India’s television and entertainment industry is undergoing a fundamental transformation. Direct-to-home (DTH) services, once the primary gateway for satellite TV, are losing subscribers and revenue as over-the-top (OTT) platforms grow in dominance. This shift highlights how consumer preferences are evolving toward convenience, personalization, and on-demand access.
Decline of DTH Operators
Three of India’s four leading DTH providers—Tata Play Ltd, Sun Direct TV Pvt. Ltd, and Dish TV India Ltd—saw revenue decline in FY25. Tata Play’s revenue dropped from ₹4,327.07 crore in FY24 to ₹4,109.3 crore, while Dish TV fell from ₹1,856.5 crore to ₹1,567.6 crore. Sun Direct’s income also contracted. In contrast, Airtel’s Bharti Telemedia Ltd grew 5%, signaling resilience with its hybrid offerings.
The total number of active paying DTH subscribers declined to 56.92 million in FY25 from 61.97 million in FY24, underscoring the sector’s weakening hold. Tata Play led the market with a 31.42% share, followed closely by Airtel at 30.2%.
OTT Emerges as the Growth Engine
OTT platforms are now the clear winner in India’s entertainment race. Active paid subscriptions touched 99.6 million in 2024, with an audience universe of over 547 million video streamers. Unlike scheduled TV, OTT thrives on flexibility, binge culture, and content variety—from global hits to regional originals.
Broadcasters’ own apps, such as JioCinema, Disney+ Hotstar, and SonyLIV, have strengthened this migration, alongside ad-supported free platforms like YouTube and DD Free Dish. Post-pandemic, demand for personalized content and family viewing flexibility has only accelerated the trend.
Rural vs Urban Divide
The churn is sharpest in metros and among younger demographics, where the appetite for personalized entertainment is highest. However, DTH continues to hold strong in rural India, where it remains the primary entertainment source. For Dish TV, for example, 60% of revenue still comes from rural households. This rural reliance may slow the overall pace of decline but not halt it.
Bundling and Hybrid Experiments
DTH players are pivoting with app-based solutions and bundled OTT subscriptions to stem customer erosion.
- Tata Play Binge: Offers access to over 30 OTT platforms on a single app.
- Airtel Xstream: Bundles popular OTTs like Amazon Prime Video and SonyLIV, alongside IPTV features.
- Dish TV Watcho: Delivers multilingual short-form content, with “Fliq” adding 4,000 hours of creator-driven programming.
These hybrid packs retain around 30% of customers who would otherwise have left for OTT-only services. Still, growth remains moderate, and profitability is under pressure.
Industry-Wide Headwinds
The challenges go beyond DTH. Linear TV overall is struggling, with:
- 6% drop in advertising revenue due to lower ad volumes and advertiser exits.
- 3% decline in subscription revenue, linked to 6 million fewer pay-TV homes.
- Content stagnation, with Hindi general entertainment channels failing to engage audiences. Even legacy characters from old shows outperform newer protagonists.
The FICCI-EY Media and Entertainment Report 2025 notes that revenue has fallen for two consecutive years, a worrying signal for traditional broadcasters.
The Road Ahead
Despite mounting losses—Tata Play with a ₹428.27 crore loss and Dish TV with ₹487.7 crore—the sector isn’t vanishing overnight. Rural India’s dependence, bundled hybrid packs, and sports-driven programming provide some buffer. However, the balance of power is clearly tilting toward OTT.
The industry’s future may lie in convergence—where DTH is no longer a standalone product but a gateway to OTT, IPTV, and regional content. Success will depend on affordability, bundling strategies, and localized programming to meet diverse Indian audience needs.
OTT has reset consumer expectations. For DTH providers, survival will mean adapting quickly—or risk being left behind in India’s digital entertainment revolution.
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