Double-Digit Growth Rate for Indian Pay-TV Revenues

MUMBAI: Indian pay-TV revenues are expected to rise to $12.3 billion in 2018, reflecting an 11 percent compound annual growth rate (CAGR), increasing to $16.4 billion in 2023, according to new research from Media Partners Asia.

The findings were released today as part of the India Pay-TV and Broadband—Future Trends report.  "The Indian market is important because of its accessibility for global media distributors and investors and its high levels of pay-TV penetration," said Mihir Shah, the VP for India at MPA. "Ever-changing regulations are destabilizing but the government’s Digital Addressable Systems (DAS) mandate will be an important catalyst, while improved supply-side factors, including healthy financial markets and investments from international strategic [partners], are also critical."

At the end of 2013, there were 65 million paying digital subs in India. By 2023, 70 percent of the market should be digitized, MPA predicts, with the period from 2015 to 2017 showing the strongest growth with the final stages of DAS implementation. Thereafter, subscriber growth will slow. The total number of pay-TV subs in India is expected to be 165 million by 2018 and 180 million by 2023, for a penetration rate of 80 percent. DTH subs will rise from 37 million in 2013 to 60 million by 2018, and 70 million by 2023. By then, DTH will have a 39-percent share of pay-TV subs and 56 percent of digital pay-TV subs. The digital cable base will hit 50 million in 2018 and 55 million in 2023. Digital cable conversion will rise from 29 percent in 2013 to 48 percent by 2018 and 50 percent by 2023.

Digitalization is expected to greatly benefit pay-TV broadcasters, as channel revenues rise from $3.3 billion last year to $6 billion by 2018 and $8.3 billion by 2023. Affiliate fee gains will outpace ad increases, rising by an 11.3 percent CAGR as compared with the ad market's 8.6 percent CAGR.