IndianMascot
Core Member
Even as the government’s effort to digitalise the cable industry is dogged by delays due to assorted reasons, direct-to-home service provider Dish TV is now looking beyond the metros for its next wave of growth.
The company, which recently bit the price-hike bullet to raise its average revenue per user (ARPU), accounts for nearly 30 per cent of the country’s 42 million strong direct-to-home (DTH) subscriber base.
“Basically, the four major metros are the present market which, as digitisation becomes a must, will become a replacement market. Our thrust will, therefore, be in semi-urban areas and move onto to Phase-II, Phase-III and Phase-IV towns. To strengthen our brand, we will be investing Rs.120 crore above the line,” said R. C. Venkateish, CEO, Dish TV.
“In metros, the addressable market is around 70 million homes which are yet to convert to digital. Right now we don’t see consolidation in the industry, despite reports, as it is still much cheaper to grow organically,” he said.
However, Dish TV still posts losses, although it has come down sequentially. Net loss stood at Rs.32 crore in the June quarter, down from a loss of Rs.49 crore in the March quarter. Moving ahead, an increasing preference for high-definition (HD) quality television could be crucial for enhancing revenues. “The ARPU for HD services stands at Rs.414 per month, compared to Rs.156 for normal services,” Mr. Venkateish said.