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India TV Reels: Ad & Sub Woes Deepen
16 Feb
Summary
- Linear TV viewership fell to 737 million in Q3 FY26.
- TV ad volumes declined 11% in CY2025 versus 2024.
- Zee Entertainment's net profit declined 25% in 9M FY26.
India's television broadcasting and distribution sector is experiencing a significant structural slowdown in FY26. Linear TV viewership has decreased, with overall audience reach falling to 737 million in Q3 FY26, reflecting a move towards free platforms like DD Free Dish and ad-supported digital services.
The advertising environment is challenging. TV's share of the total advertising market is expected to contract from 21% to 15% by 2027. TV ad volumes saw an 11% decline in CY2025 compared to the previous year, impacted by a ban on real money gaming and reduced spending from FMCG companies, alongside a shift to digital media.
Broadcasters are feeling the financial strain. Zee Entertainment, for instance, reported a 25% drop in net profit to Rs 375 crore in 9M FY26, with advertising revenue falling 12%. While subscription revenue saw a 4% rise, this was largely driven by OTT growth.
Subscription revenue growth is also moderating, with the paid TV universe showing minimal expansion. Industry players are increasingly relying on bundled OTT partnerships with telecom operators for incremental gains, as premium audiences migrate to streaming platforms. Distribution companies are adapting by focusing on broadband and IPTV services.
