India Pay TV Market Report - 2020
The media and entertainment industry has been one of the fastest growing sectors in India. Pay TV industry has been divided into 3 major segments on the basis of regulated content provision namely Cable TV, DTH, and IPTV. The introduction of cable TV in the Indian scenario bought with it the perks of viewing multiple channels instead of one single broadcast at a particular time of the day. It has further been divided into two segments which include analog and digital cable TV.
The total revenue of Indian pay TV market reached INR ~billion by the end of FY’2015 from INR ~billion in FY’2010. Cable TV occupies nearly ~% of the market share of India pay TV market in terms of number of subscribers. On the other hand the number of DTH subscribers has been noted at ~ million in FY’2015. Since the past five years the Indian DTH Industry has recorded a rising trend in the number of subscriptions and the revenues generated. It overcomes the cable TV disadvantage of low penetration in difficult terrains
It has achieved a CAGR of ~% in terms of revenues. The major players in the DTH segment as of FY’2015 were Tata Sky, Airtel, Dish TV, Videocon D2H, Reliance and Sun TV. Tata Sky is the market leader and commands ~% of the market in terms of revenues from Cable television has been one of the most widely used modes of television viewing in India. It is a method of delivering television programs to the subscribers with the help of radio frequency (RF) signals. These signals are transmitted via coaxial cables or fiber optic cables
The most significant aspect of television growth was the passage of the Conditional Access System Bill (CAS) of 2002, which redefined television distribution. This initiative by the government started the switchover to digital connections pan India. Along with this, the ARPUs for the cable TV industry have risen from FY’2010 to FY’2015 achieving a CAGR of ~%. The rise in ARPU has been a result of more expensive digital connections being promoted. The overall cable TV market in terms of revenues has observed a CAGR of approximately ~% during FY’2010 to FY’2015.
The government has set a goal for complete digitization of cable TV in India by FY’2016. The move towards complete digitization is to be carried out in four phases set by the government. This participation by the government has led to an increase in the digital cable TV subscriptions. With the increasing population and increasing per capita incomes of the consumers, the demand for television viewing is bound to increase. It is estimated that the industry will further grow acquiring a CAGR of ~% in FY’2016 to FY’2020 in terms of revenues.
DTH or Direct to Home signals are a method of obtaining television broadcasts by means of signals from direct broadcast satellites. It was originally referred to as Direct to Broadcast Satellite (DBS) technology. It consists of signals received to an individual dish by every subscriber. The numbers of active subscribers have risen from ~million in 2010 to ~million in FY’2015 achieving a CAGR of ~%. The revenues of the sector have also grown to INR ~billion in FY’2015 registering a CAGR of ~%.
IPTV or Internet Protocol Television is a form of television viewing in which television signals are digitally sent over the telecommunications line. It is often presented as a bundle of video, audio and data services. IPTV involves highly secure and tightly bound closed internet connection managed by the service providers. The number of IPTV subscribers in FY’2010 was estimated to be ~. This figure observed a drastic decline, reducing to a subscriber base of mere 20,000 by the end of FY’2015. The IPTV market achieved an overall CAGR of ~% in the years from FY’2010 to FY’2015.
The major market leader in the provision of IPTV services is Bharti Airtel occupies ~% of the market in terms of number of subscribers and ~% of the market in terms of the revenues from the IPTV industry for FY’ 2015. Other important players include the state owned undertakings MTNL and BSNL which cater to a restricted set of customers. The IPTV connection has a huge broadband speed requirement. This broadband requirement is not present in all parts of India. The provision of the speeds is very poor in India and hence the establishment of these services is inadequate.
Mobile TV is television viewed on the mobile/handheld devices of the people. It is simply watching Pay TV channels and facilities of Pay TV on mobile phones instead of box television, LCD, LED television sets. These Pay TV facilities can be obtained through various channels like satellite service, digital terrestrial or the internet services. It was estimated that India had ~ million mobile internet users as of FY’2015. It is expected to further reach ~ million users in FY’2016 and 314.0 million mobile internet users by FY’2017. Mobile internet can be used on smart phones only.
smart phones industry in India has been growing at a tremendous rate. Around ~ million smart phones were shipped in India in the second quarter of FY’2015. This was a 44% increase from the second quarter of FY’2014. The smart phone users in India increased from ~ million in 2009 to ~ million in 2014. This clearly represents the increasing demand for the smart phone industry. An increase in the mobile TV market will come only with an increase in the mobile internet users. The providers of Mobile TV apps are telecom companies and a few other brands which provide mobile and broadband subscriptions.
It is expected that with progress of the Indian economy in the coming years, GDP of the country and disposable income of consumers will increase. With the improving economic status and affordability of the population, the expenditure on leisure including the Pay TV subscriptions will also increase. An increase in the number of households will lead to an increase in the TV owning households with improving economic status of the population. Along with the rising demographic advantage, the digitization will help the industry to grow further. Phase 3 and 4 of digitization will help the industry to add more subscribers and generate revenues.
The industry is expected to add around ~ million subscribers with around ~ million to the DTH sector and ~ million in the cable sector. It is expected that the cable TV market will achieve a CAGR of ~% in terms of revenues from FY’2015 to FY’2020. The DTH sector is also expected to achieve a CAGR of ~% in terms of revenues. The IPTV sector is expected to grow in the future with a CAGR of ~% owing to the new developments and advancements in the underlying technology and entry of new players in the market.
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