Digitisation will fuel growth of multiple-TV homes

It is a paradox that despite the market size of Rs34,000 crore and a whopping 700 million viewers, the Indian television industry hasn’t taken off in real terms. However, the new Digital Addressable System (DAS) kicking in the top four metros from July 1 is expected to push multiple TV sets within Indian households and give impetus to creation of niche content.

Hitherto, poor quality of transmission and inferior TV content has stymied the growth of multiple TV sets in Indian homes, which, in turn, has acted as a deterrent for broadcasters to monetise their offerings and enhance over all viewership.

However, the recent growth in multiple television sets within households and growing demand for LCD/LED indicates that the Indian viewers, at least in cities, are ready to accept the paradigm change led by DTH driven digital technology.

Confirming the changed scenario, Anjali Malhotra, Executive Vice-president (marketing), Dish TV said “Indian households have over 10 per cent penetration of two or more TV’s. In metros this ratio swells to anywhere between 25 to 30 per cent. Hence multiple boxes (with multiple TV sets) in the same home are set to become a reality in one third of our top cities.’’

But the key question is: are Indian viewers ready to consume niche content being introduced by broadcasters? According to Business Director of a leading Media agency, it is inevitable. “Viewership fragmentation began happening in the last five years or so and is still shaping up to a great extent. This is bound to happen because the viewer has demanded for it,” he commented.

Outlining the digitization regime, Malhotra at Dish TV said “So far Indian homes are used to the concept for ‘per home price’ for cable TV, irrespective of number of TV sets in the house. With mandatory digitization, everyone will migrate to the ‘per TV price’ regime. This is essential to allow taxation and broadcaster fee to remain transparent across the system. However, it does require a fresh orientation of consumer mindset.”

While the change does require a fresh orientation of consumer mindset, consumers are in for a strong value offering when it comes to maximising their investments in multiple television sets both in terms of quality of entertainment as well as monthly recurring costs for each connection.

“While the multiple television household subscriber was getting the additional cable connections almost for free earlier, there is no reason why the consumer will not pay for the same in the digital era. In fact, going by our previous experience 99 per cent of Hathway subscriber base has been quite comfortable with the idea of paying for the multiple television connections even in the CAS regime’’, explained Milind Karnik, President, Finance, Hathway Cable & Datacom Ltd.

Speaking on value proposition, Dish TV’s Malhotra explained, “A consumer is free to choose one or multiple modes for each of his TV sets. However there are clear benefits in choosing the same operator for all sets. Dish TV for instance, offers 2nd, 3rd and 4th connection at only Rs 160 per month each. In comparison to the full pack price of Rupees 360, this is a whopping 55 per cent discount! Likewise for HD boxes too, child connections come at a 55 per cent discount for only Rs250 a month.”

An industry analyst cautioned, “The initial offers by Cable operators may lure customers at first through per home pricing schemes, however over time, pricing parity will set in. Hence it would be in consumer interest to be well prepared and choose their STB’s wisely, keeping in view the per TV pricing regime’’