Indian viewers might be rapidly adopting online platforms to consume video content, but the television sector in the country is still chugging along at a substantial growth rate. According to data released by TRAI for the year 2017-18, the television sector recorded a 12.24 per cent increase in its revenues, with advertising revenues shooting up by 32.8 per cent.
Experts say that the continued rise of television is a trend that is unlikely to fade away, especially since subscription numbers are still rising and there are audiences broadcasters can tap. “Television players are cognizant of the potential offered by digital platforms and are already onboarding channels on internet-based platforms.
So, in the future, what you will see is television empowered by the internet. Content is content, regardless of which medium it is consumed on,” said a senior TV executive to this publication.
With cable networks also in the process of combining and delivering internet capabilities, the broadcasting sector is only expected to grow as video consumption increases.
TRAI data buttresses these expectations.
“As per industry estimates, at the end of year 2017-18, out of a total of 286 million households in India, around 183 million households have television sets..,” noted TRAI, adding that “commensurate with the growth in the subscriber base, the number of platorms and service providers has also increased”.
These trends driving the space have only resulted in substantial revenue growth for players in the sector. According to the sector regulator, the broadcasting sector’s revenues hit Rs 66,0006 crore in 2017-18, up from 58,8006 crore in 2016-17.
And while their subscription revenues have not increased at very such prodigious rates, advertising revenues have clipped along at a significant pace. “Subscription revenues rose from Rs 38,7006 crore in 2016-17 to Rs 39,3006 crore in 2017-18. Advertisement revenues grew from Rs 20,1006 crore in 2016-17 to Rs 26,7006 crore in 2017-18 growing by a whopping 32.8 per cent during the year,” TRAI said in its report.
However, subscription revenues still account for the majority of the total revenue in the sector, comprising 59.5 per cent, with advertising revenues accounting for the rest.
Meanwhile, the rapid advent of high definition capable television sets has resulted in a marked increase in the number of HD pay channels entering the market. “In the last nine years a substantial number of HD pay television channels have also been launched by the broadcasters,” noted TRAI. According to the report, the number of HD pay channels being offered to television consumers have grown from just three in 2010 to 95 at the end of March 2018.