IndianMascot
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There is some good news for Indian broadcasters, who even after digitisation of phase I and II cities, have not been able to reap its full benefits. According to the ‘FICCI KPMG Indian Media and Entertainment Industry Report 2015,’ the sector will see a higher subscription revenue growth, which will outstrip advertising revenue increases.
The report, which was released on 25 March highlights that the subscription revenue will grow at an annualized 16 per cent; higher than ad revenue's 14 per cent annualised growth. This will be on account of better monetisation, courtesy digitsation. According to the FICCI KPMG report, television industry in India, which is estimated at Rs 475 billion in 2014, will grow at a CAGR of 15.5 per cent to reach Rs 975 billion in 2019.
Highlights of the report:
Paid C&S penetration of TV households
The number of TV households in India increased to 168 million in 2014, implying a TV penetration of 61 per cent, even as the Cable and Satellite (C&S) subscribers increased by 10 million in 2014, to reach 149 million. Excluding DD Freedish, the number of paid C&S subscribers is estimated to be 139 million, implying a paid C&S penetration of 82 per cent. The paid C&S subscriber base is expected to grow to 175 million by 2019, representing 90 per cent of TV homes.
DTH ARPU Growth
While subscriber addition for direct to home (DTH) operators was muted in 2014, they had a healthy revenue growth due to sustained increase in the average revenue per user (ARPU). DTH operators have seen an ARPU increase of around 12 to 15 per cent in 2014. While some of the ARPU increase was driven by DTH operators’s ability to continue to push price hikes, the more promising trend is that DTH operators are able to increase collections from customers by providing additional services such as HD channels, premium channels and other value added services (VAS).
Indian Television Dot Com | TV industry to touch Rs 975 billion in 2019: FICCI KPMG Report