SynopsisIndia's TV distribution is shifting towards broadband and digital entertainment, forcing cable and DTH operators to confront subscriber losses to OTT and free services. This trend is fueling sector consolidation, with companies like ACT Group exiting cable TV to focus on broadband. Operators are repositioning, prioritising IPTV and bundled digital services as key growth drivers amidst declining pay-TV subscriptions.TIL CreativesIndia TV industry (Image for representation)Mumbai: India's television distribution industry is undergoing a structural shift towards broadband, IPTV and digital entertainment, causing cable and DTH operators to grapple with subscriber losses to OTT platforms and free-to-air services, and triggering consolidation in the sector.The trend was underscored by ACT Group's decision to exit the cable TV business to focus on its core broadband operations. The company, which owns ACT Fibernet, has sold its seven cable television entities to GTPL Hathway for Rs 36 crore. The businesses serve around 600,000 subscribers in Andhra Pradesh, Telangana, Karnataka and Odisha.Consolidation is gaining momentum as traditional pay-TV subscriptions continue to decline, industry insiders said. Reliance Industries has been exploring options to combine its cable TV assets, Hathway Cable and DEN Networks. It also retains influence over GTPL Hathway, in which Hathway Cable owns more than a 37% stake.Also read | Noel exiting Trent: The quiet Tata who built a loud success storyOther operators are also repositioning their businesses. Hinduja Global Solutions (HGS), through its NXTDIGITAL platform, is prioritising broadband and IPTV services, while Bharti Airtel is expanding its IPTV footprint following the collapse of its proposed DTH merger with Tata Play.Airtel said its Digital TV business returned to growth during the quarter, driven by IPTV adoption. "Digital TV saw a turnaround. We added nearly half a million customers during the quarter led by IPTV adoption. Our IPTV take rates continue to improve and are delivering on our converged agenda on content," Airtel India managing director and chief executive Shashwat Sharma said during the company's fourth-quarter earnings call.Tata Play, India's largest pay-TV operator, is simultaneously strengthening its broadband operations and expanding its digital content aggregation offerings amid mounting DTH losses.GTPL Hathway, which is pursuing acquisitions of other MSOs, intends to allocate Rs 150-160 crore of its annual capex budget of Rs 350 crore to broadband. Cable and headend-in-the-sky (HITS) will account for the balance capex.According to industry executives, pay-TV operators are facing monthly subscriber churn of 2-3% as consumers migrate to OTT platforms and free-to-air alternatives such as DD Free Dish.Also read | No slowdown yet, but inflation and El Niño are risks: ITC's Sanjiv PuriData from the Telecom Regulatory Authority of India highlight the scale of the challenge. The combined subscriber base of India's four private DTH operators—Tata Play, Airtel Digital TV, Sun Direct and Dish TV—fell to 49 million in March 2026 from 57 million a year earlier.There were 736 registered multi-system operators (MSOs) in March. The numbers of operators with more than 1 million subscribers declined to 11 from 12 a year earlier.The cumulative subscriber base of large MSOs also fell to 32 million from 38 million during this period."We are seeing cable television, DTH and other linear formats being impacted by the shift to OTT and free-to-air services," said Vynsley Fernandes, whole-time director at HGS and CEO of NXTDIGITAL's media business, during the company's fourth-quarter earnings call. He said broadband and enterprise connectivity services would drive future growth.Piyush Pankaj, chief strategy officer at GTPL Hathway, said the sector has entered a consolidation phase. He noted that nearly half of India's roughly 80 million cable subscribers remain with smaller operators, many of whom are struggling to retain customers amid rapid technological change and competition from OTT platforms, YouTube, Instagram and Facebook.As operators adapt to changing consumer behaviour, broadband, IPTV and bundled digital services are emerging as the primary growth drivers, while consolidation among cable and pay-TV operators is expected to accelerate, industry executives said.Read More News on...moreless