Broadcasting equipment industry in India shows potential

by Sohini Bagchi    Oct 28, 2013


The media and broadcasting industry in India is showing positive growth trends and in the next few years can be in a strong position to compete with its global counterparts. At a recent Frost & Sullivan ‘Digital Media India Summit’ recently held in Mumbai, Vidya Nath, Research Director, ICT Practice, Frost & Sullivan, told CXOtoday that despite global slowdown and restraint in advertising budget, a growing number of players in this industry are preparing to invest in inventories – digitizing broadcast workflows and are delivering content on multi-screen.

Sharing the findings of its soon to be released report on the Indian Broadcast Equipment Industry Outlook, Nath mentioned that the market is likely to grow from nearly $100 million in 2013 to $168 million in 2017 at a CAGR of 9%, with a significant interest in HD cameras and video servers.

Huge opportunity in video

Speaking about the exponential growth of video consumption, Nath states that it broadcasting is no longer restricted to any geography or a limited number of service providers today and this trend will continue to be more prominent in the next 4-5 years.

With pay-TV service providers offering more applications and interactive content, the rising adoption of IP by broadcasters and video service providers, and the growing consolidation among operators, the global IP video network management market benefited greatly, as Frost & Sullivan expects the market revenue to reach $442.4 million in 2017, from $217.8 million in 2012. This means that by then, more than 70 percent of data traffic on mobile devices will be video.

Nath believes that in addition to traditional broadcast services, pay-TV operators are distributing videos over various devices such as tablets, smartphones and connected PCs. This increases the complexity of the network, which compels operators to adopt IP-based infrastructure.  Additionally, increasing multi-screen viewing drives demand for video quality monitoring, especially from the telecommunications segment.

“As broadcasters upgrading to digital and HD workflows, the deployment of IP networking will also increase, leading to higher adoption of video network management equipment, such as video analyzers, data-mining systems and other techniques that are used for analyzing quality of service and equipment,” she says.

In the video servers segment, Nath expects a higher growth in revenue. “High growth of HD will also lead to regional distribution and multimedia deployment. This will prompt broadcasters to scale up their servers to support the incremental volume of content and applications,” she mentions.

Slow but steady growth

While comparing the growth rates of broadcast equipment market in India and global landscape, Nath states that in certain categories such as cameras and camcorders the country is likely to score even better than the global average. However, in new age solution such as MAM, India still is in its infancy on account of low awareness and therefore the CAGR will be half of that of the growth worldwide.

Currently, there are over hundred vendors catering to the Indian broadcast industry. But there are only a few dominant names as the market is fragmented.

 “India is highly fragmented by content type, region, and size of broadcasters. About 25% have a broadcast equipment budget of over $160,000 (Rs 1 Crore), while nearly 40% plan to spend less than $41, 000 ( Rs25 lakh) this year. “It is true that sometimes equipment purchase outlays are cyclical and typically, significant purchasing cycles are repeated every three to four years,” says Nath, adding that there will be little change in this trend in the short term.

Nath believes that as service providers increase greater engagement with customers, there will be a stronger ecosystem. The market will see newer customer demand for video content, more solutions and applications, especially in the areas of analytics and monitoring. “Customers are seeking automated analytics to understand viewer habits across multiple devices,” she says, adding that the space is exciting but still exploratory and we expect tech advancement over the forecast period.

Quoting the report, Nath says that while the media and broadcasting industry in India is geared up for increased digitization in the next 5 years, there are several obstacles in the way. For example, even though the customer base is expanding the study shows competition and legislation challenges are holding back the current business from gaining profitability. She concludes that advanced technologies can enable content owners, aggregators and distributors to reinvent their business models to support profitable growth in the coming years.