GUEST COLUMN: Why Indian broadcasting needs a regulatory reset in 2026

The wait for 100 billion USD M&E

The 2012 Media and Entertainment (M&E) Outlook Report by the Confederation of Indian Industry (CII), an industry body, identified the sector’s potential to become a 100 billion USD market. In 2015, reports forecast that the industry would hit this target in 2025. However, the FICCI-EY annual report pegged the industry at 2.3 trillion rupees (US$29.4 billion), and estimated that it would grow at 7.2 per cent this year and reach 2.7 trillion rupees (US$31.6 billion) in 2025 – well off estimates from a decade ago. As we look ahead, the wide gap between expectation and reality calls for introspection – what stifled growth in the past decade, and what must be done differently in the next to meet the elusive 100 billion target?

Digital did not kill the TV star

The song “Video Killed the Radio Star” by Trevor Horn, Geoff Downes, and Bruce Woolley in 1979 symbolised a transition in audience preferences from radio to TV in the United States. Many prophesied TV would meet the same fate as radio with digital gaining popularity. But the picture we are seeing today is far from it. OTTs did disrupt the traditional distribution route, but they did not lead to cord-cutting as they did in other countries. Instead, TV households became multi-screen and connected TV households, content producers developed hybrid strategies to decide how they monetise content libraries, deepen audience engagement, and expand ad inventories across platforms.

US customers pay almost INR 8000 per month for TV whilst Indian households pay between 200 and 400. A 2022 BIF-CUTS survey found that 70 per cent of consumers believed that television offers a value-for-money proposition. Streaming is a cheaper alternative in the US and other countries where cord-cutting is prevalent, but it is not the case in India. Here, TV continues to serve the needs of 182 million households and makes up 40 per cent of the M&E industry’s revenues, according to various estimates. In 2025, the IPL recorded 456 billion minutes of watch-time on TV, reflecting the continuing popularity of television in the country.

Regulations inhibit TV from unlocking potential

TV could be doing much better and contributing more to M&E fortunes. But legacy economic regulations restrict key monetisation avenues and force linear TV to compete for audience attention with one hand tied behind its back. For instance, regulations inhibit broadcasters from charging families and commercial outlets like cafés and hotels differently, despite the huge footfall these entities attract during live events like cricket matches. Entire pubs and restaurants reserve entry for fans, but pay the same as a household of four would. This is not the case with any other creative industry. Hotels pay more royalties to play music in their premises to a large gathering, and artists charge businesses differently from individuals.

At the heart of the issues is the sectoral regulator, Telecom Regulatory Authority of India’s (TRAI) approach. TRAI mandates broadcasters to sell content to distribution platform operators (DPOs), who then sell it forward to customers. It is a legacy construct structured on the fragile B2B-to-B2C model. The supply chain was relevant twenty years ago to reach last-mile consumers. However, newer digitisation and encryption technologies and deep connectivity penetration have changed this scenario. Retaining the B2B-to-B2C model creates friction and leads to increased costs.

Broadcasters have invested in technology and developed the capacity to sell directly to customers, but there is no reward for their efforts. They must go through licensed distributors to reach consumers. In other countries, broadcasters can provide customised channels and bundling options to consumers. TRAI regulations foreclose broadcasters’ ability to innovate, reinvest in premium content, scale local productions, and attract global capital – all of which could ensure that consumers have a better viewing experience and more choice.

Way forward

The broadcasting sector is overwhelmed by a patchwork of regulations that have not kept pace with technological advances. 2026 brings an opportunity to reset how we think of broadcasting regulation. Reports suggest that the Union government may remove broadcasting from TRAI’s purview – a longstanding demand from broadcasters who seek a light-touch, predictable, and internationally aligned approach.

TRAI or not, restrictions on channel pricing and bundling, duration of advertisements, and the inability to charge ordinary and commercial subscribers distinctly are legacy constructs that must be shed. Broadcasters are doing their bit by investing in innovative content and technological upgrades to keep up in a highly competitive environment. Consumers remain at the core of this investment, be it in dynamic ad insertions to show relevant ads, or expanding the choice of content and mode of consumption for users.

If India wants to position itself as a global content hub and achieve long-stated industry targets, the government will need to back the medium that continues to serve the content needs of almost 70 per cent of the population. Broadcasters need the freedom to innovate, the incentives to invest, and a policy environment that sees their potential as growth engines.

Note: The views expressed in this article are solely the author’s and do not necessarily reflect our own.