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After flat panel TV makers, direct-to-home (DTH) players are gearing up to join the 4K ultra HD bandwagon. Two key DTH players, Videocon d2h and Tata Sky, have announced plans for 4K Ultra HD set top boxes and are looking at commercial launch next year.
Described as the way forward after hi-definition, 4K Ultra-HD provides higher resolution than the current HD technology and offers sharper picture quality and colour contrast. Key players such as LG and Samsung launched 4K Ultra HD TVs in India last year and are now looking to increase their penetration.
DTH players believe they need to be ready as consumers move to this next generation technology.
Evolving ecosystem Anil Khera, CEO, Videocon d2h, said: “Videocon is ready with the 4K Ultra HD technology. Now we are hoping for the ecosystem to evolve. We hope the penetration for the 4K Ultra HD TVs will grow in the country and broadcasters start offering content in Ultra-HD format.” He said the company was planning to roll out its services next year, around February or March, keeping in mind the ICC Cricket World Cup 2015.
For starters, Videocon d2h will look at offering Ultra HD feed as a ‘pay per view’ or ‘video on demand’ service, focusing on key sporting events and action movies. Tata Sky is also looking to launch its 4K Ultra-HD set top box early next year. Vikram Mehra, Chief Commerical Officer, Tata Sky said: “In today’s day and age, following global trends is not enough, we try to leapfrog them. Launch of 4K UHD STBs next year is another example of this. 4K is the future for our subscribers.”
He added: “We expect the Ultra-HD growth cycle to be similar to HD set-top boxes. Now even consumers in smaller cities are buying HD STBs.” Mehra said currently 65 per cent of new sales for the company involve HD set-top boxes.
DTH players believe this festival season will see a big push for 4K Ultra HD TVs and prices are expected to decline in the next 12 months. Currently, 4K Ultra-HD TVs start from Rs 5-6 lakh.
No subsidy factor While neither company gave any indication on how the set-top boxes will be priced, experts believe DTH companies will launch it as a premium offering. A 4K Ultra-HD set-top box could cost ₹6,000-7000, while subscription for Ultra HD packs could also be much higher.
DTH players will be looking at high margins and may not subsidise the set-top boxes. DTH players subsidise standard definition set-top boxes by offering them at prices below what it costs them — one of the factors that has made profitability a huge challenge for the industry.
Industry estimates the current DTH subscriber base at 38-39 million set-top boxes.
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