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Indian DTH Industry: Early lead on volume front to decide winners
Competition in the direct-to-home (DTH) industry is so severe that the existing players are finding it tough to break-even and then show profits.

Two factors have contributed to this. First, the average revenue per user or ARPU — an amalgamation of subscription revenues plus activation charges of average subscribers in a specified period — has not shown linear growth for a long time. Especially, when one considers this in the light of the fact that subscriber acquisition costs for players have gone up.

A case in point is Dish TV. In the past two years, even though the company’s subscriber acquisition costs have come down from Rs 2,634 in June ’09 to Rs 2,383 in March ’10, its ARPU is yet to improve during the same period. Its ARPU in June ’09 was Rs 164, which fell to Rs 138 in March ’10.

This shows that conversion of analogue subscribers into digital is not taking place on a big scale. This stems from the fact that many players have access to the same technology and hence the only differentiator is the price. For instance, the recently-launched high definition services videos having resolution higher than the normal available resolution by almost all DTH players.

Full Story: Indian DTH Blog

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Sports Event such as World Cup and Wimbledon display in HD is another technology breakthrough and a great opportunity to get the influx of subscribers players must take advantage and promote aggressively to achieve volume sales.
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