India’s explosive DTH growth explained

The gross domestic product (GDP) for the third quarter of 2010 shows an annual growth rate of 8.2 per cent, and is slightly lower than the 8.9 per cent pace of the previous quarter.

The answer to this rapid economic growth lies in India’s youth, according to Deepak Mathur, Vice President Sales, South Asia and the Middle East, SES WORLD SKIES.

With more than half of the population under the age of 25, the young people are driving consumption and productivity across India and will continue to do so for the next 30 to 40 years.

“Teens and young adults are behind the push for more television channels and telecom choices,” said Mathur.

Indeed, India’s economic growth has been reflected in the country’s insatiable appetite for video content. The subscribers to DTH content stands at 30 million today and, according to industry experts at CASBAA India Satellite, will double by the end of 2013.

As it is, STAR India’s statistics showed DTH emerging as the key growth driver for overall pay-TV industry growth at an impressive 74 per cent as compared to 15 per cent for digital cable and 11 per cent for analog cable.

However, the road to DTH growth is peppered with challenges that industry players are constantly battling with.

Success in tackling challenges

For years, the DTH operators have been absorbing the high content acquisition cost and the numerous taxes imposed by the government, hence making it possible for a country with low average revenue per user (ARPU) to enjoy the channels hosted on DTH platforms.

The low ARPU is set to increase gradually as India continues to be one of the fastest growing economies in the world.

“India is today among the world’s fastest growing economy. Our savings and investment rates give us confidence that we can with prudent policies and sound economic management achieve sustained double digit growth.”Indian Prime Minister Manmohan Singh

With economic growth brings about the demand for a varied and more sophisticated lifestyle, and in the case of India, the desire to have different and good quality TV programs. According to Rajiv Khattar, President, Operations, DishTV, who was at CASBAA India Satellite Industry Forum 2011 in March, recent trends have shown that consumers are realizing that DTH offers better quality and services as compared to cable operators.

SES WORLD SKIES’s efforts to power growth

As the DTH industry is poised to grow more rapidly, SES WORLD SKIES continues to work on increasing capacity available to this dynamic market. SES-8, which will be launched in 2013, will be co-positioned with the NSS-6 satellite at 95°East, to provide existing DTH customers with back-up and growth transponder capacity over India and Thailand, Vietnam, Laos.

Quotes in this blog posting were originally published in “Indian DTH industry poised to grow double by 2013" and “India among fastest growing economies in world: PM Manmohan Singh