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Market Heading for a Massive Reshuffle with Digitization and New Mandates to Encourage Subscription to Paid Services
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The Pay TV services market in India is undergoing an overhaul with landmark mandates like digitsation, GST and demonetisation having manifold implications on the services. The herculean task of migrating the leagcy TV viewers in the country to digital and pay TV subscribers will define the future of the television industry. A social revolution in terms of content consumed, willingness to pay for quality content, rising trend of OTT video viewing and demand for unconventional entertainment is shaping the mindset and outlook of the masses in India. The industry is poised to grow emphatically with proliferation of FTA channels, multi-channel distribution platforms and data analytics monitoring consumer choices and preferences. Pay TV in India is characterized by rise in FTA channels, HD content, digitized households, and changing viewership patterns. TV penetration is 65% currently with 190 million households having at least one TV set. India has about 172 million pay TV subscribers. While digitization has enabled more transparency in the ecosystem, ARPUs in the cable TV services market have not increased significantly. However, cable ARPU is expected to increase over the next 12 months with more digital subscribers by regional MSOs and increased adoption of HD packages. The market participants are confused on the type of value added services that can help them in growing their revenue.The study encompasses the Pay TV services market with an overview of the DTH market, cable TV value chain, IPTV attempts and evolving developments in the industry. It analyses the growth opportunity of total Pay TV subscribers and segmented growth within DTH and cable services in the light of the digitisation mandate. The regulatory framework governing the tariff on carriage fees and channel pricing and packaging structure for operators and its implications on the industry is studied in the report. Content production, distribution and consumption across genres, languages, regions, socio-economic backgrounds further give insight into the viewership patterns in India. Frost & Sullivan forecasts the market with optimistic and conservative scenarios to quantify the market size between 2017 and 2021 and indicate the most lucrative growth opportunities evolving in this period.Geographic scope- India Stakeholder scope - MSO, Cable operators, LCO, DTH operatorsKey Questions this Study will Answer• What is the growth opportunity for Pay TV services in India?• Who are the leading MSOs and DTH operators in the market?• What is the revenue and subscription growth opportunity for cable and DTH services respectively?• What are the major drivers and restraints for the market?• How will the digitization mandate, proposed Goods Services Tax (GST) rules, and pay TV tariff order change the market scenario?• What are the Average Revenue Per User (ARPU) levels in India?
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