DTH space has just become on of the hottest grounds with the launch of BIG TV by RCOM.
Dish TV, Tata Sky were the only players in this field with combined 6-8 million subscriber base. Big TV’s entry has raised the bar and the talk is increasing the space to about 30-40 million subscribers in 3-5 years. How that is going to happen is yet to be seen. Bharti and videocone are also raring to enter this space and are making plans to laucnh their services soon. Dish TV and Tata sky are also ramping up their infrastructure and raising funds to acquire subscribers on a rapid pace.
However cable tv viewers are reluctant to pay mre than couple of hundred bucks for their entertainment and i don’t see a strong reason for them to switch from cable wallah to antenna wallah.
Unless there is a massive migration of cable tv viewers from analog medium to DTH platform, i don’ see how RCom, Bharti and videocone are going to meet their numbers.
Apart from aggressive pricing, DTH space could be shrunk to just few players by acquisitions.
Tata Sky would try hard to remain under the fold of Tata. This leaves Wire and Wireless (WWIL) and Dish TV as attractive acquisition targets by Reliance, Bharti and videocone to meet their aggressive subscriber numbers.
No amount of goodies from DTH players can force cable tv viewers to digital platform. DTH players cannot afford to drop their subscription charges to as low as RS 50 in few cities to as high as RS 150.
I don’t see how DTH players can become profitable without huge subscriber base and pricing as competitive as cable wallahs.
It will be interesting to watch this space.