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The domestic television market is moving towards digital platforms. By 2010, 28 per cent of the estimated 100 million pay TV households will migrate to digital pay TV platforms such as digital cable, DTH (direct-to-home) and IPTV (internet protocol TV).
DTH may emerge as the leader among the digital platforms in the next three years, said an Ernst & Young report - "India Digital Revolution: Impact on Film & Television" - released at the Assocham global summit on the media and entertainment industry in New Delhi.
The report expects India's television advertising market to grow by 14 per cent annually for the next three years.
Though IPTV is expected to enroll one million subscribers, its growth will be limited due to the high infrastructure cost and low broadband penetration, the report said.
DTH, the report added, will lead the digital migration race as DTH operators have already put in place their infrastructure.
Domestic companies are expected to vertically integrate their media businesses like those in the developed markets. Some media companies such as Sun and the Zee group are already into broadcasting, cable TV and DTH.
Globally, media companies are integrating across the value chain to maximize reach and leverage content to deliver value.
Warner Cable in the US is run by Time Warner which owns channels such as CNN, HBO and Cartoon Network as well as a film studio under Warner Bros. B Sky B in the UK is owned by Newscorp that also operates channels such as Sky Sports, Sky Movies and Sky News and 20th Century Fox, its film studio.
According to the Ernst & Young report, by 2010, 28 per cent of the 100 million pay TV households will switch over to digital TV platforms
Among the digital platforms, DTH , will lead the race as its operators have already put in place necessary infrastructure
Domestic media companies are expected vertically integrate their media businesses like those in the developed markets.
Winds of change
