Article Digitization can be a game changer !

[IndianMascot]

The upgrade from an analogue to digital system is expected to be a ‘game changer’ for the industry and will have a direct bearing on advertising.

The TV advertisement pie is currently estimated at Rs.11,500 crore and KPMG in India said it grew 12 per cent in 2011.

Digitisation will lead to broadcasters having more transparency on the number of subscribers and a more accurate picture of cable and satellite (C and S) households. Underreporting of C and S household numbers has been a major issue, leading to a loss of revenue for the exchequer

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It will also benefit viewers as it offers wider choice. Digital TV will offer more than 500 channels as opposed to 100-120 offered by the cable operators. This will impact the contours of the industry.

“In the short term, with access to many more channels, viewership will get spread across genres and advertising budgets may rise,” says L.V. Krishnan, CEO, TAM Media Research. “Advertisers can adopt a more segmented, targeted approach.”

R.C. Venkatesh, CEO, Dish TV, the leading direct-to-home (DTH) player, says: “The DTH industry is well prepared to implement the switchover in the four metros. We were prepared last time as well. Out of the existing 45 million digital homes in India, 40 million are DTH subscribers. The DTH industry has invested Rs. 20,000 crore already.”

Read complete article : http://www.thehindu.com/news/national/article3875070.ece