New Delhi: The combined figure of non-resident Indians (NRIs) pay-TV subscription households from the Gulf region and Europe will definitely pale in comparison to the estimated figure for pay-TV households in India (based on assumption that NRI total households are mere 850,000, mere 13 per cent of Indian TV households).
Considering this, broadcasting outside India might not seem to be an attractive proposition.
But European satellite operator Eutelsat seems to be gearing up for tapping this opportunity.
In his presentation during the 12th Convergence India international conference, companys regional director, Middle East, Asia and Scandinavia, Jan Grondrup-Vivanco highlighted the broadcasting opportunities outside India.
In his 'widebeam vs superbeam for DTH broadcasting' presentation, Vivanco said that the widebeam (which is an inter-regional beam in comparison to superbeam which is only a concentrated beam in a particular area), is 'technically feasible and financially desirable'.
Elaborating on wider financial implications, terming its as 'back of the envelope calculations', with Indian TV households base of 65 million (however this assumption on actual households in India) in comparison to 0.85 million households for NRIs from Europe and the Middle East, Vivanco assumed maximum penetration for pay TV in India to be 20 per cent and for NRI-based households to be 30 per cent.
"If potential market for India is 13 million and pay package is 2.6 Euros, then revenues on annual basis would be 405.6 million Euros. In comparison to 255,000 NRI households with pay package of 30 Euros, the revenues on annual basis would be 91.8 million Euros. The assumed margin for Indian broadcasters would be 5 per cent while for NRI segment it would be 70 per cent. So even with 50 times less subscribers, margins are 3 times higher," said Vivanco.
Citing the example of Filipino channel ABS-CBN in Europe and the Middle East, he said that there is an opportunity for broadcasters/content producers with great savings via widebeam. "AB3s widebeam footprint closely matched the regions of Europe and the Middle East containing substantial Filipino population. By utlising AB3, ABS-CBN could cost effectively provide direct to home Filipino television and radio channels these to viewers from one orbital position and one satellite beam," a consultant from ABS-CBN was quoted as saying in Vivancos presentation.
On ABS-CBNs reasons for moving to AB3 Widebeam, he said that it was driven by market expansion from the Middle East on LMI-1 to the Middle East and Europe on Atlantic Bird 3 (Eutelsats satellite).
"Further, there was the need to reach the large Filipino population in Europe and the Middle East. There are right issues to resolve as far content is concerned. There is favourable economics as overseas markets are premium markets. For instance, 1000 European subscribers can earn you as much as 20000 in Philippines!" he said
