TV broadcast industry to see CAGR of 24% by end-2007
The television broadcasting industry is expected to grow at a compounded annual growth rate (CAGR) of 24 per cent from Rs 4,800 crore to Rs 13,900 crore by the end of 2007, with pay TV revenues eventually exceeding ad revenues, according to the Ficci-KPMG report on the entertainment sector-In the Spotlight.
The report was released by the Union minister for information & broadcasting Ravi Shankar Prasad today at the Ficci-FRAMES 2003, a three-day global convention of the entertainment industry.
Going forward the television broadcasters will look at revenues beyond advertising. At 73 per cent, the share of advertising income in the broadcast industry pie is higher than that of many developed as well as developing economies.
The dependence of broadcasters on advertising revenues is owing to the low share of pay TV revenues in the overall subscription pie, said the report.
But this is set to change. The report added that in mature cable and satellite markets such as the US and UK, subscription revenues account for more than 50 per cent of the total revenue to the broadcasters. This same global trend is likely to be followed by India in the long term.
Today, television is the fastest growing entertainment medium in the country, led by pay revenues. Fuelling the rise in pay revenues will be the growth in cable and satellite homes from 41 million to 57 million.
Besides, the average realisation per subscriber will go up from Rs 125 a month to Rs 250. The KPMG report said with the passing of conditional access system (CAS), there is expected to be a far reaching impact on the television sector by increasing the declared connectivity and pay TV revenues.
TV ad revenues are expected to increase from Rs 3,900 crore to Rs 6,500 crore over the next five years.
