India is expected to contribute more than a third of the Asia-Pacific’s (excluding China) total channel revenue business by 2023, a new report from Media Partners Asia (MPA) says.

“India’s strategic importance in the region cannot be ignored,” MPA says in its latest ‘state of the nation’ paper, which outlines future value creation in TV and broaband.

At the end of 2014, total affiliate sales for broadcasters reached US$1.1 billion, MPA says.

80% of affiliate revenues were derived from digital subscribers (cable DAS and DTH), while India’s digital pay-TV penetration stood at 48% for the same period.

MPA cautions against viewing thepace of the country’s pay-TV growth from a myopic lens, and says India has done well to attain 48% digital pay-TV penetration in eight years.

“Digitalisation has improved subscription yields for broadcasters,” MPA says, adding that in 2014, “an average broadcaster’s yield from digital subscribers stood at Rs74/US$1.2 per sub per month, against Rs18/US$0.3 per sub per month from analogue.

“There is therefore upside on affiliate sales, as analogue subscribers in phases III and IV convert to digital,” the paper continues.

Going forward, broadcasting industry growth will be driven by, among other things, expansion in advertising through subsegmentation and identifying new genres, as well as an increase in the addressable subscriber base with more digital homes.

Growth will also come from increases in subscription yields. MPA projects total pay-TV channel revenues for broadcasters to grow from US$3.5 billion in 2014 to US$6.1 billion by 2019, and to US$7.9 billion by 2023.

MPA also notes the significant investment in fixed and wireless broadband infrastructure in India, and says this will “help boost internet penetration and improve average broadband download speeds”.

Various government proposals to join forces with cable MSOs and local cable operators could help boost broadband penetration in smaller cities and towns and open new avenues for cable broadband, the report adds.

The country’s US$3.5-billion broadcast industry remains “in a sweet spot”. “The dual revenue stream of advertising and subscription is expected to benefit from a resurgent economy as well as improved structural dynamics anchored to steady growth in the number of TV households and higher digital pay-TV penetration,” the report says.