Indian broadcasters have surrendered 114 channel licenses since 2022 as traditional television audiences shrink. With pay-DTH subscribers falling from 72 million to 49 million, major media houses are shutting unprofitable channels to focus on the growing connected TV market.
The Indian television broadcasting industry is currently navigating its most significant structural contraction in years. Data from the Ministry of Information and Broadcasting confirms that 114 television licenses have been surrendered by broadcasters between 2022 and September 2026. This trend reflects a broader move to remove unprofitable assets from portfolios as traditional linear television loses its grip on both viewers and advertising revenue.
The Decline of Traditional Pay-TV
The economic model of traditional pay-TV has been under immense pressure for several years. The active pay-DTH (Direct-to-Home) subscriber base, which once peaked at approximately 72 million in the 2019 financial year, dropped to roughly 49.05 million by March 31, 2026. This loss of nearly 23 million subscribers highlights a massive migration of households, many of whom are switching to free-to-air options like DD Free Dish or moving entirely to internet-based streaming services.
Advertising Shift and Regulatory Changes
For major players like Zee Entertainment, JioStar, and others, the decline in viewers is directly impacting ad revenue. FMCG companies, which are the largest contributors to TV advertising, are increasingly shifting their budgets toward performance-driven digital media where they can measure returns more accurately. The rise of Connected TV (CTV) has accelerated this, with the estimated audience for these devices reaching 207 million by mid-2026—a threefold increase since 2022.
In a move to provide some relief, the Indian government removed the 12-minute-per-hour advertisement cap for television channels in August 2026. The policy change aims to level the playing field against unregulated digital platforms. However, the move also signals the severity of the pressure on broadcasters, as they struggle to maintain the financial viability of their existing satellite channels against the reach and data-targeting capabilities of digital giants.
Rationalization as a Survival Strategy
The surrendering of licenses is not merely a sign of distress but a calculated move toward portfolio rationalization. Broadcasting companies are currently forced to defend their operating margins by cutting content and distribution costs. Maintaining a satellite channel involves significant expenses, including carriage fees paid to DTH operators and satellite transponder costs. When viewership for a specific channel fails to reach a threshold where it can attract premium advertising rates, it becomes a drag on the company’s bottom line.
Moving forward, the primary monitorable for investors will be how these companies manage the transition to digital-first business models. While the government’s decision to remove the advertising cap provides short-term flexibility, the long-term sustainability of traditional broadcasters depends on their ability to profitably capture the growing CTV audience, which now commands a significant share of daily media consumption.