Broker's Call: Media to gain from digitisation

UBS has maintained its positive view on India’s media sector mainly on increasing digitisation. It believes broadcasters, Zee Entertainment and Sun TV offer the best exposure to digital addressable systems (DAS).

“We expect industry subscription revenues to grow at a CAGR of 16 per cent led by growth in the number of cable and satellite (C&S) homes from 111 million in 2011 to 168 million and an increase in ARPU from Rs 160 in 2011E to Rs 220 by 2016E,” UBS analysts said in a note to clients.