Cable TV
Digitisation has failed to show increase in ARPUs: Deloitte
NEW DELHI: Although carriage fees saw a reduction of 15-20 per cent after the first two phases of digitisation, the delay in implementation of the various phases of digitisation means the promised jump in subscription revenues and average revenue per user (ARPU) has not materialized.
The recently launched Digitization and Mobility: Next frontier of growth for M&E, report by Deloitte states, “One year into the implementation of digitisation, the cable and broadcast sector is still trying to iron out creases and get systems in place. The key goal of digitisation was addressability, which was expected to plug leakages in the system. While cable subscribers have been increasing, rampant under-declaration meant, Multi-System Operators (MSOs) that transmitted the signals to cable operators earned little from the large subscriber base.”
In 2014, Deloitte predicts that the digital TV distribution space – both digital cable and Direct-to-Home (DTH) would find ample room for growth given the catalysing effect of digitisation and the headroom for growth provided by non-TV households in the country.
The report prepared for the ASSOCHAM annual M&E meet says about 12 million set-top boxes have been seeded and 80 per cent consumer application forms have been received as of December 2013. The Telecom Regulatory Authority of India (TRAI) claims 100 per cent digitisation in DAS phase II.
TRAI has also said recommendations on the new DTH licences would be brought out very soon.
HITS licenses which have been issued to two players, is expected to enable digitisation in phase III and phase IV markets.
Meanwhile, the report notes, “Complaints have poured in against set-top boxes. People in the city are complaining about digital set-top boxes installed in their houses and offices. Visual and sound disturbances coupled with channels going off air from time to time have left viewers unhappy.”
It also notes that “in the haste to install set-top boxes in the city, cable operators have overlooked a crucial step – that of filling in the Cable Access Form (CAF) before installation of the device. The purpose behind mandating DAS was to identify the actual number of cable viewers in the country. But with most customers not filling in the form, the purpose still remains defeated.”
“With penetration of TV in India standing at approximately 65 per cent, at present, the country has close to 80 million non-TV households, which presents a key opportunity for the television distribution players. This low level of penetration holds a great potential for players to increase their subscribers and revenues. Drivers such as rising incomes, decreasing household size, multi TV phenomenon and rising urbanisation would only provide a further fillip.”
Noting that the government’s digitisation mandate is “slowly but steadily progressing towards its target,” the report says the television distribution space is abuzz with prospects, albeit it would call for investments and improvements, especially from the digital cable players. All metros except Chennai have been largely digitised and the phase II of digitisation, which covers 38 cities, is also nearing completion. Phase III and IV of digitisation targets December 2014 for their completion. This would mean digitisation of additional 40 to 50 million households in the balance towns.”
The report also says that phase III aims to focus on digitisation of all urban areas (municipal areas). Given the extensive coverage of MSOs and LCOs in such areas, digital cable is expected to make the most in the relatively densely populated areas, notwithstanding the churn of subscribers to DTH. In the first phase of digitisation, DTH operators were able to grab 20 per cent of subscribers converting them from analog to digital.
Phase IV aims to focus on digitisation for the rest of India, which predominantly aims at rural areas and tier II cities. DTH is expected to gain the most in areas with sparse population and inadequate cable infrastructure.
Digitisation phases, scope and affected subscribers
Digitisation phase Scope Subscribers affected (million)
Phase I Delhi, Mumbai, Kolkata, Chennai 8-10
Phase II All cities with population > 1 million 12-14
Phase III All urban areas (Municipal areas) 30-35
Phase IV Rest of India 22-25
Source: Industry discussions
DTH, as a sector, had started off by concentrating on rural areas, which were deprived of cable infrastructure and gradually also entered the urban markets. However, they are still strong in rural markets.
Given the complexity of the exercise across the country and the rate at which television penetration is growing (MPA expects India to have 183 million pay-TV homes by 2020); the scale of undertaking of digitisation will be a big challenge.
But it says analysts and sector professionals agree the future looks promising with the lessons learnt from phases I and II.
Cable TV
Hathway Cable appoints Gurjeev Singh Kapoor as CEO
Leadership change comes as cable TV faces shrinking subscriber base and modest earnings pressure
MUMBAI: Hathway Cable and Datacom has tapped industry veteran Gurjeev Singh Kapoor as chief executive officer, marking a leadership pivot at a time when India’s cable television business is under mounting strain.
Kapoor will take over from Tavinderjit Singh Panesar, who is set to retire in August after a long innings with the company. Panesar, chief executive since 2023, has held multiple leadership roles at Hathway, including his latest stint beginning in 2022.
Kapoor brings more than three decades of experience in media and entertainment. He most recently led distribution at The Walt Disney Company’s Star India business, now part of JioStar. His career spans television distribution and affiliate partnerships, with stints at Sony Pictures Networks India, Discovery Communications and Zee Entertainment.
Panesar, with over three decades in the industry, has worked across strategic planning, distribution and business development in media, broadcasting and manufacturing. His past associations include ESPN Star Sports, Star India, Apollo Tyres and JK Industries.
The transition lands as the cable sector grapples with structural disruption. Traditional operators are losing ground to streaming platforms, while telecom and broadband players tighten the squeeze with bundled offerings.
An EY report estimates India’s pay-TV base could shrink by a further 30 to 40 million households by 2030, taking the total down to 71 to 81 million. The slide follows a loss of nearly 40 million homes between 2018 and 2024, a contraction that has already wiped out more than 37,000 jobs in the local cable operator ecosystem.
Hathway’s numbers reflect the strain. The company reported a consolidated net profit of Rs 93 crore for FY25, down from Rs 99 crore a year earlier. Revenue inched up to Rs 2,040 crore from Rs 1,981 crore. As of December 2025, it had about 4.7 million cable TV subscribers and roughly 1.02 million broadband users.
Kapoor steps in with a familiar brief but a shrinking playbook. In a market where viewers are cutting cords faster than companies can reinvent them, the new chief executive inherits a business fighting to stay plugged in.
