A study titled “Asia Pacific Pay-TV and Broadband Markets 2007” done by Media Partners Asia( MPA) Hongkong has revealed that digital pay-TV adoption will grow exponentially in India in the years to come.
A few key highlights include the pay TV revenue contribution of India which is pegged to be around the 16 Billion $ mark by year 2015 although the country is predicted to be behind some others on the broadband front.
The report states that pay-TV penetration would grow from 61 per cent of TV homes in 2006 to reach a high of almost 90 per cent by 2015. 37 % of this number of Pay TV users would be connected to a digital network by then, the larger numbers coming from DTH. The report estimates that there will be 23 million digital pay-TV cable subs by 2015 as against 38 million for DTH.
An intersting point highlighted in the report in the cat and mouse game between the pay TV cable and DTH! The report states that pay-TV cable will always be playing catch-up to DTH, a situation that is already being witnessed today. Comparing the sub base of the major DTH players with that of the big cable MSOs, these are the numbers thrown up: Zee’s DTH service provider Dish TV has crossed the 2 million mark as far as its subscriber numbers go.Also gathering speed is Tata Sky subscription base with 800,000 subs. Zee’s cable arm WWIL on the other hand, currently stands at 250,000, still some way behind Rajan Raheja’s Hathway Cable & Datacom, which is at 310,000.
This appears to be ominous news for end viewers who were at the mercy of cable operators and had to compromise on the quality of feeds being provided to them. With the coming of DTH, cable operators would have to pull up their bootstraps or face the music !
Speaking about the advertising revenues, the report estimates C&S TV revenues to grow at a CAGR of 12.4 per cent to reach $ 3.5 billion by 2015.
As for broadband HH penetration, it is expected to scale up to 11 per cent by 2015, implying 26 million users.