The Indian media and entertainment industry grew by about 12 per cent in 2013 amid overall stagnant growth due to economic slowdown. But the digitization of cable TV worked wonders for the television industry, according to a FICCI-KPMG report. Digitization moved in the right direction in 2013, with the mandatory Digital Access System (DAS) rollout almost complete in Phase II cities of India.
The impact was felt to the extent that carriage fees saw a reduction of 15-20 per cent overall, however the anticipated increase in ARPUs and subscription revenues for broadcasters and MSOs (Multi System Operators) is expected to be realized only over the next 2-3 years. Other key highlights in 2013 were the inclusion of LC1 (less than class I) markets in TV ratings, the 12 minute advertising cap ruling and the shift from TRP to TVT ratings.
With the growth of television channels from 130 in 2004 to 788 in 2014, India has become the third largest TV industry with close to 154 million TV households, next to China and the United States. At the same time, the size of the TV industry has witnessed an exponential growth as well. The value of the Indian TV industry is valued at Rs 50,140 crore in 2014 from Rs 18,300 crore in 2006.