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State of cable TV distribution in India
Facing digital disruption and shifting consumer preferences, India's pay TV industry must innovate and collaborate to thrive.
In brief
- The pay TV industry in India faces significant challenges from digital platforms and changing consumer preferences.
- To ensure long-term viability, the industry must reinvest in pay TV, grow the market, address over 100 million TV-dark homes and innovate around pricing, reach and windowing.
- Stakeholders — including regulators, broadcasters, distributors and local cable operators — need to collaborate to create a sustainable and competitive ecosystem.
The Indian pay TV market, once a cornerstone of the country's media landscape, now stands at a critical juncture. With the rise of digital platforms, evolving consumer preferences, and rapid technological advancements, the traditional pay TV sector faces unprecedented challenges. Historically, the broadcasting and cable television industry in India has been a major source of entertainment and information for millions of households.
However, recent years have seen a significant decline in pay TV subscribers, with numbers falling from 151 million in 2018 to 111 million in 2024, according to the EY and All India Digital Cable Federation (AIDCF) report “State of cable TV distribution in India”. This drop has been driven by several factors:
Shift to digital platforms
The rapid rise of Over-The-Top (OTT) platforms has transformed how content is both created and consumed. With over 57 OTT platforms operating in India, consumers now have access to a wide variety of content at their fingertips, —often of higher quality, earlier release and at lower cost than traditional pay TV.
Technological advancements
The spread of smart TVs and expanding broadband connectivity have further accelerated the shift toward digital content consumption. The connected TV penetration is projected to grow significantly, from 30 million in 2024 to 76 million by 2030.
Impact on local cable operators (LCOs)
The impact has been significant. An online survey conducted by EY and AIDCF of over 28,000 LCOs indicated the following:
- 93% of respondents reported that their monthly take-home income had reduced since 2018
- Almost half the survey respondents claimed a fall in subscriber base since 2018, with almost 10,000 respondents claiming a fall of over 40%
- The key issues claimed by LCOs included the inability to increase collections when rates increased, a fall in second TV homes, a shift towards OTT, connected TV and free TV and relatively superior quality of content on digital platforms
Market changes have impacted employment
The surveyed LCOs reported reducing employment by 31% from 2018 to 2024— a total fall of 37,835 jobs. Extrapolated to the entire LCO ecosystem, the estimated job loss ranges between 1.14 and 2.1 lakh. With pay TV homes expected to decline by another 30 to 40 million by 2030, the situation could worsen further.
The need of the hour
To navigate these challenges and ensure the long-term viability of the cable TV industry, several strategic actions are required:
- Permit differential pay TV pricing for different territories based on their ability to pay
- Enable a level-playing field across all content distribution mediums —Free TV, OTT platforms, FAST channels and pay TV – while accounting for their unique technological characteristics in pricing, content and advertising codes
- Activate over 20 million inactive STBs in India through incentives or other appropriate means
- Restrict or limit the provision of live or slightly delayed transmission of pay TV content for free on other platforms, i.e., create adequate windows before moving pay TV content onto free digital platforms
- Address more than 100 million TV-dark homes in India through incentives and public private partnerships
- Tackle both linear and digital piracy through stronger enforcement
The pay TV industry in India stands at a crossroads, facing both significant challenges and promising opportunities. By embracing innovation, pursuing policy reforms, and fostering collaboration among stakeholders, the industry can not only survive but thrive in the evolving media landscape. Ensuring the long-term viability of the Indian pay TV market will require a concerted effort from all to build a sustainable and competitive ecosystem.
State of cable TV distribution in India
Summary
The pay TV industry in India is undergoing a transformative phase driven by digital disruption, regulatory shifts and evolving consumer preferences. To ensure its long-term viability, the industry must reinvest in pay TV, expand the market, address over 100 million TV-dark homes and innovate around pricing, reach and windowing. Sustained collaboration among stakeholders is essential to build a sustainable and competitive ecosystem.
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