DTH

Dish TV management on new tariff order, subscriber addition, content cost

Content cost for the first quarter was around Rs 610 crore

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/08/09/Dish_TV_New.jpg?itok=pNET5U4z

MUMBAI: The last quarter of financial year 2018-19 was not very smooth for any player in the cable and broadcast industry due to the implementation of the new tariff order (NTO). India’s largest direct-to-home (DTH) operator also saw few bumps on the way but the entire transition process has now settled down. Dish TV India group CEO Anil Dua noted the positive change and also highlighted that the NTO has created level playing field between cable operators and DTH players.

After last quarter, Dish TV pointed out that consumers were in a state of transition, trying to understand how to create their new packaging. While the company gave them a lot of options to select packages under new regime, those also led to a certain amount of time taken by the customer to settle down with new choices.

“Consumers are now watching the packs that they want to watch. It's a combination of à la carte channels that they have chosen, the DPO packs that we have provided and, of course, also the broadcaster bouquets, which are part of those packs. So, the customers are taking a combination of various things to their liking, to their choice, to their price point,” Dua said in an earnings call after Dish TV’s quarterly result.

The implementation of NTO was followed by speculations and several studies whether consumers are paying more than the pre-NTO era. Dua said there are Dish TV customers, a little less than half, who have gone for a price point lower than what it was earlier and a little more than half have gone for a price point which was higher than earlier. He also mentioned that with cricket and election season and other things during the quarter, consumers also added channels.

Dish TV India chief financial officer Rajeev Dalmia said the consumer level average revenue per user (ARPU) was around Rs 270-275 in the new regime. According to Dalmia, it varies on a month-on-month basis, because things are still not completely settled at the consumer’s end. He also added that the second half of this year would give an idea what is going to be the run rate as far as the consumer ARPU is concerned.

“If I remove the effects of cricket, we definitely see it (ARPU) going up. But because of cricket, customers come and go, and they add packages, they remove packages. So, the steady state figure will emerge. This is the first quarter with the new accounting, and first time we are talking of a figure like Rs 116. I think we will have to wait and watch. But fundamentally, the way we have planned things and the way we see things during the first quarter, the underlying growth in ARPU should be there,” Dua commented.

“As far as licence fee is concerned, now that will be on the basis of Rs 926 crore, rather than the earlier regime where it was including the content cost. So, it will go down to the extent of the content cost. To give you an example, like we paid say Rs 2,000 crore last year, so this year license fee will be less by Rs 200 crore,” Dalmia said.

There has been a delay by Dish TV in terms of making payments to broadcasters like ZEE and Star. Dalmia blamed certain issues in terms of how the billing would be done and how the incentive would be allocated to the company for the delay. He also added that all the outstanding dues would be cleared by the month of September giving a fresh start from 1 October as the things are more or less settled now.

EBITDA in the earlier regime was Rs 476 crore which is now Rs 536 crore. But the expenses were higher in the first quarter compared to the fourth quarter because of selling commission, service payout, and overall marketing costs as the number of subscribers added were quite high as compared to the fourth quarter.

“But if I go line-by-line, then we have saved on general administration expenses, we have saved on collection cost, and we have also saved on the personnel cost, because personnel cost used to be Rs 65 crore to Rs 70 crore per quarter, which has gone down to Rs 45 crore. And we further see some Rs 1 crore or Rs 2 crore going forward saving on account of personnel costs. So, overall line-by-line it has gone down. But of course, because the savings and service is linked to the number of new installations, that has gone up in the first quarter,” Dalmia added on expenses.

Content cost for the first quarter, which was a cricket-heavy one was around Rs 610 crore. On the other hand, the capex was Rs 205 crore for the quarter and for the full year  it will be in range of Rs 650 crore to Rs 675 crore. The company reset the guidance of net subscriber addition for the year which is to the tune of 8 lakh.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/22/angad.jpg?itok=TQNaus1h
An Ode to Entertainment: Tata Sky’s #WorldTelevisionDay Campaign

MUMBAI: Chimp&z Inc in conjunction with Griffin Pictures rolled out a video recreating the magic of the golden era of television in sand-art. The #TumseHumareTaarJudeHai campaign video served the brand purpose of Tata Sky on the occasion of World Television Day. The video garnered a total view...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/20/tatasky.jpg?itok=h8LCpxUu
Tata Sky unboxes #BachpanKaPitara

MUMBAI: On the occasion of Children’s Day, Tata Sky promoted their special service for kids - Tata Sky Fun Learn on its digital platforms in a nostalgic way. This feature comprised foundational learning for kids across different age groups. Tata Sky, along with their digital marketing partner,...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/20/Prasar%20Bharati.jpg?itok=uJU-iVeB
Prasar Bharati sells DD Free Dish MPEG-2 slots to 8 channels

Prasar Bharati has announced the result of the 42nd e-auction for allotment of MPEG-2 slots of DD Free Dish on pro-rata basis for the period from 1 December 2019 to 29 February 2020. The slot has been sold to eight channels for approx Rs 18.9 crore.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/15/airtel.jpg?itok=uE1cABe2
Airtel Digital TV revenue and profit up as Bharti Airtel reports record loss

Indian telecom major Bharti Airtel reported 17 percent y-o-y increase in revenue for its Digital TV Services for the quarter ended 30 September 2019 (Q2 2020, quarter or period under review) as compared to the corresponding year-ago quarter Q2 2019.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/15/dish.jpg?itok=EfxxPP9W
Dish TV adds 42K subscribers in Q2 2020

India DTH major Dish TV India Ltd (Dish TV) reported 42,000 net subscriber additions for the quarter ended 30 September 2019 (Q2 2020, quarter or period under review), During the six-month period ended 30 September 2020 (H1 2020), the company says that it added 251,000 net subscribers.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/23/Watcho.jpg?itok=mzZ6TEdK
DishTV's OTT app Watcho arrives on Amazon Fire TV

MUMBAI: With an aim to offer engaging and differentiated content catering to young audiences across the country, Dish TV India Ltd, the world’s largest single-country DTH company, has expanded distribution of its OTT app Watcho to Amazon Fire TV Stick. Effective immediately, Amazon Fire TV Stick...

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/23/tv.jpg?itok=mSiAPVVQ
DTH operators against imposition of further regulation on platform services

Major direct-to-home (DTH) operators spoke against the imposition of any registration fee or annual fee for the platform services (PS) offered by them. Tata Sky, Dish TV, Bharti Telemedia the holding company of Airtel Digital TV are of the view that as DTH operators already pay license fee and...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/11/dish.jpg?itok=FlJX55uw
Dish TV India launches an entire new range of ‘Smart Connected Devices’

MUMBAI: Strengthening its technology product portfolio, Dish TV India Ltd., world’s largest single-country DTH Company, today launched a complete range of smart devices, an internet enabled Android based HD Set Top Box and Voice enabled Alexa Built-in smart kit.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/07/dish.jpg?itok=fANtNUAh
Dish TV India to launch hybrid set-top box with Amazon Prime Video

MUMBAI: Dish TV India Limited, the world’s largest single-country Direct-To-Home company, today announced that it has collaborated with Amazon Prime Video to offer Prime Video app to its Dish TV and d2h subscribers on its soon-to-be-launched hybrid set-top box.

DTH DTH Operator

Sign up for our Newsletter

subscribe for latest stories