Will Revenue Declines of Indian DTH Companies Moderate to 3-4% This Fiscal?
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Synopsis
Private DTH television providers in India are projected to see a revenue decline of 3-4% this fiscal year, a reduction from the previous year's 5%. The industry is adapting by exploring IPTV and bundled services amidst changing consumer preferences.
Key Takeaways
- Revenue decline for DTH companies projected at 3-4%.
- Shift towards IPTV and bundled services.
- Subscriber base has decreased significantly from 72 million in 2019.
- Marketing income and reduced incentives help cushion profitability.
- Regional content is a key factor in retaining subscribers.
New Delhi, Dec 11 (NationPress) Private direct-to-home (DTH) television providers are expected to face continued revenue declines this fiscal year (FY26), but at a lower rate of 3–4 percent, compared to 5 percent last year, as they venture into Internet Protocol television (IPTV) and promote bundled services, according to a recent report released on Thursday.
Increased income from marketing and a reduction in customer acquisition incentives, specifically related to subsidized set-top boxes (STBs), by certain companies will also aid revenue and help maintain profitability. "The ongoing subscriber churn is evident as wealthier individuals shift to over-the-top (OTT) media services, while budget-conscious users migrate to DD Free Dish," stated Crisil Ratings in their findings.
The subscriber count of private DTH providers has decreased from 72 million in fiscal 2019 to 61.9 million by fiscal 2024. This number further declined by 9 percent in fiscal 2025 and is anticipated to fall below 51 million by the end of the current fiscal year, as noted in the report.
“Despite the pressure on DTH companies from cord-cutting, which has led to consistent revenue declines over the last six years, operators are exploring new avenues like IPTV to promote bundled services, including OTT, broadband, and live television,” said Ankit Hakhu, Director at Crisil Ratings.
IPTV services have seen remarkable growth, with their customer base soaring to 2.13 million as of September 2025, up from 570,000 in fiscal 2024, he noted.
There are some areas of resilience amid the challenges facing linear television. For example, in South India, the rate of cord-cutting has been minimal, with the leading DTH operator in the region successfully increasing its market share while maintaining subscriber numbers, even as the industry faces overall declines.
“Although private DTH companies will experience revenue impacts due to the shrinking subscriber base, this effect will be partially counterbalanced by revenue from marketing on their own OTT aggregator platforms accessible via hybrid set-top boxes,” explained Gauri Gupta, Team Leader at Crisil Ratings.
Consequently, profit margins, which fell from 48 percent in fiscal 2023 to 45 percent in fiscal 2025, are expected to stabilize at 44-45 percent this fiscal due to milder revenue declines.
Increased retention of consumers in certain regions is attributed to a stronger emphasis on regional content and limited offerings from competing DD Free Dish, which provides only three out of the ten most-watched channels, presenting a competitive edge for DTH providers.
Furthermore, the monthly costs for OTT subscriptions combined with broadband remain over twice as high as DTH packages, restricting their appeal among the more price-sensitive demographic, according to the report.
This report is based on a comprehensive survey of all private DTH companies across the nation, covering 53 million subscribers as of September 30 of this year.
Point of View
It's crucial to recognize the evolving landscape of the television industry in India. As DTH providers grapple with subscriber losses, their shift towards IPTV and bundled services reflects a necessary adaptation to consumer demands. While challenges remain, the resilience in certain markets indicates potential for recovery and innovation. NationPress remains committed to following these developments closely.
NationPress
12/12/2025
Frequently Asked Questions
What is the projected revenue decline for DTH companies this fiscal year?
DTH companies are expected to see a revenue decline of 3-4% this fiscal year, a moderation from the 5% decline last year.
How has the subscriber base of DTH providers changed?
The subscriber base of private DTH providers has decreased from 72 million in fiscal 2019 to 61.9 million by fiscal 2024, with an anticipated drop below 51 million by the end of the current fiscal.
What strategies are DTH companies employing to combat revenue decline?
DTH companies are expanding into Internet Protocol television (IPTV) and promoting bundled services to retain subscribers and attract new ones.
What impact has OTT media had on DTH subscriptions?
OTT media services have contributed to subscriber churn, particularly among affluent users who prefer streaming options over traditional DTH services.
What is the significance of regional content for DTH providers?
Focusing on regional content has helped certain DTH providers maintain their subscriber base and market share in regions like South India.
