Pay-Per-View (PPV) Television

Posted in Marketing and Strategy Terms, Total Reads: 509

Definition: Pay-Per-View (PPV) Television

Pay-per-view (PPV) is a kind of paid television service in which one who subscribes to the television service of a provider, can buy events that he/she wants to see via private telecast. The purchase can be made through different channels such as an automated telephone system, an on-screen guide, or through a live customer service operator. Here, an ‘event’ refers to different things like feature films, entertainment programs or sports events.

The difference between PPV television and a video-on-demand (VOD) system is that in the case of the former, the broadcaster shows the event to all those who have ordered it at the same time, while in the case of the latter, the broadcaster allows the subscribers to see a recorded version of the event at any time.

PPV channels are a genuine source of revenue for DTH (direct-to-home) players across the world. However, in India, they are yet to catch on and gain popularity. The major challenges faced by operators in the Indian PPV market are digitisation and subscriber acquisition. So far, we have seen PPV movie channels.

Currently, the PPV market is making its presence felt in Bollywood, the Indian film industry, in a big way and becoming an important source of revenue for movie producers. Many DTH service providers like Tata Sky and Airtel offer PPV films to customers in a reduced price range of INR 25-50. In order to decrease the time window for audiences, they are asking for the early release of films on DTH. This will give a tough competition to the home video and theatrical film markets

On the other hand, the base for people watching sports other than cricket is too small in India. Thus, broadcasters, especially in the case of niche channels face the challenge of getting the content and covering costs while giving it to the viewers. These may be too high for sports like tennis or football. Thus, the Indian market for PPV television for sports events is still not established properly.



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