The report from Media Partners Asia (MPA) also said India will remain the key pay-TV market in Asia as the penetration rate of digital TV grows to encompass half the population by 2016 and 61% by 2020.
About 20% of India’s homes had digital television in 2011, but the mandatory drive to digitize the cable TV network, as well as the six commercial direct to home (DTH) pay TV platforms, in addition to DD Direct, the DTH platform operated by the state broadcaster Doordarshan, will attract more and more subscribers in the coming four years, the report further said.
“India's digitalization timetable implies a three-year transition to full digital TV (DTV) conversion. This is ambitious, though we believe DTV transition will occur but over a longer time frame,” said Vivek Couto, executive director, MPA, in the report.
MPA also said pay TV subscription fees will grow at an 11% compound annual growth rate from 2011 to 2016, driven by increased DTH and digital cable volume. The total number of pay TV subscribers in India is expected to reach 172 million by 2016, and 199 million by 2020, research firm further said.
In terms of DTH penetration, the active subscriber base of paying customers may grow from 29 million in 2011 to 69 million by 2016, says the report, reaching 93 million in 2020. This would represent a 46% share of the overall market by 2020, compared with 23% in 2011, and a 65% share of the digital pay TV market according to MPA.