DTH: The Party Begins

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There is a life beyond DD Direct+, Tata Sky and Dish TV. New players like Bharti, Reliance, Videocon, and Sun TV are chalking out entry strategies into the DTH space. Although DTH is still at a developing phase, a lot of players want to tap the segment offering different options for consumers.

New players will have to compete with veterans such as DD Direct+, Dish TV and Tata Sky, who will not shed the DTH market share to new players easily. Dish TV has been constantly adding new channels to its bouquet; last month it added eight new channels to take the count to 171. Its customer base is also growing at a good pace, presently with 2.3 mn customers. Recently, it also tied-up with Kingfisher Airlines for in-flight entertainment. Dish TV plans to offer up to 200 channels by the end of this year, and invest Rs 180 crore in technology upgradation in the next three years. Dish TV is also confident that by mid 2009 it will be able to breakeven.

Tata Sky is also not to be left behind. In its first year of operations it has crossed the 1 mn connections mark and expects to cross 8 mn in the next five years. Tata Sky has expanded its distribution network from 300 towns and 10,000 dealers at the time of launch to 4,500 towns and 30,000 dealers across the country today.

The DD Direct+ envisages telecast of 30 free-to-air channels (containing both Doordarshan and private channels) initially and is likely to include more channels later on.

Not All Smooth Sailing
With four new players eyeing the DTH space, in a market where cable has a strong hold, the going may not be smooth. As a matter of fact, internationally, most markets have a single or a maximum of two DTH players.

Bharti Airtel, which is planning to launch its DTH services by the last quarter of FY 2008, is already geared up to meet the expectations of the customers. Airtel's strategy for DTH service is to launch it in more than 250 towns of India by the end of 2008. In lieu of this, the company is setting up state-of-the-art infrastructure near Gurgaon for the purpose of uplinking and broadcast. This investment will ensure a scaleable and stable solution to the consumer. Airtel would compete with other players on the basis of differentiated product offerings, superior customer experience, and distribution reach. In the initial phase it plans to offer 150 plus channels, in addition to radio and interactive channels. Airtel's strategy for DTH is to launch it on a pan India basis and take it to the masses. By the end of 2008, it aims to be present in more than 250 towns of India.

Reliance Communications' DTH venture 'Blue Magic' is expected to hit the market by the end of the current year or in early 2008. It plans to launch its DTH services in a phased manner. In phase one the company would be offering its services in metros and will keep a track on the market moves to plan in its second phase. The company would be offering 150+ channels apart from Big FM 91 radio channel. Its main focus will be on customer satisfaction, for which the company would be banking on its robust distribution channel.

Videocon is also making a foray into the DTH market through its media arm, Bharat Business Channel. It is expected that Videocon would be launching its services in the first quarter of 2008. Videocon Industries would be capitalizing on its already existing distribution network in India, which can be used for sale of DTH hardware. It plans to have more focus on pricing and is coming up with around 130 plus channels.

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