Cable industry eyes Platform Services to boost TV advertising revenue

As India's pay television industry grapples with subscriber losses driven by streaming platforms and changing viewing habits, cable operators are making a fresh push to transform Platform Services (PS) channels into hyper-local media businesses capable of generating new advertising revenue and strengthening television's relevance.

Industry executives argue that Platform Services channels—regulated local cable television channels permitted under the Ministry of Information and Broadcasting's (MIB) 2022 guidelines—can evolve beyond community programming into full-fledged local media ecosystems, offering advertisers targeted access to district and neighbourhood-level audiences while helping cable operators offset the financial impact of cord-cutting and recently proposed removal of landing page data from TRP ratings. 

The proposal comes at a time when India's cable television industry continues to face structural pressure from OTT platforms, connected TVs and digital video consumption, forcing multi-system operators (MSOs) to look beyond traditional subscription revenues.

According to an industry paper reviewed by e4m, cable operators believe their extensive last-mile infrastructure and long-standing relationships with local communities provide an advantage that national broadcasters and digital platforms struggle to replicate.

"Consumer preferences are becoming increasingly local while advertisers are seeking measurable engagement instead of mass reach. Platform Services channels can bridge that gap by combining hyper-local programming with targeted advertising," a senior executive from a leading cable operator company said. 

Building local media ecosystems

The industry envisions Platform Services channels evolving into comprehensive local media platforms centred on community-focused content, including district-level news and events, civic announcements, educational opportunities, employment updates, healthcare campaigns, cultural programmes and public welfare initiatives.

Executives argue that such highly localised programming has the potential to bring audiences back to linear television by offering content unavailable on national television channels or global streaming platforms.

The industry's optimism is rooted in the regulatory framework introduced by the Ministry of Information and Broadcasting in November 2022, which formally recognised Platform Services channels through a structured registration process.

The guidelines brought regulatory clarity to an ecosystem that had historically been dominated by local cable channels operating without a uniform framework. However, industry participants say the transition remains a work in progress and requires stronger enforcement to ensure that only registered and compliant Platform Services channels operate on cable networks.

The paper argues that as regulatory oversight improves, unauthorised local channels are likely to disappear gradually, consolidating audiences around compliant Platform Services channels. Such consolidation, it says, would improve channel reach, enhance advertiser confidence and create a more sustainable local television ecosystem.

New advertising opportunity

Cable operators believe local advertising could emerge as the biggest commercial opportunity for Platform Services channels.

Unlike national television campaigns, which are often prohibitively expensive for small businesses, Platform Services channels offer geographically targeted access to consumers within specific districts and towns.

Potential advertisers include hospitals, educational institutions, automobile dealerships, real estate developers, retail businesses, tourism operators, financial services firms and small and medium enterprises.

However, the industry believes future growth will depend on moving beyond conventional television advertising.

Instead, operators are proposing integrated marketing solutions combining television exposure with community engagement through sponsored events, healthcare awareness drives, educational programmes, product launches, promotional campaigns and broadband-led marketing initiatives.

Such bundled offerings, they argue, would provide advertisers measurable consumer engagement while creating premium revenue streams for cable operators.

Industry seeks unified advertising network

One of the biggest challenges identified by the industry is fragmentation.

While individual Platform Services channels enjoy strong local penetration, advertisers often seek campaigns spanning multiple cities or states.

To address this, MSOs are proposing the creation of a unified Platform Services advertising network that would allow brands to execute campaigns simultaneously across multiple cable operators through a single buying platform.

Industry executives believe such collaboration would simplify media buying, improve campaign efficiency and unlock larger advertising budgets that currently flow to television networks, digital platforms and social media.

Cable operators are also calling for the establishment of an industry association dedicated to developing audience measurement standards, publishing viewership data and demonstrating the effectiveness of hyper-local television advertising.

Executives say the absence of credible audience measurement remains one of the biggest hurdles preventing large advertisers and media agencies from allocating significant budgets to Platform Services channels.

Eyeing government advertising

The industry also sees government communication as a major untapped revenue opportunity.

Cable operators also note that both the Centre and state governments spend substantial amounts on public awareness campaigns covering healthcare, education, sanitation, agriculture, financial inclusion and welfare schemes.

Further, cable operators argue that Platform Services channels are well positioned to deliver these messages in regional languages with local cultural relevance, particularly in smaller towns and rural markets.

To unlock that opportunity, the industry is seeking empanelment of eligible Platform Services channels with the Central Bureau of Communication (CBC), enabling them to receive government advertising and public information campaigns.

Beyond empanelment, operators are also urging the government to establish a structured policy allocating a defined share of public communication budgets to registered Platform Services channels.

According to the industry leaders, such support would improve the financial viability of local channels, encourage investment in regional content production, generate employment and strengthen government outreach at the grassroots level.

Future beyond television distribution

Industry stakeholders believe the long-term opportunity extends beyond television broadcasting.

Because cable operators maintain a physical presence within the communities they serve, they argue that Platform Services channels can combine on-ground activities—such as roadshows, product sampling campaigns, health camps, educational fairs, CSR initiatives and cultural events—with television coverage to offer advertisers integrated engagement solutions.

Cable operators state that the future of Platform Services channels will ultimately depend on their ability to produce compelling local programming while leveraging regulatory support, advertiser participation and industry collaboration.

For cable operators battling subscriber erosion, the industry sees hyper-local television not merely as another channel category but as a potential transformation from television distribution businesses into sustainable community-focused media platforms capable of creating new revenue streams in an increasingly digital media landscape.