India's Cable TV Industry Crisis: Rise In OTT, Free Dish Cause Major Disruption, Says AIDCF-EY Report
A major shift is underway. While Indian TV homes have reached 190 million, the delivery methods are changing dramatically.
India's television landscape is undergoing a significant transformation, as highlighted by a recent AIDCF EY report titled "State of Cable TV Distribution in India."
The report offers insights into the employment trends and challenges faced by the linear TV distribution sector, essential for informed policymaking.
The cable TV industry has historically been a cornerstone of India's media, fostering employment, technological advancements, and widespread consumer access.
A major shift is underway. While Indian TV homes have reached 190 million, the delivery methods are changing dramatically.
Connected TV homes have surged to 30 million weekly connected sets, and DD Free Dish now serves approximately 49 million households.
Pay TV's reach has shrunk by 40 million since 2018, settling at 111 million, with projections indicating a further decline to 71-81 million by 2030.
This shift is primarily driven by the rise of OTT platforms, Free Dish, Connected TVs, increased smartphone penetration, and broadband expansion.
A survey conducted by EY and AIDCF in late 2024, encompassing 28,181 Local Cable Operators across India, revealed the profound impact. The majority of LCOs reported reduced monthly incomes and significant subscriber base declines, with many experiencing over a 40% drop since 2018.
Key challenges for LCOs include the inability to raise subscription rates despite increasing channel prices, the migration of viewers to alternative platforms, and a perception of lower linear TV content quality compared to OTT.
This contraction in Pay TV has had a cascading effect on the cable distribution ecosystem. Employment in the sector has plummeted by 31% since 2018, resulting in an estimated job loss of 1.14 to 1.95 lakh across India. A staggering 93% of LCOs reported a decrease in monthly income.
To bring growth and stability, the report suggests implementing differential pricing for affordability, ensuring a level playing field for all content delivery platforms, reactivating 20 million inactive set-top boxes through incentives. Establishing fair content windowing rules, providing hardware subsidies for TV adoption in underserved households, and strengthening anti-piracy measures will make a difference, it says.
"This report is not just a statistical analysis; it is a call to action. It highlights the urgent need for policy interventions to safeguard the future of the industry, protect employment, and ensure that millions of Indian households continue to enjoy affordable and reliable television services. We urge policymakers, regulators, and industry leaders to engage in constructive dialogue and take decisive steps to restore balance and sustainability to the cable TV ecosystem," said S.N. Sharma, CEO of DEN Networks Limited and President of AIDCF.
"The decline in pay TV households has had a cascading effect, leading to job losses across multiple levels, from Local Cable Operators (LCOs) to technical and customer support teams, network engineers, and backend service providers. This is not merely an industry concern; it is an economic and social issue that needs immediate attention," explained Ashish Pherwani, Partner, Media & Entertainment Sector, EY India.
"This report is a timely and critical intervention that documents the real impact of the ongoing disruptions in the linear TV distribution industry. Through a detailed employment study, it highlights the erosion of jobs, the changing workforce dynamics, and the urgent need for policy measures to ensure the industry’s long-term viability," he added.
