I. Snapshot of the cable industry:

• 52 Million CATV Homes and 80 Million TV Homes
• 3rd largest cable TV market worldwide
• India has more cable TV Homes than all Europe combined!!
• Follows European Standards: Germany's PAL B/G colour System, 240 VAC
• Cable TV growing at 8% to 10% annually
• Distributed and large retail market:
  1. Over 20,000 Cable Head-ends
  2. Over 40,000 Cable Operators
• Wide market for all levels of products ranging from SA-BARCO and GI to Chinese and local brands
• Most CATV networks migrating to Fiber
• Indian cable networks typically provide 100 channels to 200 channels
• More than 300 digital channels available, from over 20 satellites and 200 transponders
• 1310 nm and 1550 nm Bi-Directional CATV fiber optic systems being deployed
• Digital CATV with 150 channels being rolled out in more than 25 cities before end 2005
• Cable modem and broadband services already deployed in many towns and cities
• IP TV already launched commercially
• VoIP gaining popularity, being deployed widely for international voice traffic
• Large projected demand for satellite 'Ku Band' transponders over the next 2 years
• Huge market for DTH receivers, dishes & LNBs. Over 2 million new DTH subscribers installed
• Large emerging demand for DTH if distribution equipment for multi storied residential complexes in metro Cities
• Renewed demand for RG-6 & RG-11 coax for DTH distribution
• As on 31st March 2009, the maximum number of Free-to-Air (FTA) Channels and Pay
• Channels being carried in the Cable Networks were 168 and 130 respectively.
• The total number of Set-Top Boxes (STB) installed in CAS notified areas of Delhi, Kolkata, Mumbai and Chennai at the end of March 2009 were 7,70,053.
• As on 31st March 2009 there were 6 private DTH licensees apart from free-to air DTH service of Doordarshan
• Subscriber base of DTH Operators as on 31st March 2009 was 13.09 Million

II. Entertainment Industry- Overview:

Television sector is driving the INR222billion entertainment market from the front, contribution over 65% of the overall industry’s growth. Films contributed another 27 percent, while other segments like music, radio, live entertainment and interactive gaming constitute the balance 11 percent. The entertainment industry is expected to grow annually at almost 18 percent to reach around INR 588 billion by 2010.

Increasing penetration of new delivery platforms is one of the key drivers of the media and entertainment industry today, that has the potential to change the way people receive content. These platforms, resulting from fundamental technological breakthroughs, are likely to see most of the action in next few years. Some of these technologies include: Introduction of DTH and IP-TV, Digital distribution of films, Immersive content media like IMAX theatres, coming of age of Satellite Radio and FM Radio and Emergence of new technologies like podcasting, etc

Content like community radio and local television, that were unviable earlier, will also emerge stronger through new delivery formats. Newer programming categories like reality television, newer genres like lifestyle television, religion channels, etc., are likely to drive the industry.

Global economic slowdown has considerable amount of impact on entertainment and media industry in India. To check the losses all the sectors across the industry rationalized the costs. However major players in the industry widened their business to reach internationally. Anil Ambani’s Reliance ADA group entered into an agreement with Spielberg’s DremWorks Studios. According to which both the partners will have a 50% stake in DreamWorks. Similarly, Bennett Coleman and Company Ltd. (BCCL) acquired Virgin Radio Holdings from UK-based SMG Plc for a consideration of $106 million (Rs.448 crore). Walt Disney’s acquisition of 60% of UTV and Star Group picking up 45% in Jupiter Ventures are some other major deals during the economic crisis indicate the strong presence of entertainment industry.

PwC estimates the Indian E&M industry to grow from Rs. 563.9 billion in 2008, at a CAGR of 10.5% for the next 5 years to reach Rs. 929.5 billion in 2013.

III. Indian Television Industry – Introduction

Since 1959, when Indian television was first launched and the state owned Doordarshan aired just two channels in black and white as recently as 1991; the world of entertainment has made rapid and unusual strides. The turning points were the 1982 Asian Games when colour television was introduced and the 1991 liberalisation and deregulation that ushered in the era of foreign investments and foreign channels that egged the domestic players to jump into the foray. From large metros, satellite TV moved to smaller towns that spurred the sale of TV sets and brought about an upgradation from black and white television viewing to the colour one. With time, more and more changes took place and finally the DTH services and IT-TV arrived.

According to the study by FICCI and KPMG, the television industry, which is currently valued at about US$ 4.63 billion, will expand by 14.5 per cent between 2009 and 2013. The television distribution industry is expected to reach US$ 5.2 billion in 2013 from the estimated size of US$ 3.12 billion in 2008, which translates into a growth of 12.2 per cent on a cumulative basis over the period.

The Indian television Industry has grown at a healthy rate of 17.4% over the period 2004-08. In 2008, television distribution contributed 61% to the television industry’s revenues. Television distribution as a segment has also achieved the highest growth rate of 18.9% in the last four years, as compared to the other segments in the television industry. The growth in the distribution industry over the period 2004-08 has been contributed by a 12.4% increase in the subscription (pay) TV homes in the last 4 years.

Growth of Indian Television Industry 2004-2008

Next: Trends and Structure of the Content

Indiabiznews, May 08, 2010