The Hindu Business Line : DTH is here

Price and service will be the key differentiators in this industry with players such as Tata Sky and Dish TV battling it out and several others waiting to jump into the fray.

We are sure that the market will reach 10 million subscribers by 2010. _ Vikram Kaushik, MD & CEO, Tata Sky

DTH TAKES OFF! Seen here at the TataSky television service launch are Vikram Kaushik, Managing Director and CEO (left) and Ishaat Hussain, Chairman, Tata Sky Ltd (extreme right), TV stars, news anchors and sports personalities.

Entertainment will never be the same again," promises TataSky. The DTH (Direct-to-home) technology platform was proposed in India in 1996 but it did not get approval due to concerns over national security and cultural invasion.

But the wait is over. Today, apart from Dish TV and Doordarshan, Tata Sky has also jumped into the fray, with several others queuing up to enter the category. However, TataSky and Dish TV have now the onus of differentiating their offerings in a medium that offers parity in terms of technology and content.

Jawahar Goel, Business Head, Dish TV, says: "Right now, all players will contribute towards the growth of the category, providing value-for-money offerings. Eventually, there will certainly be parity in channel boutique among various players."

While TataSky is planning to reach one million subscribers before the year ends, Zee Network's Dish TV is targeting 2.5 million subscribers in the same span. Accessing `cable dry' areas, DTH will reach out to consumers already using cable as well as the non-TV owning rural audience. "Even if we have 30 per cent of the Rs 10,000-crore cable industry, the market for DTH is simply huge," says VP, Marketing, Anjali Nanda.

While nobody is guessing the exact potential of the DTH market, its growth rate will depend on how fast the services get distributed across the country. Says Goel, "We have a 1.5 million subscriber base in just one-and-a-half years. It is very difficult to project the growth of such a dynamic business model. However, the industry projection says that the market size of the cable industry is Rs 10,000 crore and even if 30 per cent of that migrates to DTH in next five years, the potential is huge. Dish TV distribution network comprises 250 distributors and 12,000 dealers across various cities."

TataSky, an 80:20 joint venture between Tata and Star, believes that it will be infrastructure capabilities and customer services which will be crucial to the acceptance of its DTH brand. Vikram Kaushik, Managing Director & CEO, says, "We are very bullish on the prospects of the DTH market in India and we are sure that the market will reach 10 million subscribers by 2010.

While DD's service offers subscribers only free-to-air channels, Dish TV and Tata Sky have a more comprehensive offering in terms of programming choices and interactive services. We truly believe that our infrastructure capabilities, customer service and offerings will help Tata Sky create a distinct place for itself in the market."

Consider the initiatives taken by TataSky to enhance its offerings in the market. To enhance infrastructure capabilities, it has invested in business support software such as NDS, Kenan, Siebel and SAP and has set up an uplink centre in Delhi.

Customer service is a key factor which will differentiate Tata Sky from other pay television platforms. It has engaged a field force of around 3,000 people who are complemented by three high-end 24x7 call centres, manned by customer service associates, trained to solve customer problems in 11 languages.

It will also allow viewers to subscribe to the service through prepaid recharge cards. The platform offers over 100 television and interactive services ranging from sports and general entertainment to news and lifestyle.

Subscribers can control the way they watch television through a host of branded interactive services such as an on-screen programme guide.

But the main challenge for the DTH operators remains that of educating the masses about the feasibility and advantages of this medium. Says Kaushik, "DTH is a new product category. Currently In India, most consumers do not have adequate knowledge of the benefits of DTH. On our part, we are therefore paying significant attention to consumer education. We are using different media including television, print, Web and outdoor in both the urban and rural areas of the country to educate consumers. Further, we have arranged to demonstrate the service in high traffic areas such as airports and shopping malls to enable consumers to understand as well as experience satellite television."