MIB Experiences Mixed Trends: DTH Sector Faces Challenges While FM Radio Sector Anticipates Growth in FY25
The Ministry of Information and Broadcasting (MIB) has reported a notable decline in revenue from Direct-to-Home (DTH) television services for the fiscal year 2025, indicating a shift in viewer preferences away from traditional pay TV. In contrast, the private FM radio sector has experienced consistent growth during the same period. The MIB’s latest annual report highlights these contrasting trends, revealing a decrease in DTH earnings while FM radio revenues continue to rise.
Decline in DTH Revenue
In FY25, revenue from DTH services fell to Rs 648.73 crore, down from Rs 692 crore in FY24 and Rs 859.96 crore in FY23. This represents a significant 25% decrease over the past two years. The decline in DTH revenue aligns with a broader trend of diminishing pay TV users, as indicated by data from the Telecom Regulatory Authority of India (TRAI). The number of active DTH subscribers has dropped from 70.26 million in 2020 to 56.92 million in 2025. This downward trajectory has been consistent, with subscriber counts decreasing each year from 2021 to 2024. The shift suggests that viewers are increasingly opting for digital and over-the-top (OTT) platforms for their entertainment needs, moving away from traditional DTH services.
Growth in FM Radio Revenue
Conversely, the private FM radio sector has shown resilience, with revenues increasing to Rs 196.28 crore in FY25, up from Rs 186.80 crore in FY24 and Rs 178.99 crore in FY23. The MIB has noted that FM radio remains particularly popular in regional and semi-urban areas, appealing to local advertisers and younger audiences. The ministry generates revenue from various sources, including entry and migration fees, annual licenses, tower rentals, and processing charges from FM broadcasters. As of March 31, 2024, there were 388 private FM radio channels operating across 113 cities in 26 states and five Union territories, with new stations launched in border areas such as Leh and Kargil in Ladakh.
Challenges for DTH Operators
The DTH industry faces additional challenges, including demand notices exceeding Rs 16,000 crore issued by the MIB to private DTH operators for pending license fees. This financial pressure comes at a time when competition from OTT platforms and the free-to-air DD Free Dish service is intensifying. Industry estimates suggest that DD Free Dish, operated by Prasar Bharati, reaches between 50 to 60 million households, potentially matching or exceeding the combined reach of private DTH platforms. Unlike private DTH services, DD Free Dish operates without subscription fees, which means it does not contribute to the MIB’s revenue through license fees.
Future Outlook for Broadcasting
The contrasting trends in DTH and FM radio revenues highlight the evolving landscape of the broadcasting industry in India. While DTH services struggle to maintain their subscriber base, FM radio continues to thrive, particularly in local markets. The MIB’s report underscores the importance of adapting to changing viewer preferences as audiences increasingly turn to digital platforms for their entertainment. As the industry navigates these challenges, the focus will likely shift towards enhancing service offerings and exploring new revenue streams to remain competitive in a rapidly changing media environment.
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