Why DTH Services Are Declining in India: How OTT and Fiber Connections Are Changing the Game

1. Introduction : Why DTH Services Are Declining

There was a time in India, not too long ago, when rooftops were dotted with dish antennas—each representing a Direct-To-Home (DTH) connection bringing satellite television directly into living rooms. Services like Tata Sky (now Tata Play), Dish TV, Airtel DTH, and Videocon D2H dominated the market. However, in recent years, DTH has seen a steady and sharp decline, especially after the rise of OTT (Over-The-Top) content and internet-based services.

This article explores why DTH services are declining in India and how the technological and economic ecosystem around entertainment has transformed.

2. The Rise and Peak of DTH Services in India

DTH services entered India in the early 2000s and became immensely popular by the late 2000s and early 2010s. By 2015, millions of Indian households had DTH connections. Retailers like me would sell 2–3 connections every day and process 10+ recharges daily. Families were willing to pay for clearer picture quality, exclusive channels, and convenience.

Companies like Dish TV, Airtel Digital TV, Tata Sky, and Videocon D2H competed fiercely, offering regional packs, HD content, and annual recharge benefits. This was the golden period for DTH, before internet streaming became a household norm.

3. The Emergence of OTT and Internet-Based Viewing

With the increasing penetration of 4G internet and affordable smartphones, platforms like Hotstar, Netflix, Amazon Prime, Sony Liv, and Zee5 began to dominate the Indian content space.

People realized they could watch anything, anytime, anywhere. Unlike DTH, OTT platforms allowed:

• On-demand content (movies, series, kids’ shows)

• No advertisement interruptions

• Multiple screens access

• Multilingual content

This flexibility appealed especially to younger audiences, working professionals, and students.

4. The Jio Factor: Game Changer for Home Entertainment

The biggest disruptor, however, was Reliance Jio. First, it entered with Jio TV+ mobile app, which offered live TV for free to Jio users. People could now watch their favorite channels on the go without paying extra.

Then came Jio Fiber, which changed the entire home entertainment game.

In plans starting from ₹999 + GST per month, Jio provides:

• High-speed 150 Mbps internet

• Free Set-Top Box

• Access to JioTV+, Sony Liv, Zee5, Discovery+

• Compatibility with YouTube, Netflix, Amazon Prime

As a user, I personally stopped our previous Airtel DTH + broadband combo (₹550 for DTH + ₹799 for 30 Mbps broadband), and switched to Jio Fiber. Now, I use the Jio set-top box on a non-smart TV and connect the smart TV directly to Wi-Fi, eliminating the need for multiple monthly bills.

Even in its entry-level ₹599 + GST plan, Jio offers:

• A Jio Set-Top Box

• Over 600+ live TV channels via JioTV+

• YouTube support

• Built-in access to apps like Sony Liv, Zee5, Discovery+, and more (with some apps requiring additional subscriptions)

• Access to popular OTT platforms like Netflix and Amazon Prime Video, if you already have their subscriptions

• Unlimited internet with 30 Mbps speed — more than enough for streaming and everyday use

By offering TV + Internet + OTT in a single package — even in its budget plan — Jio made DTH look outdated and expensive.

Also Read: My Jio Air Fiber Review.

5. Regulatory Impact: TRAI’s Role in DTH Decline

Another major contributor to the decline of DTH has been TRAI’s channel pricing regulations.

Earlier, consumers paid fixed monthly charges for DTH plans, but after the TRAI mandate (New Tariff Order):

• Every channel had a fixed price

• Users were required to pay separately for each channel or bouquet

• Extra charges for multi-TV homes

This resulted in confusion and higher costs. For instance, having two TVs with Airtel DTH now costs around ₹550/month—not a great deal when you compare it with what Jio offers with fiber + streaming services + unlimited data.

6. Cost Comparison: DTH vs. Fiber-Based OTT Services

Let’s break it down clearly:

From a value-for-money perspective, fiber-based OTT services win by a large margin.

7. Shift in Consumer Behavior

Another key reason for the decline of DTH services is a fundamental shift in how people consume content:

• People no longer wait for scheduled TV shows.

• Binge-watching has become the norm.

• Younger audiences prefer web series, YouTube, Instagram Reels, or gaming.

• Educational needs (especially during COVID and even now) led to an increase in YouTube-based learning for children. Schools recommend watching explanatory videos on larger screens rather than mobile devices.

8. Rise of Smart TVs and Learning Needs

Brands like Samsung, Mi, OnePlus, LG, and Sony are now offering Smart TVs at very competitive prices. These TVs:

• Run Android or custom OS

• Support Wi-Fi and Ethernet

• Allow installation of OTT apps

• Provide screen mirroring from smartphones

With such features, families no longer feel the need for a DTH set-top box. Parents use YouTube for kids, teenagers watch Netflix or YouTube, and elders explore news or devotional content through free apps.

9. Digital Payments and the Fall of Recharge Shops

Previously, retail shops made good income from DTH recharges and installation services. But now:

• With UPI apps like PhonePe, Google Pay, and Paytm, people recharge themselves.

• Platforms like Amazon Pay offer cashback on recharges.

• Companies like Airtel and Tata Play push for auto-recharges via mobile apps.

This has led to a sharp reduction in footfall at local electronics or recharge shops, affecting small business owners and technicians.

10. Drawbacks of the Digital Shift

While the move away from DTH services has its advantages, it’s not entirely without flaws:

1. Unemployment: Many small vendors who thrived on selling and recharging DTH connections have lost their livelihood.

2. Rural India struggles with low internet speed and poor fiber connectivity, where DTH is still essential.

3. Internet dependency: If your internet connection goes down, you lose access to live TV and entertainment.

4. App compatibility: Not all regional channels or English movie channels are available on platforms like Jio TV+.

11. Future of DTH: Can It Survive?

DTH services won’t disappear overnight. There are still:

• Areas with no fiber connectivity

• Older people who prefer traditional remote control TV

• Language-specific regional channels not available on OTT

• Consumers who do not trust or use OTT platforms

However, to survive, DTH companies must innovate fast:

• Provide hybrid set-top boxes (OTT + DTH)

• Lower pricing

• Offer value-added services like cloud DVR, pause-live-TV

• Build better mobile + TV integrated ecosystems

Tata Play has already started doing this by offering Tata Play Binge+, a hybrid set-top box, but it needs wider adoption and pricing clarity.

12. Conclusion

The decline of DTH services in India is the result of technological advancement, affordable fiber internet, increasing OTT content consumption, and changing viewer preferences. Jio Fiber has played a major role in making internet-based television the new normal in urban India.

While DTH may still have a role to play in remote areas or among older generations, it is clear that the future lies in integrated, internet-first home entertainment.

DTH brands will need to evolve quickly or risk fading away completely, just like how landline phones vanished when mobile networks took over.

If you’re running a DTH or electronics business like me, it’s essential to diversify into smart TV sales, Wi-Fi routers, and OTT consultation setups. The entertainment world is evolving, and so must we.