Pay-TV Players Concerned as Channels Return to DD Free Dish

HIGHLIGHTS:

• The pay-TV industry has seen a decline in subscribers, dropping from 120 million to 84 million due to shifting viewing habits and the rise of streaming platforms.
• DD Free Dish reaches 40–50 million households and has generated substantial ad revenue for broadcasters, even as the pay-TV market faces pressure.
• Industry experts believe returning to DD Free Dish provides broadcasters with additional ad revenue while maintaining existing pay-TV content monetization.
• JioStar's decision to discontinue free cricket streaming could encourage viewers to return to traditional pay-TV services, with sports driving significant subscription revenue.

The pay-TV industry is facing new challenges as top broadcasters JioStar, Zee Entertainment, and Sony Pictures Networks India prepare to relaunch free-to-air (FTA) Hindi general entertainment channels (GECs) on DD Free Dish, India's largest free direct-to-home (DTH) platform. These channels, Star Utsav, Colors Rishtey, Zee Anmol, and Sony Pal, which air rerun content from pay Hindi GECs such as Star Plus, Colors, Zee TV, and Sony TV, are expected to draw a large audience, raising concerns about subscriber migration from pay-TV platforms. These channels left DD Free Dish in 2022 due to pressure from pay-TV distributors like Tata Play.

DD Free Dish, which reaches an estimated 40–50 million households and provides a range of entertainment, news, and regional channels without a subscription fee, and over-the-top (OTT) platforms are already driving industry churn, and industry officials say that GECs' course reversal could make it worse.

The pay-TV subscriber base has decreased to about 84 million from a peak of 120 million a few years ago, according to industry estimates. This decline is mostly due to shifting viewing habits and the rising popularity of streaming and free TV platforms.

"Even when these channels weren't available on DD Free Dish, the pay-TV base has decreased. A senior executive at a major broadcasting company dismissed the worries of pay-TV distributors, saying, "Broadcasters are losing out on incremental ad revenue earned as a result of their presence on DD Free Dish, even though their TV subscription revenue growth has slowed."

DD Free Dish enabled Sony Pal, Star Utsav, Colors Rishtey, and Zee Anmol to generate over ₹1,000 crore in additional ad revenue until 2022. While the availability of Hindi GEC content on DD Free Dish may have an impact on pay-TV distribution platforms, experts believe it will generate additional ad revenue for broadcasters.

"Broadcasters are making the right decision by returning to DD Free Dish, as it provides additional ad revenue at no extra cost by monetising existing pay-TV content," said Rajesh Sethi, media advisor at PwC India. He also stated that the revenue generated by repackaged content on DD Free Dish will enable broadcasters to expand their content offerings for both digital and pay-TV.

However, industry officials see a silver lining in JioStar's decision to discontinue free cricket streaming, which may provide relief to the pay-TV sector. Live sports, particularly cricket, have long been a major driver of television subscriptions, and restricting free access to such content may encourage viewers to switch back to traditional pay-TV services.

"Sports broadcasting has been a big driver of subscription revenue both globally and in India," said the CEO of a television distribution company.