TV Viewers / Subscribers are not renewing monthly subscription due to higher Cable TV bills after implementation of New Tariff Regime by Telecom Regulatory Authority of India (TRAI).
According to survey by KPMG, there is a decline of nearly 150 Lakhs Active TV Viewers / Subscribers base in the last quarter, the Average Revenue Per User (ARPU) was relatively down for DTH & Cable TV Operators in the first three quarters in Financial Year (2018 – 2019). While the active subscriber base declined, growth in ARPUs covered up a large part of the decline in Subscription Revenues, leading to overall growth of 8.1 per cent for the year FY19.
The widespread availability of English content on Over The Top (OTT) platforms has been one of the key factors for a shift in consumption from Television to Digital for English content. Global platforms like Amazon & Netflix are spending approx Rs 10 to 20 Lakhs per episode / series.
International library & live TV content, Hotstar contributed significantly to the overall direct subscription revenues of the industry in Financial Year 2019. The report says, there could be 150 Lakhs direct paid subscriptions in Amazon Prime subscriptions.
Netflix has planned to invest Rs 600 crores per year in originals, whereas Amazon Prime had committed Rs 2000 Crores in 2017 over 2 to 3 years in India. Netflix & other Over The Top (OTT) platforms like Hotstar, MX Player, Amazon Prime are slowly but steadily eating the Cable TV business.
There will be approx 650 Lakhs Direct Subscribers base in Financial Year 2024 driven by the availability of high-quality content curated for different audiences and continued growth in the digital infrastructure and the digital payments landscape in India, as per KPMG Report.
Lets wait & watch the progress of these developments as India has a huge rural, semi rural & urban population with many regional languages. So national language, regional channels & local area content determines the choice of the viewers.
Hence we feel that all (Cable TV, DTH & OTT) will co-exist & it will only be the Viewers / Subscribers who will be the decision maker as they will make the final decision on the following criteria:
1) Cost of the service being offered
2) Quality of the service provider
3) Package being offered by the service providers
4) Availability of the service provider
5) Topography / Location of the viewers
6) Convenience / Facilities being provided
7) Choice of the content being offered