Revenues for television broadcasters in India are estimated to have risen by 13.2 percent year on year during the 2010-2011 financial year, with the popularity of general entertainment channels sustaining this median pattern, reports RapidTVNews.
According to a new TV industry study by India Credit Rating Agency (ICRA), advertising revenue continues to be the key driver of broadcaster revenue, contributing about 80 percent of income.
Analogue cable TV distribution, however, remains "plagued" by under declaration of the subscriber base, according to the agency, which also pinpoints "an inability to grow the subscription pie adequately and competitive pressures" as limitations.
The report authors expect digitalisation to boost subscriber figures. They said the number of direct-to-home (DTH) subscribers increased 62 percent in 2010-2011. This is expected to rise given the Ministry of Information and Broadcasting's requirement that four metropolitan areas in the country be fully digitalised by March 2012. The rest of the country is to be digitalised by December 2014.
Digital distribution will, ICRA believes, help remove the capacity constraints faced by India's extensive and fragmented analogue cable distribution network, and begin to rationalise the carriage costs for broadcasters.
The report said DTH companies have witnessed a median revenue growth of 22.8 percent in the fourth quarter of 2010-2011, compared with the same quarter in 2009-2010.
Even the relatively weak performance of news broadcasting companies, which saw a year-on-year revenue growth of seven percent during the year, was "buoyed by the strong Q4 performance with a year-on-year growth of 18.2 percent".
(Source : Asia-Pacific Broadcasting Union)
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