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Pay-TV industry to reach $12.3 bn revenue in India by 2025

The pay-TV industry in India will have a growth of 7% and reach to total revenue of $12.3 billion (approx ₹91,684 crore) by 2025, said a report.

Besides, by 2025 over 96% of India’s pay-TV homes will be digitalised and the base of the pay-TV subscribers would be expanded to 13.4 crore by then, said a report from advisory and consulting services provider Media Partners Asia (MPA).

It also estimates India’s active Direct-to-home subscription will expand from 5.8 crore homes in 2020 to more than 6.8 crore homes in 2025.

“Meanwhile, cable’s share of pay-TV subscribers will decline from 54% in 2020 to 46% by 2025 while IPTV will pick up a small share after rolling out later in 2021,” it said.

A subscription to a television service from a cable, satellite or telephone company is defined under pay-TV. This excludes Internet-based streaming services such as Netflix and Amazon.

Meanwhile, it also added that the regulations from the sectoral regulator TRAI” continue to limit investment” in pay-TV content, impacting ARPU growth and distribution upside

According to MPA, total pay-TV industry revenue, including subscription and advertising, declined 10% Y/Y in 2020 to $8.9 billion as the economic downturn post-COVID eroded advertising.

“The recommencing of fresh content and live sports together with improvements in consumer and economic sentiment will lead to a sharp recovery in 2021,” it added.

After a 25% contraction in 2020, pay-TV advertising will grow at 12% CAGR over 2020-25.

During 2020, pay-TV broadcasters generated $4.4 billion. in total revenue (62% from advertising and 38% from subscription), down 17% Y/Y.

“A sharp recovery is expected over the next two years with the channel business; advertising will primarily drive this expansion,” it added. PTI

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