India’s private direct-to-home (DTH) television operators are expected to witness another year of revenue decline in FY26, but the fall is likely to moderate to 3–4 per cent compared with a sharper 5 per cent drop in the previous fiscal.

The sector, which has been under sustained pressure due to cord-cutting, is now banking on Internet Protocol television (IPTV) expansion and bundled content offerings to cushion the fall, according to a report released on Thursday.

The projections are part of an IANS report based on Crisil Ratings’ latest analysis, which notes that rising marketing income and reduced customer acquisition costs – especially a cutback in subsidised set-top boxes by certain players – will help offset part of the revenue pressure. However, the subscriber churn remains a key concern as high-income viewers migrate to OTT platforms while price-sensitive customers increasingly opt for DD Free Dish.

The subscriber base of private DTH providers has steadily eroded from 7.2 crore in FY19 to 6.19 crore in FY24 and further slipped by 9 per cent in FY25. This number is expected to fall below 5.1 crore by the end of the current fiscal, the report said. Crisil Ratings Director Ankit Hakhu observed that although cord-cutting has triggered “secular revenue degrowth over the past six years”, DTH operators are now moving into IPTV-led bundled services that combine OTT, broadband and linear TV to tap new growth pockets.

IPTV adoption has accelerated sharply, with its user base rising nearly four times to 21.3 lakh as of September 2025 from 5.7 lakh in FY24. Despite the headwinds, the report highlights regional strongholds such as South India, where cord-cutting has been comparatively slower and a leading DTH operator has managed to retain subscribers even as the national base shrinks.

Crisil Ratings’ Team Leader Gauri Gupta added that the contraction in the subscriber base will be partly balanced by revenues earned through the DTH platforms’ own OTT aggregator services delivered via hybrid set-top boxes. Operating margins, which slipped from 48 per cent in FY23 to 45 per cent in FY25, are expected to stabilise between 44–45 per cent this fiscal due to the milder revenue decline.

The report also notes that DTH services retain an advantage in regions where consumers prefer strong regional channel offerings, and where DD Free Dish’s limited bouquet – which includes only three of the top 10 most-watched channels – restricts its overall appeal. Moreover, monthly OTT-plus-broadband subscriptions continue to cost more than twice the price of standard DTH packs, slowing the shift among budget-conscious households.

The findings are based on a survey covering all private DTH companies in India, representing a total subscriber base of 53 million as of September 30, 2025.