DTH operators grapple with revenue decline

In the fiscal year 2022-2023, the collective operating revenue of major private direct-to-home (DTH) players—Tata Play, Bharti Telemedia, Dish TV, and Sun Direct—saw a notable 10% decline, dropping to Rs 11,072 crore. The industry grappled with a cumulative net loss of Rs 2,143 crore, largely influenced by shifts in viewer preferences towards DD Free Dish and Over-The-Top (OTT) platforms, compelling strategic responses such as the introduction of hybrid set-top boxes and innovative OTT aggregation services. Despite challenges, the DTH sector remains optimistic, eyeing digital opportunities and anticipating subscriber growth from the OTT business in the fiscal year 2024.

In the fiscal year 2022-2023, the combined operating revenue of four private direct-to-home (DTH) companies—Tata Play, Bharti Airtel-owned Bharti Telemedia, Dish TV, and Sun Direct—marked a nearly 10% decline to Rs 11,072 crore compared to Rs 12,284 crore in the previous fiscal year. Cumulatively, these DTH operators incurred a net loss of Rs 2,143 crore, with Dish TV posting the largest loss of Rs 1,684 crore. The DTH industry is facing challenges with a decreasing subscriber base and average revenue per user (ARPU), with over four million customers lost in fiscal years 2022 and 2023.

The decline is attributed to subscribers shifting towards DD Free Dish and Over-The-Top (OTT) platforms. Despite challenges, Bharti Airtel’s DTH business has shown positive momentum, gaining market share through quality acquisitions and simplified pricing. The industry is responding to competition by launching hybrid set-top boxes and OTT aggregation services. Dish TV, now net debt-free, plans to utilize cash flows for capital expenditure in acquiring new customers. Despite losses, the DTH sector is optimistic about leveraging digital opportunities, responding to changing viewer preferences, and ramping up subscriptions from the OTT business in fiscal year 2024. Digital Studio India