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Pay TV households expected to plummet 36%; TV consumption may rise to 214 million by 2030
The decline in pay TV households has had a cascading effect, leading to job losses across multiple levels, from Local Cable Operators (LCOs) to technical and customer support teams, network engineers, and backend service providers
India's television consumption is expected to rise to 214 million by 2030
India's Pay TV industry, which is in a distressful stage due to the rise of alternative content delivery platforms, may lose around 36% of household consumptions by 2030, a report projected.
According to a report by 'State of cable TV distribution in India', undertaken by All India Digital Cable Federation (AIDCF) and EY, India's television consumption is expected to rise to 214 million by 2030. However, Pay TV could decline by a further 30 to 40 million, reducing the total to just 71 to 81 million (including under-declared and pirated connections), as both Connected TVs and Free TV continue to grow on the back of changing demographics and consumption habits.
The report has also anticipated a severe impact on the employment in Pay TV industry. The study highlighted that the loss of 40 million pay TV households between 2018 and 2024 resulted in a loss of 37,835 jobs in the Local Cable Operators (LCOs) ecosystem.
"The decline in pay TV households has had a cascading effect, leading to job losses across multiple levels, from Local Cable Operators (LCOs) to technical and customer support teams, network engineers, and backend service providers. This is not merely an industry concern; it is an economic and social issue that needs immediate attention," Ashish Pherwani Partner and Leader, Media & Entertainment said.
At present, the rise of work-from-home and study-from-home arrangement is fueling the adoption of broadband connections in households. Additionally, higher quality content is being produced for OTT platforms, along with more features that allow viewers to customize their experience, boosting Connected TV subscriptions.
In a survey conducted by EY-AICDF, 79% of LCOs respondents reported that their monthly take-home income had reduced by over 20% since 2018. Moreover, 49% of surveyed LCOs reported a drop in the employment they created.
Most of the LCOs, have shifted to broadband services to augment their incomes. 43% of the LCOs surveyed had already launched broadband services so far.
"Even if broadband connections replace pay TV connections, the growth in employment generated by large ISPs and telcos may not match the levels previously generated by smaller LCOs due to economies of scale," the EY report mentioned.
"The Government is cognizant of the challenges posed to the cable TV industry due to evolving technology and digital disruption. While innovation and growth cannot be curtailed, a fine balance must be struck between fostering technological advancement and ensuring the sustainability of traditional distribution platforms," Sanjiv Shankar, Joint Secretary, Ministry of Information & Broadcasting said.
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