Reliance Brings Momentum

[alpeshpatelk]

Reliance-backed Big TV launched its digital DTH satellite pay-TV platform August 19, targeting a potential 40% share of the Indian DTH pay-TV market over the next 12 months.

Reliance's entry into the capital intensive pay-TV sector is significant as it has the resources to fund long term losses and hefty sub acquisition costs (SAC). Dish TV continues to grow its top line aggressively but its SAC continues to climb along with losses while the cash burn at Tata Sky, a US$600 mil. JV between the Tatas, News Corp. and Temasek, is significant.

Making money in the mass market is the name of the game but between them, three cable MSOs - Hathway, DEN and Digicable - now lay claim to almost 25 mil. homes passed in aggregate, with Hathway in particular building a profitable franchises that could be emulated in time by DEN and Digicable. Hathway's growing acquisition of primary points and its success with broadband is instructive and the company is on track to generate annualized EBITDA of US$40 mil. by FYE March 2009 on sales of US$160 mil. Hathway's digital subs are likely to pass 1 mil. shortly. More funds and cash will be needed by cable however.

MPA’s latest analysis suggests approximately 6.3 mil. DTH pay-TV subs in India at present, based on net numbers from three platforms: Dish TV (~ 3 mil.), Tata Sky (2.3 mil.), and Sun Direct TV (1 mil.). MPA forecasts indicate that the DTH market could grow to 13.3 mil. net subs by end-2009 and 17.4 mil. by end-2010. Reliance reckons that another 10 – 11 mil. gross subs could be added over the next 12 – 18 months. Videocon will launch DTH services in Sept. 2008, followed swiftly by Bharti. Big TV offers 200 channels to customers, including more than 30 VOD movie channels and wide availability of all the pay-TV channel bouquets. The service is available across 6,500 towns in the country. The service is priced at Rs2,490 (Rs1,490 initial deposit plus Rs1,000 in total install fees) similar to offered by Dish TV and Tata Sky at present.

Leading Indian DTH pay-TV operator Dish (DSTV.BO) plans to acquire 5 mil. subs by FYE March 2009, adding 2 mil. new subs in the process. The company saw subscribers grow at record pace during its June 2008 quarter costs and losses also increased sharply. Encouragingly, Dish reported gross adds of 167,000 for last month, driven by offers targeting the South. Dish TV revenues grew 85% Y/Y to Rs1.6 bil./US$40 during its June 2008 quarter but EBITDA losses increased Y/Y to Rs666 mil. because of growing sub acquisition costs, averaged Rs3,000 for the quarter, up almost 100% Y/Y. Gross for the quarter reached Rs173. Dish TV hopes to fund future with a Rs12 bil. rights issue, which chairman Subhash Chandra says will complete later this year. The company has also added more capacity to launch new TV channels with nine transponders ProtoStar 1.

source : http://www.mediaresearchasia.com/view.ph...is&id=0352

[Dish]

Thanks for news it is good article to know some information. Also read last lines

Dish TV hopes to fund future with a Rs12 bil. rights issue, which chairman Subhash Chandra says will complete later this year. The company has also added more capacity to launch new TV channels with nine transponders ProtoStar 1.

[roh_style]

But its still not known, so as to when will they make the satellite to effect. The satellite has already launched and am waiting for it to start transmission ofr Dish TV...!!

[alpeshpatelk]

i think dish tv don't efford to these satellites because they loose more money in last 6 mths.so forgot about these thing till these year atleast.