Videocon delays DTH foray

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Source: The Economic Times
NEW DELHI: Consumer electronics major Videocon has delayed the launch of its Direct-to-home (DTH) venture. The company had earlier said it would start pilot tests in July and launch commercially in August. Videocon’s DTH brand, D2H, would be the sixth player to enter the DTH space.
Videocon Industries director Saurabh Dhoot said, “We haven’t delayed our launch. We would start testing signals before the year end and launch it next year. I can’t reveal the exact date of the launch.” As per industry sources, Videocon would not be in a position to launch its DTH venture commercially before March next year.
The company has announced plans to invest Rs 1,000 crore in the next three year on its DTH business. The company has also said that it would offer its product at competitive prices and would leverage its consumer durable customer base to grab the initial numbers.
According to industry sources, there could be atleast one additional company who has applied for DTH license and has also talked to technology partners. India would be the first country in the world to have 6-7 DTH players and industry experts believe it would be a formidable task for them to exist and maintain the subscriber numbers.
News Corp owned NDS Group chairman & CEO Abe Peled who was recently on an India visit had said, “If you ask me, it is difficult for seven DTH companies to coexist.” NDS provides digital cable and DTH companies with pay television technology.
The entry of R-ADAG’s Big TV and Airtel digital television triggered a price war which has adversely impacted the profitability of DTH players. Dish TV is now looking at increasing its prices. Industry experts believe consumers attracted to players with low prices have zero loyalty factor and therefore players could loose such subscribers after they end their promotional offers.