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=xHWzjibM

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/2021/07/26/tata.jpg?itok=YC8w_-FO
Tata Sky Binge adds Amazon Prime Video to its streaming bouquet

In a bid to bolster its OTT game, Tata Sky on Monday announced that it has extended its integrated content offering on the Tata Sky Binge Mobile app by bringing onboard the streaming giant, Amazon Prime Video.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/19/tata-sky.jpg?itok=-CQxyTqz
Tata Sky partners with Vedantu to empower JEE & NEET aspirants

Content distribution and Pay TV platform Tata Sky has partnered with Vedantu to make quality education accessible and affordable to students across India.

DTH DTH Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/16/photogrid_plus_1626419084678.jpg?itok=xvBnIVCM
Tata Sky launches 4K HDR internet streaming service

Mumbai: Tata Sky, one of the leading content distribution and Pay TV platforms, has announced the launch of its 4K HDR streaming service. All TVs enabled with 4K HDR can enjoy this service through Tata Sky Binge+ Box at no additional cost for the first year.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/01/tata.jpg?itok=QFxU2B8M
Tata Sky collaborates with PTC Network to strengthen its regional connect

Mumbai: Tata Sky has joined hands with the PTC Network to bring back its regional service - ‘Punjab De Rang’, starting today.  The revamped service will further strengthen Tata Sky’s regional entertainment portfolio by offering a popular and diverse mix of high-quality Punjabi content, at a nominal...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/01/dishtv.jpg?itok=a_ekC87u
Pandemic drags down DishTV India’s FY’21 financials

India’s first DTH operator Dish TV India continues to slog it out to get out of the financial quagmire it has got itself into. That’s despite the fact that the company  has seen a loss of subscribers in its latest quarter ended 31 March 2021 and for the full year, its top line has dipped even as it...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/15/photogrid_plus_1623741446549.jpg?itok=ydkDYTew
Dish TV India joins hands with JOP Network for dubbed movie service “Hits Active”

New Delhi: Dish TV has joined hands with content house, JOP Network Pvt Ltd to re-introduce dubbed movie service– Hits Active, in a new Avatar to broadcast International and South Indian hit movies dubbed in Hindi. Hits Active is an ad-free service showcasing all genres of blockbusters. The service...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/11/tata.jpg?itok=UdSEyCDV
Binge app sees traction from non-metros- DAS 2, DAS 3 cities: Tata Sky’s Pallavi Puri

Pay TV meanders along in India, even as the near future will expectedly watch digital adoption accelerating at a rapid pace of disruption. The legacy direct-to-platform (DTH) players are taking note of the shift in consumer habits to keep up with the trend. Tata Sky has been one such player to...

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/10/tata.jpg?itok=F2HZEgMk
Tata Sky unveils its newly revamped music service, Tata Sky Music

Aligned with its new brand purpose to make tomorrow better than today for its subscribers, content distribution, and Pay TV platform Tata Sky on Thursday unveiled its revamped music service offering, Tata Sky Music.

DTH DTH Operator
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/06/02/bai.jpg?itok=vGbZzpse
Tata Sky Binge app now available on smartphones

Leading Pay TV platform Tata Sky has extended the benefit of its pioneering OTT content aggregator service, ‘Tata Sky Binge,’ to mobile with the introduction of Tata Sky Binge Mobile app.

DTH DTH Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required