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Pay TV sales to touch Rs 1.2 lakh cr in 2025

Business Standard:  July 15, 2016

The pay television sector in the country could grow in sales at a compounded rate of 9.2 per cent annually to touch $14.5 billion (Rs 97,150 crore) by 2021 and $18 billion (Rs 1.2 lakh crore) by 2025.

According to a report, "Asia Pacific Pay-TV and Broadband Markets 2016", released by independent consulting and research firm Media Partners Asia (MPA), the sector is on course to generate $9.4 billion (Rs 63,000 crore) in revenue this year.

MPA said the market for pay TV channels remained growth-oriented, and would grow 16 per cent year-on-year in 2016.

The revenue mix is approximately 70:30, skewed in favour of ad sales.

Pay TV advertising revenue is expected to grow by 15 per cent this year, to reach $3.4 billion (Rs 22,780 crore).

Total pay TV subscribers are forecast to increase from 152 million this year to 183 million by 2025.

Penetration, including multiple connections in homes, is expected to be 80 per cent of households with TV, by 2025.

Digital pay TV subscriptions are expected to grow from 93 million to 129 million over the same period with the prediction that 70 per cent of India's pay TV base will be digitalised by 2025.

Pay TV monthly ARPU (average revenue per user) is expected to grow from $3.3 (Rs 227) in 2016 to US$4.5 (Rs 300) in 2025 on the back of the ongoing cable digitalisation.

This, however, may be offset by the 30 per cent share of pay TV subscriptions still accruing to analog by 2025. Cable is expected to remain pay TV's largest platform but its share of pay subscribers is expected to decline, from 68 per cent in 2016 to 60 per cent in 2025, as DTH attracts the majority of new subscribers.

MPA Executive Director Vivek Couto said, "Future economic growth should remain strong, which will support solid gains in the pay TV sector. Digitalising India's 65 million analog subscribers remains a major opportunity for cable, DTH and other emerging pay TV platforms."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.