Digitisation to propel pay-TV revenue to $17 billion by 2017 , MPA report

MUMBAI: Propelled by the government’s digitisation drive, pay TV revenues in India are projected to reach $17 billion by 2020 as opposed to the $7.8 billion in 2012, according to a new report by Singapore-based pay-TV research firm Media Partners Asia (MPA).

According to India Pay-TV & Broadband Markets, pay TV revenues are expected to grow at a compounded annual growth rate (CAGR) of 11.4 per cent from 2012-17 and 10.2 per cent between 2012 and 2020.

MPA forecasts indicate that total digital pay-TV homes will grow from 47 million in 2012 to 110 million by 2017 and 130 million by 2020.

The digital penetration of total pay-TV homes in the country is expected to double to almost 70 per cent by 2020 from 35 per cent in 2012. The digital pay-TV penetration of TV homes in India will grow from 28 per cent in 2012 to 54 per cent by 2017, and reach 60 per cent by 2020.

On the other hand, the total pay-TV homes are expected to grow from 128 million 2012 to 167 million by 2017, and 183 million by 2020. Pay-TV penetration of TV homes will grow from 80 per cent to 85 per cent between 2012 and 2020, adjusted for multiple connections in a household.

This implies that the pay-TV industry will remain in a prolonged investment mode, with significant capital intensity. With two more phase of digitisation to go, both DTH and cable operators already have high levels of debt. The majority of additional funding will have to come through equity, via IPOs and M&A, the MPA report states.

“A successful start for the roll-out of digital addressable systems (DAS) has revived interest in pay-TV among strategic and financial investors,” says MPA executive director Vivek Couto.

“The real benefits will become clearer in 2H 2013 and beyond, as multi-system operators (MSOs) drive addressability and work with last mile local cable operators (LCOs) to ramp up tiering, billing and collections. Regulators are committed to curbing delays in the next phases of DAS, while the DTH industry is keen to revive growth by capitalising on digital transition.”

Cable impact: Over the medium term, the majority of cable investments will be directed towards digital infrastructure, helping to build operator scale and improved addressability. In the long run, investments will be more focused towards acquiring primary subscriber points and the expansion of high-ARPU products such as broadband and HDTV.

According to MPA, the total proportion of cable households with DAS climb from 15 per cent in 2012 to 50 per cent by 2020.

DTH growth: In the DTH space, concerns focus on the growth of active subs (i.e. paying customers, net of churn and subscriber suspension), which has moderated in recent times. MPA says that the growth in active subs will rebound however, as more markets undergo analog switch-off. MPA forecasts indicate that active DTH subs will grow from 32 million in 2012 to 64 million by 2017, and 77 million by 2020.

Broadcasters: Subscription fees for pay-TV channels crossed US$1 billion in 2012, driven by the growing strength of aggregators. This growth has yet to factor in digitalisation, which will result in a bigger share of subscription revenue for broadcasters. Operating margins will remain under pressure in the short-to-medium term, due to heavy investments in content for existing channels and gestation losses on new channel launches.

MPA expects total pay-TV channel revenues, including advertising and subscription to grow from $3.6 billion in 2012 to $6.6 billion by 2017 and to $8.6 billion by 2020. The pay-TV ad market is expected to grow at a 10 per cent CAGR over 2012-20, while broadcaster subscription revenues are expected to grow at 15 per cent over the same period.

Latest Reads
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications
Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories