India Broadband Forum

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As per the available reports and projections, the DTH market is likely to grow by 30% by 2012. As of now, the DTH market in India has a very low penetration level. Though DTH services have been in India for many years now, the major portion of its growth falls under the last leg. Only in the past 3 years it has seen some growth however, the growth experienced now is not sufficient enough for the DTH service providers to boast about their success. Interestingly, India has been a tough market for the DTH service providers. Many companies thought India would be one of the fastest growing markets for DTH services but their assumptions were proved to be wrong. One of the reasons for the lack of success so far with the DTH market is the cost factor. Some of the service providers have attractive packages only for long time subscribers. The Indian market is used to paying their cable network service providers on monthly basis.

Because of the low penetration level of the DTH services in the Indian market, the DTH service providers are likely to make vigorous efforts to change the situation. It is expected that they will add many interesting features to their services adding many bells and whistles. The market as of now is very small but the competition level is high. So companies have to fight a tough battle to grab a share of the projected 30% growth. So far Sun Direct has been doing well in the market as per the prevailing conditions as they have positioned their services well to suit the Indian market. Other pioneering DTH service providers like TATA Sky and Dish TV are lying far behind the competition. Among the latest comers, Big TV is taking the second lead after Sun Direct whereas, Airtel DTH is left behind in the race.

Projected figures of growth do not indicate the percentage of market share that will be held by the companies in 2012. It only indicates that there will be around 30% growth in this industry in the next three years. During this period, lot of improvements are expected too from the DTH service providers. The picture quality is likely to improve and the sound quality too will be enhanced. Many interactive services are likely to be introduced.

DTH service providers are also likely to make attractive marketing efforts and they are expected to release better packages at reduced prices. People will also be able to choose their channels and pay just for the channels watched unlike the packages that we have now.

All these factors are likely to improve the market conditions for DTH in India (best DTH service in India). Many new players are also likely to jump in. BSNL and Videocon will be the next set of new players in the DTH industry in India. We need to wait to see how the market sways in the next 3 years.

just4kix

Interesting observations.

The lack of growth is certainly because of high upfront investment. Couple that with non-portability (STBs are not interchangeable), it is making consumers stay away.

Secondly, channel pricing is way too high as compared to cable. Now that cable is also going digital, the age old axiom of quality does not hold true (SRK seriously needs a change a script here).

Thirdly, for people with multiple TVs, the cost is even more.

I doubt whether launching of active services will make much difference.

To achieve higher growth, DTH providers must come up with innovative schemes:

• Provide free installation and STB when consumer opts for a long term plan.
• Package the channels attractively. Allow a-la-carte on each and every channel. Lower the price.
• Lower the multiple TV cost in a single dwelling.
• Come up with attractive group booking schemes for large condo complexes.

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iiiiai

Thanks for the post