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Videocon to launch DTH services in April 2009

Consumer durable maker Videocon plans to launch its direct-to-home (DTH) television services venture in April 2009 against its original

target of September 2008, said a top Videocon executive. As of now five companies are offering DTH services in the country including Dish TV, Tata Sky, Airtel, Big TV and Sun TV.

Videocon Industries, the flagship group company of the Dhoot family, would be launching the DTH service through its subsidiary Bharat Business. The firm had earlier announced that it would make an initial investment of about Rs 1,000 crore in the venture.

When contacted by ET, Videocon Industries’ director Saurabh Dhoot who is heading the venture confirmed that the company will be launching its DTH services in April.

With the entry of the sixth firm offering DTH services, consumers are likely to see lower prices. Already, the price war between the five existing players has significantly brought down the combined price of hardware and subscription to television channels.

Another senior executive with the company added that the firm is looking to integrate the set-top-box with new television sets as a fresh offering to the consumer. A set-top-box is a hardware which is required to receive content on the television.

From just 3-4 million subscriber base in 2007, the DTH industry has grown to an estimated 10 million subscribers as of December 2008. As per estimates of consultancy firm Ernst & Young, the DTH subscriber base could touch 19 million in the next 2-3 years.

http://economictimes.indiatimes.com/Entertainment/Videocon-to-launch-DTH-services-in-April-2009/articleshow/4202131.cms

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Videocon set to launch on April 27

The Videocon group's direct-to-home (DTH) venture, which is all set to launch on April 27, is aiming a subscription of 10 per cent in the first year, according to sources close to the development.

To be called D2H+, the company will launch integrated digital televisions (iDTVs) and set top boxes (STBs) with 4-5 packages, sources said. Without divulging the investment details, sources further said that of the total sales, the company is planning to sell 70-80 per cent IDTVs and 20 per cent STBs.


The product, according to sources, will be launched only in district towns and not rural areas across India as launching partly would help the company understand the operations better and provide better service. According to a highly placed source, "Initially, every company faces problems in DTH, so it makes sense to launch it to a limited audience. Currently, the company is testing the STBs by installing at employees' homes at no cost.


Company officials said that the technology for STBs may be imported from Korea or China and later assembled at the company's Aurangabad plant. Gradually, D2H+ will also be manufactured from other plants of Videocon.
Videocon will be entering the DTH space in India in the presence of ventures like Dish TV, Doordarshan, Tata Sky, Big TV and Airtel.


The company is ensuring a strong sales network and has been recruiting sales and service staff through its media arm, Bharat Business Channel.

The Venugopal Dhoot promoted Videocon Industries, has decided April 27 as the launch date the DTH after many delays. The consumer electronics company has put its mobile phone business on hold for a year amid the ongoing meltdown scenario.


Videocon targets 10% DTH subscription for first year