30% drop in Pay TV households since 2017: Report

In a first-of-its-kind initiative in over three decades, Ernst & Young (EY), in collaboration with the All India Digital Cable Federation (AIDCF), has released a comprehensive report on the state of cable distribution in India. Presented by Ashish Pherwani, Partner – Media and Entertainment, EY India, the report lays bare the scale of decline that India’s cable industry is grappling with — marked by shrinking revenues, subscriber attrition, falling margins, and most alarmingly, widespread job losses.

At the heart of the report lies the stark revelation that 93% of Local Cable Operators (LCOs) surveyed reported a drop in their monthly take-home income compared to 2018. An overwhelming 79% said their earnings have fallen by more than 20%, revealing the severity of stress on grassroots operators. This extensive survey covered 28,100 LCOs across India, making it one of the largest primary research efforts in the sector’s history.

The most disquieting finding is the collapse in employment within the cable distribution chain. Speaking during the report launch, S.N. Sharma, President of AIDCF and CEO of DEN Networks, disclosed that the estimated job loss across the sector stands at 5.77 lakh jobs — the highest the industry has ever seen. “Within our sample of 28,000 LCOs, employment fell from 1,20,000 in 2018 to about 80,000 — a 31% drop. When extrapolated across our 1.6 lakh LCO members, that alone is 1.95 lakh jobs lost,” Sharma said.

But the real extent of job loss emerges when accounting for LCOs that have shut down entirely. “In the last six years, around 76,000 LCOs among AIDCF members have gone inactive. Assuming even three employees per LCO, that’s another 2.28 lakh jobs gone,” explained Ajay Singh, Chairman, GTPL Hathway. 

Adding to this are non-AIDCF LCOs and independent MSOs, many of whom have exited the market — contributing at least 1.5 lakh additional job losses. Even smaller MSOs going out of business — with conservative estimates of five employees each — account for 5,000 to 6,000 more jobs.

“These are not speculative numbers. They reflect real people and livelihoods in small towns and urban centers across India. And we haven’t even counted the job losses due to internal cost cutting,” Sharma noted.

Explaining the key reasons behind this industry-wide collapse, Sharma said the first is regulatory disruption introduced in 2019. “That framework stripped cable operators of the ability to decide what content mix was best suited for their local audiences. Broadcasters dictate the packaging and bookings, even if the end consumer doesn’t want it,” he said.

Second is the issue of pricing and affordability. Sharma explained that cable, by nature, is a mass-market service — designed to serve price-sensitive consumers. “In the last six years, prices have increased sharply. Many operators couldn’t pass that burden onto subscribers, so they absorbed it. That eroded margins and pushed many out of business.”

Third, and perhaps most frustrating for operators, is the non-level playing field with digital platforms. “We’re not afraid of technology. We weren’t afraid of DTH, or OTT. But we are battling an uneven regulatory landscape. While we follow pricing, content, and advertising regulations, OTT platforms do not. That’s not competition — that’s cannibalization.”

The report also shows a significant decline in pay TV households, which fell from 152 million in 2017 to 111 million in 2025 — a loss of over 40 million homes, or nearly 25–30% of the market. Simultaneously, connected TV usage, free TV viewership, and “TV-dark homes” — households without any television connection — have grown sharply. There are now an estimated 140 million TV-dark homes in India, a figure that Pherwani said must be urgently addressed.

The survey revealed that over 10,000 of the 28,000 LCOs reported a drop of more than 40% in their subscriber base since 2018. Many said that customers are downgrading from multiple cable connections to just one, with second or third TVs in a household being converted to broadband-connected devices or smart TVs. Others cited growing preference for free content on platforms like YouTube, or the superior production quality and storytelling found on OTT services.

The report confirmed that not just LCOs, but also Distribution Platform Operators (DPOs) — including DTH companies and large MSOs — are seeing continuous declines in revenue and EBITDA margins. “This is not just a subscriber problem. It’s an ecosystem-wide issue,” said Pherwani.

To arrest this downward spiral, the report outlines five urgent actions for the industry. First, broadcasters must reinvest in content and marketing to rejuvenate the pay TV space. Second, there needs to be a coordinated push to reactivate the 20 million inactive set-top boxes across the country, possibly with the help of incentives and partnerships.

Third, the report calls for a level playing field across platforms, urging parity in pricing, advertising norms, and content regulations. “Free content can’t be given away on one platform when the same is being sold on another,” Pherwani said, emphasizing the need for collaborative standards. Fourth, the industry must adopt a windowing strategy for content — just like movies follow a theatrical-to-digital release cycle, pay TV must retain exclusivity before shows appear on OTT platforms.

Finally, the report flags piracy as a major issue, citing a recently released EY study titled The Rob Report, which estimates ₹20,000 crore in annual losses to India’s media industry due to piracy across both digital and linear content streams.

“This report is a wake-up call,” Pherwani concluded. “We are not just talking about revenue declines. We are talking about an industry that supports millions of jobs, losing its footing. If we don’t act now — collaboratively, structurally, and urgently — the damage may soon be irreversible.”