TRAI rules to bucket disqualification: What caused DD Free Dish's big revenue dip?

DD Free Dish, India’s only free-to-air direct-to-home (DTH) platform, has witnessed a significant decline in revenue from its MPEG-2 slot auctions for the 2025-26 cycle. The drop in earnings has sparked debates among industry stakeholders, with opinions divided over the reasons behind the downturn.

While some believe the decline reflects a more refined faith in the platform and selective bidding, others argue that the auctions have become too expensive for broadcasters. Another segment of industry voices blames the Telecom Regulatory Authority of India (TRAI) for creating policies that discourage competitive participation. Adding to the controversy, allegations have surfaced that the process is rigged, favouring certain players over others.

The numbers tell the story of this underwhelming performance. While there has been no official announcement from Prasar Bharati on total earnings this season, the total number of slots won was down by four. According to sources close to the developments, the pubcaster has incurred a total revenue loss of close to Rs 300 crore.

TRAI rule sparked broadcaster exits?

A key factor behind the revenue dip according to sources is the recent policy by TRAI which mandates that any channel on DD Free Dish must be free-to-air (FTA) across all platforms. 

This has led to an exit of broadcasters unwilling to comply, forcing them to either transition fully to FTA or exit the platform entirely. 

Major players like Zee Punjabi, Ishara, Star Gold, and 9Xm opted out of the auction, reducing competition and revenue generation.

"Many broadcasters found the TRAI mandate impractical, as staying FTA across all platforms impacts their subscription revenue elsewhere. The absence of key channels in the auction was inevitable," said an industry insider familiar with the developments.

No genre-hopping

Free Dish auctions also saw a significant departure from past trends, with no instances of ‘genre hopping,’ a practice observed in the last two years. 

Genre hopping refers to the strategy where broadcasters, after failing to secure a slot in their designated category, bid in other genre buckets to ensure a presence on the platform. This manoeuvre often led to more aggressive bidding wars, driving up overall revenues.

However, sources indicate that multiple factors contributed to the absence of genre hopping this year. 

A broadcaster, speaking on the condition of anonymity, explained, “In previous years, many channels would bid in different buckets when they couldn’t secure a slot in their primary genre. But this time, there was a general sense that the auction wouldn’t be as competitive as before. Moreover, those with multiple channels knew they had the option to stay put with one, and in case they missed a slot, they could still get another by paying extra if they were desperate. This significantly reduced cross-genre bidding, making the auctions less aggressive than in the past two years.”

This shift in bidding behaviour, along with regulatory and pricing factors, contributed to the overall revenue dip witnessed in the latest auction cycle.

Disqualification of R1 bucket

As previously reported by exchange4media, the second round of the DD Free Dish MPEG-2 slot e-auction turned out to be a boon for broadcasters but resulted in a substantial financial setback for Prasar Bharati, which is estimated to have lost nearly Rs 150 crore in potential revenue.

The unexpected disqualification of all Round 1 applicants created a weakened bidding environment, allowing major broadcasters to capitalize on lower prices. 

Unlike Round 1, where Bucket A+ slots fetched up to Rs 18.6 crore, Round 2 saw most slots being sold at near-base prices, with bidding increments as low as Rs 10-15 lakh per slot, leading to a significant revenue shortfall.

While Round 1 also experienced a drop in winning bid prices, the decline was not as sharp as in Round 2. For instance, Sun NEO secured a GEC A+ slot for approximately Rs 18.5 crore this year, down from Rs 21 crore last season. Similarly, Big Magic, which won a slot for around Rs 18 crore in 2024-25, managed to secure one for Rs 17 crore this season.

The trend continued in Bucket A for movie channels, where slots with a base price of Rs 12 crore saw winning bids ranging between Rs 15.5 crore and Rs 17 crore this year, compared to Rs 17 crore to Rs 18.5 crore last season.

The news genre also witnessed a notable dip, with winning bids this season falling in the range of Rs 13.4 crore to Rs 14.4 crore, significantly lower than last year’s Rs 17 crore to Rs 18.5 crore.

Overall, the revenue downturn in DD Free Dish’s MPEG-2 auctions highlights a shifting landscape driven by regulatory changes, evolving broadcaster strategies, and altered bidding dynamics—raising crucial questions about the platform’s long-term viability and competitive appeal.