(ADP News) – Apr 22, 2009 – India’s pay-television market, which attracted serious interest from foreign companies in the past two years, is expected to see a rise in competition due to the economic turmoil, the Financial Times reported.

The profits of international players in the region are expected to shrink this year and investments in new channels are jeopardised in the increasingly difficult market.

Due to the large audience and relatively liberal ownership and content laws, foreign-owned pay-TV companies in India generated some USD 1.2 billion (EUR 928m) in sales compared with the USD 500 million generated in China, according to industry research firm Media Partners Asia’s annual report released on Wednesday.

Still, the sector has become overcrowded. According to MPA estimates, the number of channels in India has reached 350 while local distribution systems are capable of carrying only some 150 each.