What happens when four biggies of the Indian business world decide that each wants to rule the same segment? One, their pockets burn real deep. Two, customers rule.
MUMBAI: What happens when four biggies of the Indian business world decide that each wants to rule the same segment? One, their pockets burn real deep. Two, customers rule.
In the Direct to Home (DTH) market, installation charges as low as Rs 1,400 and a dirt cheap monthly subscription cost — less than Rs 100 — are fast becoming a reality. The number of channels is slated to go from 150 to 400 in a few months. Plus, digital video recorders and high definition (HD) are on their way.
This has doubled the industry growth. Officials from the market players told DNA Money that while three months ago, the industry was acquiring 2.5 lakh customers every month, the number has now doubled to 5 lakh, and could go up to 7-8 lakh in a few months once the new players settle down.
In lieu of this customer base, the industry will be shelling out around Rs 800 crore this year for advertisements and promotions, according to Salil Kapoor, chief operating officer of Dish TV, from the Zee stable.
And yes, with a minimum five-year gestation period, it is too early for anyone to be making money.
Arun Kapoor, president, Big TV, part of Reliance ADAG, said, “We will acquire, expand as soon as possible. This industry is not for the weak-hearted and certainly not for those without deep pockets.”
True. Maybe that’s why the Tata Sky DTH service invested Rs 2,000 crore to acquire 20 lakh customers, while another Rs 2,000 crore investment is on its way.
So what tools are the players using to woo customers now that pricing is hardly a differentiator anymore?
“The biggest differentiator is transparency and simplicity in pricing. The consumer shouldn’t have to research on whether he is being made to pay more than what is being showed,” said Salil Kapoor.
While Dish TV can probably take it easy, being the market leader, others are being ‘entertainingly’ aggressive.
Big TV claims it has acquired 5 lakh subscribers in its first two months. It plans to acquire four lakh subscribers per month with DVRs (digital video recorders), high definition channels and exclusive content.
With the customer base of Reliance Telecom and Reliance Energy ready to be tapped, maybe this number is achievable.
Similar strategies exist for others. Also big on their list is interactive services. Airtel, the fourth player in the market, has a tie-up with Infosys for interactive technology. Airtel is offering a common remote for both the set-top box and television, while Dish TV has begun to provide a banking platform on television with ICICI Bank.
Tata Sky has religious and educational programmes to lure customers.
Through that, the industry expects the current 70 lakh subscriber base to swell to 6 crore by 2015, 40% of the total television viewing households.
While players lock horns for market share, firing allegations at each other and blowing louder-than-reality trumpets, subscribers can sit back and have fun.
There will soon be even more channels to surf. Now, if only there was something good to watch!
s_tanvi@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}