Digitization represents the single biggest opportunity for the broadcast industry. Today our revenues are largely over weighted towards advertising and about 70% of our revenues come from advertising. With digitization, we expect that per subscriber revenues will be achieved and with that we expect over next 3 – 5 years, the ratio of advertising to subscription revenues will be more like 50:50. So if advertising revenues are going to grow over next 3-5 years and almost double, then it means that subscription revenues will grow 4 times. So there is a huge opportunity and it will dramatically impact broadcast economics. It will also reduce the amount of the carriage fees that broadcasters currently pay on the analog systems which will enable broadcasters to launch new channels aimed at new markets. This will bring whole new viewer audiences into the broadcast industry by enabling us to target for instance the youth population in India and males are during the weekdays where currently most of the programming because of high carriage fees are focused on women.
So we really expect not only to be able to improve the economics for the core business but to offer viewers new opportunities to view programming that is more suited to their needs and at the same time to be able to make these niche channels profitable. So on all counts digitization is a very significant endeavour for the industry and one that we believe will significantly impact in a positive manner the economics of our business.
