Article How will DTH drive value in future?

IndianMascot

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Thus far, DTH has not been able to create the kind of consumer base it rightly deserves. Reason being: DTH players have been faced with several obstacles including subscriber leakage on ground, high levels of cash burn and the perennial issue of satellite capacity. What then are the key ingredients required for DTH’s value creation story, going forward? Exactly the question this session tried to address.

Moderated by Vivek Couto, the panel comprised Videocon D2H CEO Anil Khera, Dish TV executive vice-president and strategy Gaurav Goel, MEASAT Vishal Mathur, Kotak Securities senior analyst Amit Kumar and Macquairie capital senior VP Ausang Shukla.

“The major challenge that we face is to correct pricing of STBs from Rs 1600-1700 to just Rs 400-500, thus preventing rotational churn,” voiced Khera.


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Goel supported this problem adding: “The pre-paid model is tough, as the subscriber pays for let’s say only for two months in a year as the existence of analogue in 50-60 per cent households is still a hindrance and we end up having a loss in revenue.”

Addressing capacity and investment-related issues faced by DTH players, Tata Sky CEO Harit Nagpal said: “I am writing my own destiny and thus investing Rs 900 crore on the conversion of old MPEG-2 services to MPEG-4. We have already done it for a million subscribers and soon will look at changing it for six million more.”


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