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India, China to add 83 million multi-channel TV households

23-July-2004
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India, China to add 83 million multi-channel TV households

India and People’s Republic of China (PRC), jointly, are expected to add 83 million multi-channel TV households, in five years from now. Also, together, these two Asian giants are likely to add more number of multi-channel TV households, than the entire increase in the rest of the world, according to a PricewaterhouseCoopers (PwC) survey of the media and entertainment industry for 2004-2008. FE had earlier reported that the PwC study saw the Asia-Pacific region as the primary driver for growth in the entertainment sector. Now, there’s more.

For instance, India and China will be the principal catalysts of growth, as both are “investing heavily in their communications and media infrastructure.” Another reason why these two Asia-Pacific biggies are driving the region’s media sector growth, is that they “are opening up their markets to foreign investments,” according to PwC.

Technology development and digital wave in India and China are among the other key factors. Above all, the study looks at the huge population and low penetration of media in these two countries as a big plus.

Interestingly, the research considers the Tata-STAR direct-to-home (DTH) broadcasting venture, which is being planned for the year-end, a mover too for the Indian media sector. Besides, the projected increase of the multi-channel households in India by 21 million in the next five years, would translate into 7.6 per cent penetration raise, the PwC report says. Currently, there are around 45 million cable and satellite homes in the country. There are a few thousand DTH (from the Zee stable) homes also in the country.

If India is expanding its satellite homes, China’s numbers are impressive as well, going by the study.

“We project an increase of 30 million satellite households and an additional 32 million cable households in the PRC by 2008, for a total gain of 62 million multi-channel households.” China plans to launch its first satellite service in 2005.

While the TV distribution market in Asia-Pacific is projected to grow at 12.6 per cent compound annual rate, the overall media and entertainment market in the region will grow at a 9.8 per cent compound annual rate in the next five years.

On the whole, the global entertainment and media industry is on the recovery path, from the 2001-02 downturn, the report concludes.

Although technology is a growth vehicle, the political and military environment could pose a hurdle.

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