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Digitisation to Boost Demand for Premium Foreign TV Content: Deloitte

Digitisation to Boost Demand for Premium Foreign TV Content: Deloitte

By Press Trust of India | Updated: 1 February 2016 12:40 IST

As digitisation picks up in smaller towns, the popularity of international television content is likely to increase as viewers will be able to access niche channels, says study by Deloitte.

"Television channels will differentiate themselves by broadcasting content along with US and Western Europe, which will attract viewers who are ready to pay premium subscription charges for these channels," says the report.

It notes that with increasing viewership and variety of content available, there has been a significant increase in the number of English entertainment channels here.

"Viewership of English GEC channels has increased by 40 percent since November 2012, when the first phase of digitisation was initiated. This is good news for broadcasters as it may result in increase in revenues," it says.

It observes that in the pre-digitisation era, analog cable operators in most small towns were able to provide only 70-100 channels, resulting in cable operators preferring Hindi or regional entertainment and movie channels.

Further, broadcasters would place an English entertainment channel in the top band in a few select cities where they experienced high viewership.

Consequently, many English entertainment channels being placed in low bands resulted in bad picture and sound quality as well as low awareness levels.

"The onset of digitisation is about to change the content demand as English entertainment channels will be available in digital quality picture and sound throughout the country," says the report.

Broadcasters like Star and HBO also have launched premier channels where shows are telecast along with the Western countries with difference of a few days.

"These channels are subscription-based channels where viewers have to pay premium rates for watching these channels as they offer popular content along with country of origin of these shows.

"These channels are able to charge anywhere between Rs. 40 and Rs. 60 per month to their viewers due to their popularity," it says.

It notes that English entertainment channels now broadcast the best and most trending TV shows in the US, like Game of Thrones, House of Cards, Quantico and How to Get Away With Murder, in the country now.

Shows like MasterChef Australia have also become very popular here, while comedy series still remain an all-time favorite, with shows like The Big Bang Theory, Modern Family and 2 Broke Girls having a high viewership here.

A 2015 Ficci-KPMG report had said the increasing penetration of premium, ad-free channels such as Star World Premiere has resulted in boosting the subscription revenues significantly for the English entertainment genre.

"Premium HD channels recorded a ten times topline growth, with DTH accounting for over 95 per cent of the premium channel subscriber base," the KPMG report had said.

With a majority population residing in smaller towns, the Deloitte report notes that there is a geographical divide at present in terms of viewership, which impacts the TRP of the English channels, resulting in lower ad rates.

Advertising rates for a 10-second spot on Star World or Star Movies, channels that depend on ad revenue, is usually in the region of Rs. 2,000-2,500, while Star Plus, the flagship Hindi general entertainment channel of Star, is able to sell the same time slot for a hefty Rs. 1,50,000-2,00,000, it notes. "Until these markets show increase in viewership, which may result in increase in advertising income, subscription would continue to lead the way for English entertainment and movie channels to generate revenue," Deloitte says.

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