The Ministry of Information and Broadcasting (I&B) has sent licence fee demand notices totalling ₹16,000 crore to India’s four private Direct-to-Home (DTH) companies. The notice includes both principal dues and interest and adds to the growing list of financial challenges faced by the pay-TV industry.
The four companies affected are Bharti Telemedia (which operates Airtel Digital TV), Tata Play (formerly Tata Sky), Dish TV, and Sun Direct. Industry insiders revealed that representatives of these companies have informed the government that the demand is not enforceable, as the matter is currently pending in various High Courts, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and the Supreme Court.
Notably, the ministry’s demand exceeds the combined FY24 revenue of all four DTH operators, which stood at ₹10,230 crore, a decline of 5% from ₹10,837 crore in FY23. According to industry data, the sector has seen a loss of 8 million subscribers between FY21 and FY24. As of December 2024, the active pay DTH subscriber base was reported to be 58.22 million.
Furthermore, the ministry clarified in its communication that the figures mentioned in the notices are provisional and will be reconciled once audits by the Comptroller and Auditor General (CAG) are completed and final court verdicts are delivered.
Each DTH company has received a significant portion of the ₹16,000 crore total:
- Dish TV reported in its Q4 FY25 filing that it had been asked to pay ₹6,735 crore, including interest, covering the period from its DTH licence issuance to FY24. The company has officially disputed this demand.
- Tata Play received a cumulative notice of ₹3,628 crore, including ₹1,401.66 crore in interest.
- Sun Direct was issued a demand of ₹1,051.84 crore, as of March 2024, excluding interest.
These financial claims come at a time when DTH operators are struggling to retain users, who are increasingly shifting to OTT platforms and free alternatives like DD Free Dish.
Adding to the sector’s woes, the Supreme Court on May 23, 2025, upheld the constitutional validity of state-imposed entertainment taxes on both cable and DTH television services. The court ruled that state governments have the legislative authority to levy taxes on the entertainment component of these services, even if the broadcasting aspect falls under the Centre’s service tax regime.
This ruling followed appeals by DTH operators like Tata Play, Dish TV, and Sun Direct, who challenged various state-level entertainment tax laws. The companies had argued that the Centre already levies a service tax, and additional state taxes would result in double taxation. However, the Supreme Court dismissed the appeals, affirming that states can impose taxes independently on the entertainment value delivered to viewers.
The combination of outstanding licence fees and the affirmation of state-level entertainment taxes presents a significant financial burden for DTH companies. With the industry facing subscriber losses, declining revenues, and increasing regulatory obligations, operators are expected to seek judicial relief and possibly push for policy reforms in the coming months.