DTH gains momentum with increase in Profit & Price

Xen

EntMnt Ambassador
Official Info
The monthly run rate of DTH gross additions in India has seen a steady uptick from 0.6 mil. in Dec. last year to 0.8 mil. in May 2012, according to analysis from Media Partners Asia (MPA).

In a six player market, more than 85% of the monthly gross additions are coming from four players. Tata Sky continues to grab a higher share of incremental subscriber additions, up from 18.9% in Jan. 2012 to 22.4% in May. Dish TV continues to maintain its dominant position overall with an incremental share of 19.4%. D2H leads gross incremental share with a 25.5% share in May.

On July 2, Dish TV raised prices across all its packages by Rs20 per month besides raising the entry level pricing by Rs200 per month. Other DTH operators are likely to implement a similar increase later this month. MPA says that it will take ~4-5 months for the price hike to impact ARPUs, which are expected to grow by 7% Y/Y during FYE March 2013.

Other recent notable news includes two milestones: (1) In Q1, Dish TV became the first DTH operator to start reporting positive free cash flow on a gross subs base of 12.9 mil. and (2) D2H reached operating breakeven with a gross base of 5.5 mil. subs.
 
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