Digital TV penetration in rural areas is way more than in urban centers

Though nearly 80 per cent of households in urban areas have television sets, more than double the 38 per cent in rural areas, the adoption of technology has been much faster in the latter. Digital TV penetration is 34 per cent in rural areas and 11.9 per cent in urban India.

Interesting stats these. (source: Business Standard) However, I am not sure of that this is because of better services at affordable rates as the COO of DishTV suggests towards the end of the article.

These would be good enough reasons for better urban penetration as well. And the price points would matter even less.

I believe it has a lot to do with broadband Internet penetration as well. In urban centers the Internet is a major source of, for the lack of a better word, entertainment. Which essentially translates to lower TV viewership in general. So the urban demand is more likely easily met via traditional cable operators.

The lack of Internet penetration in rural India makes it even more dependent on traditional TV. And the promise of better services can thus make a bigger impact there.

Another issue could be power. In rural areas lesser hours of power would mean lesser duration of TV via cable operators. Of course the cable operators could have backup power, but that would drive up costs. May be even beyond digital TV.

There may be other not-so-service-and-cost-related drivers to this difference in demand as well.

[image: Flickr/Pranav Yaddanapudi]