**DTH Operators Face Revenue Decline Amidst OTT Growth**
The direct-to-home (DTH) sector is experiencing significant challenges, with three of the four major operators—Tata Play Ltd, Sun Direct TV Pvt. Ltd, and Dish TV India Ltd—reporting a revenue decline in FY25. In contrast, Airtel’s Bharti Telemedia Ltd saw a 5% increase in its revenue. According to Chandrashekar Mantha, a partner and media and entertainment sector leader at Deloitte India, the pay DTH subscriber base has decreased by over 7 million since 2021, primarily due to the shift towards over-the-top (OTT) services. “The allure of on-demand viewing and a wider array of content has fundamentally altered consumer preferences,” he noted.
This trend is particularly evident in metropolitan areas and among younger audiences, who increasingly seek personalized entertainment options. However, DTH services continue to be a primary entertainment source in rural India. Tata Play has acknowledged ongoing “headwinds and competitive challenges” from free dish services and OTT platforms, emphasizing a focus on profitability. The company aims to enhance its revenue through sports content, long-duration product offerings, and the application of artificial intelligence and machine learning for revenue management.
Dish TV’s annual report indicated that its revenue decline was attributed to a drop in pay-TV subscribers and stagnant average revenue per user (ARPU). The COVID-19 pandemic has shifted household demands towards more diverse and personalized content, as families spent more time indoors. Unlike traditional television, which follows a set schedule, OTT platforms allow viewers to watch content at their convenience, leading to a surge in OTT consumption.
Partho Dasgupta, managing partner at Thoth Advisors and former CEO of BARC India, highlighted that many consumers are moving away from DTH services in favor of free options like DD Free Dish, YouTube, or low-cost ad-supported video-on-demand services. Additionally, viewers are increasingly opting to watch shows on broadcasters’ streaming apps such as JioCinema, Disney+ Hotstar, and SonyLIV, driven by a post-COVID binge-watching culture.
The number of active paying DTH subscribers fell to 56.92 million in FY25, down from 61.97 million in FY24, as reported in the Indian Telecom Services Yearly Performance Indicators Report 2024-25. Tata Play leads the market with a 31.42% share, followed closely by Airtel at 30.2%. In comparison, active paid OTT subscriptions reached 99.6 million, according to the Ormax OTT Audience Report: 2024.
In conclusion, the DTH industry is at a crossroads, facing significant competition from OTT platforms and changing consumer preferences. As operators adapt to these challenges, the focus on profitability and innovative content delivery will be crucial for their survival in an increasingly digital landscape.
**FAQ**
**Q: Why are DTH operators experiencing a decline in revenue?**
A: DTH operators are facing revenue declines primarily due to a significant shift in consumer preferences towards OTT services, which offer on-demand viewing and a wider variety of content.