The rise of technology and internet connectivity, driven by increased purchasing power, has made entertainment more accessible, ensuring that most Indian households have at least one television. Entertainment holds immense value in India, serving as a key medium for leisure, information, and family bonding. With the advent of high-speed internet and 5G, content consumption habits have rapidly evolved beyond metros, reaching Tier II and III cities. What once started with a single channel like Doordarshan, has now transformed into a diverse entertainment landscape, blending traditional TV with digital viewing experiences.
A recent KPMG report projects that 248 million households will be consuming linear television by 2026, reflecting a TV penetration rate of 76%, up from 70% in 2020. The report highlights that a significant share of this growth will come from rural markets, where TV penetration remains relatively lower at 61% of total rural households. This evolution in India’s TV market presents a vast opportunity for homegrown TV companies to penetrate untapped regions, especially rural India, in terms of TV-set adoption. While there is a growing shift towards Smart TVs from audiences in metro, Tier II, and Tier III cities, a significant section of the Indian population still relies on traditional Set-Top Boxes (STBs) to meet their entertainment needs.
Coexistence of Traditional and Modern Viewing
The rapidly evolving landscape of home entertainment in India is due to the fine-tuned balance between Smart TVs and Set-Top boxes (STBs). With this balance gradually tipping towards Smart TV adoption, it continues to sustain a prominent STB user base. Both thrive in varied geographies depending upon the level of accessibility to broadband networks. STBs continue to be regarded as a reliable source of entertainment, maintaining a strong presence in rural markets where cable TV remains popular due to inconsistent connectivity.
The Regional Content Boom
Amidst the evolution of household entertainment is the rising boom of regional language content surging across the country. Audiences are embracing vernacular programming now more than ever. Additionally, cable networks and DTH providers are choosing to capitalize on this shift by offering bundled content in multiple languages, making entertainment more inclusive and accessible. A recent trend benefiting viewers and brands alike is making audiences gain a wider variety of culturally relevant content. This also gives businesses new opportunities to reach and connect with audiences across different languages. Moreover, this growing demand for regional content highlights the importance of local storytelling, encouraging platforms and industry players to serve India’s diverse language audiences.
Cost-Friendly Advantage for STBs
Affordability remains a key factor in shaping India’s entertainment landscape. While Smart TVs are becoming more accessible, they still represent a significant investment, especially for households in Tier III and IV cities. As a result, many families continue to rely on their existing televisions, with set-top boxes providing a cost-effective alternative where Smart TVs are not a feasible option. Instead of discarding fully functional televisions, many families choose to enhance them with set-top boxes or streaming devices that bring smart features and expanded content options. This allows viewers to enjoy a richer entertainment experience while maximizing the value of their current devices. By catering to both budget-conscious consumers and those in regions where Smart TV adoption is slower, STBs continue to play a vital role in India’s evolving entertainment ecosystem.
Bridging the Entertainment divide
Despite the shift towards streaming, cable and DTH platforms remain indispensable for regional content, live sports, and news broadcasting, ensuring traditional TV continues to draw engagement for real-time updates and uninterrupted viewing. Hence, Indian manufacturers and OS players must be cognizant of the relevance and appeal Smart TVs and STBs generate for their respective audiences. The coexistence of both these mediums not only enhances convenience, choice, and accessibility but also marks the trajectory for the next era of home entertainment in India.
Even as India steadily moves toward digital streaming, the headroom for growth in home entertainment is limitless. It is the ever-developing nature and varied preferences of India’s population that allow the potential for increased TV ownership. Therefore, allowing the existence of both traditional and modern viewing options. This leads to the creation of a unified and inclusive ecosystem that caters to diverse audience preferences.
About The Author
Having acquired substantial expertise in the TV industry, Abhijeet Rajpurohit discovered the gap in India’s Smart TV supply chain for a robust TV Operating System which would cater to the needs of the Indian manufacturers. With this vision in mind, CloudTV was formed to focus its efforts towards build-in and build-for India’s Smart TV brands and consumers.
