Whalesbook
India's Television Market Defies Global Trends, Poised for Strong Growth
PricewaterhouseCoopers (PwC) forecasts India's television market revenue to climb from $14 billion in 2024 to $18.1 billion by 2029, a testament to its unique resilience against the global surge of Over-The-Top (OTT) streaming services.
This sustained growth is largely attributed to India's deeply ingrained shared-screen culture. Unlike many international markets where streaming platforms have replaced traditional television, Indian households tend to view OTT services as complementary rather than substitute offerings.
Financial Implications and Household Economics
The economic model strongly favors traditional pay TV for a significant portion of the population. Sandeep Gupta, chief operating officer of Shemaroo Entertainment Ltd.'s broadcasting business, highlights that for NCCS B, C, and D households, a monthly cable or DTH subscription of ₹200 to ₹350 provides access to over 100 channels in multiple languages. This makes it the most cost-effective and reliable option for shared family viewing.
In contrast, OTT consumption often requires multiple paid subscriptions and a stable broadband connection, leading to higher overall household expenditure. This disparity explains why OTT's rapid expansion remains largely concentrated in urban areas and appeals more to individual viewers, while television continues to be the preferred medium for family-centric entertainment.
The Living Room as a Cultural Anchor
Anil Suryavamshi, vice-president for digital at media agency Carat India, emphasizes that the living room television remains a vital cultural anchor for Indian families. He states that while OTT caters to personalized, mobile-first viewing habits, communal content consumption still primarily occurs on TV.
As long as multi-generational households persist, television will likely retain its position as the default shared medium, ensuring stable subscription numbers. The distribution ecosystem is evolving pay TV, not replacing it, with DTH (Direct-to-Home) services offering affordability, easier installation, and greater reliability than broadband in tier-two to tier-four markets. This frictionless reliability supports TV's growth, while OTT faces constraints due to internet quality.
Strategic Bundling and Regional Content Push
Industry executives note that subscription fatigue is being mitigated through service aggregation. Platforms like Tata Play Binge, Airtel Xstream, and Amazon Channels are combining TV and OTT services into single bills and user interfaces. This bundling strategy enhances perceived value for consumers and provides broadcasters with predictable subscription revenues.
Broadcasters have also been instrumental in maintaining TV's momentum by significantly strengthening their regional programming. A renewed focus on local storytelling, precise content scheduling, and family-oriented entertainment tailored for the hinterland is yielding results. High-quality content across Hindi, Marathi, Tamil, Telugu, and Bangla, including reality shows, music competitions, and movie premieres, continues to drive habitual viewing and subscriptions.
Sanjay Dwivedi, group CEO and group CFO of Balaji Telefilms Ltd., commented that television retains a unique, emotionally resonant place in Indian households, significantly driving subscription growth. Families continue to rely on TV for shared viewing of daily soaps, reality entertainment, and live events, even as OTT platforms expand.
Growth Constraints and the Path Forward
Despite the positive outlook, the sector faces challenges. Rajesh Sethi, partner and leader for media, entertainment, and sports at PwC India, forecasts a modest 2.5% compound annual growth rate (CAGR) for broadcast TV advertising revenue between 2024 and 2029. This slowdown is influenced by cord-cutting, audience fragmentation, and a shift in advertising budgets towards digital formats like Advertising Video-on-Demand (AVoD) and Connected TV (CTV).
Furthermore, the proliferation of smart TVs presents a challenge to TV's exclusivity. Russhabh R. Thakkar, founder and CEO of ad-tech firm Frodoh, notes that as major shows become available on CTV and broadcaster apps, TV's unique appeal weakens. The way forward, he suggests, involves creating stronger intellectual property (IP) that premieres on TV first, establishing appointment viewing that digital platforms cannot immediately replicate, while leveraging CTV to expand reach without diluting brand identity.
Impact
This news indicates continued robust revenue streams for Indian media and entertainment companies, particularly broadcasters and pay-TV providers. It suggests that traditional advertising, while facing digital competition, will remain a significant revenue source. Investment in regional content is likely to increase. The trend of bundling TV and OTT services is expected to grow, benefiting platform providers. Companies that can create strong, exclusive content for linear TV will be well-positioned. Rating: 8/10
Difficult Terms Explained
- OTT (Over-The-Top): Streaming services like Netflix, Amazon Prime Video, or Disney+ Hotstar that deliver content directly to viewers over the internet, bypassing traditional cable or satellite providers.
- Pay TV: Television services that require a subscription fee, including cable television and satellite direct-to-home (DTH) services.
- Linear TV: Traditional television programming that is broadcast on a fixed schedule, as opposed to on-demand content.
- NCCS B-C-D: Classifications under the New Consumer Classification System, broadly referring to middle-income segments in India.
- DTH (Direct-to-Home): A satellite television service delivered directly to a household's satellite dish.
- Aggregation: The process of combining multiple services, such as different OTT platforms or TV channels, into a single offering or package, often with a unified billing system.
- Hinterland: Refers to the less developed or rural areas of a country, often used in contrast to major urban centers.
- CAGR (Compound Annual Growth Rate): A measure of the average annual growth rate of an investment or revenue over a specified period, assuming profits are reinvested.
- AVoD (Advertising Video-on-Demand): A video content delivery model where users can watch content on demand, supported by advertisements.
- CTV (Connected TV): A television set with integrated Internet and interactive features, allowing access to streaming services and other online content.
- IP (Intellectual Property): Creations of the mind, such as inventions, literary and artistic works, designs, and symbols, that are protected by law. In media, this refers to content rights for shows, characters, etc.
- Appointment Viewing: The practice of watching a television program at the specific time it is broadcast, rather than on-demand.