DTH

Dish TV-Videocon d2h to bank on economies of scale

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2018/05/02/Anil.jpg?itok=uigMR28p

MUMBAI: The  long-awaited fusion of Dish TV and Videocon d2h  finally saw the light of day  on 22 March 2018. The pioneer in the direct-to-home (DTH) sector, Dish TV, and the fast-growing Mumbai-hqed and Dhoot family promoted service came together making Dish TV Videocon  d2h the largest pay TV operator in India and among  the top three in the world.

The merged TV distirbution platform  will benefit from economies of scale while leveraging the individual strengths of the two services. One of the biggest attractions for the Jawahar Goel and Essel group promoted Dish TV as the acquirer was Videocon’s significantly higher average revenue per user (ARPU) as compared to Dish TV. While the former had an ARPU  of Rs 210, the latter’s ARPU stood at Rs 155-160. The combined ARPU is expected to be Rs 180. Owing to competition from Free Dish and other operational roadblocks, Dish TV had a lower ARPU but things are on the upswing, according to Dish TV CFO Rajeev Dalmia.

Going forward, the acquirer, Dish TV, plans to keep the two brands independent in order to explore the regional opportunities as stated by Dish TV group CEO Anil Dua in an interaction with Indiantelevision.com.

For any merger of this magnitude, integration is a big challenge and Dish TV is no exception. To ease matters, the company is concentrating on cultural integration in a bid to get the ship in order. The management undertook a cultural survey with 2000 participants so as to ease the pain of integration. Though still it has only been more than a month since the merger, the two operators’ office premises, logistics and warehouses have already been combined. Dua reiterated that the combined entity would draw synergies to the tune of Rs 510 crore through revenue aggregation and cost savings.

In case of geographical capability, both brands bring different strengths to the table. The consolidated entity is expected to become a pan-India behemoth with its combined 29 million subscribers with Dish TV contributing with 16 million subscribers and Videocon d2h pitching in with  13 million users as on 31 March 2018.

“Dish TV’s has always had benchmark content cost in the industry while Videocon’s content cost has been on the higher side,” said Dua acknowledging the disparity. Dish TV’s cost of content is 30-31 per cent of subscription revenue currently while the number for Videocon is higher at 36 per cent. He pointed out that the combined cost of content will be lower and hover around 30 per cent. “We want to maintain the cost of content as a percentage of total revenue—including advertising, carriage fees, value-added services along with other income—for the combined entity at 28 per cent,” added Dalmia.

One of the key blocks of the merger is restructuring and assigning promising personnel to important positions. The management, which conspicuously does not feature anyone from Videocon, has appointed two marketing heads—one for each brand. Dish TV has put in place a common business head for North India and East India for the brands while also having a common business head for South India and West India.

“We have one national service head for a common model of service across the country. Moreover, Ranjit Singh will continue to be the legal head for both brands,” Dua pointed out.

Post merger, Dish TV wants to exploit the regional strengths without limiting the strength of the individual brands. The DTH operator has retained two independent brands as they have two marketing heads and two separate sales teams for each brand.

Also Read:

Videocon d2h, Dish TV merger comes to fruition

Dish TV announces fresh Videocon d2h Nasdaq delisting date

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/11/img_11012022_120654_800_x_800_pixel.png?itok=0KlXmDdW
DTH operators lost 0.97 million subscribers at the end of September 2021: Trai

Mumbai: The number of active subscribers with pay DTH operators decreased from 69.86 million at the end of June to 68.89 million by the end of September, according to the latest Telecom Regulatory Authority of India (Trai) data. This is in addition to the subscribers of DTH Free Dish.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/12/20/img_20122021_162205_800_x_800_pixel.jpg?itok=BL_8aSP-
Tata Sky, Airtel Digital TV hike prices of traditional STBs

Mumbai: Direct-to-home (DTH) service providers Tata Sky and Airtel Digital TV have hiked the prices for new SD and HD set-top-box connections. The gap in prices between traditional STBs and hybrid STBs was reduced considerably.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/12/15/img_15122021_152405_800_x_800_pixel.jpg?itok=J4YeQljk
Tata Sky Classic TV brings back golden era of Indian TV shows

Mumbai: Rekindling the love for age-agnostic TV classics of the ’80s and ’90s, Tata Sky has launched a new service Tata Sky Classic TV - which promises to take viewers back to the golden era of Indian television. Popular TV and film actor Neena Gupta has been roped in as the face of the promotional...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/12/08/img_08122021_125600_800_x_800_pixel.jpg?itok=xLKuwzXw
Tata Sky launches localised campaign for West Bengal

Mumbai: Tata Sky has launched a new campaign - ‘Ki Darun’ in the West Bengal market to promote its Rs 225 pack. The pack comprises both Bengali and Hindi channels including drama, films, music, kids, news, sports and edutainment channels along with the benefit of on-the-go viewing available through...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/12/03/img_03122021_182402_800_x_800_pixel.jpg?itok=Cf8q-pDV
Dish TV India schedules 33rd AGM for 30 December

Mumbai: Dish TV India’s board of directors has scheduled the 33rd annual general meeting (AGM) for 30 December. The company has extended the timeline for the AGM several times since it was first scheduled to be held on 27 September. It applied for the extension in view of the issues arising out of...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/12/01/tata-sky-romance.jpg?itok=QOu4ZgOC
Tata Sky launches new service Tata Sky Romance

Tata Sky has announced the launch of its latest platform service Tata Sky Romance to offer curated romantic content across Hollywood (dubbed in Hindi), Bollywood, and television to its subscribers. Priced at Rs two per day, the service is completely ad-free and is available for on-the-go viewing on...

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/11/30/ff.jpg?itok=iV-9GsgR
SC orders stay on criminal proceedings against Yes Bank

The Supreme Court on Tuesday ordered a stay on the criminal proceedings against Yes Bank initiated by Essel group founder Subhash Chandra. The court has granted three weeks to file the counter affidavit.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/11/26/harit-nagpal.jpg?itok=iyAbb1zA
There needs to be a level playing field: Tata Sky CEO Harit Nagpal on Free Dish issue

Harit Nagpal, the MD and CEO of India’s largest Pay TV distributor - Tata Sky is known to be a vocal man. Time and again, he has used several platforms and occasions to bring the industry’s concerns to the notice of the government and regulators.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/11/25/99.jpg?itok=ttO5WiQ5
HITS combines flexibility of DTH and reliability of cable: NXT Digital CEO Vynsley Fernandes

Headend-in-the-sky (HITS) combined the flexibility and quality of direct-to-home (DTH) services and the reliability and pricing of cable television, said NXT Digital managing director and chief executive officer Vynsley Fernandes on Wednesday. NXT Digital is the only HITS operator in India and...

DTH DTH Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required