The media and entertainment industry has been one of the fastest growing sectors in India. The industry has achieved a growth rate of 14.0% from FY’2010 to FY’2015. The media and entertainment industry is the biggest source of leisure activity which generates revenues for the country. The Indian Pay TV Industry has been on a growth trajectory ever since the introduction of cable TV in India. The industry has been flourishing based on the improving economic conditions in the country. India’s disposable income has increased in the past years, which has led to a tendency to consume leisure. The media and entertainment industry is the biggest source of leisure activity which generates revenues for the country.
According to the Research Analyst Ken Research The Pay TV industry in India has been divided into three major segments on the basis of technology. The three broad classifications within this segment are cable TV, Direct to Home (DTH) and Internet Protocol Television (IPTV). Cable TV was introduced in the Indian market when the audiences were looking forward to new forms of entertainment. For nearly three decades, cable TV was the only provider of television content in India. However, with the government’s DTV mandate introduced in the year 2000 requires all analog connections to be shut down and digital optical fibers to be used.
The revenue streams for the Pay TV industry can be broadly classified into advertisement revenues and subscription revenues. . The subscription revenues are garnered from the consumers subscribing to the services of the pay TV network. Advertisement revenues on the other hand are obtained from various groups and companies, who advertise their products and services on the pay TV connections. Despite an increase in the advertisement revenues, their share in the total Pay TV revenues has observed a decline. This is because the number of households subscribing to pay TV networks has been rising at a faster pace and the ARPUs in the industry have been gradually inclining.
Hathway Cable and Datacom Ltd. is the largest MSO in India in terms of digital subscriber base. It was formerly known as Business India Television Cable Network Pvt. Ltd. (BITV). It was acquired by Hathway Investment Pvt. Ltd. in 1999. Before its acquisition, the company had its cable networks in large cities such as Delhi, Mumbai, Chennai, Pune, Ahmedabad, Bangalore and Hyderabad. After the acquisition, all the networks of BITV were transferred to Hathway. Hathway is currently headquartered in Mumbai. The company is listed on National Stock Exchange. It offers cable TV services across more than 160 cities and towns in 20 states and is the market leader among all the MSO’s.
Ministry of Information and Broadcasting, Government of India, has formulated policy guidelines for downlinking and uplinking of all satellite television channels in India. Therefore, all persons/ entities providing television satellite broadcasting services uplinked from other countries to viewers in India as well as any entity desirous of providing such service receivable in India for public viewership, shall be required to obtain permission from MIB, in accordance with the terms and conditions prescribed under these guidelines. Further, the policy also permits uplinking of any television channel from India and also allows the Indian news agencies to have their own uplinking facilities for purposes of newsgathering and its further distribution. According to the Research Analyst Ken Research
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