The Indian broadcasting Industry is going through evolutionary phase and India is set to witness significant growth in DTH subscriber’s base. The main reasons behind this change include
changes in consumer preference and enhanced standards of television viewership. The industry currently has around 30 Million subscribers and it is expected to surpass 69 Million subscribers by 2014 end.
· The Direct-To-Home (DTH) service has penetrated the Indian homes at rapid pace. This growth results from supreme quality of DTH service that has revolutionized the television experience and exceeded other broadcasting methods.
· The viewers in India have never witnessed such excellent audio and video quality before as delivered by DTH. It is superior as compared to cable or any other broadcasting medium. The DTH TV industry is still in its nascent stage and it is expected to attract huge number of subscribers in coming future. As per latest reports on DTH industry, the number of DTH subscribers in India will grow at a CAGR of about 14% from 2011-2013.
· The DTH industry has capital-intensive nature and the industry mainly includes private players. There is no major role of the public sector. The rigorous competition between the private players has led to affordable packages being available to the consumers. Consumers are also provided with the option ofmaking changes in their package at any time. The dominant players in Indian DTH market hail from the communications industry like Dish TV, Tata Sky, Airtel Digital TV,Reliance BIG TV, Sun Direct, and Videocon D2H.
· DTH service providers are fighting hard to increase their market share of subscriber’s base. They are providingmany attractive channel packages for attracting their subscribers. DTH companies are offering a wide range of subscription prices depending on the social status of different customers. It also enables the consumers to switch between packages as per their needs. The availability of wide range of choice to the consumers is the major force that is driving the DTH market.
· At present, the leading players of Indian DTH industry are Dish TV, Tata Sky, Sun Direct etc. The arrival of new players like Videocon D2h results in the intense competition between players. This intensifying competition will augurs well for the consumers as it will lead to decline in the costs of packages and more options are available for the consumers to choose from.
· The DTH industry has immense growth potential in India;however, the profitability of the DTH companies is not much attractive.Most of the DTH service providers are focussing on growth in the average revenue per user (ARPU) for increasing their profit earning capacity. These companies attract the consumers to buy high-end packages.
· Some of the challenges faced by Indian DTH Industry includes low ARPU (average revenue per user), various taxes including entertainment and service tax, high acquisitioncost of content and subscribers. The emergence of new technologies and dynamic nature of Indian DTH industry will create immense business opportunities. The key for the DTH service providers to survive and grow, is to provide latest bunch of services, flexibility and wide range of choices to the consumers.
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