Broadcasting in flux: Regulatory overhang, licence disputes and investor caution mark 2025

India’s information and broadcasting sector went through a prolonged phase of turbulence in 2025 as investors turned cautious amid frequent regulatory interventions, unresolved policy disputes and structural shifts across television, OTT and distribution platforms. From a sharp drop in foreign direct investment to contentious tariff, licensing and compliance issues, the year underscored the sector’s struggle for regulatory predictability.

Below are the key developments that defined the broadcasting landscape in 2025:

FDI inflows decline 31% in Q1 FY25 amid investor caution

Foreign direct investment into India’s information and broadcasting sector fell sharply in the first quarter of FY25, reflecting heightened investor wariness. According to data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the sector attracted FDI worth Rs 3,374 crore during April–June, down 31% from Rs 4,893 crore in the corresponding quarter last year.

Industry executives attributed the decline to prolonged regulatory uncertainty across broadcasting distribution, pricing frameworks and licensing regimes, which has weighed on long-term capital commitments.

TRAI’s interconnection amendments raise compliance concerns

In 2025, the Telecom Regulatory Authority of India (TRAI) issued the draft Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Seventh Amendment) Regulations, proposing significant changes to audit frameworks, compliance timelines and infrastructure sharing norms in the broadcasting distribution ecosystem.

Broadcasters and distribution platform operators flagged concerns over tighter audit requirements, increased reporting obligations and the lack of transition periods, warning that the changes could raise operational costs in an already margin-stressed sector.

New Tariff Order (NTO) debate resurfaces with NTO 4.0

TRAI’s decision to reopen consultations on a fresh New Tariff Order—widely referred to as NTO 4.0—once again put channel pricing and packaging at the centre of policy debate. The regulator is expected to release a consultation paper by the end of the year, following a detailed ecosystem study conducted with approval from the Ministry of Information and Broadcasting (MIB).

Broadcasters argue that repeated tariff resets have resulted in “policy fatigue”, disrupted business planning and deterred fresh investment, while distributors warn of consumer churn and revenue volatility.

OTT accessibility guidelines expand regulatory scope

In October 2025, the MIB released draft Guidelines for Accessibility of Content on OTT Platforms, aimed at improving access for persons with hearing and visual impairments. The proposed framework mandates features such as closed and open captions, audio descriptions and Indian Sign Language interpretation.

While platforms broadly welcomed the intent, several sought clarity on compliance timelines, technical standards and implementation costs, particularly as OTT platforms already face heightened scrutiny under the IT Rules framework.

Direct-to-Mobile (D2M) broadcasting moves toward rollout

India’s ambitious Direct-to-Mobile (D2M) broadcasting initiative progressed in 2025, with rollout targeted by mid-2026 and commercial launches expected later next year. The MIB appointed Ernst & Young as project management consultant to design the national D2M roadmap, including revenue and business models.

Led by Prasar Bharati, the initiative aims to broadcast multimedia content—including news, entertainment and emergency alerts—directly to mobile phones without internet connectivity, potentially easing telecom network congestion while opening new monetisation avenues for broadcasters.

TRP reforms signal structural shift in TV measurement

Television Rating Points (TRPs), the backbone of TV advertising economics, remained under policy spotlight. In July 2025, the MIB proposed reforms to allow multiple rating agencies beyond the existing BARC framework, seeking to democratise and modernise audience measurement.

The move is expected to alter advertiser confidence, pricing benchmarks and competitive dynamics in television advertising, though implementation details remain under discussion.

Cable TV rule amendments and DD FreeDish reforms

The MIB amended the Cable Television Network Rules, 1994, to streamline registration processes for local cable operators, aiming to reduce compliance friction. Parallel reforms around DD FreeDish auctions continued to reshape channel distribution strategies, particularly for free-to-air broadcasters reliant on rural and mass-market reach.

Rs 16,000 crore licence fee demands deepen DTH dispute

One of the most contentious issues of 2025 was the MIB’s issuance of licence fee demands totalling nearly Rs 16,000 crore to major DTH operators. Dish TV faces claims of Rs 6,735 crore, Tata Play Rs 5,257 crore and Airtel Digital TV Rs 3,606 crore, including retrospective dues and interest.

At the heart of the dispute is the calculation of licence fees at 8% of adjusted gross revenue (AGR), a methodology operators argue is excessive and legally disputable. The matter is being challenged across multiple legal forums.

TRAI show-cause notices heighten regulatory friction

Adding to industry unease, TRAI issued show-cause notices to several broadcasters for alleged non-compliance with advertising duration limits of 12 minutes per clock hour, as mandated under the 2012 Quality of Service regulations.

Broadcasters criticised the move, arguing that the issue is sub judice and that interim court protections are being overlooked. “This feels like an arm-twisting tactic by TRAI,” said one broadcaster, requesting anonymity.