Wednesday, March 04, 2015

Pricing power evident - Dish TV India

Dish TV has announced the implementation of differential pricing for subscribers in four key metro cities – Delhi, Mumbai, Pune and Kolkata. The company has raised the tariffs across all packs for new as well as existing subscribers by Rs10 in all the four key metros. Dish TV plans to replicate the move in DAS Phase II cities, subsequent to the roll-out in the four metro cities

The company has demonstrated pricing power recently by effecting tariff rates hike by 6% (average) in August 2014 and a further 4-8% in February 2015 beginning, across most packs. Introduction of segmented pricing across subscribers in tier 1 and tier 2 cities is yet another way for company to drive ARPU growth. As a reminder, Dish TV delivered an ARPU of Rs177 in 3QFY15 (vs. Rs166 last year) and looks to further drive ARPU through 1) Increasing HD penetration 2) Introduction of intermediary packs, to drive faster upgrade from the base pack 3) Broadcasters push on RIO deals to improve content monetisation from MSOs which in turn will drive industry ARPUs

Dish TV offers the best way to play the digitization theme in India, in our view. The company is at a critical inflection point in terms of turning net profit positive over the next couple of quarters. Also, Zing, the segmented offering for regional markets, is gaining strong traction and setting up the base for the company ahead of Phase 3 & 4 digitisation.

2 comments:

jasmin jew said...

nice information.. Thanks for sharing . dish tv packages

Vivaan Singh said...

DishTV is truly the best in terms of HD services. They have the widest range of selection of regional and international HD channels. Just get an HD TV and start enjoying the best of high definition imagery.