Television Market Analysis: by P.K.Mathan Raj

TELEVISION MARKET
ANALYSIS
By
P.K.Mathan Raj
TELEVISION IN INDIA
 A huge industry which has thousands of programmes in
all the states.
 Approximately half of all Indian households own a
television.
 As of 2010, a total number of 515 channels are available
in the country out of which 150 are pay channels.
POST LIBERALIZATION TELEVISION
 Foreign channels like CNN, Star TV
 Domestic channels such as Zee TV and Sun TV started
satellite broadcasts
 Starting with 41 sets in 1962 and one channel
 By 1991 TV in India covered more than 70 million

homes
 Viewing population of more than 400 million individuals
 More than 100 channels.
 A large relatively untapped market, easy accessibility of

relevant technology.
CABLE TELEVISION & ITS GROWTH
 As per the TAM Annual Universe Update - 2010,
 India now has over 134 million households (out of 223
million) with television sets
 Of which over 103 million have access to Cable TV or
Satellite TV
 20 million households are DTH subscribers.
 In Urban India,
 85% of all households have a TV
 Over 70% of all households have access to Satellite, Cable or DTH
services.
(TAM – Television Audience Measurement)

CABLE TELEVISION & ITS GROWTH
(CONT…)
 TV owning households have been growing at between 8-
10%
 Growth in Satellite/Cable homes exceeded 15%
 DTH subscribers grew 28% over 2009.
 According to some analysts

 The number of households with TV access is 180 million
 One third of all rural families may watch television
 Cable TV households are probably closer to 120 million (owing
to a certain percentage of informal/unregistered Cable Networks
that aren't counted by mainstream surveys).
 It is also estimated that India now has over 500 TV channels
covering all the main languages spoken in the nation.
CABLE TV INDUSTRY
 Exploded in the early 1990s when the broadcast industry
was liberalized
 In 1991, MTV & five new channels belonging to the
Hong Kong based STAR TV gave Indians a fresh breath
of life.
 STAR Plus
 STAR Movies
 BBC
 Prime Sports
 STAR Chinese
CABLE TV INDUSTRY (CONT…)
 A few years later
 CNN
 Discovery Channel
 National Geographic Channel made its foray into India.
 Star expanded its bouquet introducing

 STAR World India
 STAR Sports
 ESPN
 Channel V
 STAR Gold
 By 2001 HBO and History Channel were the other
international channels to enter India.
CABLE TV INDUSTRY (CONT…)
 By 1999–2003, other international channels such as
 Nickelodeon
 Cartoon Network
 VH1
 Disney
 Toon Disney
 In 2003 news channels started to boom.
 The most recent channels that have come up are
 UTV Movies,
 UTV Bindass
 Zoom,
 Colours,
 9X and 9XM.
CABLE TV INDUSTRY (SOUTH)
 Sun TV was launched in 1992 as the first private channel
in South India.
 Today it has 20 channels.
 Channels of the Sun TV network are also available outside of
India.
 Recently Sun TV launched a DTH service.
 The Raj Television Network was started in 1994 and

continues to be an important player in the South Indian
cable TV provider space.
SATELLITE TELEVISION
 As of 2010, over 500 TV Satellite television channels are broadcast in India.
 This includes channels from the state-owned Doordarshan
 News Corporation owned STAR TV
 Sony owned Sony Entertainment Television
 Sun Network &
 Zee TV.
 Direct To Home service is provided by

 Airtel Digital TV
 BIG TV owned by Reliance
 DD Direct Plus
 DishTV
 Sun Direct DTH
 Tata Sky &
 Videocon.
 DishTV was the first one to come up in Indian Market, others came only
years later.
 These services are provided by locally built satellites from ISRO.
DIRECT TO HOME (DTH)
 6 major DTH service providers
 Total of over 20 million subscriber households in 2010.
 As of 2010,
 India has the most competitive Direct-broadcast satellite
market with 7 operators vying for more than 110 million TV
homes.
 India is set to overtake the USA as the world's largest
Direct-broadcast satellite market by 2012.
INTERNET PROTOCOL TELEVISION
(IPTV)
 IPTV launched only in some cities around 2006-2007 by
MTNL/BSNL.
 Private Broadband provider Bharti Airtel also starts its
IPTV service in Delhi, NCR region.
 At present (2009/2010) IPTV in India is hardly making
an impact in the market.
 But IPTV and Online Video Services in India are expected to
expand.
 Screen Digest estimates broadband penetration of TV
households
 To increase from 4.2 percent in 2009 to 13.4 percent in 2013
INDIAN TV INDUSTRY
 Operating margins for the Indian television sector have
fallen from 25 per cent to 13 per cent over the past four
years, says a report released by Media Partners Asia.
 Growing competition and capital intensity, combined with
poor regulation, are eroding value in the business, says the
report.
 According to ‘Indian TV a growth story with significant
potential’, a television industry conference in Mumbai
compared India to the other BRIC markets and the US.
 India scores high on growth and volumes.
 It is the second largest TV market in the world in volumes and
one of the fastest growing ones.
(October 2010)
INDIAN TV INDUSTRY (CONT…)
 The Indian TV industry hugely dependent on advertising (80 per
cent) and the lack of any growth or hope on pay revenues. Till
advertising and penetration were both growing, it did not matter.
 Most broadcasters did not even bother to fix problems when ad
yields started dropping a decade earlier. The regulator did try.
 The TRAI papers make some of the more sensible
recommendations on how to deal with the issues surrounding the
$6-billion (Rs 26,600 crore) Indian TV industry.
 Most of the good ones, however, have been completely ignored by the
ministry of information and broadcasting.
 Its entire focus seems to be on micromanaging pricing, technology
and rating points, instead of worrying about incentivizing investment
or getting a good piece of broadcast legislation through.
(October 2010)
 As per the report by PricewaterhouseCoopers(PwC),
 Projected to continue to be the major contributor to the
overall industry revenue pie
 It is estimated to grow at a rate of 12.9 per cent cumulatively
over the next five years
 From an estimated US$ 5.69 billion in 2009
 To US$ 10.45 billion by 2014
(November 2010)
 A report by research firm Media Partners Asia (MPA),
 Indiais poised to become the world's largest direct-to-home
(DTH) satellite pay TV market
 With 36.1 million subscribers by 2012, overtaking the US.
 In its report titled 'Asia Pacific Pay-TV and Broadband

Markets 2010',
 India's DTH subscriber base will increase
 From 17 million in 2009
 To 45 million by 2014 and
 58 million by 2020.
(November 2010)
 In a new survey of more than 50 organized pay-TV
platforms in 16 Asia-Pacific (APAC) markets, research
from Media Partners Asia (MPA) shows that
 India’s six DTH pay-TV platforms will reach close to 8.6
million net new subscribers in 2010
 Almost 50 per cent year-on-year growth
 Representing more than a 55 per cent contribution to net new
additions across the APAC operator group
(November 2010)
Thank You

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TELEVISION MARKET

 By 1991 TV in India covered more than 70 million

 A large relatively untapped market, easy accessibility of

(TAM – Television Audience Measurement)

 DTH subscribers grew 28% over 2009.

 According to some analysts

 Star expanded its bouquet introducing

 The Raj Television Network was started in 1994 and

 Direct To Home service is provided by

 In its report titled 'Asia Pacific Pay-TV and Broadband

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