Sharp decline in pay-TV subscriptions leads to 577,000 job losses: Study
Pay-TV subscriber base dropped from 151 million in 2018 to 111 million in 2024 and is expected to fall further to between 71-81 million by 2030, said the report, 'State of Cable TV Distribution in India', jointly prepared by the All India Digital Cable Federation (AIDCF) and EY India.
It attributed the decline to rising channel costs, increased competition from over-the-top (OTT) platforms, and the growing popularity of free, unregulated services such as DD Free Dish.Cumulative revenues of four direct-to-home (DTH) players and ten major cable TV providers, or multi-system operators (MSOs), have declined by more than 16% since 2018, while their margins have reduced by 29%, the report said.In FY19, their combined revenue stood at ₹25,700 crore, which dropped to ₹21,500 crore in FY24. Combined Ebitda fell to ₹3,100 crore in FY24 from ₹4,400 crore in FY19.
The study drew inputs from 28,181 local cable operators (LCOs) across 34 states and union territories.The LCO workforce has been severely affected, with surveyed operators reporting a 31% drop in employment, representing a loss of 37,835 jobs. When extrapolated to the national level, this translates into job losses ranging from 114,000 to 195,000 across various operational tiers.In addition, closure of approximately 900 MSOs and 72,000 LCOs since 2018 has contributed to the overall job loss figure of 577,000, the report said.Despite these challenges, industry leaders remain cautiously optimistic.JioStar vice-chairman Uday Shankar, Zee Entertainment chief executive officer Punit Goenka, and Sony Pictures Networks India CEO Gaurav Banerjee have, in recent times, reiterated their belief in the resilience and growth potential of linear television.They have noted that 85-90 million Indian households still pay for television subscriptions, indicating scope for expansion by converting DD Free Dish viewers into paying customers and reaching media-dark regions.'Despite the challenges, the industry still has room to grow, provided corrective steps are taken by the broadcasters, distributors and policymakers,' said Ashish Pherwani, partner and media & entertainment leader at EY India.He highlighted the opportunity to bring an estimated 100 million cable-dark homes into the fold through affordable subscription plans, as well as lower-cost televisions and set-top boxes (STBs). He also advocated government support in the form of hardware subsidies and free STB distribution, particularly in sensitive and border areas.To ensure a level playing field, the report called for regulatory parity across all content distribution platforms, including cable TV, DTH, headend-in-the-sky (HITS), and internet protocol television (IPTV).It also recommended allowing differential pricing for pay-TV services based on regional affordability and called for reactivation of more than 20 million inactive STBs — referring to subscribers who have not renewed their services.The report also recommended restricting the free or delayed broadcast of pay-TV content on other platforms and emphasised the need for a unified industry response to tackle piracy.Piracy is estimated to cost the media and entertainment sector over ₹20,000 crore annually.At the grassroots level, the findings present a concerning picture. Since 2018, 93% of LCOs — that serve as the key link between MSOs and end customers — have reported a decline in their subscriber base.Nearly half said their monthly income has fallen, while more than one-third have experienced subscriber losses exceeding 40%.Operators cited their inability to raise customer tariffs in line with rising channel costs as a significant challenge. Other issues include migration of viewers to DD Free Dish, OTT platforms, and connected TVs; a perceived decline in content quality on linear television compared to OTT offerings; and a reduction in second television set connections within households.
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