India’s consumer story will be shaped by its 440mn Millennials and 390mn Gen Z (born after 2000) stated Goldman Sachs in June 2016. With over 460 million internet users, India is the second largest online market as of June 2016, ranked only behind China. By 2021, there will be about 635.8 million internet users in India.
This is a significant increase in comparison to the previous years, considering the internet penetration rate in India stood at about 10 % in 2011. Furthermore, men dominated internet usage in India with 71 % to women’s 29 %. (Source: Statista)
3 TECHNOLOGY SEGMENTS
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 for nearly three decades 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.
Revenue streams for the Pay TV industry can be broadly classified into advertisement revenues and subscription revenues. The subscription revenues are gathered from the consumers subscribing to the services of the pay TV network. Advertisement revenues are obtained from various groups and companies, who advertise their products and services on the pay TV connections.
Direct to Home (DTH)
According to the Deloitte’s the rise of On-demand Content consumption through digital platforms in India, most of the DTH players entered in the on-demand as well as small screen video space by launching apps that allow their users to watch videos live or on-demand anytime, anywhere.
Indiantelevision.com, the first online information and interactive service focusing on the Indian Television and Media business specified that the number of TV households in India has increased to 175 million, at 62 % growth rate. The figures are estimated to touch 200 million by 2020, with paid cable and satellite subscriber base growing to 174 million and command a lion share of 87 % of total TV households.
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