IPTV to have 1 million subscribers by 2010: Study

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New Delhi, Mar 21 (UNI) The Internet Protocol Television (IPTV) is expected to gain close to one million subscribers by 2010, though its growth will be limited due to high cost of additional infrastructure and low broadband penetration, a study said.

According to the industry chamber Assocham, 28 per cent of an estimated 100 million pay television households will migrate to digital pay television platforms such as Direct to Home (DTH), digital cable and Internet Protocol Television (IPTV) by 2010, and the DTH will emerge as the leader over the next three years.

The study on 'India's Digital Revolution', points out that present size of television industry is Rs 20,000 crore and would rise to Rs 50,000 crore mark with the growth rate of 20 per cent per annum.

''With the digitisation of pay television platforms, Indian incorporation expect revenue shares across the value chain to get redistributed by 2010,'' Assocham President Venugopal N Dhoot said.

In the digital cable scenario, from a current share of 78 per cent for Local Cable Operator (LCO), 5 per cent for Multi System Operator (MSO) and 17 per cent for broadcaster, the Study expect the share to be redistributed and stabilize at 54 per cent for the LCO and 23 per cent for the MSO and broadcaster each, Mr Dhoot added.

In the DTH scenario, while the industry is still at a very nascent stage, the chamber expects the revenue shares to stabilise in the range of 60-70 per cent in favour of DTH operator.

At present, there are 402 channels all over the country and the number is expected to cross over 502 by next year.

The news channels have also witnessed better viewership than other general entertainment channels. About 35 youth channels introduced last year and 60 new shows are launched in Hindi.

On entertainment tax, the study points out that government has collected tax revenue over Rs 1,500 crore from the consumers which will go to over Rs 2,000 crore by 2010 in view of rising growth of the sector.

Indian population of over 1 billion has about 277 established channels as compared to the US which has more than 400 channels for a population size of only 300 million.

Currently, 70-80 per cent of the broadcasters' revenue are ad-driven in the country. With increased addressability, the chamber expects the broadcaster's earnings from subscription to increase to 35-40 per cent of its total revenues by 2010.

With over Rs 227 billion spent on advertising in India, currently 43 per cent of the media budgets are spent towards television.

Over the next three years, TV ad market is expected to grow at the rate of 14 per cent year on year and will continue to maintain its market share in the total advertising pie.

The study further points out that the transformation of television market in India is creating challenges and opportunities for Indian Incorporation, as changes in consumption habits coupled with regulatory pressures have already pushed India at the third largest cable and satellite (C&S) market in the world, to start migrating to digital platforms.

The growth in Indian C&S space has been phenomenal, it has grown at a CAGR of 38 per cent for the past 17 years. However, on account of certain restrictions, unorganised value chain and lack of addressability, this industry has not been able to maximise revenues.

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