Local cable operators (LCOs) have seen a 31% drop in employment since 2018, as industry reforms and changing consumer behaviour disrupt this vital last-mile link in India's television distribution network, show the findings of a survey. Workforce in the segment has fallen from 120,557 in 2018 to 82,722 in 2024, according to an Ernst & Young survey of 28,181 LCOs across 31 states and union territories, conducted in collaboration with the All India Digital Cable Federation. The impact is also reflected on the finances of the LCOs, with 93% of the respondents reporting a reduction in their monthly take-home income. A key reason for this decline is their inability to raise collection rates from customers, as price hikes on channel rates are met with resistance.Consumers are shifting from traditional pay TV to more flexible and cost-effective services such as over-the-top (OTT) platforms, DD Free Dish (the direct-to-home (DTH) platform owned by Prasar Bharati) and connected TV.Additionally, the quality of content available on pay TV is not keeping up with the standards set by OTT platforms, further accelerating customer migration, the survey notes.As a result, LCOs are witnessing a significant decline in their subscriber base, with 49% of the respondents to the survey reporting a drop in their subscribers, including 35% that experienced a more than 40% fall in the customer base.As per the survey, the subscriber base of 9,863 LCOs fell more than 40% between 2018 and 2024, while 2,536 saw a decline of 20% to 40% and 1,127 LCOs posted losses up to 20%. On the other hand, 564 operators reported up to 10% growth in subscriber numbers, while another 14,091 saw an expansion of more than 10%. The cable TV industry is facing significant challenges as consumers are increasingly migrating to OTT platforms and DD Free Dish. Broadcasters offering premium content for free have further eroded pay TV subscriptions, compounding the sector's struggles, said the CEO of a large MSO.JioStar, the broadcast industry leader, has already made the first move to protect the pay TV base by deciding to remove content from YouTube, the free ad-supported platform, and putting cricket behind a paywall. Industry sources earlier indicated that the move had already seen success with a net addition of 800,000 to 1 million cable TV and DTH subscribers on the back of IPL.
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