Airtel Digital TV removing Zee channels from base packs over price hike
Mumbai: Bharti Airtel-owned direct-to-home (DTH) company Airtel Digital TV said it is removing
Zee Entertainment
channels from its bouquets due to a recent price hike by the broadcaster, mirroring an ongoing dispute between
Sony Pictures
Networks India and
Tata Play
.
The DTH company will adjust pack prices to account for the removal of
Zee channels
and place the broadcaster's offerings on an a la carte basis, requiring subscribers to opt for Zee channels separately.
'Due to recent changes in broadcaster tariffs, Zee Network channels will no longer be part of the
Airtel DTH
base packs. These pack prices will be adjusted accordingly,' an Airtel spokesperson said. 'All Zee network channels are available on Airtel DTH and can be added individually to the list of subscribed channels at their respective MRPs via channel selection options."
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In January, Zee and Sony Pictures Networks India raised the price of their base bouquets by over 10%. Broadcaster JioStar implemented the steepest hike, increasing the price of its base bouquet by 18% to ₹110.
While Zee and Airtel Digital TV have not disclosed the financial terms of their deal, the DTH company is estimated to pay ₹300–400 crore annually in subscription fees to the broadcaster.
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Sources familiar with the matter said Airtel Digital TV is resisting the price hike by Zee, as the company and other DTH operators aim to control costs and return to profitability.
A Zee Entertainment executive, speaking on condition of anonymity, said the broadcaster has no dispute with the DTH company, as the two had signed a reference interconnect offer (RIO) agreement specifying the terms and conditions for interconnection earlier this year.
'I don't understand what the dispute is, because Airtel Digital TV has signed a RIO agreement with us and also implemented the price hike to its subscribers. We are waiting for them to send us the subscriber reports, providing the number of subscribers who are taking our channels and bouquets, and we will bill them accordingly,' the executive added.
'Distribution platforms have to reallocate content spends to reflect the new market dynamics — particularly in the wake of the creation of broadcasting giant JioStar, which has extracted its pound of flesh from the market,' a veteran TV distribution executive said, adding that with overall average revenue per user (ARPU) stagnating, distributors are now compelled to reallocate budgets based on each network's strength.
JioStar currently has 34% of the TV viewership market, while Zee holds 17% and Sony Pictures Networks accounts for less than 10%.
Recently, Sony Pictures Networks, a Sony Group Corp-owned entity operating under the legal name Culver Max Entertainment, approached the Bombay High Court to challenge a Telecom Disputes Settlement and Appellate Tribunal order, which had restrained it from proceeding with a disconnection notice issued to Tata Play.
While staying the disconnection notice, TDSAT had also directed Tata Play to pay ₹40 crore to the broadcaster within two weeks, as part-payment against its claimed dues of ₹128 crore. The tribunal stated that this amount would be adjusted against the liability to be determined during the final hearing.
A recent report by EY and the All India Digital Cable Federation said India's pay-TV subscriber base dropped from 151 million in 2018 to 111 million in 2024 — a loss of 40 million subscribers. The report also projected a further decline, with pay-TV households expected to fall to between 71 and 81 million by 2030.
The decline has been attributed to rising channel costs, increased competition from over-the-top platforms and the growing popularity of free, unregulated services such as DD Free Dish.
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