Author Topic: Will TV consumption habits change in India?  (Read 110 times)

wiredlife

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Will TV consumption habits change in India?
« on: December 24, 2016, 08:12:02 AM »
An emerging trend known as cord cutting is being witnessed in the developed markets. OTT  companies poaching the traditional TV viewers is called cord cutting. At times, consumers subtly trim their pricey cable packages to more basic cable packages. This is called cord shaving. Concerns are also emerging about new consumers opting for OTT instead of traditional TV due to ease, affordability and good content. Therefore, growth of traditional media is curtailed. The question is will a similar trend roll out in India too?

Currently, India spends ~INR300‐450 per month on video viewing. Further, the current habit of Indians is to watch video primarily on TV. Therefore, we can safely assume that currently the entire ARPU spends go towards TV. In next 5 years, we expect video ARPUs to increase
from INR300‐450 to INR600‐750 driven by 2 factors: i) increase in per household income; and ii) higher video spends (as a % of per household income).