Market Research – Set top box

India TV Market – Today and Tomorrow

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TELEVISION: BETTING ON DIGITIZATION DESPITE DELAYS
Emerging Markets
 According to Pyramid Research 2014 predictions, OTT pure plays will expand their customer base
over 2013 at rates between 20% and 50% in the most established markets, and between 60%
and 100% in emerging markets.
 Established players are venturing into OTT platforms indicating the growth prospect being seen in
this space
 China is the largest OTT video market globally in user terms, although in revenue terms, the US is
by far the largest.
 Ranked ninth globally, China tops Pyramid Research’s OTT Video Market Attractiveness Index in
emerging markets.
 As of September 2013, China had 450 million OTT video users.
 The OTT market leader, Youku Tudou, currently receives over 300 million unique visitors each
month
 Among emerging markets, Russia ranks second in the index after China.
 A sizeable broadband market with state-of-the-art infrastructure, Russia has seen a high degree
of activity in the OTT space.
 Russia’s leading OTT video service, ivi.ru, has a monthly audience of 12 to 16 million unique
users, equivalent to 25 percent of all Internet users in Russia
 Brazil, which ranks fifth in the emerging markets, is another market to follow. OTT video market
has grown substantially in 2013, reaching 2.5 million online video streaming users.
 Growing HD channel count in Latin America bodes well for Internet TV
The Opportunity
 Current Internet penetration around 12% in emerging markets and expected to increase to 28% by
2015
 Internet usage will likely grow faster for female and from home
 Indian smart TV market is expected to reach Rs 54,000 crore ($10.41 billion) by 2017, growing at
a CAGR of 87 per cent during 2012-2017
 Over 50% of the TVs today are expected to be smart TVs by 2017
 A low cost device that turns ordinary TV to Smart TV can be of demand like the cable TV as
consumers prefer the best entertainment at low cost
 Current challenges
 Costly Smart TV
 Less Awareness about smart TV box
 Marketing efforts seem to be less by the current players
 Differentiation between Smart TV and Smart TV box
 Smart TV box perceived as Set up box
 Fun of Smart TV yet to addict Indian Consumer
OTT Market in India
 The over-the-top television market might still be in its infancy in India but still holds a lot of
promise in future, a fact that is borne out by PricewaterhouseCoopers which forecasts 176 million
OTT viewers by 2015 generating revenues of $552 million

 Mobile Internet TV is one of the biggest growth areas in India with a third of Indian smartphone
users watching TV on their smartphones, according to the PwC research.

 According to a survey by PwC 88 per cent said they would consider paying for mobile video now
or in the future, with as many 54 per cent saying they had already paid to access content.

 However people will only pay for video that is good quality and that is delivered quickly,
particularly since the biggest problem faced by consumers while accessing content online is that
of buffering and poor quality images

 The biggest issue, however, is that 68 per cent of the people surveyed expressed dissatisfaction
with the time it takes video to load