television market analysis

8/6/2019 Television Market Analysis

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TELEVISION MARKETANALYSIS

By

P.K.Mathan Raj


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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.


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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

y Viewing population of more than 400 million

individuals

y More than 100channels.

A large relatively untapped market, easy

accessibility of relevant technology.


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CABLE TELEVISION & ITS GROWTH

As per the TAM Annual Universe Update - 2010,

y India now has over 134 millionhouseholds (out of

223million) with television sets

y Of which over 103millionhave access to Cable TV or

Satellite TV

y 20 millionhouseholds are DTH subscribers.

y In Urban India,

85% of all households have a TV Over 70% of all households have access to Satellite, Cable

or DTH services.

(TAMTelevisionAudienceMeasurement)


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CABLE TELEVISION & ITS GROWTH (CONT)

TV owning households have been growing at between8-10%

Growth in Satellite/Cable homes exceeded 15%

DTH subscribers grew 28% over 2009.

According to some analysts

y The number of households with TV access is 180 million

y One third of all rural families may watch television

y Cable TV households are probably closer to 120 million(owing to a certain percentage of informal/unregistered

Cable Networks that aren't counted by mainstreamsurveys).

It is also estimated that India now has over 500TVchannels covering all the main languages spoken inthe nation.


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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 afresh breath of life.

y STAR Plus

y STAR Movies

y BBC

y Prime Sports

y STAR Chinese


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CABLE TV INDUSTRY(CONT)

A few years later

y CNN

y Discovery Channel

y National Geographic Channel made its foray into

India.

Star expanded its bouquet introducing

y STAR World India

y STAR Sports

y ESPN

y Channel V

y STAR Gold

By 2001 HBO and History Channel were theother international channels to enter India.


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CABLE TV INDUSTRY(CONT)

By 19992003, other international channels such as

y Nickelodeon

y Cartoon Network

y VH1

y Disney

y Toon Disney

In 2003 news channels started to boom.

The most recent channels that have come up are

y UTV Movies,y UTV Bindass

y Zoom,

y Colours,

y 9X and 9XM.


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CABLE TV INDUSTRY(SOUTH)

Sun TV was launched in 1992 as the first private

channel in South India.

y Today it has 20 channels.

y

Channels of the Sun TV network are also availableoutside of India.

y 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.


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SATELLITE TELEVISION

As of 2010, over 500 TV Satellite television channels arebroadcast in India.y This includes channels from the state-owned Doordarshan

y News Corporation owned STAR TV

y Sony owned Sony Entertainment Television

y Sun Network &

y Zee TV.

Direct To Home service is provided byy Airtel Digital TV

y BIG TV owned by Reliance

y DD Direct Plus

y DishTV

y Sun Direct DTH

y Tata Sky &

y 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 fromISRO.


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DIRECT TO HOME (DTH)

6 major DTH service providers

Total of over 20 million subscriber households in

2010.

As of 2010,y 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.


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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.

y But IPTV and Online Video Services in India are

expected to expand.

Screen Digest estimates broadband penetration of

TV households

y To increase from 4.2 percentin 2009 to 13.4 percentin

2013


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INDIAN TV INDUSTRY

Operating margins for the Indian television sectorhave fallen from 25 per cent to 13 per cent over thepast four years, says a report released by MediaPartners Asia.

Growing competition and capital intensity, combinedwith poor regulation, are eroding value in thebusiness, says the report.

According to Indian TV a growth story withsignificant potential, a television industry conference

inM

umbai compared India to the other BRICmarkets and the US.

y India scores high on growth and volumes.

y It is the second largest TV market in the world in volumesand one of the fastest growing ones.

(October 2010)


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INDIAN TV INDUSTRY(CONT)

The Indian TV industry hugely dependent on advertising(80 per cent) and the lack of any growth or hope on payrevenues. Till advertising and penetration were bothgrowing, it did not matter.

Most broadcasters did not even bother to fix problems whenad yields started dropping a decade earlier. The regulatordid try.

The TRAI papers make some of the more sensiblerecommendations on how to deal with the issuessurrounding the $6-billion (Rs 26,600 crore) Indian TV

industry.y Most of the good ones, however, have been completely ignored

by the ministry of information and broadcasting.

y Its entire focus seems to be on micromanaging pricing,technology and rating points, instead of worrying aboutincentivizing investment or getting a good piece of broadcastlegislation through. (October 2010)


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As per the report by

PricewaterhouseCoopers(PwC),

y Projected to continue to be the major contributor to

the overall industry revenue pie

y It is estimated to grow at a rate of12.9 percent

cumulatively over the next five years

From an estimated US$5.69 billion in 2009

To US$10.45billion by 2014

(November 2010)


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A report by research firm Media Partners Asia

(MPA),

y India is poised to become the world's largest direct-to-

home (DTH) satellite pay TV market

y With 36.1 millionsubscribers by 2012, overtaking the

US.

In its report titled 'Asia Pacific Pay-TV and

Broadband Markets 2010',

y India's DTH subscriber base will increase From 17 millionin 2009

To 45millionby 2014 and

58millionby 2020.

(November 2010)


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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

y Indias six DTH pay-TV platforms will reach close to

8.6 millionnet new subscribers in 2010

y Almost 50 percentyear-on-year growth

y Representing more than a 55percentcontribution to

net new additions across the APAC operator group

(November 2010)


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television market analysis

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