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Report says DTH industry may grow 6 per cent in FY21

As per a latest analytical report, DTH industry will witness a growth of up to 6 per cent in its topline to Rs 22,000 crore in FY21.

twitter-logoIndia Today Tech | September 29, 2020 | Updated 11:35 IST

Highlights

  • DTH industry may witness the growth in revenue by 6 per cent in FY21.
  • However, the estimated growth rate in FY21 is lower than the 14 per cent witnessed in FY20.
  • "This fiscal (FY21), the subscriber base is seen increasing another 600-700 bps to 68 million."

While many businesses suffered due to COVID-19 pandemic, there are industries that have benefited because of the same reason. The DTH (Direct-to-Home) industry is one of the lines of businesses that has witnessed the growth as people languished in lockdown. As per a latest analytical report, DTH industry will witness a growth of up to 6 per cent in its topline to Rs 22,000 crore in FY21.

An Indian analytical company providing ratings -CRISIL on Friday said, "Direct-to-home (DTH) broadcasting, which accounts for 37 per cent of total television (TV) subscribers in India, is set to buck the economic downturn and log a revenue growth of 400-600 basis points (bps) to Rs 22,000 crore this fiscal."

However, the estimated growth rate in FY21 is lower than the 14 per cent witnessed in FY20. Sachin Gupta, Senior Director at CRISIL also explained that the 14 per cent growth in revenue in FY20 came from two sources -9 per cent came from an increase in subscriber base, and the rest 5 per cent was due to a jump in average revenues per user (ARPU).

"This fiscal (FY21), the subscriber base is seen increasing another 600-700 bps to 68 million, which will lift revenue growth up 400-600 bps. But ARPU is seen contracting 100-200 bps to Rs 310-315 on downtrading by viewers and reduction in charges for multi-TV subscribers as per the New Tariff Order (NTO) 2.0," Sachin said.

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