Indian digital cable TV mkt to rank 2nd in Asia

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New Delhi, Jun 23 : In four years time, India will overtake Japan and three other countries—Australia, Hong Kong and South Korea —to emerge as the second largest digital cable TV home market (after China) in the Asia-Pacific region, according to reports of independent media research firms, Informa Telecoms and Media group and Media Partners Asia (MPA).

However, in terms of digital cable TV penetration of TV homes, India will still lag behind China, Singapore, Australia, Japan among others at 7% in 2012 from the current 1%.

The modest pace of digital upgrade in India is attributed by the MPA report to lack of investment, regulatory barriers and last mile fragmentation. MPA forecast indicates that total digital cable subscribers will grow to 154 million by 2012 in the region and to 209 million by 2017. This implies that close to 60 % of the region’s cable homes will have at least one Set-top-box by 2017.

China will lead the market with 165 million digital cable subscribers forecasts by 2017, observes the report. Digital cable home volumes is expected to expand in India to over 12 million in 2012 (almost double the number of subscribers in Japan) and 22 million digital cable subscribers by 2017. This will still represent less than 20% share of total cable subscribers. Korea and Japan together will account for 16 million digital subscribers by 2017 with Japan reaching 100% penetration by 2014.

According to Cable and Satellite Broadcasting Association of Asia (Caasba), India, “Digital television and broadband adoption is slow in India because of restrictive regulations. Cable consumers are increasingly marginalised, digital divide continues to remain big and the contribution from digital broadband to the economy is lacklustre.”

According to Caasba, to reach growth potentials, Indian policy-makers must abide by the path charted out by the prime minister’s office, Planning Commission and Trai in particular and implement ‘lighter-touch’ regulations that are appropriate for the digital age.

In terms of digital pay TV subscribers, India will cross Japan by 2012 to reach over 38 million subscribers and 56 million subscribers by 2017 from the 6-million mark today. The report notes that aggressive competition from DTH players, slow but steady flow of capital, emergence of large and acquisitive MSOs will boost the market for digital pay TV.