Pay TV revenue leakage in India is estimated to be close to a whopping $1 billion in 2007 due to lack of investments in infrastructure as well as analogue delivery systems, according to a report.
The report by Cable and Satellite Broadcasting Association of Asia (CASBAA) and Standard Chartered Bank said India’s pay-TV revenue leakage is likely to reach a massive $985 million in net losses in 2007, an increase of 44% over 2006.
?The India pay-TV market is the most distorted in Asia, thanks to what can only be characterised as structurally-based revenue leakage,? said Simon Twiston Davies, the CEO of CASBAA. He, however, pointed out that a large part of the rise in total revenue losses for 2007 could also be attributed to a 20% US dollar re-alignment against the Indian rupee.
According to CASBAA, India is a market with 73 million pay-TV connections, yet it suffers from heavy-handed government regulations, which, in turn, has created a debilitating lack of investment in infrastructure. It said while the rest of the world was benefiting from digital roll-outs, Indian consumers had no opportunity to enjoy these fruits. ?The systemic shortfall in analogue revenues from local cable operators is a major part of the problem,? said Twiston Davies.
Overall for the entire Asia Pacific region (excluding China), CASBAA estimated the revenue leakage losses at $1.54 billion, as compared to $1.13 billion in 2006.
?While the China market remains uncharted territory for the annual estimates, this year the newly developing pay-TV market in Pakistan has been added to the calculations, with losses that stand at $110 million. Estimates for Pakistan?s unauthorised market show 4.6 million pirated cable-TV subscriptions in a market with some 3,45,000 legitimate subscriptions to pay-TV services,? it said.
Excluding Pakistan, the regional figure stands at $1.43 billion, up $300million, representing a 26% increase in lost revenues compared to 2006, CASBAA said.