Free Dish. These channels do not feature new content but instead air reruns of old programmes.
While JioStar bought MPEG-2 slot on DD FreeDish for Star Utsav and Colors Rishtey at Rs 18.25 crore and Rs 18.35 crore, respectively; Zee emerged as the highest bidder by paying Rs 18.6 crore for Zee Anmol and Rs 17.25 crore for Big Magic. Other top bidder was Sony, which paid Rs 18.55 crore to secure a slot for Sony PAL.
Broadcasters capitalise on DD Free Dish for advertising revenue
According to industry experts, the move to relaunch their channels on DD FreeDish is purely for capitalizing on the extensive reach of the country's largest free-to-air direct-to-home (DTH) platform, and to boost advertising revenue.
They said as pay-TV operators struggle to retain subscribers, broadcasters are increasingly turning to DD Free Dish, where they can generate ad income with minimal costs, primarily by airing recycled content.
The growing penetration of DD Free Dish, especially in rural areas, has made it an attractive avenue for broadcasters seeking to compensate for declining subscription revenue from pay-TV, said an expert.
Since the content aired on DD Free Dish consists of reruns, there is virtually no programming cost involved. This enables broadcasters to earn near-pure profit from advertising.
Pay-TV operators (Distribution Platform Operators or DPOs) are witnessing a steady decline in subscriber numbers, leading to a fall in subscription revenues. Broadcasters, in turn, are maximizing their advertising efforts on DD Free Dish to offset these losses.
Rajiv Khattar, a broadcasting expert, noted, “Broadcasters want to continue leveraging the reach of DD Free Dish to capture the advertising market, particularly in rural areas where the platform has deep penetration. Since there is no programming cost, the ad revenue is nearly all profit. Meanwhile, pay-TV operators are losing subscribers, and broadcasters are trying to compensate by expanding ad revenue on DD Free Dish.”
DTH and Cable Industry hit hard by subscriber losses
According to AIDCF, by October 2024, the cable industry witnessed a drop of 50% subscriptions in the last five years and three lakh people became unemployed.
With the fast-changing consumer behaviour, there is no doubt that the cable industry and broadcasters are struggling to hold their subscribers in the linear ecosystem.
India's pay DTH sector has witnessed a decline in its active subscriber base, dropping from 62.17 million in June 2024 to 59.91 million by September 2024, according to Telecom Regulatory Authority of India (TRAI).
This figure is exclusive of subscribers using DD Free Dish, the free DTH service provided by Doordarshan. The shift highlights changing trends in India's television consumption landscape.
Currently, there are four paid DTH providers in the country – Dish TV, Tata Play, Bharti Telemedia and Sun Direct. DD Free Dish is Prasar Bharati’s free DTH service.
Their market share, as per TRAI, is 31.99% for Tata Play, 29.38 % for Bharti Telemedia, 19.53% for Dish TV and 19.10% for Sun Direct.
According to data recently presented by Tata Play CEO Harit Nagpal at the launch of the Pitch Madison Advertising Report, India’s Pay-TV segment comprises 100 million homes, reaching 500 million viewers. The sector generates substantial revenue, with ?32,000 crore coming from subscriptions and ?25,000 crore from advertising, contributing to a total revenue of ?114 crore per million.
In contrast, the Free-TV category, which includes DD Free Dish, covers 45 million homes and reaches 225 million viewers. This segment earns ?4,000 crore in annual advertising revenue, amounting to ?18 crore per million.
Additionally, the Free Apps segment, catering to 200 million viewers, earns around ?5,000 crore annually through ad revenue, generating ?25 crore per million.
The growing challenges for Pay-TV operators
With major broadcasters prioritizing ad revenue on free platforms, the pay-TV industry faces mounting challenges. As more channels migrate to DD Free Dish, pay-TV operators must explore new strategies to retain subscribers and sustain revenue.
The battle between free and pay-TV platforms will continue shaping India’s television landscape, with advertisers and broadcasters strategically shifting towards avenues offering maximum reach at minimal cost.
.jpg)
