12% more homes in cable net despite higher fees

The increasing number of news, entertainment and vernacular channels have led the strong growth of cable and television channels in the country.

According to the National Readership Survey, cable and satellite homes have increased by 12 per cent to 68 million in 2005-06, compared with 61 million a year back.

"We have seen more homes coming under cable television network. This is happening on two counts. First, cable is reaching out to new areas as well as more traditional terrestrial homes. In addition, cable operators are now insisting that multiple television homes take multiple cable connections," said Ashok Mansukhani, executive director of IndusInd Media which owns cable television network InCableNet.

This growth comes at a time when the subscription fees for television channels are going up. It is estimated that between 2005-06 and 2004-05, cable and satellite television subscription fees have seen a 10 per cent plus increase.

"Cable television continues to be one of the cheapest source of entertainment and news for the Indian household," said an executive with Star India.

At the same time, cable and satellite television has now penetrated 61 per cent of all TV homes, up from 56 per cent last year. Cable distribution companies also estimate that about 30 new television channels were added in 2005-06.

Substantiating this claim by cable network companies is the fact that the growth in cable and satellite television penetration is more than the growth in television owning homes. Television now reaches 112 million Indian homes, reflecting a growth of 3.2 per cent over the last year.

Satellite TV has grown considerably "� from 207 million individuals watching in an average week in 2005 to as many as 230 million individuals in 2006 "�further expanding its lead over the number of readers. This is the first time that the television viewership has overtaken print readership.

"This is due to the new programmes introduced by television. Programmes like game shows have roped in a large number of viewers," said Jawahar Goel, head of Zee Television's distribution business.

Cable network companies are of the view that with the introduction of conditional access system (CAS) and introduction of direct-to-home (DTH) broadcasting, the reach of cable and satellite television will increase.