India’s direct-to-home (DTH) television industry is witnessing a significant shift as licence-fee revenue declined to ₹442 crore in FY26, while permissions for new private satellite television channels increased 53% year-on-year. The contrasting developments highlight the changing economics of India’s television broadcasting market, where traditional pay-TV distribution is facing pressure from subscriber losses and digital streaming platforms.
According to the Ministry of Information and Broadcasting’s Statistical Handbook on Media and Entertainment Sector 2025-26, the government issued 29 new private satellite television channel permissions during FY26, compared with 19 in FY25. However, the increase in permissions has not translated into substantial expansion in the overall number of television channels, indicating that launching and sustaining a profitable television business remains challenging.
DTH Licence Revenue Falls to ₹442 Crore in FY26
The decline in DTH licence-fee revenue reflects the pressure on India’s traditional satellite television distribution industry.
DTH operators pay licence fees to the government for providing satellite-based television distribution services. The fee structure has been revised over the years, with the current framework providing for an 8% licence fee based on adjusted gross revenue (AGR).
The decline in licence-fee collections comes amid falling paid DTH subscriptions, lower industry revenues and increasing competition from over-the-top (OTT) platforms.
Traditional DTH companies earn revenue primarily through monthly subscriptions, channel packages and related services. As customers migrate towards streaming platforms and alternative television distribution technologies, operators face pressure on their subscriber base and revenue generation.
The licence-fee figure should also be distinguished from the total revenue generated by DTH operators. It represents government collections rather than the industry’s overall business turnover.
New TV Channel Permissions Increase 53% in FY26
While DTH distribution revenue faces pressure, the government continued issuing permissions for new private satellite television channels.
According to the Ministry of Information and Broadcasting’s data, 29 new channel permissions were issued during FY26, compared with 19 in FY25.
This represents an increase of approximately 52.6%.
New Private Satellite TV Channel Permissions
| Financial Year | New Permissions |
|---|---|
| FY20-21 | 36 |
| FY21-22 | 34 |
| FY22-23 | 29 |
| FY23-24 | 23 |
| FY24-25 | 19 |
| FY25-26 | 29 |
The increase indicates renewed activity in the television channel licensing market.
However, receiving government permission does not necessarily mean that a channel has started broadcasting or has become commercially successful.
Some approved channels may take time to launch, while others may never become operational.
India Has 917 Permitted Private Satellite TV Channels
Despite the increase in new permissions, the overall number of private satellite television channels has remained relatively stable.
According to the government’s FY26 performance indicators, India had approximately 917 permitted private satellite television channels as of March 31, 2026. Of these, 908 were available for downlinking in India.
The channel ecosystem includes news, entertainment, movies, sports, music and other programming categories.
The distribution of permitted channels highlights the scale of India’s television broadcasting industry.
| Channel Category | Number of Channels |
|---|---|
| Total permitted private satellite channels | 917 |
| Channels available for downlinking | 908 |
| Pay TV channels | 342 |
| Standard-definition pay channels | 238 |
| High-definition pay channels | 104 |
| Free-to-air channels | 566 |
The data shows that free-to-air channels account for a substantial part of India’s satellite television ecosystem.
However, the difference between permissions and actual operating channels remains important when assessing the industry’s growth.
Why Is India’s DTH Industry Facing Pressure?
The Indian DTH industry is facing increasing competition from digital entertainment platforms, connected televisions and alternative distribution technologies.
Several factors are affecting traditional television distribution.
1. Growing OTT adoption
Streaming platforms have changed how Indian consumers watch movies, television shows, sports and other entertainment content.
Consumers increasingly prefer on-demand entertainment instead of depending entirely on scheduled television programming.
2. Subscriber migration
Some households are replacing traditional DTH connections with smart televisions and internet-based streaming services.
This trend is particularly relevant among urban and younger consumers.
3. Competition from DD Free Dish
Doordarshan’s DD Free Dish offers free-to-air satellite television without a recurring subscription fee.
It attracts price-sensitive households that want access to television channels without paying monthly DTH charges.
4. Changing advertising economics
Television advertising revenue is facing competition from digital platforms, which offer advertisers more targeted advertising opportunities.
This affects the economics of both television broadcasters and distribution companies.
5. IPTV expansion
Telecom and broadband companies are increasingly offering IPTV services that combine live television, internet connectivity and OTT subscriptions.
These bundled services provide consumers with an alternative to conventional satellite television connections.
Paid DTH Subscriber Base Falls Nearly 14% in FY26
One of the clearest indicators of the industry’s challenges is the decline in active paid DTH subscribers.
According to TRAI’s annual performance indicators, India’s paid DTH subscriber base declined to 49.05 million in March 2026 from 56.92 million in March 2025.
This represents a year-on-year decline of approximately 13.8%.
| Metric | March 2025 | March 2026 | Change |
|---|---|---|---|
| Active paid DTH subscribers | 56.92 million | 49.05 million | -13.8% |
| Number of paid DTH operators | 4 | 4 | Unchanged |
India had four major paid DTH operators at the end of FY26.
The decline in subscriptions highlights the challenges facing traditional television distribution companies as consumers explore alternative ways to access entertainment.
The subscriber losses also affect operators’ ability to generate recurring subscription revenue.
DTH Companies Expand Into IPTV and OTT Services
To address subscriber losses, traditional DTH companies are increasingly exploring business opportunities beyond satellite television.
IPTV, broadband connectivity and OTT aggregation have become important areas of expansion.
IPTV delivers television content through internet protocol networks rather than conventional satellite distribution.
This allows operators to offer live television channels alongside streaming subscriptions and broadband services.
Companies are also exploring hybrid set-top boxes that combine traditional television broadcasting with internet-based entertainment.
According to Crisil Ratings, private DTH companies have been expanding their bundled offerings to offset declining traditional television revenues.
The strategy could help operators retain customers who increasingly prefer a combination of live television and streaming services.
However, competing with established broadband and streaming platforms will require investment in technology, content partnerships and customer acquisition.
India’s Television Industry Faces Competition From Digital Media
The changing economics of DTH distribution are part of a wider transformation in India’s media and entertainment industry.
According to estimates cited in the Ministry of Information and Broadcasting’s statistical handbook, television industry revenue declined from ₹788 billion in 2019 to ₹617 billion in 2025.
In contrast, digital media revenue reached ₹1,110 billion in 2025.
Television vs Digital Media Revenue
Figures in ₹ billion.
| Year | Television Revenue | Digital Media Revenue |
|---|---|---|
| 2019 | 788 | — |
| 2023 | 711 | — |
| 2024 | 679 | — |
| 2025 | 617 | 1,110 |
The figures indicate that digital media has become a major part of India’s entertainment economy.
Streaming platforms, online video, digital advertising and connected television services are changing consumer behaviour and advertising strategies.
Traditional television companies are therefore under pressure to adapt their business models to changing viewing habits.
Why Are New TV Channel Permissions Still Increasing?
The increase in new television channel permissions despite declining traditional television revenues highlights an important distinction between regulatory approvals and commercial demand.
Obtaining permission to launch a satellite television channel is only the first step.
A broadcaster must also invest in content production, distribution agreements, marketing, technology and operational infrastructure.
It must then attract viewers and advertisers to generate sustainable revenue.
Of the 919 private satellite channels recorded in the Ministry’s broader FY26 statistical series, 418 were news and current affairs channels, while 501 were non-news channels.
However, the overall number of channels increased by only one compared with FY20, despite 170 new permissions being issued over six years.
This indicates substantial churn in the television market, with new permissions not necessarily translating into equivalent growth in the total channel base.
The availability of permissions therefore does not guarantee that every approved channel will become operational or commercially viable.
The Bigger Picture
The contrasting trends in India’s DTH and television licensing markets reflect a major transformation in the country’s media industry.
Traditional DTH operators are dealing with declining paid subscriptions, pressure on licence-fee revenue and competition from OTT and IPTV services. At the same time, the government continues to issue permissions for new satellite television channels, demonstrating that there is still interest in entering the broadcasting business.
However, the long-term success of television companies will depend on their ability to attract audiences, generate advertising revenue and adapt to digital distribution models. The industry is gradually shifting from a traditional satellite television business towards a broader connected entertainment ecosystem.
Looking Ahead
The coming years will be important for India’s television distribution industry as DTH operators expand into IPTV, broadband and OTT aggregation. Their ability to retain subscribers while developing alternative revenue streams will determine how successfully they adapt to changing consumer preferences.
Meanwhile, the increase in new television channel permissions will need to translate into commercially sustainable broadcasting businesses to support meaningful industry growth. The gap between rising permissions and declining traditional distribution revenue highlights the challenges facing India’s television market as digital entertainment continues to expand.
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