Transforming from Analog to Digitization

Television in India has witnessed a major transformation over the decades embarking the journey of digitization. As the Cable Television Network Act 2011 has made it mandatory for all analog cable TV to switch over digitization, the market has changed dramatically offering better viewing experience for viewers.

The target cities of digitization are Mumbai, Delhi, Bangalore, Kolkata and Chennai. There were 3 different phases of channelizing the network that will also reach to towns and districts. However, with the question like what is digitization, the answer is provided by the providers. Company like Videocon D2H has made the service more interesting by offering extra features and service.

The Beneficiaries:

The providers like Videocon D2H, TATA Sky and Airtel are not the one who are going to benefit with this switch over, but also the users. Providers will be benefited with ARPU (Average Revenue Per User). Moreover, Broadcasters also will be able to get the accurate number of their subscribers through this digitization, which is not possible with an analog cable thereby increasing their subscription revenue.

According to the The Associated Chambers of Commerce and Industry in India study, presently the number of household TV users are estimated to more than 150 million and cable TV homes are about more than 100million. There has been a huge challenge for the installation of digital connection to each of these households. Among the major challenges are concerns about the timely installation of digital set top boxes in all television households; questions about the availability of necessary funds for the procurement of new digital cable boxes.

Changing from Analog to Digitization:

There has been a huge change seen in analog TV users who are now switching over to digital service. There is a huge limitation in analog service including limited channels, high charges and not so crisp channels.

In India, DTH providers are not leaving any stone unturned to attract consumers switching from analog cable to digital TV.

The Rise of DTH Players in Digitisation:

DTH players are concentrating in rural areas where TV audience are increasing rapidly and switching over to digital service. With the onset of digitization, service providers got an entry to the urban markets in the early phases of digitisation. Urban subscribers are also having options of choosing STB from local cable operators; however, they get limited service and channels compared to digital company.

Though the digitisation has emerged as new player, it couldn’t overthrow the cable operating service. According to the set top box seeding status of phase II released by government, DTH players in India could grab about 30% of the market share. This is something that can worry DTH players in near future.

However, players like Videocon D2H is gaining momentum and ensuring that the user gets good service under best package. They are not only offering service to single user in building, but the entire residents of the building. This certainly helps the company to get more subscribers and earn good revenue by offering quality service.

Conclusion:

No doubt, digitisation has been a game changer and getting the process ahead to rich more TV audience, also giving tuff competition to cable operators.