The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.

Making the Case for IPTV in India

Himanshu Singh
Monday, September 1, 2008
Himanshu Singh
Both Direct to Home (DTH) and Internet Protocol Television (IPTV), which is sometimes also referred to as Interactive Personalized TeleViewing in India, offers integrated service providers the opportunity to further grow their revenue while meeting a latent demand of customers—providing video entertainment to subscribers at home with differing levels of willingness to pay for interactivity. To ensure the best economic gains, integrated service providers should holistically look at the customer base, segment it and then address the needs of this segmented customer base in the most optimal way based on the available options for service delivery. From the analysis presented, it appears that DTH addressable market complements IPTV’s customer segments and that IPTV has a higher potential to grow average revenue per user (ARPU).

Exhibit A: Video Entertainment Value Chain
Exhibit A provides a pictorial view of the video entertainment value chain. Content producers such as Adlabs, Disney and ESPN produce the actual content while content providers such as Shemaroo, STAR, and ZEE acquire content from the producers and aggregate them for the service providers. The service providers, as content aggregators and distributors of the content, then create and offer bundled packages that will appease the end users and support typical content consumption on their TV screens. In India, this value chain is still evolving and one can see that the content creator could also become the content provider and may choose to distribute the content using other channels of distribution. The professionally developed contents from the likes of Adlabs, STAR, and ZEE can be delivered through any of the country’s service providers to the home TV. This is as described by the black arrows in the exhibit. However, only IPTV providers can offer interactive content like games, video on demand (VOD), music on demand (MOD), e-learning, polling, televoting, and karaoke the delivery of user generated content from the likes of YouTube, Facebook, Myspace and Yahoo video that users can potentially consume not only on the home TV but also on the mobile devices and personal computers. This is depicted by the red arrows in the exhibit. A work around would only provide limited interactivity on cable and DTH networks.

Identifying Target Markets
DTH service makes business sense when
* There is non-availability of both broadband and physical back-bone network and the video signals are received by each individual home through a mini satellite dish that acts as a receiver of signals.
* Economies of subscriber scale exist. DTH service can scale-up gracefully as the fixed cost is the satellite link, and this cost reduces per subscriber as the number of subscribers increases—the higher the adoption of DTH, the lower is the fixed cost per subscriber.
* There is a need to access a sparsely populated region or a dispersed population, for example semi-urban or rural areas.

Share on Twitter
Share on LinkedIn
Share on facebook
Reader's comments(1)
1:Nice article summmarizing the IPTV,DTH markets. An estimate of the user base and the players involved in both would have made teh article more versatile.
Posted by: Vamsi Krishna Sistla - 03rd Sep 2008
Messages posted on this Web site under the `Comments' area are solely the opinions of those who have posted them and do not necessarily reflect the opinions of Infoconnect Web Technologies India Pvt Ltd or its site www.siliconindia.com. Gossip, mud slinging and malicious attacks on individuals and organizations are strictly prohibited. Infoconnect Web Technologies India Pvt Ltd can not be held responsible for errors or omissions in content, nor for the authenticity of the user/company name or email addresses associated with posted messages. Infoconnect Web Technologies India Pvt Ltd reserves the right to edit or remove messages containing inappropriate language or any other material that could be construed as libelous, potentially libelous, or otherwise offensive or inappropriate.Infoconnect Web Technologies India Pvt Ltd do not endorse the products and services or any other offerings mentioned in these messages.