Dish TV has Rs 14 bn investment plan in 2 years

MUMBAI: Subhash Chandra-promoted direct-to-home (DTH) service provider Dish TV plans to invest Rs 14 billion over the next two years as it plans to ramp up its subscriber base.

The company has already received Rs 4.05 billion as part of the proceeds in the second tranche of the Rs 11.40 billion rights issue.


"Dish TV has already exhausted the Rs 3.10 billion it raised in the first tranche. The promoters have agreed that the second tranche can be given an early call. We plan to pump in Rs 14 billion over two years," says a source in the company.

Dish TV is also planning to raise between $100 to $150 million through foreign currency convertible bonds (FCCBs), though it has taken an enabling resolution from the board to raise up to $200 million.

The leading DTH market leader plans to add six million subscribers over the next two years.

"A major chunk of the investments will be towards customer acquisition. The subscriber acquisition cost is Rs 2600 and is likely to stay there in FY‘10 unless the rupee appreciates strongly. Our target is to add 2.5 million subscribers in FY‘10 and 3.5 million in FY‘10," the source adds.

Dish TV expects its content cost to fall from 59 per cent to 40 per cent for the fiscal. "We have moved away from per subscriber deals and entered into fixed fee contracts with broadcasters. We have also put the expensive pay channels under a la carte," the source says.

The ARPU (average revenue per user) should be in the region of Rs 165-175 in FY‘10. "For FY‘09, the ARPU on subscription stood at Rs 146 while on gross revenues it was at Rs 185," the source adds.

Dish TV is targeting a revenue of Rs 12.5 billion for the fiscal ended 31 March 2010, a jump of 70 per cent from the earlier-year period. It expects to turn operationally profitable this fiscal, says the source.

Latest Reads
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications
Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories