A STB (Set -Top-Box) Penet rat ion St udy

by TAM MEDIA RESEARCH

Impact of CAS Implement at ion

Topline Findings
February 10, 2007
 About
• Come Jan 2007, CAS got implement ed in t he Zone-1 areas of
Mumbai, Delhi & Kolkatta
• In t he first week of t he mont h, TAM commissioned AC Nielsen
to conduct a ‘ Pay TV Homes’ est imat ion st udy in t he CAS-
mandat ed zones of Mumbai, Delhi & Kolkatta
• The fieldwork periods were –
– Mumbai : 12th to 16th January, 2007
– Delhi : 11th to 15th January, 2007
– Kolkatta : 11th to 16th January, 2007

• The fieldwork mid-point : 14th January 2007

 Met hodology
• This st udy was purposively limit ed t o t he CAS-mandated
zones in t he cit ies of Mumbai, Delhi & Kolkatta
• The Zones were furt her divided int o 100 sampling nodes,
ensuring adequat e geographical coverage of t he Zones
• Face-to-Face int erviews using a st ruct ured quest ionnaire
were conduct ed. The int erviewee was t he decision maker
pert aining t o cable subscript ion.
• Sample Size = 750 respondent s/ cit y => 2,250 respondent s
across 3 cities
• The fieldwork period was kept very t ight & synchronized
across t he 3 met ros, t o ensure comparabilit y
 The foot print of CAS…
C&S Homes (Mn) CAS-mandat ed Homes (Mn)

3-Met ros
1. 63 • Of the 7.96 Mn cable homes across the
7.96 3 metros, 1.63 Mn cable homes fall
under the CAS-mandated zones
(approx. 21%homes fall under t he
Kolkat t a
0. 41 mandated zones)
2.10
• C&S Homes under the mandated areas,
in the respective cities –
0.68 – Mumbai : 17%(0.55Mn of t he 3.25Mn
Delhi
2.61 cable homes)
– Delhi : 26% (0.68Mn of 2.61Mn cable
homes)
0.55
Mumbai – Kolkatta : 20% (0.41Mn of the 2.1Mn
3. 25
cable homes)
 Scope of t he st udy…

1. CAS adopt ion in t he mandat ed zones of t he

respect ive cit ies

2. Profile of t he ‘ early adopt ers’

3. Consumer Awareness
 STB/ DTH off-t ake…
C&S Homes (Lacs)* STB/ DTH Homes (Lacs)*
*Homes under the CAS-mandated zones
16.33 • Across the 3-metros…
– Of the 16.33L homes covered by
the CAS footprint, 2.77Lac homes
had taken up a STB/DTH connection
to access ‘ pay channels’
– ‘ Pay TV’ homes amounted to 17% of
the CAS-mandated area
• Off-take across the metros exhibit
6.76
significant differences…
5.48 – Mumbai – 1.39Lac of 5.48Lac (25%
4.09
penetration)
2.77 – Delhi – 0.97Lac of 6.76Lac (14%
penetration)
1.39
0.97
0.41 – Kolkata – 0.41Lac of 4.09Lac (10%
penetration)
Mumbai Delhi Kolkat t a 3-Met ros
 Wait ing in t he wings…
C&S Homes (Lacs)* Homes aw ai t i ng i nst allat i on(Lacs)*
*Homes under the CAS-mandated zones
16.33
• Across the 3-metros…
– An additional 1.98L homes claimed
to have subscribed but awaiting
installation of ‘ pay TV services’
– An additional 12% cable homes
waiting in the wings
• The ‘ under served’ segments varied
6.76 by the respective metros…
5.48 – Mumbai – 1.09L (20% awaiting
4.09 installations)
– Delhi – 0.43L (6% awaiting
1.98
installations)
1.09
0.43 0.46 – Kolkata – 0.46L (11% awaiting
installations)
Mumbai Delhi Kolkat t a 3-Met ros
 Cumulat ively…
Installed Aw aiting Installation Undecided

100%
• Mumbai most responsive
90%
– 25% homes had converted
80% – 20% awaiting installation
70% 55 • Delhi & Kolkatta response rates
71 level, at an aggregate level
60% 80 79
• Delhi was bet t er served (14%) t han
50% Kolkatta (10%)
40% • At a 3-metro level…
20 – 17% homes installed
30%
– 12% homes awaiting installation
12
20% – Nearly 1/3rd of the mandated area
6 11
10% 25 responded favorably for conditional
14 17 access to pay channels
10
0%

Mumbai Del hi Kol kat t a 3-Met ros

 Numerically speaking…
• Of t he 16.33L cable homes falling under t he CAS-mandated
zones across the 3 metros…
– 2.77L homes had already opt ed for a STB/ DTH connect ion(17%)
– An addit ional 1.98L homes had subscribed but were await ing for t he
installation (12%)
– Cumulat ively, 4.75L homes had subscribed comprising 29%of t he CAS-
mandated homes
• At individual met ro levels…
– Mumbai – 1.39L homes inst alled + 1.09L await ing inst allat ion = 2.48L
homes subscribed
– Delhi – 0.97L homes inst alled + 0.43L await ing inst allat ion = 1.4L
homes subscribed
– Kolkatta – 0.41L homes inst alled + 0.46L await ing inst allat ion = 0.87L
homes subscribed
 SEC-wise penet rat ion…
SEC A SEC B SEC C SEC D/ E

50%

45% • The highest off-take is observed in the

45%
higher SEC & the off-take declines as
40% one comes down the SEC ladder
• The off-take levels vary significantly
35% 33%
across markets even at a SEC level…
30% – Highest off-take is observed in the SEC
27%
A strata of Mumbai & zero off-take in
24%
25% SEC D/E of Kolkatta
21%
– The response by Mumbais’ SEC C is
20%
nearly on par with those from SEC A
15% 14% residing in Delhi & Kolkatta
15%

9%
• Owing to the pre-dominant non-
10%
responsive lower SEC, the off-takes
5% 6%
5% 3% seem to have got dampened
significantly
0%

Mumbai Del hi Kol kat t a

Base : Installed STB Subscribers

 Awareness – Maj or ground t o make…
Mumbai Delhi Kolkatta
• Three areas were probed to check for
47 awareness levels…
Rent for Set
Top Boxes 9 – Knowledge of CAS-mandated areas
(Aware%)
23 – Requirement of a STB for viewing FTA
channels
– Rental schemes for STB’ s
Is STB 10 • Despite low off-take in Kolkatta,
required to
view free to 41 consumer awareness appeared to be
air channels
(Yes%) 44
higher than in Delhi & Mumbai
• Consumers residing in Delhi appeared
to be the least aware of counter-parts
Has CAS 59 from Mumbai & Kolkatta
been
mandated in 73 • Lets now see what the stated reasons
the complete for not buying into CAS…
city (Yes%) 54

Base : All TV Homes

 Pre-dominant reason – Pricing !!
(among non-STB Homes)
Satisfied with existing channels that I receive
These services are very expensive
Others

Kolkatta 13 83 4

Delhi 32 46 22

Mumbai 26 72 2

Base : Non-STB Subscribers

 Summing Up…
• Approximat ely, 21%of t he cable homes in t he 3-metros
fell under t he CAS-mandated area (Zone 1)
• Off-t ake of t he boxes was highest in Mumbai, followed by
similar levels in Delhi & Kolkatta (Inst alled + Await ing
Installations)
• A significant quant um of homes were await ing
installations (12% of 3-Met ro C&S Homes)
• The penet rat ion of CAS had pre-dominantly taken off in
the higher SEC’ s of all the metros, zero off-take in the
lowest SECs of Kolkatta
• Consumer Awareness has significant ground t o cover
• Price, as expect ed, remained t he pre-dominant reason
amongst homes t hat had opt ed t o remain FTA
 Implicat ions for TAM
• TAM will cont inually conduct & publish
result s from it s mont hly STB-penet rat ion
st udies and commensurat e changes brought
about in t he panel
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