Whalesbook
Why TRAI is Reviewing Rules
The review, delayed from last year, follows extensive discussions with broadcasters, DTH providers, and cable operators. These talks revealed structural issues indicating the current framework isn't meeting its goals. TRAI manages carriage, while content is overseen by the Ministry of Information and Broadcasting. The Supreme Court has confirmed TRAI's authority on tariffs.
New Tariff Order Faces Criticism
Industry players report that the New Tariff Order (NTO) and its updates have not delivered on affordability or transparency, paradoxically driving more people to cut their pay-TV subscriptions. Since NTO began in 2019, the sector has reportedly lost 40 to 50 million subscribers, leaving about 84 million in the pay-TV base. Consumers often pay broadcasters for content and distributors for network fees, leading to higher overall costs.
Shifting Market: Pay TV vs. Streaming
The broadcasting sector, worth ₹62,000 crore with over ₹32,000 crore in subscription revenue and reaching about 750 million viewers weekly, is facing rapid structural changes. In 2025, pay TV subscriptions dropped by roughly 11 million, while free TV gained about 4.5 million users. Connected TV, boosted by smart devices and streaming, saw growth of nearly 10 million users that same year.
Industry Calls for Change
Broadcasters want economic regulations, including price caps, completely removed, advocating for market-driven pricing. Distributors, however, seek more flexibility in pricing and packaging, plus equal treatment across platforms. Most parties agree on a light-touch regulatory approach with rules for fair competition. The upcoming consultation is expected to explore these points to better match the sector with current viewing habits and strong competition from streaming services.