Sunday, November 16, 2008

Indian Pay-revenue Model

Here is how Indian DTH Market is expected to perform in the next 2 years.
  • No of DTH Homes at end of FY2009 - 8.1 mn which is 10% of Cable Market with an ARPU of Rs 180. Overall size of the DTH market is Rs 13,100 cr.
  • The Number of DTH Homes by FY12 is expected to be 21 mn which is likely to be 21% of Cable market and have an ARPU of Rs 208
What will DTH Broadcasters Get ?
We estimate content costs are ~55% of subscription revenues and are expected to decline to ~45% of revenues as the “sliding scale” mechanism kicks in.

Tuesday, November 11, 2008

Ramp-up Plans of DTH Players

In the next few posts we are going to cover about DTH market in India along with TV broadcasting and content market with some amazing statistics that will be unveiled for the first time.

Today we are going to tell you about the business plans of various DTH service providers.
  • Dish TV [Zee Group Company] Has a customerb ase of 4.4mn is the largest and oldest operator in the DTH business in India
  • DD Direct - DTH arm of Doordarshan has 3.5 mn subscribers. Most likely to end up with the same fate as BSNL in Mobile Subscribers [Initial Lead and will fall later]
  • Tata Sky - Looking at a minimum of 8m connections by FY12 from the current 2m subscribers in direct-to-home (DTH) space
  • Sun Direct - Sun Direct announced 1m DTH subscribers in 200 days - only from the four Southern states. The company is targeting 3m subs by year end
  • Reliance Big TV - Big TV announced on Oct 20 that it had reached 0.5m subscribers within 2 months of launch. It plans to add ~0.4m subscribers every month with an on ground infrastructure spanning 6,500 towns. The company is targeting 5m subscribers within the first year of operations
  • Bharti Airtel Digital TV - Recently launched. Digital TV will be initially available in 62 cities across the country through 21,000 retail points (including Airtel relationship centres). According to press articles, the company aims to capture 20% of the net additions of DTH subscribers this year
Videocon which has thrown its hat into the Mobile telephony business is also entering the DTH business.