TV distributors brace for fresh rate hike from broadcasters

Television broadcasters are set to raise the rates of their bouquet of channels by around 10% to offset mounting content costs, even as a steadily shrinking pay-TV subscriber base intensifies commercial tensions with distribution platform operators (DPOs).

JioStar has already announced its revised rates, and other broadcasters are likely to let the distributors know about their new pricing charts before February 28.

JioStar’s 2026 rate card raises regional GEC prices, with Asianet and Star Vijay at ₹30 and Star Jalsha at ₹25, while Nick moves from ₹7 to ₹19. Hindi GEC and sports remain unchanged as they are already at the ₹19 ceiling, and core Hindi bouquets rise ₹10.

Under regulations, channels priced above ₹19 cannot be included in bouquets. A cable TV official said pricing some channels beyond this threshold could steer DPOs towards bouquet options in those markets.

DPOs are expected to resist the hikes, arguing that higher prices are accelerating subscriber losses as viewers migrate to more affordable alternatives such as DD Free Dish and ad-supported streaming platforms.

Tension between broadcasters and distributors is visible for years, and the strain is visible every time pricing is revised. Distributors maintain that frequent rate increases are compounding subscriber churn in an already shrinking market.

The high-profile dispute between Sony Pictures Networks India and Tata Play over commercial terms remains unresolved, with the matter now before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). Zee Entertainment and Airtel Digital TV were also locked in a pricing dispute earlier, though the issue was eventually settled.

“Broadcasters will hike bouquet rates by 10%. The effective hike will be lower, as DPOs will absorb a part of the increase. The overall price rise for consumers will therefore be moderate,” said a TV distribution executive.

Legal experts note that the tribunal, which adjudicates matters related to telecom, broadcasting and aviation, sees a significant volume of cases from the broadcasting sector, with commercial disagreements forming the bulk of disputes.

Meanwhile, subscription revenue growth has stagnated for leading broadcasters as the pay-TV universe contracts. Price revisions have helped cushion the decline but have not reversed the structural slowdown. Linear TV average revenue per user stands at ₹281 per month.

According to an EY report, TV distribution revenue fell 3% to ₹38,500 crore in 2024, driven by a 6% drop in pay-TV households, equivalent to a loss of six million subscribers and ARPU increase.

Industry executives argue that broadcasters have little choice but to recalibrate pricing. “Even if the hike is 10%, the effective increase for consumers is in the low single digits, as a significant portion of the cost is absorbed by DPOs through reduced commissions,” said TV distribution executive Vivek Arora.

However, passing on higher prices remains a delicate exercise for DPOs, given the risk of further churn. Analysts point out that subscriber attrition is no longer driven purely by pricing pressures but by structural shifts in consumption behaviour.

“Linear TV continues to be the cheapest mode of entertainment consumption and is here to stay. What is changing is the way content is consumed. Linear TV content is increasingly being viewed on other screens, driven by the emergence of new technologies and devices,” Arora said.