Indian TV broadcasting industry

Abstract

The project exclusively focuses on the Indian television broadcast industry with 3 key areas of focus. The preliminary focus will be on developing an in-depth understanding of the functioning of the industry followed by analysis of major upcoming trends in the business model. Post the analysis, focus will narrow down to Placid Vision, a startup with a promising incremental technological innovation in the industry. Attention will be mainly drawn towards understanding the offering, demand forecast and price sensitivity evaluation based on primary research followed by overall evaluation of the offering based on the primary and secondary research. Television transmission in India commenced in 1959 in Delhi. It was later in 1965, that the commercial services began. In 1972, services were further expanded to Amritsar and Mumbai. By 1975, seven additional cities were covered with Doordarshan as the sole service provider took the live coverage of the Independence Day celebrations in 1982 was the first satellite based, live TV transmission, using the INSAT 1B satellite. Currently, the broadcasting sector is one of the rapidly growing sectors in India. With the major revenue streams of subscription and advertisement, the industry is likely to reach INR 1,098 billion by 2020 from the current value of INR 617 billion. The number of TV households in India are expected to rise to 200 million in 2019 from 175 million in 2016, with an expected growth from current 120 million to 187 million in 2019 for cable and satellite (C&S) homes. Roughly 10 million employees exist across the value chain. Overall, it is likely to add INR 30,000-35,000 crore to the direct and indirect taxes by 2020. India is currently the third largest in the sector, behind China and USA. Service providers are providing additional innovative offerings like value-added services (VAS) and interactive facilities including movie on demand, shopping etc. Rise in the offerings by service providers and the number of TV channels are indicators of strong competition. The sector comprises of 800 plus satellite TV channels, 100 multi-system operators (MSO), 26 pay broadcasters, 60000 local cable operators (LCO), 6000 independent cable operators, seven pay DTH operators, IPTV service providers and public service broadcaster. Door darshan (DD) is the world’s largest terrestrial broadcaster with over 1400 terrestrial TV transmitters.