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As cable TV television digitisation gains pace, broadcasters are claiming higher viewership and a subsequent rise in subscription revenue. While theoretically, a larger viewership leading to higher advertisement revenue creates an opportunity for cutting down channel subscription rates, broadcasters and DTH operators ruled out such possibilities in the near term.
“We cannot comment on (package) pricing immediately,” says a UTV Group spokesperson.
Shashi Arora, CEO, DTH/Media, Bharti Airtel does not foresee possibility of cut in package prices, unless broadcasters initiate any major price revision. While the final picture is yet to emerge, at least two major broadcasters have confirmed an “uptake” in revenue from subscription after the first phase of digitisation in Delhi, Kolkata and Mumbai. Nearly 12.5 million cable subscribers in the three cities switched from analogue to digital mode.
A bigger picture is set to evolve, once the second phase of digitisation in 38 cities - with population of one million each - will be over in March 2013, thereby bringing nearly one-fifth of India’s 377 million (2011) urban population under the digitisation net.
DTH (direct-to-home) service providers are anticipating the total digital viewership to touch 34 million after March. Feedback from a number of MSOs (multi-service operators) and broadcasters suggest that the local cablewala (cable operator) never disclosed the existence of four-fifth of subscribers.
“Broadcasters expect an overall 10-12 per cent growth in subscription revenue with cable TV digitisation. Revenue from advertisements is expected to see single digit growth,” Ashok Venkatramani, CEO, Television, ABP Group, told Business Line . According to current revenue sharing model, broadcasters get 30-35 per of rentals paid by a user.
“So far, 80 per cent of our revenue was advertisement-driven. With digitisation, revenue from user subscription will see an uptake. But, it will take us at least couple of months to study,” the UTV official said.
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