TV distributors push for lower payouts amid falling margins

Mumbai: Distribution platform operators (DPOs), which include the likes of Tata Play, Airtel Digital TV, and GTPL, are seeking lower payouts in content deals as subscriber losses and rising channel prices squeeze margins, setting up tough negotiations with broadcasters, industry executives familiar with the discussions said.

DPOs, which distribute television content to consumers through cable, direct-to-home (DTH) and headend-in-the-sky (HITS) platforms, argue that existing content deals have become increasingly unsustainable as they continue to make fixed payouts to broadcasters despite a shrinking subscriber base and rising channel prices.

Although the Telecom Regulatory Authority of India's (TRAI) New Tariff Order bars fixed-fee agreements, industry executives said such arrangements remain common, with some broadcasters offering discounts during ongoing negotiations. "Most DPOs are seeking discounts from broadcasters since it is becoming unsustainable to deliver annual revenue growth despite subscriber churn and repeated channel price hikes," said a senior executive at a leading distribution company. "We are seeking discounts of around 5-7%."


However, executives said broadcasters with larger market shares and stronger channel portfolios are unlikely to concede to DPO demands. JioStar, Zee Entertainment Enterprises, Sun TV Network and Sony Pictures Networks India together account for more than 70% of television viewership in India.

The negotiations come amid a weakening pay-TV market. According to the FICCI-EY Media & Entertainment Report 2026, India's pay-TV universe shrank by around 11 million households in 2025, pushing subscription revenue down 8% to ₹35,400 crore. The report expects subscription revenue to decline another 3% to ₹34,300 crore in 2026. The talks also follow broadcasters' decision to raise the prices of several channel bouquets by around 10% in February to offset rising content costs, further straining distributors' economics.