TV distributors push for lower payouts amid falling margins

Mumbai: Distribution platform operators (DPOs), which include the likes of Tata Play, Airtel Digital TV, and GTPL, are seeking lower payouts in content deals as subscriber losses and rising channel prices squeeze margins, setting up tough negotiations with broadcasters, industry executives familiar with the discussions said.

DPOs, which distribute television content to consumers through cable, direct-to-home (DTH) and headend-in-the-sky (HITS) platforms, argue that existing content deals have become increasingly unsustainable as they continue to make fixed payouts to broadcasters despite a shrinking subscriber base and rising channel prices.