New Delhi: The pay-TV industry in India will have a growth of 7 per cent and reach to total revenue of USD 12.3 billion (approx Rs 91,684 crore) by 2025, said a report.
Besides, by 2025 over 96 per cent of India’s pay-TV homes will be digitalised and the base of the pay-TV subscribers would be expanded to 13.4 crore by then, said a report from advisory and consulting services provider Media Partners Asia (MPA).
It also estimates India’s active Direct-to-home subscription will expand from 5.8 crore homes in 2020 to more than 6.8 crore homes in 2025.
“Meanwhile, cable’s share of pay-TV subscribers will decline from 54 per cent in 2020 to 46 per cent by 2025 while IPTV will pick up a small share after rolling out later in 2021,” it said.
A subscription to a television service from a cable, satellite or telephone company is defined under pay-TV. This excludes Internet-based streaming services such as Netflix and Amazon.
Meanwhile, it also added that the regulations from the sectoral regulator TRAI” continue to limit investment” in pay-TV content, impacting ARPU growth and distribution upside
According to MPA, total pay-TV industry revenue, including subscription and advertising, declined 10 per cent Y/Y in 2020 to USD 8.9 billion as the economic downturn post-COVID eroded advertising.
“The recommencing of fresh content and live sports together with improvements in consumer and economic sentiment will lead to a sharp recovery in 2021,” it added.
After a 25 per cent contraction in 2020, pay-TV advertising will grow at 12 per cent CAGR over 2020-25.
During 2020, pay-TV broadcasters generated USD4.4 billion. In total revenue (62 per cent from advertising and 38 per cent from subscription), down 17 per cent Y/Y. “A sharp recovery is expected over the next two years with the channel business; advertising will primarily drive this expansion,” it added.
PTI