DTH players must pay for using public airwaves, free ride on spectrum unfair: AIDCF's SN Sharma on cable TV crisis
The cable TV sector is grappling with a shrinking Pay TV base, job losses, and regulatory disparities, prompting urgent calls for reform to ensure parity with DTH and digital platforms.
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India’s television landscape is undergoing a dramatic transformation driven by rapid digital adoption, emerging consumption habits, and evolving distribution technologies such as D2M (Direct-to-Mobile) and 5G broadcasting. The AIDCF in collaboration with Ernst & Young (EY) has released a report “State of Cable TV Distribution in India” to highlight the critical transformation, regulatory parity and hyperlocal innovation to sustain its relevance amid growing digital disruption.
As per the report, the total number of TV sets in Indian households is expected to grow to 214 million by 2030, covering over 60% of the population. However, the share of Pay TV subscriptions within that number is shrinking rapidly. Projections indicate a further drop of 30 to 40 million Pay TV homes by 2030, reducing the total to just 71–81 million.
"Cable in India is known for mass entertainment and for the pricing, but there is some imbalance. It has led to a situation where the number of Pay TV is going down, two lakh job losses have happened in the sector, beyond this 900 MSOs and 72,000 cable operators have shut down their businesses in last six years. Actual figure could be over 3.5 lakh. These are not just statistics, these are stories of lost livelihood, which is impacting families and entrepreneurs. Current situation calls for focused and serious reforms to be taken by the ministry and regulators," SN Sharma, President, AIDCF said about the report.
SN Sharma, President, All India Digital Cable Federation (AIDCF) speaks to Storyboard18 at the sidelines of report launch on Monday. Here are the edited excerpts from the interview:
- What happened to Broadcasting Services (Regulation) Bill? What's your take on the Ministry of Information and Broadcasting’s (MIB) recent move to demand over Rs 16,000 crore in retrospective license fees from direct-to-home (DTH) operators? How will it impact DTH industry?
I’m sure the Ministry is taking a view on the regulation. All our issues have been tabled before them. The regulator is also reviewing the matter and hopefully, they will soon introduce changes to create a level playing field for everyone.
DTH are using public property and the right of way needs to be paid for, that has been the norm since the beginning of the industry. In our case as well, we are paying for the right of way to lay cables; it’s not as if we are using a free carrier. We are investing in our infrastructure and paying for it. So, if they DTH players are using airwaves or spectrum, the same spectrum for which telecom players are paying heavily, then why shouldn’t DTH also pay for it. They should continue paying as they have been. We are genuinely upset that the regulator seems to be ignoring this. There is a cost-value analysis, proper costing has been done and we have submitted it to the Ministry of Information and Broadcasting (MIB).
- What are AIDCF’s key priorities for the next 3–5 years to strengthen the cable distribution ecosystem? What are some of the major policy changes in line?
The key priorities are to request the regulator to introduce reforms specifically, changes in regulation to ensure price parity across different platforms and to address the non-level playing field. The two most important areas we are focusing on are the programming code and the advertising code. Thirdly, encryption on free-to-air platforms must be mandated so that all players are on an equal footing in terms of technology.
- Many broadcasters are prioritizing OTT-first content strategies. How do these digital-exclusive releases affect the value proposition for cable distributors who pay premium carriage and placement fees? Do you think OTT is what consumer wants and not cable?
Cable is essentially a mass media entertainment system. You're charging the cable sector while feeding another sector, so naturally, the cable sector will suffer. All we are asking is unless you keep investing in content for the cable sector, it cannot grow. Yet your demand for growth from us is never-ending, year after year. So please, invest in the content.
I wouldn’t say that only cable faces challenges, OTT platforms have their own set of issues too. I’m yet to meet an OTT player who doesn’t face challenges. Their business models are also struggling, growth has stagnated and many are facing disruptions. It’s the content providers who need to evaluate how content should be created, refreshed and upgraded, particularly for the cable sector.
- Looking ahead, what kind of legal or commercial frameworks do you believe can create a healthier broadcaster–distributor relationship, especially in a converging media environment?
The legal framework and regulatory framework are essentially the same. We are appealing to both the regulator and the Ministry of Information and Broadcasting (MIB) to view these regulations holistically, so that all the anomalies and concerns we have highlighted are properly addressed.
