DTH to pave the way for C&S homes digitisation

Direct-to-home (DTH) technology is likely to pave the way for digitisation of cable and satellite (C&S) homes in the country.

According to a report compiled by Ernst & Young (E&Y) and industry chamber Assocham, about 28% of the 100-million C&S households in the country will migrate to digital pay television platforms.

E&Y national sector leader for entertainment & media Farokh Balsara said, “We believe that in the next three years, DTH would emerge the leader and drive the digital revolution in the country. DTH is expected to touch the 19 million subscriber mark by 2010.”

Balsara added that IPTV is estimated to have about 1 million subscribers in the same period. Currently, paid DTH subscriber base is estimated to be 3-3.5 million and free DTH services are expected to have another 3 million households.

“CAS is not likely to be the main driver of digital revolution, simply because cable operators are not geared up for the digital revolution,” he added.

Currently, local cable operators (LCO), multi-system operators (MSO) and broadcasters have a 78:5:17 revenue share distribution. This is likely to be redistributed and expected to be 54:23:23 for LCO, MSO and broadcasters in the future, the report added.

The report also said in the digital world, the online advertising pie would increase, even though ad spends on television are expected to continue to be the dominant advertising platform and will grow by 14% year-on-year. Balsara added that India’s digital revolution will have a huge impact on film revenues.

“We expect the home entertainment contribution to a film’s revenue to increase to 25% from the current 5%, in the next three years. This will be largely due to high penetration of DVD, reducing prices of DVD’s and decrease in cable piracy,” he said.

The entertainment report also suggests that digital music sales are expected to account for 88% of the total music market of Rs 4,200 crore within the next two years.


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