India's ₹60,000 crore TV business faces a new reality: Fewer viewers, old rules

Mumbai: India’s Rs 60,000-crore television broadcasting industry is facing regulatory uncertainty as traditional TV steadily loses customers to OTT platforms, leaving broadcasters and distribution operators seeking greater commercial flexibility to manage a shrinking market.

Tariff forbearance, renewal of the Broadcast Audience Research Council (BARC) licence, regulation of application-based linear television distribution (ALTD) services and rationalisation of licence fees are among the key decisions the industry is awaiting from the Ministry of Information and Broadcasting (MIB) and the Telecom Regulatory Authority of India (TRAI), industry executives told ET.

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The uncertainty affects broadcasters including JioStar, Zee Entertainment and Sony Pictures Networks India, as well as distribution platform operators (DPOs) such as Tata Play, Airtel Digital TV and GTPL Hathway.

The Indian Broadcasting and Digital Foundation (IBDF), All India Digital Cable Federation (AIDCF) and DTH operators have urged TRAI to consider regulatory forbearance while ensuring a level playing field.

TRAI had indicated that it would review the existing regulatory framework and address industry concerns. However, despite multiple rounds of discussions, it is yet to initiate the consultation process.

Broadcasters and DPOs are seeking greater flexibility in pricing, packaging and other commercial arrangements. TRAI currently regulates channel pricing and carriage fees and has placed restrictions on bouquet formation.

“There is no regulation for OTT or DD Free Dish, but the broadcasting sector is being micro-managed despite the fact that it is declining year on year. The MIB and TRAI have made bold statements in the past about tariff forbearance and a level playing field, but nothing has fructified so far,” said a TV broadcast official.

The uncertainty comes as the traditional TV distribution ecosystem undergoes changes. The active pay-DTH subscriber base declined from 56.92 million in the quarter ended March 2025 to 49.05 million in the quarter ended March 2026, a reduction of 7.87 million subscribers, or nearly 13.8%, according to data cited by TV Ramachandran, president of Broadband India Forum, in a letter to TRAI.

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“This is not a cyclical dip but a structural contraction, and it carries consequences that extend well beyond the operators themselves: it involves reduction in subscription revenues for broadcasters, diminished capacity for content investment, adverse impact on employment across the distribution value chain, and challenges for households – particularly in rural and semi-urban India, for whom satellite television remains the most reliable and affordable gateway to information and entertainment,” he said in the letter dated August 17 to TRAI principal adviser (B&CS) Ashok Kumar Jha.

Ramachandran also urged TRAI to exercise complete regulatory forbearance for broadcasters and DPOs, including DTH, cable and IPTV operators, on pricing, packaging and related operational matters.

“We respectfully submit that this step would align the regulatory treatment of legacy platforms more closely with the flexibility available to newer distribution models, while continuing to uphold essential consumer safeguards such as transparency and non-discrimination,” he added.

DPOs have also sought regulatory parity with streaming platforms offering linear TV content, including free ad-supported streaming television (FAST) services. TRAI had conducted a consultation process on the formulation of a regulatory framework for application-based linear television distribution (ALTD) services, including FAST services, but is yet to issue its recommendations.

Sources aware of TRAI’s workings said the regulator is taking time on the issue as it remains contentious. “There is pressure from broadcasters against bringing ALTD/FAST under the regulatory framework,” the source said.

Another regulatory issue is the status of BARC’s registration. The audience measurement body has said it has taken steps to comply with the MIB’s TV rating guidelines, including having 33% independent board members and increasing its meter count to almost 77,596 against the 80,000-meter norm. Some of its broadcast members are also conducting tests on cross-screen measurement with global measurement companies such as Kantar.

“The MIB should strengthen BARC rather than create competition, which could add confusion. With linear TV shrinking and digital platforms showing little need for third-party measurement, multiple audience measurement bodies could ultimately strengthen advertisers’ bargaining power, allowing them to use conflicting findings to push down ad rates,” said a broadcast executive involved in discussions with the MIB.

The DTH licence fee issue is also pending. TRAI had recommended reducing the fee to 3% and phasing it out by the end of FY27. The matter is pending with the MIB, while DTH operators have made provisions of over Rs 11,000 crore against MIB licence fee demands of over Rs 16,000 crore, along with interest.

A DTH official said the MIB should take a decision on the pending recommendations. “At least, the uncertainty will be gone and we will know whether or not the government is keen on helping the industry survive,” the official added.