Friday, December 9, 2011

India : Indian Television Industry Report - 2011

Television is one of the major mass media of India and is a huge industry and has thousands of programmes in all the states of India. The small screen has produced numerous celebrities of their own kind some even attaining national fame. TV soaps are extremely popular with housewives as well as working women. Approximately half of all Indian households own a television.



Highlights:
  • As of 2010, the country has a collection of free and subscription services over a variety of distribution media, through which there are over 515 channels and 150 are pay channels
  • The number of TV households grew at a rate of seven percent to reach 138 million in 2010 compared to 129 million in 2009. The penetration of TV in the country grew from 58 percent in 2009 to 61 percent in 2010.
  • The penetration for Cable & Satellite (C&S) households increased from 74 percent of total TV households in 2009 to 78 percent in 2010.
  • The biggest growth story of 2010 came from the DTH platform which exceeded industry growth expectations to reach a net base of 28 million subscribers, clocking a 75 percent growth over its subscriber base of 2009. 
  • Premium TV sales like LED, LCD and plasma priced >INR 25,000 have reported growth rate of 60-70 percent in 2010.
  • The Colour TV market is 13.5 million units, of which premium sets are expected to have sold 3 million units in 2010 as compared to 1.5 million units sold in 2009.
  • TRPs of films shown on TV in 2010 are much higher than those in 2009.
  • In one of the major happenings of 2010, Star regained the lead from Colors owing to a revamped content strategy and image and Sony became No.3 leaving behind the erstwhile strong Top 3 contender Zee TV.
Industry Trends:
  • New and existing players looking at entry into different genres
  • HD growth wave: channels like NGC HD, Discovery World HD, Star plus HD, Zee TV HD, and two Tamil HD channels and others are expected. DTH operators like SUN Direct, Tata Sky, Dish TV and Reliance BIG TV are heavily promoting their HD services in  India
  • Battle for the Hindi GEC top spot open to all as viewers display no channel loyalty and continue to make shifts based on superior content display by broadcasters
  • Near immediate launch of movies on broadcasting and DTH following theatrical release, albeit at high acquisition costs
  • Integration of Bollywood and TV’s be it top film stars hosting TV shows, movie promotions on reality shows or just the Bollywood theme being used on TV. 

Indian Television Industry Value Chain

The TV industry value chain consists of content production broadcasting and distribution.


2010 – The year gone by
2010 has been a year of resurgence for the television business as it bounced back after the weak performance of the recession year of 2009. The year saw higher than expected growth in the DTH platform, new and existing players in broadcasting looking at entry into different genres, growth in HD channels, competition intensified among the major Hindi GEC players vying for top spot as viewers shifted preferences based on superior content, the window between theatrical release and TV screening becoming narrow and Bollywood integrated even more strongly into Television.

Growth Driver
The biggest growth story of 2010 came from the DTH platform which exceeded industry growth expectations to reach a net base of 28 million subscribers, clocking a 75 percent growth over its subscriber base of 2009. Contrary to popular belief, 2010 saw a large part of the growth coming from urban India. Bigger metro markets grew, specifically among the lower socio economic segments, as a result of subsidies offered such as reduced cost of STBs, free installation of STBs and free services, etc.


In an attempt to rationalize pricing for customers, the year also saw ala-carte options being provided by DTH players. For Example, Airtel and Tata sky followed a TRAI directive to operators requiring them to allow customers to select and pay subscription for channels they choose to watch instead of offering only bundled packages. This practice is being adopted by other players as well.

Indian consumers are king!

Indian consumers pay USD 3.5 per month on pay TV compared to USD 15 by Americans as our nation has traditionally not been used to paying for media content. But there is interesting audience behaviour emerging in terms of number of channels being consumed and the amount of time being spent and it is a matter of time when it translates into a willingness to pay for high quality content as well. There is also a small segment of premium consumers who are willing to pay for niche content and platforms for a better experience.

Sources:

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