Wednesday, February 20, 2013

Impact of Digitization - Sun TV

Phase 1 digitisation is still pending in Chennai. Management is confident of an additional 1.5m homes contributing to subscription revenue once Chennai digitises over the next quarter or two.

Phase 2 digitisation for Sun TV means an additional 4m homes.
— Bangalore – 1.7m
— Hyderabad – 1.3m
— Coimbatore – 0.4m
— Visakhapatnam – 0.4m
— Mysore – 0.2m

Sun TV believes there may be close to 35-40m cable users in total across the four southern states, and that very few are paying for access currently. Some of these analog cable users may switch to DTH as local multi-system operators (MSOs)/local cable operators (LCOs) are unable to invest in capex. Sun TV charges Rs39/subscriber/month for DTH and Rs25/subscriber/month for digital cable.

Even assuming no increase in rates and no increase in cable and satellite (C&S) households, with a 12-month slippage in the digitisation timetable, management believes subscription revenue could at least triple from the
current annual run rate of Rs5.25bn (based on the latest quarterly subscription revenue of Rs1.3bn).

For the benefit of Subscribers, Sun TV has established a dedicated online consumer complaint box.

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