DTH

DTH sector in India to grow sales at 19 per cent CAGR between 2013-18: MPA

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/dth-images/2014/07/30/mpa.jpg?itok=RgOjzgS6

MUMBAI: India’s direct-to-home (DTH) satellite pay-TV sector remains a growth oriented industry with significant potential for strategic and financial investors, according to a new report published by Media Partners Asia (MPA).

The report, entitled ‘India DTH Market Overview–Key Dynamics & Future Outlook’, forecasts that India’s DTH pay-TV sector will generate revenues of $ 4.04 billion by 2018, a CAGR of 19 per cent from $ 1.71 billion in 2013 and by 2023 the sector will generate revenues of $ 5.6 billion. In an earlier report, MPA had said that the DTH active subscriber base will increase from 37 million in 2013 to 60 million by 2018 and 70 million by 2023. This implies a 39 per cent share of the overall market by 2023 and a 56 per cent share of the digital pay-TV market.

DTH operators have been working together to improve the overall economics for the business by reducing the amount of free viewing offered to new subscribers and recalculating the incentives dealers receive for renewing subscriptions.

ARPU growth, according to the report, will be partially limited as DTH expands nationally, with low-income homes coming into the mix, although MPA sees a greater contribution from high- ARPU HD subscribers. According to the report, HD represented 6.9 per cent of the total active DTH base in 2013; which MPA expects to grow to 16.1 per cent by 2018 and to 20.1 per cent by 2023. MPA sees total DTH ARPUs expanding from $ 4.0 per month in 2013 to $ 5.7 by 2018.

Digital TV (DTV) has started to gain widespread acceptance across consumer households in India, driven largely by the growth of DTH satellite pay-TV platforms. Data from MPA indicates that DTV penetration, including digital cable and digital free and pay DTH platforms, has grown from less than 1 per cent in 2006 to 46 per cent as of 31 December 2013.

The six DTH pay-TV operators in the market have in aggregate contributed to 23 per cent penetration as of 31 December 2013, providing a level of market leadership due to superior capitalisation and a stronger consumer focus built around product strength and innovation, including tiering, HDTV and DVR services.

“DTH operators have been working together to improve the overall economics for the business by reducing the amount of free viewing offered to new subscribers and recalculating the incentives dealers receive for renewing subscriptions. ARPU growth will be partially limited as DTH expands nationally, with low-income homes coming into the mix, although we also see a greater contribution from high-ARPU HD subs. HD represented 6.9 per cent of the total active DTH base in 2013; we expect this to grow to 16.1 per cent by 2018, and to 20.1 per cent by 2023,” said MPA India VP Mihir Shah.

Key market trend highlights of the report:

Rational focus: Operators are increasingly focused on growing profits as opposed to solely increasing volume, often at the expense of profitability. As a result, operators have increased their basic prices, while at the same time reducing the trade margin arbitrage by Rs 200-250 to minimise rotational churn. Although subscriber additions post October 2011 have witnessed some slowdown. According to MPA both the quality of subscribers and ARPUs will continue to improve going forward.

DTV mandate: MPA believes that the implementation of mandatory cable digitisation by the government will be an important catalyst for growth in the DTH sector. DTH operators are relatively well positioned due to the strength of their B2C businesses (as opposed to B2B approaches amongst cable MSOs) and their experience and investment in tiering, subscriber management and billing and sales and marketing. In addition, as part of its reforms, the government has now permitted international companies to own up to 74 per cent of cable and DTH platforms.

HD penetration: As per MPA’s report, HD penetration will grow significantly in the future, rising from less than 7 per cent of active DTH subscribers currently to over 20 per cent by 2020. MPA’s estimates are based on benchmarks in the US, UK, Latin America and Southeast Asia. In the UK, incumbent DTH operator BSkyB currently has more than 50 per cent of its subscriber base adopting HD. Malaysia’s Astro has also demonstrated laudable rates with 49 per cent penetration at present on its DTH platform. Increase in HD channel offering is critical for growth in HD penetration. However for some of the mature global operators, MPA sees HD penetration as a percentage of total subscribers capping out at 60-65 per cent.

Upside capped by tax and regulation: A ~30 per cent drain of gross DTH subscription revenues – comprising a 12 per cent service tax, 8-10 per cent entertainment tax and a 10 per cent license fee – continues to hamper the industry’s ability to improve profitability. Although industry stakeholders are lobbying the government to change the license fee terms and make deductions based on adjusted gross revenue, these are yet to be finalised. A further cap on future industry upside comes in the form of spectrum issues resulting from the absence of an open skies policy that would allow DTH operators to directly source transponder capacity from foreign satellite operators, as opposed to the current system of going through the Indian Space Research Organisation’s (ISRO’s) commercial arm Antrix.

Consumer proposition, technology key to future subscriber additions: Ramping up subscriber additions as analog cable subscribers turn to digital will largely depend on the consumer proposition offered by the DTH and cable operators. Gaining an increased share of new subscribers will hinge on designing and marketing innovative and simple packaging structures, bearing in mind that analog cable subscribers are used to an all-you-can-eat single package structure. Technology will also be key, as compression standards and middleware deployed by operators will play a crucial role, though not immediately visible, in differentiating service offerings and providing HD and value added services (VAS) such as interactive services, 3D and VoD.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/13/arun%20%281%29.jpg?itok=c99t41lg
DishTV adds Discovery’s sports channel ‘DSports’

DishTV has added the newly launched sports channel ‘DSports’ from the house of Discovery Communications. With this addition, DishTV now offers a total of 13 sports channels in Standard Definition, the highest to be offered by any DTH service provide.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/11/PEMRA.jpg?itok=jgulvE1P
PEMRA raids DTH & cable operators showing Indian content

MUMBAI: A PEMRA team has seized illegal hardware and apparatus of DTH and Cline cable network from various electronics shops in Silanwali (Sargodha), Pakistan, and raided DTH re-broadcasters and viewers who are watching or distributing Indian TV channels.

DTH DTH Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/11/VK%20Gupta.jpg?itok=W2JmK1aF
Dish TV & ALi tie up - chipset tech vital for secure VAS, enriched viewing

MUMBAI: India’s largest DTH operator Dish TV is tying up with ALi Corporation, a STB (set-top box) manufacturer, for launching its Liberty project. Also, ALi Corporation is integrating Conax robust cardless security client into HEVC series system on chip (SoC) family, expanding operator STB...

DTH DTH Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/10/Rjavardhan-rathor-800x800.jpg?itok=5Rd4uTbo
DTH STBs: Interoperability to be ensured with MeiTY & BIS help

NEW DELHI: The information and broadcasting ministry has decided to refer to the electronics and information technology ministry and the Bureau of Indian Standards the issue of ensuring interoperability of set-top boxes for the direct to home industry.

DTH DTH Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/09/somani%20%281%29_0.jpg?itok=dXkunXGQ
Somani to lead Shemaroo's DTH business

Shemaroo Entertainment Ltd, one of the leading content houses appoints Subhash Somani to head DTH business for the company. Prior to joining Shemaroo Entertainment Ltd,

DTH People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/09/sal%20%281%29.jpg?itok=iLcHs1w1
Indians ready to pay for compelling health-related content, says Brilliant Living TV CEO

Staying fit and healthy is one of the top priorities in today's hectic lifestyle. Brilliant Living TV is an initiative by Suniel Shetty & Adarsh Gupta, which recently tied up with SonyLiv VoD, Vodafone and Tata Sky DTH to offer health and fitness content.

DTH DTH Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/01/Arun-Jaitley%20%281%29.jpg?itok=mkTQuTWp
FM wants DTH to help Swayam, industry skeptical

The Government today said linkage to direct to home platforms would help widen the Swayam platform to be launched with at least 350 online courses.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/01/erikcarlson-800x800.jpg?itok=VMKNhk73
DISH buys EchoStar's DBS & OTT assets; gives control over Sling TV customer experience

MUMBAI: DISH Network Corporation and EchoStar Corporation today announced they have executed an agreement that will transfer certain EchoStar assets and operations, including its EchoStar Technologies hardware and software development group, its national and regional uplink business, its managed...

DTH DTH Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/31/DISH%20Story%20%281%29.jpg?itok=d0s2gI8s
Demonetisation hits Dish TV numbers for Q3-17

BENGALURU: Indian direct to home (DTH) company Dish TV India Limited (Dish TV) has reported just 3.3 per cent increase in subscription revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter (quarter ended 31 December 2015, Q3-16)....

DTH DTH Operator

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories