TV’s big players pivot to digital profitability as ad recovery stays slow

India’s television industry is at a crossroads, navigating a challenging environment marked by shifting viewer preferences, softer advertising revenues and the rising dominance of digital and on-demand platforms.

While larger broadcasters like Zee Entertainment, JioStar, Sun TV and Sony have recalibrated their strategies to bolster digital profitability, smaller players in the space, particularly Direct-to-Home (DTH) operators, have faced parallel pressures, reflecting a sector-wide transformation.

Zee Entertainment Enterprises Limited (ZEEL), one of the largest general entertainment broadcasters, has demonstrated a deliberate pivot towards digital profitability. In Q2 FY26, Zee’s advertising revenue stood at ₹806 crore, down from ₹901 crore in Q2 FY25, while subscription revenue rose to ₹1,023 crore from ₹970 crore in the previous year.

On a half-year basis, advertising revenue for H1 FY26 reached ₹1,564 crore, compared to ₹1,813 crore in H1 FY25, while subscription revenue increased to ₹2,004 crore from ₹1,957 crore.

The company has reported its highest-ever quarterly revenue from its OTT platform ZEE5, which crossed Rs 300 crore in Q2 FY26 - a 32% year-on-year jump - as the company moves closer to profitability in its digital business.

Also read: ZEE5 logs Rs 300 cr revenue for Q2 FY26

Zee Entertainment Q2 FY26 results: Profit drops 63% YoY amid weak ad revenue

According to ZEEL CEO Punit Goenka, the company is stagnant in the linear business, and most of the 6% growth in the second quarter has come from the digital segment.

The company said that on the subscription side, overall revenue grew 6% in Q2, driven by digital growth from the introduction of language packs and renewal of contracts with DPOs in the broadcast business.

For the full fiscal year 2025, ZEEL observed a 7% year-on-year growth in subscription revenue, which rose to ₹3,926.1 crore, while advertising revenues fell by 11% to ₹3,591.1 crore. The decline in ad revenue was primarily due to a continued soft environment for linear TV, particularly in the general entertainment segment.

The company’s growth in subscription revenue, driven by the National Tariff Order (NTO) 3.0 implementation and expansion in digital subscriptions, reflects a strategic shift aimed at creating a more resilient revenue mix amid weakening traditional ad spends. The company’s regional language packs and tailored subscription plans further illustrate its efforts to deepen engagement with diverse audiences and capture incremental revenue from digital offerings.

JioStar has taken a slightly different approach, blending digital and broadcast strategies to maximize profitability. The company reported Q2 FY26 revenue of ₹7,232 crore, down from ₹11,222 crore in Q1 FY26, while H1 FY26 revenue stood at ₹18,454 crore, significantly higher than ₹11,032 crore in the corresponding period of FY25. Kevin Vaz, JioStar’s CEO-Entertainment, highlighted that linear TV advertising experienced double-digit quarter-on-quarter growth despite challenging market conditions, while digital ad sales achieved robust gains.

Also read: Jiostar reports Rs 7,232 crore revenue in Q2

The company’s record EBITDA of ₹1,738 crore, up from ₹1,000 crore in the prior quarter and an EBITDA margin of 28.1% underscore the financial strength of the business, even amid sectoral headwinds.

JioStar’s strategy has focused on long-form content, including 100-episode shows, CTV-led advertising, and sports viewership, all designed to deepen engagement across its broadcast network while diversifying revenue through digital channels. The company also noted that while FMCG-led linear TV advertising faces pressure, regulatory and macroeconomic shifts, such as GST reforms, are creating early signs of recovery, positioning JioStar to capitalize on an improving advertising environment in upcoming quarters.

Sun TV, a dominant regional broadcaster in South India, has similarly experienced pressure on its advertising revenues. In Q1 FY26, ad revenue declined to ₹290 crore from ₹324 crore in Q1 FY25, while subscription revenue rose to ₹470 crore from ₹423 crore. The decline in ad revenue was attributed to a weak ad-market environment characterized by cautious advertiser spending, softer demand from core consumer-goods categories, and a less favorable calendar of major broadcast events.

Also read: Sun TV Network sees decline in profits; bets on cricket and digital

For FY25, Sun TV reported ad revenue of ₹1,441 crore, down from ₹1,493 crore in FY24, while subscription revenue increased modestly to ₹1,823 crore from ₹1,814 crore. These trends highlight the dual pressures of constrained advertiser budgets and evolving viewer behaviour, prompting Sun TV to continue focusing on subscription-led growth and digital monetization.

Sony Pictures Networks India (SPNI) has also emphasized digital expansion as a critical growth lever. For FY25, advertising revenue declined to ₹2,606 crore from ₹2,856 crore in FY24, while subscription revenue increased to ₹3,244 crore. SPNI has invested heavily in enhancing its content portfolio, accelerating digital platforms, and securing marquee sports properties, including the Asia Cup, to strengthen viewer engagement across both linear and digital channels.

Also read: Sony Pictures Networks India net profit nearly halves to ₹456 crore

A company statement noted that FY25 marked a year of significant change in the media landscape, with advertising budgets under pressure and market dynamics evolving, exerting short-term strain on profitability. However, the company emphasized that it was entering FY26 on a growth trajectory, with an expanded digital and sports footprint, renewed focus on execution, and rising momentum across key properties, positioning it to deliver stronger and more diversified performance.

According to the FICCI-EY report on the media and entertainment sector released earlier this year, this transition is driven by evolving consumer habits and intensified competition from over-the-top (OTT) and connected TV (CTV) platforms. Despite these challenges, broadcasters and DTH providers are exploring new revenue avenues to offset the decline in traditional advertising and distribution streams.

Advertising, once the lifeblood of linear television, has shown a marked decline in recent years. Total ad revenue in the television sector fell from ₹334 billion in 2022 to ₹294 billion in 2024, with a modest recovery projected to ₹305 billion by 2027. Distribution revenue followed a similar trajectory, increasing slightly to ₹398 billion in 2023 before falling to ₹385 billion in 2024, with further declines expected to ₹362 billion by 2027. Overall, the industry’s total revenues contracted from ₹726 billion in 2022 to ₹679 billion in 2024, with projections indicating a further decrease to ₹667 billion by 2027. These figures underscore the pressure on traditional revenue streams and highlight the urgent need for broadcasters and DTH operators to adapt to the digital era.

While large broadcasters have been able to pivot toward digital revenue, smaller players, particularly in the DTH segment, have faced an equally challenging environment, albeit with a slightly different emphasis.

The Direct-to-Home sector has experienced a notable decline in its subscriber base due to the widespread adoption of broadband and on-demand content. According to TRAI, the number of active DTH subscribers across the four major players fell from 62.17 million on June 30, 2024, to 56.07 million by June 30, 2025—a loss of over six million subscribers in just one year.

This steady erosion reflects the competitive pressure from OTT and CTV platforms, as well as from free-to-air services like DD Free Dish, which continue to attract price-sensitive households. The decline in subscriber numbers was gradual but persistent, with the base falling to 59.91 million by September 2024, 58.22 million by December 2024, 56.92 million by March 2025, and 56.07 million by June 2025. The trend illustrates the structural shift in television consumption toward digital and on-demand viewing, particularly in urban markets where internet penetration is high.

Financially, the DTH sector has mirrored the decline in subscribers. Dish TV, for example, reported total income of ₹329.4 crore in Q1 FY26, down 27.7% from ₹455.3 crore in Q1 FY25. Subscription revenue fell 10.8% to ₹273 crore, while advertising revenue plunged more than 50% to ₹4.4 crore from ₹9.7 crore. Losses widened dramatically from ₹1.6 crore in Q1 FY25 to ₹94.5 crore in Q1 FY26, highlighting the dual pressures of shrinking subscriber numbers and declining ad income.

Airtel Digital TV experienced a milder impact, with Q1 FY26 revenue of ₹763 crore, down 1.8% year-on-year, and a subscriber base of 15.7 million. Despite these headwinds, the company achieved a record-high market share and is implementing structural changes, including the elimination of subsidies, to strengthen cash flows.

Tata Play has not been immune to pressure; revenue from operations fell 5.46% to ₹4,082 crore in FY25, with total income decreasing by 5.03% to ₹4,109.3 crore. The company’s subscriber base dropped sharply to 18 million from a peak of 23 million, and losses widened to ₹529.43 crore, signaling continued headwinds in its core business.

In response to these challenges, DTH industry has pivoted towards hybrid offerings, blending satellite services with OTT. Dish TV launched VZY Smart TV, a device that merges DTH and OTT content. It also launched OTT app Watcho. Tata Play has partnered with Warner Bros Discovery to offer Cartoon Network Forever, an ad free streaming platform with animated classics.

The experience of both broadcasters and DTH operators underscores a broader industry trend: the Indian television ecosystem is pivoting toward digital-first strategies as a hedge against soft advertising demand and shifting consumption patterns.

For broadcasters like Zee, JioStar, Sun TV, and Sony, this has meant strengthening digital offerings, expanding subscription revenue streams, and investing in long-form content and sports properties to retain engagement.

For DTH operators, the emphasis has been on managing structural costs, refining subscription models, and preparing for a hybrid environment where traditional satellite television coexists with digital platforms. Both large and small players face the common challenge of balancing declining linear advertising revenues with the need to invest in digital and subscription-led growth.

As the industry moves forward, several factors will shape the trajectory of television and DTH operators in India. Advertising budgets, while under pressure in the short term, may see gradual recovery as macroeconomic conditions stabilize and new ad formats, such as targeted CTV campaigns, gain traction.

Meanwhile, subscription revenue is expected to play an increasingly critical role, with companies leveraging regional content, multi-language packs, and digital-first offerings to enhance monetization. The DTH sector, while contending with structural subscriber losses, will likely focus on operational efficiencies and differentiation strategies to maintain profitability even as the overall market contracts.