The Hindu Business Line : `DTH doing well in rural markets too'

Movies of your choice and entertainment on demand and interactivity have helped direct to home (DTH) players make gradual but yet certain inroads into the cable-driven Indian market.

Hyderabad , Dec. 27

Just look at the advantage of watching a movie of choice for Rs 75 from the confines of one own drawing room without bothering about ad bombardment. Movies of your choice and entertainment on demand and interactivity have helped direct-to-home (DTH) players make gradual but certain inroads into the cable-driven Indian market.

The Head of Marketing, Tata Sky, Mr Vikram Mehra, told Businesss Line: "In a market with just three players, the DTH satellite-based television is making significant inroads surprisingly even into semi-urban and rural markets contrary to general perception that its growth is urban-centric."

Apart from the DD Direct that offers 33 free to air channels, there are two private players— Dish TV and Tata Sky, which launched its service in August. The latter two offer about 100 channels.

Awareness levels

According to independent surveys, about 35 per cent of the population is now aware of the DTH platform and may consider this option. For instance, just look at the advantage the DTH platform brings to people. A seven-year TV gets turbocharged and it is as if it has been fitted with a booster.

DTH is making entry into some 3,600 towns. The ratio of urban to semi urban and rural could be about 50:50. The market for DTH is poised to touch 10 million by 2010.

One of the problems TV users face, according to independent surveys is that he does not have a choice of cable operators since the last mile is controlled by the local operator. There is no choice unlike telecom or gas connections.

"In a market known for its diversity and many languages, the DTH service calls for a good back-up and support infrastructure.

From a Tata Sky perspective, we have set up three call centres at Hyderabad, Pune and Chandigarh and support some 11 languages. Not just that, these call centres have been trained to support say a UP-centric Hindi or Punjabi accented Punjabi. This is based on customer feedback as the service itself brings in a lot of interactivity," Mr Mehra explained.

The trigger

One of the interesting facilities that has triggered the DTH growth from Tata Sky perspective is the interactivity and features it offers. Applications such as Active Wiz Kids, targeted at preschool children with Maths and English, and parental control that ensures children get to watch what parents want them to.

DTH is making entry into some 3,600 towns and significantly small towns are doing extremely well. Ratio of urban to semi urban and rural could be about 50:50.

According to estimates in India, there are about 68 million cable homes and about 48 million plus have TVs without cables. This itself opens up a big opportunity for DTH players, leave alone those already having cable connections.

Some 100 million homes are yet to get a TV and this also presents a big potential out there. The market for DTH has just begun to expand. This is poised to touch 10 million by 2010.

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