Television

Guest Column: 3 drivers lending power to create impact in Indian TV industry

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The Indian Media & Entertainment industry is categorised across nine segments of which Television by far is the largest and is expected to be the largest in the next couple of years.

India is the second largest Television market in the world characterised by rising number of subscribers.

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Three top long term growth catalysts that are acting as the biggest drivers for the Television industry are:

1.    Growing Rural Demand

2.    Increasing FTA channels, and

3.    Deeper Audience Measurement

Growing Rural Demand

Digitisation which is expected to be completed in 2017 is leading to higher digital access and consumption.  High data consumption has already been experienced and there are encouraging trends with rising internet and broadband penetration, declining data charges, proliferation of internet enabled mobile phone, government and private initiatives around wifi and greater emphasis on broadband roll-out by MSOs.  This has led to an unprecedented advertiser interest in digital which played out with a strong performance of digital in 2016.  OTT is therefore seeing a major traction wherein both digital VOD and TV would see a harmonious co-existence.

Increasing FTA channels

The big story is 2016 has been that of the rural viewership habits.  BARC viewership data for rural has thrown up interesting insights and goldmine data about rural viewing habits and hence the proliferation of FTA channels.  This development will however require realignment of content for mass tastes.

Deeper Audience Measurement

With viewership data leading to better consumer analytics and with advertiser focus and monies increasing in rural HSMs, scientific audience measurement will be the third most important driver for the television industry.

Conclusion

The global economy grew at 2.6% in 2016 while the Indian economy is projected to grow at 7.1% in 2017.  The long-term future for the television industry is very robust with CAGR projections above 14% for both segments of ad revenues and subscription revenues.

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(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.)

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