How the broadcasting industry can generate Tk 5,000cr for NBR

T
Tariq Alam

Bangladesh is one of South Asia’s largest television-consuming markets, yet its broadcasting and digital content distribution industry remains structurally underdeveloped and weakly monetised, depriving the state of an estimated Tk 5,000 crore in annual revenue.

In many parts of the market, foreign television channels are carried without regulatory or commercial authorisation, subscribers are under-declared, unlicensed OTT and internet platforms distribute live channels and illegal internet-enabled boxes flood the market.

The result is systemic revenue leakage across the broadcasting value chain, distorted competition within the industry and significant lost revenue for the National Board of Revenue.

At the root of the problem are longstanding failures in traceability, commercial discipline and enforcement at the content distribution layer.

A significant portion of the cable television ecosystem still operates through informal and non-digitised subscription collection practices with limited subscriber count traceability, enabling chronic under-declaration of subscribers and revenues.

Despite its formal role, the Cable Operators Association of Bangladesh has been unable to ensure consistent compliance, transparent subscriber reporting or effective market discipline among its members.

The lack of transparency has made effective auditing, commercial settlement with broadcasters and tax compliance extremely difficult, undermining both the sustainability of the broadcasting sector -- particularly for compliant operators -- and public revenue collection.

At the same time, a growing number of unlicensed OTT applications and internet service provider (ISP) platforms have in recent years streamed full linear local and foreign television channels and live programmes in clear violation of the licensing framework governing broadcast distribution.

This has amounted to large-scale digital piracy that has eroded monetisation and distorted fair business competition. Yet the legal position has never been ambiguous.

The Cable Television Network Operation Act, 2006 restricts the distribution of linear channels to licensed feed, cable and direct-to-home (DTH) operators. The failure has not been legislative; it has been the lack of enforcement of existing law.

Globally, the broadcasting industry is evolving into a hybrid ecosystem where cable, DTH and internet-based platforms operate together to deliver content to viewers.

OTT services are an important part of this transformation and are increasingly used by licensed broadcasters and distribution operators worldwide. In many mature markets, Pay-TV growth has slowed as digital distribution expands.

Bangladesh, however, presents a very different dynamic. With more than 90 per cent of cable distribution still non-digitised, the market remains largely informal.

Proper digitisation and enforcement could therefore unlock Bangladesh as the fastest-growing Pay-TV market in the world.

The challenge, therefore, is not technological innovation, but ensuring that identical distribution activities -- regardless of technology -- operate within the same legal and commercial framework.

The draft Broadcasting Ordinance, 2026 expected to be enacted as the Broadcasting Act, 2026, provides an important opportunity to address these structural weaknesses.

If strengthened and implemented alongside the Cable Television Network Operation Act, 2006 and the Bangladesh Cable Television Network Operation and Licensing Rules, 2010 (as amended in 2023), this framework could transform the sector into a regulated, investable industry that benefit viewers, broadcasters, operators and the state.

At the same time, several reforms are essential.

First, any service that provides linear television channels or live programmes to the public, whether by cable, satellite or the internet, is performing a broadcasting function and must be licensed by the information and broadcasting ministry (MoIB).

Enforcing this existing legal framework would close the regulatory gap that has allowed unlicensed OTT and ISP platforms to openly distribute linear channels outside the intended existing structure.

Second, cable digitisation must be mandated within clear timelines.

Addressable digital systems are essential for subscriber transparency, tax compliance and effective regulatory oversight.

As viewing habits evolve, MoIB licensed service providers may deliver their services across internet-based platforms as part of their authorised distribution network. Digital access to content will continue to expand, but within the established licensing framework.

Third, carriage of foreign pay channels without  commercial authorisation must be treated as what it is: unauthorised distribution and commercial piracy.

Collecting subscription fees for channels without broadcaster consent is not a commercial dispute -- it is piracy. Enforcing this principle would stabilise broadcaster revenues and restore commercial discipline to the market.

Fourth, the distribution of linear channels, live programmes and associated media rights should occur exclusively through entities licensed by the MoIB.

Allowing unlicensed entities to act as content traders or de facto distributors has distorted the domestic broadcasting market and weakened regulatory coherence.

A clear licensing boundary does not restrict legitimate rights ownership; it ensures that distribution occurs within a transparent and accountable legal framework.

Fifth, enforcement must move upstream to the point of entry of unlawful activities.

Blocking the IP feeds of unauthorised OTT and ISP platforms distributing linear channels, alongside stronger customs controls on the import of internet-enabled set-top boxes configured with piracy applications -- including the blacklisting of non-compliant importers -- would significantly strengthen upstream enforcement.

In addition, internet-enabled set-top boxes should be classified as broadcasting or telecommunication equipment for licensing and customs purposes and require appropriate approval from the Bangladesh Telecommunication Regulatory Commission.

These structural reforms must operate alongside the strong punitive powers already contemplated in the draft Broadcasting Ordinance/Act, 2026, including  licence suspension, financial penalties and seizure of illegal equipment.

If implemented without dilution, this framework could underpin a Tk 20,000 crore formal Pay-TV and regulated digital broadcasting industry, delivering more than Tk 5,000 crore annually to the NBRthrough VAT, income tax, customs duties and associated fiscal flows.

It would also increase satellite utilisation and strengthen revenues for the Bangladesh Satellite Company while supporting the role of the BTRC in addressing internet-based piracy.

Importantly, this revenue uplift does not depend on new taxes or higher consumer prices; it depends on formalisation, transparency and enforcement of existing law supported by the strengthened framework.

Formalisation would improve content and service quality, strengthen consumer protection, attract foreign investment, promote faircompetition and create sustainable employment across the media value chain.

Bangladesh does not lack viewers, content or technology. What it lacks is a fully equipped legal framework and decisive, coordinated enforcement. The opportunity is clear and the time to act is now.

The author is a strategic consultant across technology, media and infrastructure industries