Private DTH revenue decline to ease to 3–4% in FY26 as IPTV push gains momentum: Crisil

India’s private direct-to-home (DTH) operators are expected to face another year of revenue contraction, but the pace of decline is set to ease as companies expand into Internet Protocol television (IPTV) and push bundled broadband-OTT-TV services, according to a new analysis by Crisil Ratings.

Revenue for private DTH companies is projected to fall 3–4% this fiscal, moderating from an estimated 5% decline last year, the agency said. The sector has been battling sustained subscriber churn as affluent households migrate to OTT platforms and price-sensitive viewers shift to DD Free Dish’s free-to-air service.

The analysis covers all private DTH operators with a combined subscriber base of about 53 million as of September 2025.

Subscriber Base Continues to Erode

Private DTH subscribers have been on a multi-year decline — dropping from 7.2 crore in FY19 to 6.19 crore by FY24, followed by a sharper 9% fall in FY25. The base is expected to dip below 5.1 crore by the end of FY26, Crisil said.

Crisil Ratings Director Ankit Hakhu noted that while cord-cutting has driven continuous revenue contraction over six years, operators are successfully increasing their presence in adjacent areas such as IPTV.

“IPTV services have gained significant traction, with the subscriber base almost quadrupling to 21.3 lakh by September 2025 from around 5.7 lakh in FY24,” Hakhu said. The shift allows operators to deliver live TV and OTT content via broadband — without the need for a satellite dish — helping slow customer churn.

Despite the overall decline, linear television continues to hold ground in some regions. In south India, for instance, cord-cutting has been more limited. Leading DTH and cable operators in the region have even grown their subscriber numbers, with the two largest multi-system operators (MSOs) increasing their combined base by 5% in FY25 to 7.7 million, according to Crisil.

Beyond IPTV expansion, revenue pressure is expected to be partly offset by rising marketing income from operators’ own OTT aggregator apps integrated into hybrid set-top boxes. Additionally, some DTH players have scaled back customer-acquisition subsidies by cutting discounts on new set-top boxes — a move that improves unit economics.

“Though revenue loss due to subscriber erosion will continue, increased marketing income and reduction of acquisition incentives will offer support,” said Gauri Gupta, Team Leader at Crisil Ratings.

Operating margins, which fell from 48% in FY23 to 45% in FY25, are likely to remain broadly stable at 44–45% this fiscal due to milder revenue decline and cost discipline.

Despite alternatives expanding rapidly, DTH retains strengths in the mass market. With DD Free Dish carrying only three of the top 10 most-watched channels, operators with strong regional content continue to retain customers in certain pockets. Moreover, monthly OTT-plus-broadband bundles remain more than twice as expensive as typical DTH packs, limiting adoption among value-conscious users.

The report cautioned that further tariff hikes by DTH operators and growing digital alternatives could accelerate churn or impact overall TV viewership trends, making the coming years critical for the sector’s transition toward hybrid and broadband-led offerings.