(3 July 2009 2:15 pm)

MUMBAI: The Indian direct-to-home (DTH) industry is expected to add 5,00,000 subscribers a month in 2009 and grow at a CAGR of 30 per cent through 2012, according to a study by research agency RNCOS.

Fierce competition among multiple DTH operators will fuel this rapid growth even amid a global economic slowdown. DTH service providers are trying to lure viewers by cutting down prices as well as offering perks even though it translates into loss of Rs 1,600-2,000 on each subscriber acquired by them. They have started luring subscribers with a slew of value-added services, live recording of TV content and matrimonial match-making.

The study, titled ‘Indian DTH Market Forecast to 2012.’ states that the Indian DTH service market will benefit from the current economic slowdown as people are restraining their entertainment expenditure and tend to prefer watching TV over going to the theatres.

“With over 130 million TV homes, India offers large room for growth in DTH services as the technology can be used to offer DTH services in remote location, where setting up of cable networks seems impossible or is highly expensive”, says a senior analyst at RNCOS.

RNCOS forecasts DTH to capture over 21 per cent of TV homes in India by 2012, up from around 10 per cent now.

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