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Tag: CAGR

  • Indian teleshopping to show robust growth through to 2021: TechSci Research

    Indian teleshopping to show robust growth through to 2021: TechSci Research

    MUMBAI: It’s spending time on the home shopping TV genre in India. Global research firm TechSci Reaearch has predicted that expanding television viewers base, increasing penetration, coupled with growing inclination of the people towards more convenient ways of shopping and rising purchasing power are trends that are going to give a leg-up to the teleshopping segment in India from now, and going up to 2021.

    The firm has published a report titled “India Teleshopping Market,” in which it has forecast that the segment will have a compounded annual growth rate (CAGR) of 17.20 per cent during 2016-2021 in India, owing to wide reach of television broadcasting in India, increasing number of people viewing television, coupled with changing lifestyle and growing preference of the people towards more convenient ways of shopping.

    At present, there are over 60 infomercial channels and 10 dedicated channels operating in the television shopping market in India, which is further expected to increase in the coming years majorly, due to growing teleshopping market in India. Moreover, number of private satellite channels in India increased from 826 in 2014 to 847 in 2015, thereby widening scope for television shopping companies in India. In terms of active DTH subscribers in India, there has been a substantial increase in subscription from 40.54 million subscribers in 2014 to 55.98 million subscribers in 2015. Therefore, increasing subscription, rising television viewer base and growing internet penetration to drive India television market through 2021.

    The Indian teleshopping market has been segmented into two categories namely, infomercials and dedicated channels. Dedicated channels dominated India teleshopping market in 2015, and are anticipated to maintain their dominance in the coming years as well, owing to 24 hours telecast, continuous announcement of various cashbacks/ discounts offers and offering branded products.

    Moreover, Homeshop18, Naaptol, and Shop CJ were the leading players in India teleshopping market in 2015, and they are further anticipated to dominate the market through 2021, on account of their increasing penetration, as they have been for longer time in the market as compared to other players. Furthermore, these companies also offer quality products with attractive offers and discounts, which is further anticipated to fuel their dominance in the market during the forecast period,

    “Expanding television viewer base both in urban and rural area, is one of the major driver for India teleshopping market. Growing digitization in semi-urban and rural areas of the country has also propelled the market for teleshopping in the country. Moreover, companies operating in India teleshopping market are now focusing on launching branded products to attract more customers and increase their penetration in the teleshopping market in India. Furthermore, increasing number of discounts and convenience of shopping through television is further anticipate to drive India teleshopping market through 2021,” said TechSci Research director Karan Chechi.

    “India Teleshopping Market By Operation Type, By Region & By Company Forecast and Opportunities, 2011-2021” has evaluated future growth potential of the teleshopping market in India and provides statistics and information on market structure, size, share and future growth in India Teleshopping market. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges and opportunities in the India Teleshopping market.

  • Indian teleshopping to show robust growth through to 2021: TechSci Research

    Indian teleshopping to show robust growth through to 2021: TechSci Research

    MUMBAI: It’s spending time on the home shopping TV genre in India. Global research firm TechSci Reaearch has predicted that expanding television viewers base, increasing penetration, coupled with growing inclination of the people towards more convenient ways of shopping and rising purchasing power are trends that are going to give a leg-up to the teleshopping segment in India from now, and going up to 2021.

    The firm has published a report titled “India Teleshopping Market,” in which it has forecast that the segment will have a compounded annual growth rate (CAGR) of 17.20 per cent during 2016-2021 in India, owing to wide reach of television broadcasting in India, increasing number of people viewing television, coupled with changing lifestyle and growing preference of the people towards more convenient ways of shopping.

    At present, there are over 60 infomercial channels and 10 dedicated channels operating in the television shopping market in India, which is further expected to increase in the coming years majorly, due to growing teleshopping market in India. Moreover, number of private satellite channels in India increased from 826 in 2014 to 847 in 2015, thereby widening scope for television shopping companies in India. In terms of active DTH subscribers in India, there has been a substantial increase in subscription from 40.54 million subscribers in 2014 to 55.98 million subscribers in 2015. Therefore, increasing subscription, rising television viewer base and growing internet penetration to drive India television market through 2021.

    The Indian teleshopping market has been segmented into two categories namely, infomercials and dedicated channels. Dedicated channels dominated India teleshopping market in 2015, and are anticipated to maintain their dominance in the coming years as well, owing to 24 hours telecast, continuous announcement of various cashbacks/ discounts offers and offering branded products.

    Moreover, Homeshop18, Naaptol, and Shop CJ were the leading players in India teleshopping market in 2015, and they are further anticipated to dominate the market through 2021, on account of their increasing penetration, as they have been for longer time in the market as compared to other players. Furthermore, these companies also offer quality products with attractive offers and discounts, which is further anticipated to fuel their dominance in the market during the forecast period,

    “Expanding television viewer base both in urban and rural area, is one of the major driver for India teleshopping market. Growing digitization in semi-urban and rural areas of the country has also propelled the market for teleshopping in the country. Moreover, companies operating in India teleshopping market are now focusing on launching branded products to attract more customers and increase their penetration in the teleshopping market in India. Furthermore, increasing number of discounts and convenience of shopping through television is further anticipate to drive India teleshopping market through 2021,” said TechSci Research director Karan Chechi.

    “India Teleshopping Market By Operation Type, By Region & By Company Forecast and Opportunities, 2011-2021” has evaluated future growth potential of the teleshopping market in India and provides statistics and information on market structure, size, share and future growth in India Teleshopping market. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges and opportunities in the India Teleshopping market.

  • Deloitte: Indian film industry to touch Rs 23,800 crore by 2020

    Deloitte: Indian film industry to touch Rs 23,800 crore by 2020

    MUMBAI: Can the Indian film industry come up to scale and rival the US and Canadian box offices? Yes, it can. The potential is huge, says a new report on the Indian cinema industry released by Deloitte Touche Tohmatsu India at the Indywood Film Carnival taking place during 24-27 September in Ramoji Film City, Hyderabad.

    Both, the US and Canada, have a box office of $11 billion annually though they produce less films (700). India, with 1,500 to 2,000 films in more than 20 languages, is the world’s largest film producer and it also has the second highest footfalls at 2.1 billion, just behind China (2.2 billion).

    It is growing at a rapid clip of 10 per cent and its gross realisations are at Rs 13,800 crore ($2.1 billion). “This is mainly due to low ticket realizations and occupancy levels, lack of quality content, and rampant piracy,” says the report titled “IndyWood: The Indian Film Industry.”

    This growth is set to accelerate further to 11.5 per cent CAGR and by 2020 the Indian film industry will gross revenues of Rs 23,800 crore ($3.7 billion). Yes, that’s still not measuring up to the US and Canadian revenues, but given time, the Indian film industry will grow even further.

    Says the Deloitte report: “The key growth drivers are rising income levels and a swelling middle class, expansion of multiplexes in smaller cities, investments by foreign studios in domestic and regional productions, growing popularity of niche movies, and the emergence of digital and ancillary revenue streams.”

    The report points out that “By 2020, the Indian average household income is expected to reach $18,500 from $8,000 currently with a corresponding middle class of over 90 million people. This level of median household income will drive discretionary spending on leisure and entertainment. The proliferation of internet and smart phone usage has opened up a new platform for film distribution and viewing.”

    In all, 43 per cent of revenues for Indian cinema are accounted for by the Hindi film industry with regional and international cinema contributing 50 and seven per cent respectively. Tamil and Telugu movies account for 36 per cent, with other regional languages contributing 14 per cent. The south Indian film industry accounts for Rs 4200 crore, and is growing at 12 per cent CAGR. The Marathi film industry has ballooned to gross revenues of Rs 150 crore and it grew at 40-45 per cent in 2015, even as the Gujarati film business expanded to Rs 55 crore in 2015.

    The report says that “cable and satellite rights and online/ digital aggregation revenues are the fastest growing segments, and are expected to grow at a CAGR of about 15 per cent over the period FY6-FY20, driven by rising demand for movies on TV and increasing smartphone penetration across the country respectively. On the other hand, home videos have been shrinking due to increasing piracy and growing popularity of digital platforms. Home video has lost share to video on demand (VOD) through direct-to-home (DTH) operators and over-the-top (OTT) platforms.”

    What’s helping contribute to the Indian film industry’s revenues is in-cinema advertising which stood at Rs 630 crore in 2015 and is expected to grow 18-20 per cent annually over the next four years. Demand is expected to rise from Tier 2 and Tier 3 cities where retail malls and multiplexes are slated to come up — which obviously will lead to more screens.

    Says the report: “Multiplexes have shown a growth rate of 15 per cent in Indian cities, increasing from 925 in 2009 to 2,100 in 2015. Over 2,000 single screen cinemas have been shut down or converted to multiplexes in the last year mainly due to greater cost of operations (higher entertainment taxes, increase in distributors’ share, and lower ticket prices), non-viability of running on a standalone basis and low occupancy rate. Multiplexes currently account for approximately 26 per cent market share of the screens; however, they contribute more than 40 per cent of box office collections. Wider content and programming flexibility result in higher occupancy and hence profitability of multiplexes. With comparison to growing economies, India has a low penetration of multiplexes with a potential to have almost 7,500-10,000 multiplex screens across the nation.”

    Also, film studios will have to start looking at international markets for revenues. Only 15 per cent of Indian cinema makers revenues comes from outside India, while Hollywood earns two-thirds of its revenues outside the US. The report also states that the producers and distributors should start looking at the potential of merchandising, licensing for mobile and games, delivering movies directly to the consumers via the internet or on their smart phones.

    Piracy if controlled could also help the Indian film industry which loses nearly Rs 19,000 crore annually to pirate sites. “Over 150 sites thrive on piracy where content is stolen from Indian movies, quick copies are made and distributed globally. Nearly half of the 150 are from the US, followed by 11 from Canada, nine from Panama and six from Pakistan. The top 100 sites make Rs 35 billion ($510 million) highlighting the extent of the issue,” the report highlights.

  • Deloitte: Indian film industry to touch Rs 23,800 crore by 2020

    Deloitte: Indian film industry to touch Rs 23,800 crore by 2020

    MUMBAI: Can the Indian film industry come up to scale and rival the US and Canadian box offices? Yes, it can. The potential is huge, says a new report on the Indian cinema industry released by Deloitte Touche Tohmatsu India at the Indywood Film Carnival taking place during 24-27 September in Ramoji Film City, Hyderabad.

    Both, the US and Canada, have a box office of $11 billion annually though they produce less films (700). India, with 1,500 to 2,000 films in more than 20 languages, is the world’s largest film producer and it also has the second highest footfalls at 2.1 billion, just behind China (2.2 billion).

    It is growing at a rapid clip of 10 per cent and its gross realisations are at Rs 13,800 crore ($2.1 billion). “This is mainly due to low ticket realizations and occupancy levels, lack of quality content, and rampant piracy,” says the report titled “IndyWood: The Indian Film Industry.”

    This growth is set to accelerate further to 11.5 per cent CAGR and by 2020 the Indian film industry will gross revenues of Rs 23,800 crore ($3.7 billion). Yes, that’s still not measuring up to the US and Canadian revenues, but given time, the Indian film industry will grow even further.

    Says the Deloitte report: “The key growth drivers are rising income levels and a swelling middle class, expansion of multiplexes in smaller cities, investments by foreign studios in domestic and regional productions, growing popularity of niche movies, and the emergence of digital and ancillary revenue streams.”

    The report points out that “By 2020, the Indian average household income is expected to reach $18,500 from $8,000 currently with a corresponding middle class of over 90 million people. This level of median household income will drive discretionary spending on leisure and entertainment. The proliferation of internet and smart phone usage has opened up a new platform for film distribution and viewing.”

    In all, 43 per cent of revenues for Indian cinema are accounted for by the Hindi film industry with regional and international cinema contributing 50 and seven per cent respectively. Tamil and Telugu movies account for 36 per cent, with other regional languages contributing 14 per cent. The south Indian film industry accounts for Rs 4200 crore, and is growing at 12 per cent CAGR. The Marathi film industry has ballooned to gross revenues of Rs 150 crore and it grew at 40-45 per cent in 2015, even as the Gujarati film business expanded to Rs 55 crore in 2015.

    The report says that “cable and satellite rights and online/ digital aggregation revenues are the fastest growing segments, and are expected to grow at a CAGR of about 15 per cent over the period FY6-FY20, driven by rising demand for movies on TV and increasing smartphone penetration across the country respectively. On the other hand, home videos have been shrinking due to increasing piracy and growing popularity of digital platforms. Home video has lost share to video on demand (VOD) through direct-to-home (DTH) operators and over-the-top (OTT) platforms.”

    What’s helping contribute to the Indian film industry’s revenues is in-cinema advertising which stood at Rs 630 crore in 2015 and is expected to grow 18-20 per cent annually over the next four years. Demand is expected to rise from Tier 2 and Tier 3 cities where retail malls and multiplexes are slated to come up — which obviously will lead to more screens.

    Says the report: “Multiplexes have shown a growth rate of 15 per cent in Indian cities, increasing from 925 in 2009 to 2,100 in 2015. Over 2,000 single screen cinemas have been shut down or converted to multiplexes in the last year mainly due to greater cost of operations (higher entertainment taxes, increase in distributors’ share, and lower ticket prices), non-viability of running on a standalone basis and low occupancy rate. Multiplexes currently account for approximately 26 per cent market share of the screens; however, they contribute more than 40 per cent of box office collections. Wider content and programming flexibility result in higher occupancy and hence profitability of multiplexes. With comparison to growing economies, India has a low penetration of multiplexes with a potential to have almost 7,500-10,000 multiplex screens across the nation.”

    Also, film studios will have to start looking at international markets for revenues. Only 15 per cent of Indian cinema makers revenues comes from outside India, while Hollywood earns two-thirds of its revenues outside the US. The report also states that the producers and distributors should start looking at the potential of merchandising, licensing for mobile and games, delivering movies directly to the consumers via the internet or on their smart phones.

    Piracy if controlled could also help the Indian film industry which loses nearly Rs 19,000 crore annually to pirate sites. “Over 150 sites thrive on piracy where content is stolen from Indian movies, quick copies are made and distributed globally. Nearly half of the 150 are from the US, followed by 11 from Canada, nine from Panama and six from Pakistan. The top 100 sites make Rs 35 billion ($510 million) highlighting the extent of the issue,” the report highlights.

  • Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    MUMBAI: It’s heartening news for many in the pay TV industry, the slow pace of digitalization, nothswithstanding.

    Subscription revenues for broadcasters in India from cable TV and DTH platforms are on course to cross the Rs 10,000 crore (US $1.5 billion) mark for by end 2016. That’s the prediction of Singapore-based industry research and analysis firm Media Partners Asia (MPA).

    On the whole, Asia Pacific Pay-TV And Broadband Markets 2016, predicts that
    India’s pay-TV industry is on course to generate $9.4 billion in sales this year.

    Of this, the pay TV channels will account for $4.9 billion in aggregate revenue in 2016, up 16 per cent year-on-year. (The rest of the $4.5 billion is revenue that accrues to cable TV and DTH, that is the platforms)

    The revenue mix is approximately 70:30, skewed in favor of ad sales. Maintaining strong future growth will require channel operators to manage several structural changes, including the increased importance of rural markets under BARC’s new TV measurement system, changing norms on channel pricing and the rise of OTT video services.

    Pay-TV channel advertising revenue should grow by 15 per cent this year, to reach US$3.4 billion, predicts MPA.

    Says MPA executive director Vivek Couto: “Future economic growth should remain strong, which will support solid gains in the pay-TV industry. Digitalising India’s 65 million analog subscribers remains a major opportunity for cable, DTH and other emerging pay-TV platforms. Digital cable has done well to attain a 30 per cent share in Phase III areas, which tend to be DTH strongholds. At the same time, changes in the distribution landscape, together with gaps in traditional pay-TV services, are fostering the growth of new platforms. While Reliance Industries has yet to unveil pricing and bundling plans for its broadband service R-Jio, the product could disrupt traditional pay-TV distribution in urban markets. Expanded TV ratings from BARC meanwhile, which gives a better picture of viewing in rural areas, has also helped Prasar Bharati’s Freedish gain traction in Phase III and Phase IV areas.”

    MPA says the future looks bright. The report says that India’s pay TV industry will grow sales at 9.a 2 per cent compounded annual growth rate (CAGR) between 2016 and 2021 to reach $14.5 billion in revenue by 2021, increasing thereafter to $18 billion by 2025.

    Total pay-TV subscribers are forecast to grow from 152 million this year to 183 million by 2025. Pay-TV penetration, including multiple subs in a home, should remain stable over 2016-25 at 80 per cent of TV homes, although digital pay-TV subs are projected to grow from 93 million to 129 million over the same period. MPA forecasts that 70 per cent of India’s pay-TV base will be digitalized by 2025.

    Ongoing cable digitisation will help facilitate a gradual increase in pay-TV monthly ARPUs, from US$3.3 in 2016 to US$4.5 in 2025, although this will be offset by the 30 per cent share of pay-TV subs still accruing to analog by 2025. Cable will remain pay-TV’s largest platform but its share of pay-TV subscribers is expected to decline, from 68 per cent in 2016 to 60 per cent in 2025, as DTH attracts the majority of new subs.

  • Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    MUMBAI: It’s heartening news for many in the pay TV industry, the slow pace of digitalization, nothswithstanding.

    Subscription revenues for broadcasters in India from cable TV and DTH platforms are on course to cross the Rs 10,000 crore (US $1.5 billion) mark for by end 2016. That’s the prediction of Singapore-based industry research and analysis firm Media Partners Asia (MPA).

    On the whole, Asia Pacific Pay-TV And Broadband Markets 2016, predicts that
    India’s pay-TV industry is on course to generate $9.4 billion in sales this year.

    Of this, the pay TV channels will account for $4.9 billion in aggregate revenue in 2016, up 16 per cent year-on-year. (The rest of the $4.5 billion is revenue that accrues to cable TV and DTH, that is the platforms)

    The revenue mix is approximately 70:30, skewed in favor of ad sales. Maintaining strong future growth will require channel operators to manage several structural changes, including the increased importance of rural markets under BARC’s new TV measurement system, changing norms on channel pricing and the rise of OTT video services.

    Pay-TV channel advertising revenue should grow by 15 per cent this year, to reach US$3.4 billion, predicts MPA.

    Says MPA executive director Vivek Couto: “Future economic growth should remain strong, which will support solid gains in the pay-TV industry. Digitalising India’s 65 million analog subscribers remains a major opportunity for cable, DTH and other emerging pay-TV platforms. Digital cable has done well to attain a 30 per cent share in Phase III areas, which tend to be DTH strongholds. At the same time, changes in the distribution landscape, together with gaps in traditional pay-TV services, are fostering the growth of new platforms. While Reliance Industries has yet to unveil pricing and bundling plans for its broadband service R-Jio, the product could disrupt traditional pay-TV distribution in urban markets. Expanded TV ratings from BARC meanwhile, which gives a better picture of viewing in rural areas, has also helped Prasar Bharati’s Freedish gain traction in Phase III and Phase IV areas.”

    MPA says the future looks bright. The report says that India’s pay TV industry will grow sales at 9.a 2 per cent compounded annual growth rate (CAGR) between 2016 and 2021 to reach $14.5 billion in revenue by 2021, increasing thereafter to $18 billion by 2025.

    Total pay-TV subscribers are forecast to grow from 152 million this year to 183 million by 2025. Pay-TV penetration, including multiple subs in a home, should remain stable over 2016-25 at 80 per cent of TV homes, although digital pay-TV subs are projected to grow from 93 million to 129 million over the same period. MPA forecasts that 70 per cent of India’s pay-TV base will be digitalized by 2025.

    Ongoing cable digitisation will help facilitate a gradual increase in pay-TV monthly ARPUs, from US$3.3 in 2016 to US$4.5 in 2025, although this will be offset by the 30 per cent share of pay-TV subs still accruing to analog by 2025. Cable will remain pay-TV’s largest platform but its share of pay-TV subscribers is expected to decline, from 68 per cent in 2016 to 60 per cent in 2025, as DTH attracts the majority of new subs.

  • Reliance Jio to delay its commercial roll out till December

    Reliance Jio to delay its commercial roll out till December

    MUMBAI: The onslaught might take a little while before it revs itself for a decimating run in the Indian telecom ecosystem.’The world’s most expensive start-up entailing an initial investment of Rs.1.5 trillion – Reliance Jio’, as termed by Reliance Industries  chairman Mukesh Ambani who has a revolutionary vision of  digitising the entire country to get its people to use the internet. Reliance Jio 4G services were launched for the employees and privileged personalities in December last year (2015). At that time speculations were rife that the company would roll out its commercial services in early April, though the company did not release any official statement indicating the launch date.

    As per information available with Indiantelevision.com, Reliance’s 4G services are likely to launch in December 2016. A source close to the development informs, “They are planning the commercial roll out this December. There are many factors which are evolving and the launch will take time. Before the commercial roll-out there will be phases of soft launches in various regions to conduct a test run in each and every region.”

    Reliance Jio’s immediate target will be the premium consumers of other networks. Research says that consumers with spends of Rs 300 per month and above are most vulnerable to poaching by the Jio onslaught. The biggest player in the Indian telecom ecosystem,  Airtel has 89 per cent of its 250 million subscribers that use feature phones or smartphones only for calls and not data. Hence the ring fencing will happen for the 11 per cent of the premium consumers. “Airtel is planning to counter Jio with its own weapons,” says a veteran in the telecom industry. He further adds, “Jio will roll out combo plans where voice calls and SMS services will be offered for free or at cheap prices. It will also package 4G services with mobile devices. In the initial stages it will roll out many lucrative offers to poach consumers.”

    When contacted, the corporate communications team of Reliance Jio refused to offer any comments. “We have not declared any date and hence there is no question of postponements or delays,” the team said.

    One of the vendors that provides technical assistance to Reliance Jio asserts, “The internal declaration to roll out in December is primarily to ensure maximum reach. Availability and affordability are key factors which the company is not ready to compromise with. Moreover there will be an aggressive marketing plan to back the launch, so overall its a strategic move to wait till December.”

    Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a compounded annual growth rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.

    According to a Telecom Regulatory of India (TRAI) press release, as of 31 January 2016,India’s mobile subscriber base has crossed the one billion mark. A study by GSMA says that smartphones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smartphone market.The broadband services user-base in India is expected to grow to 250 million connections by 2017, says GSMA.

    The opportunity is huge, and will benefit the ultimate user, given the poor quality of intermittent 4G data services that are being offered by the players in the market at present.

  • Reliance Jio to delay its commercial roll out till December

    Reliance Jio to delay its commercial roll out till December

    MUMBAI: The onslaught might take a little while before it revs itself for a decimating run in the Indian telecom ecosystem.’The world’s most expensive start-up entailing an initial investment of Rs.1.5 trillion – Reliance Jio’, as termed by Reliance Industries  chairman Mukesh Ambani who has a revolutionary vision of  digitising the entire country to get its people to use the internet. Reliance Jio 4G services were launched for the employees and privileged personalities in December last year (2015). At that time speculations were rife that the company would roll out its commercial services in early April, though the company did not release any official statement indicating the launch date.

    As per information available with Indiantelevision.com, Reliance’s 4G services are likely to launch in December 2016. A source close to the development informs, “They are planning the commercial roll out this December. There are many factors which are evolving and the launch will take time. Before the commercial roll-out there will be phases of soft launches in various regions to conduct a test run in each and every region.”

    Reliance Jio’s immediate target will be the premium consumers of other networks. Research says that consumers with spends of Rs 300 per month and above are most vulnerable to poaching by the Jio onslaught. The biggest player in the Indian telecom ecosystem,  Airtel has 89 per cent of its 250 million subscribers that use feature phones or smartphones only for calls and not data. Hence the ring fencing will happen for the 11 per cent of the premium consumers. “Airtel is planning to counter Jio with its own weapons,” says a veteran in the telecom industry. He further adds, “Jio will roll out combo plans where voice calls and SMS services will be offered for free or at cheap prices. It will also package 4G services with mobile devices. In the initial stages it will roll out many lucrative offers to poach consumers.”

    When contacted, the corporate communications team of Reliance Jio refused to offer any comments. “We have not declared any date and hence there is no question of postponements or delays,” the team said.

    One of the vendors that provides technical assistance to Reliance Jio asserts, “The internal declaration to roll out in December is primarily to ensure maximum reach. Availability and affordability are key factors which the company is not ready to compromise with. Moreover there will be an aggressive marketing plan to back the launch, so overall its a strategic move to wait till December.”

    Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a compounded annual growth rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.

    According to a Telecom Regulatory of India (TRAI) press release, as of 31 January 2016,India’s mobile subscriber base has crossed the one billion mark. A study by GSMA says that smartphones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smartphone market.The broadband services user-base in India is expected to grow to 250 million connections by 2017, says GSMA.

    The opportunity is huge, and will benefit the ultimate user, given the poor quality of intermittent 4G data services that are being offered by the players in the market at present.

  • KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    MUMBAI: If 2015 was a good year for media and entertainment industry with a growth rate of 12.8 per cent taking it to Rs 1157 billion,(RS 1,15,700 crore) with advertising revenues touching Rs 475 billion (Rs 47,500 crore), 2016 promises to be even better. Estimates show that the industry is to touch  Rs 1315 billion by this year end, with television alone commanding Rs 617 billion (Rs 61,700 crore). And the industry stalwarts project even rosier tidings for 2020.

    As per KPMG- FICCI Indian Media and Entertainment Industry Report 2016 that was released on 30 March at FICCI Frames 2016, the sector is projected to grow at a CAGR of 14.3 percent to be valued at Rs 2260 billion (Rs 2,26,000 crore) by 2020, with advertising revenue touching a whooping Rs 994 billion (Rs 99400 crore) at a CAGR growth of 15.9 per cent.

    Television continues to thrive:

    While 2015 saw the growing stress on the need to transport from traditional media to digital options, the current report reassures the continued importance and relevance of television as a medium, which is projected to grow at a rate of 15.1 CAGR between 2015- 2020, and touch Rs 1,09,760 crore by 2020, out of which Rs 364.5 billion (Rs 36,450 crore) will be contributed by advertising revenue. TV ad revenue is expected to touch Rs 210.3 billion (Rs 21,030 crore) by the end of 2016. On the other hand, subscription revenue for broadcasters is expected to grow at a CAGR of 15 per cent between 2015- 2020, to Rs 733 billion (Rs 73,300 crore). Subscription revenues for TV is estimated to have grown at 13 per cent to reach Rs 361 billion (Rs 36,100 crore). While the figures show a positive growth in advertising revenues, a delayed digitisation process would slow down the subscription growth.

    Digital, the fastest growing medium:

    Digital Advertising will continue to grow at a high CAGR of 33.5 per cent, the highest growing medium of all. The evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimates that by 2020 digital advertising will touch Rs 255.2 billion  (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

    Impact of BARC India ratings on Television:

    There are no two opinions about the fact that roll out of BARC ratings was a major event that changed the face of the industry, and perhaps its rules as well.  The implementation of BARC was a major theme in 2015. While inclusion of rural markets and increase in sample size led to a reshuffle of rankings in the ratings of TV channels, particularly highlighting the viewership of FTA channels, there was no immediate impact on ad budget allocations among channels or genres. Going forward, sustained trends in ratings could lead to advertisers re-thinking their ad spend mix and broadcasters their content strategy.

    Paid C&S penetration of TV:

    The number of TV households in India has increased to 175 million (17.5 crore), at 62 percent growth rate. The figures are estimated to touch 200 million (20 crore) by 2020, with paid cable and satellite subscriber base growing to 174 million (17.5 crore) and command a lion share of 87 per cent of total TV households. However, when considering distribution, challenges in improving addressability, increasing monetisation continues to plague the industry, the report foretells. Meanwhile, competition in the TV distribution space is expected to intensify with Reliance Jio coming in the cable TV business.

    ARPU continues to back DTH growth:

    As per industry observations shared in the report, DTH has seen an ARPU growth of 10 per cent in 2015, driven by price hikes,  and increased HD feed penetration which constitutes 15 percent of the total subscriber base in the sector. This trend is expected to rule the sector in the upcoming years as well, with average ARPU of HD subscriber estimated to grow to 1.5 to 2 times that of a non HD subscriber. The report also hints at a growth in demand and adoption of 4K STBs, though lack of enough 4K content could be a disadvantage to this growth.

  • KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    MUMBAI: If 2015 was a good year for media and entertainment industry with a growth rate of 12.8 per cent taking it to Rs 1157 billion,(RS 1,15,700 crore) with advertising revenues touching Rs 475 billion (Rs 47,500 crore), 2016 promises to be even better. Estimates show that the industry is to touch  Rs 1315 billion by this year end, with television alone commanding Rs 617 billion (Rs 61,700 crore). And the industry stalwarts project even rosier tidings for 2020.

    As per KPMG- FICCI Indian Media and Entertainment Industry Report 2016 that was released on 30 March at FICCI Frames 2016, the sector is projected to grow at a CAGR of 14.3 percent to be valued at Rs 2260 billion (Rs 2,26,000 crore) by 2020, with advertising revenue touching a whooping Rs 994 billion (Rs 99400 crore) at a CAGR growth of 15.9 per cent.

    Television continues to thrive:

    While 2015 saw the growing stress on the need to transport from traditional media to digital options, the current report reassures the continued importance and relevance of television as a medium, which is projected to grow at a rate of 15.1 CAGR between 2015- 2020, and touch Rs 1,09,760 crore by 2020, out of which Rs 364.5 billion (Rs 36,450 crore) will be contributed by advertising revenue. TV ad revenue is expected to touch Rs 210.3 billion (Rs 21,030 crore) by the end of 2016. On the other hand, subscription revenue for broadcasters is expected to grow at a CAGR of 15 per cent between 2015- 2020, to Rs 733 billion (Rs 73,300 crore). Subscription revenues for TV is estimated to have grown at 13 per cent to reach Rs 361 billion (Rs 36,100 crore). While the figures show a positive growth in advertising revenues, a delayed digitisation process would slow down the subscription growth.

    Digital, the fastest growing medium:

    Digital Advertising will continue to grow at a high CAGR of 33.5 per cent, the highest growing medium of all. The evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimates that by 2020 digital advertising will touch Rs 255.2 billion  (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

    Impact of BARC India ratings on Television:

    There are no two opinions about the fact that roll out of BARC ratings was a major event that changed the face of the industry, and perhaps its rules as well.  The implementation of BARC was a major theme in 2015. While inclusion of rural markets and increase in sample size led to a reshuffle of rankings in the ratings of TV channels, particularly highlighting the viewership of FTA channels, there was no immediate impact on ad budget allocations among channels or genres. Going forward, sustained trends in ratings could lead to advertisers re-thinking their ad spend mix and broadcasters their content strategy.

    Paid C&S penetration of TV:

    The number of TV households in India has increased to 175 million (17.5 crore), at 62 percent growth rate. The figures are estimated to touch 200 million (20 crore) by 2020, with paid cable and satellite subscriber base growing to 174 million (17.5 crore) and command a lion share of 87 per cent of total TV households. However, when considering distribution, challenges in improving addressability, increasing monetisation continues to plague the industry, the report foretells. Meanwhile, competition in the TV distribution space is expected to intensify with Reliance Jio coming in the cable TV business.

    ARPU continues to back DTH growth:

    As per industry observations shared in the report, DTH has seen an ARPU growth of 10 per cent in 2015, driven by price hikes,  and increased HD feed penetration which constitutes 15 percent of the total subscriber base in the sector. This trend is expected to rule the sector in the upcoming years as well, with average ARPU of HD subscriber estimated to grow to 1.5 to 2 times that of a non HD subscriber. The report also hints at a growth in demand and adoption of 4K STBs, though lack of enough 4K content could be a disadvantage to this growth.