New Delhi: India’s pay-TV industry will grow from $7.4 billion in revenue in 2013 to $12.3 billion by 2018, clocking an average annual growth rate of 11%.

By 2023, India’s pay-TV industry will generate approximately $16.4 billion in revenue.

The projections have been made by Hong Kong-based global media research and consulting firm Media Partners Asia (MPA) in its new report titled India Pay-TV and Broadband—Future Trends.

In the next five years, the growth in the pay-TV market will be average revenue per user (ARPU)-led as opposed to the volume-led growth that the sector saw between 2009 and 2013.

The total pay-TV subscribers are expected to reach 165 million by 2018 and 180 million by 2023. At the end of 2013, India had 65 million pay-TV subscribers.

MPA’s forecast indicates that 70% of the Indian pay-TV market will be digitalized by 2023. Subscriber growth will remain strong between 2015 and 2017 as digital addressable system (where users receive channels through a set-top box), mandated by the government, is implemented in the entire country. After 2017, digital pay-TV subscriber growth will decelerate making way for consolidation and increased focus on monetization.

According to Mihir Shah, vice-president (India) at MPA, “The Indian market is important because of its accessibility for global media distributors and investors and its high levels of pay-TV penetration. Ever changing regulations are destabilizing but the government’s digital addressable systems (DAS) mandate will be an important catalyst while improved supply side factors, including healthy financial markets and investments from international strategies, are also critical."

The DTH, or direct-to-home, industry revenues will reach $4.0 billion by 2018, and $5.5 billion by 2023 and its active subscriber base will grow from 37 million in 2013 to 60 million in 2018 and 70 million by 2023. DTH is expected to enjoy a 39% share of the pay-TV market by 2023, and 56% share of the digital market.

MPA projects that there will be 55 million digital cable subscribers in India by 2018 and 55 million by 2023. Digitalization of cable networks will pave the way for growth in cable broadband. MPA expects the share of cable in the fixed broadband market to grow from 6% to almost 15% between 2013 and 2023.

Close