Digital Broadcasting Market in India 2012

As India looks towards incorporating digitization framework in the broadcasting sector, conversion of analogue to digital spells evolution of a new trend in the Indian market. Though there has been some penetration of digital broadcasting media in India in the likes of DTH and digital cable, yet it was predominantly nominal. However, this is going to undergo some kind of a volte-face as the Indian sector is bracing itself for a conversion to digital from analogue transmission. Transition of the mass market from analog to digital forms a major challenge to the players as the Government mandates to digitize the entire cable network by the end of 2014. Newer modes of content delivery such as IPTV and mobile TV look at increasing their foothold as the sector holds itself up for rapid growth in this domain.

The report begins with an introduction section which throws some light on the segmentation of the digital broadcasting sector defining the key media vehicle that uses this technology in India. It is followed by global digital broadcasting sector along with its market size and growth. A brief take on the Indian digital sector follows next along with its market size and growth. The value chain analysis tells about the chief components that constitute the chain of transmission from the broadcaster to the end consumer. It then proceeds to a brief description of the revenue model that is prevalent in the sector. Though the primary modes of garnering revenue include revenues from subscription, lease rentals of logistical supports like set top boxes different media like IPTV or even digital radio might be having customized channels beyond the regular. This section gets concluded with a Porter's Five Forces analysis for the market.

The report then narrows down to illustrate the different segments of media that requires digital broadcasting technology for its transmission. The report speaks about five distinct components that use digital content and are namely Digital Cable TV, DTH, IPTV, Mobile TV and Digital Radio. Each of the individual segments is dealt individually detailing its description as well as market size and growth. Individual segments are provided with the system framework of their transmission from the content provider to that of the end consumer. This section ends with a brief take on the broadcasting spectrum that is used in the sector.

A brief description of the drivers that helps the sector to prosper include emerging middle class and rising disposable income, increase in television and radio penetration, complete digitization of TV services and increase in sale of LCD and LED TVs. Though entertainment has become a quintessential input in our daily diet and TV penetration has increased manifold, products like digital TV or subscriptions like DTH have witnessed a separate class of consumers. However, this class of consumers is slowly being intruded by the masses and it happens only because of the increased disposable income at the hands of people. Today as middle class emerges as a strong section of consumers and holds enough power for spending, utilities like digital broadcasting is only poised for more growth. Further, TV and radio penetration in India has witnessed a stupendous growth over the last 5 years across the country. As Digitization mandate by the Government spells conversion of analogue to digital delivery, TV numbers in Indian households pose as dramatic growth opportunity for the entire sector. The Indian Government's ‘Cable TV Network Amendment Bill 2011' aiming at complete digitization of the Indian TV network acts as a strict regulation that would help in shaping the mould towards digital broadcasting. Another factor that has surfaced as a growth driver is the increasing sale of LCD and LED TVs which is highly compatible with digital broadcasting and therefore courses a transformation of the consumers towards digital broadcasting. Whereas, factors identified as a hindrance to the market are high costs involved in digital conversion and shortage of set top boxes.

The next section talks about Government participation in the sector and primarily includes TRAI's regulation within the sector, FDI ceiling prevalent in the sector and Cable TV Network Amendment Bill 2011.

The major trends identified in the sector include penetration of mobile services in the market, Headend-in-the-sky, a-la-carte channels in the offing and conversion of AIR to digital framework.

The competition section offers a competitive landscape of the players by providing their financials and key financial ratios. It also provides basic information regarding the organizations. Key financial parameters constitute the financial performances of the players which are followed by business highlights.

The report concludes with a section on strategic recommendations which comprises an analysis of the growth strategies of the digital broadcasting market in India. A streamlined focus towards providing value added services like pay per view or gaming on demand in the services basket can further the growth opportunities of respective players in the domain.