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IPTV: opportunities for corporates

NEW DELHI: Digital television platforms like the Direct-To-Home (DTH) service and the Internet Protocol Television (IPTV) are gaining ground as more and more people are now switching over from normal cable TV service to the newer technologies.

Over 28 per cent of an estimated ten-crore pay-television households will migrate to digital pay-television platforms like DTH, digital cable and IPTV by 2010, with the DTH emerging as the leader over the next three years, says the recent study “India’s Digital Revolution” conducted by the Associated Chambers of Commerce and Industry of India (Assocham). After Tata and Zee TV, more players, including Reliance, Bharti Enterprises and some other prominent business houses are all set to join the DTH bandwagon, while leading telecom companies are also gearing to compete in the IPTV space. More than ten-lakh people are expected to subscribe to IPTV by 2010.

The study points out that the present size of the television industry is Rs. 20,000 crore and will rise to Rs. 50,000 crore. In the digital cable scenario, from the current share of 78 per cent for local cable operators (LCOs), 5 per cent for multi-system operators (MSOs) and 17 per cent for broadcaster, the study expects the share to be redistributed and stabilise at 54 per cent for the LCOs and 23 per cent for the MSOs and broadcaster each. In the DTH scenario, while the industry is still at a very nascent stage, the study points out that the revenue share would stabilise in the range of 60-70 per cent in favour of DTH operator.

On entertainment tax, the study says that the government collects tax of over Rs. 1,500 crore from the consumers, which will increase to over Rs. 2,000 crore by 2010.With over Rs. 22,000 crore spent on advertising in India, at present 43 per cent of the media budgets are spent towards television.

The study further points out that the transformation of the television market in India is creating challenges and opportunities for Indian corporations, as changes in consumption habits coupled with regulatory pressures have already pushed India at the third largest cable and satellite (C&S) market in the world, to start migrating to digital platforms.

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