According to the study, television penetration in India is expected to increase 42 per cent by 2005 to 110 million homes, in comparison to the 79 million homes as of now. Cable connectivity, too, is likely to rise to 61 million homes by 2005 as against the current 38 million homes.

With such optimism in the background, television-broadcasting companies are likely to see a huge upsurge in their pay revenues. According to the study, subscription revenues are likely to grow to Rs 17, 000 crore ($3.60 billion) by 2005 in comparison to the current figure of Rs 6,000 crore ($1.30 billion). The share of broadcasters in this has been pegged at 11 per cent or Rs 1,800 crore as against the current figure of Rs 300 crore. Finally, the report has projected a 20-per cent growth in advertisement spends over the next five years.

But cable charges paid by consumers (call them couch potatoes) may fall in the near future, which indeed is good news for consumers. Broadcasters, it seems, are talking to large cable operators (multi-system cable-operators) for bringing down subscription charges. However, the condition is that cable operators do their bit by correctly disclosing the subscriber numbers.

The basic point behind this is that cable subscription charges have gone up substantially in the last few months - from Rs 150 to anything between Rs 200 to Rs 300 - a move strongly resisted by subscribers. With cable operators facing difficulty in collecting their revenues, broadcasters have come out with the proposal cited above.

The basic grouse is that cable operators disclose less than 20 per cent of their actual clients. Even if this figure were doubled, broadcasters would end up collecting the same revenues as of now even if they have to cut their price by half. If the deal does go through, it could develop into a win-win situation for all concerned.

While the consumer will benefit in terms of lower subscription charge, broadcasters will end up earning more and cable operators will face no difficulty in collecting their monthly charges.