Vivek Couto, ED, Media Partners Asia talks about the futur drivers & challenges for the DTH sector in India
B&E: With metros almost saturated, do you foresee a static growth as rural penetration of DTH is still slow?
VC: Honestly speaking, as of now, all the DTH players are aggressively targeting the smaller towns and cities. That will continue to be the trend especially in rural areas and smaller towns that have limited or no cable, thereby tapping new audiences for TV. DTH is therefore the primary audience but there will be a greater share in metros in time to come; only it will be incremental as opposed to seismic. Also, analog cable will prove hard to displace in some metros.
B&E: What are the roadblocks that might hinder the growth of DTH segment in India?
VC: The dominance of analog cable is the key issue. The only way is to encourage a multi-room DTH mentality as is prevalent in overseas markets – connect DTH sets across the home, also ramp up pay per view (PPV) services, PVR and others. In India, PPV and PVR are the key current limiters of churn. In certain markets, PPV and VOD substantially limits churn with 50% of subscribers not electing to churn in certain instances because of VOD but it's hard to monetise directly. PVR is easier to monetise and limits churn effectively.
B&E: With metros almost saturated, do you foresee a static growth as rural penetration of DTH is still slow?
VC: Honestly speaking, as of now, all the DTH players are aggressively targeting the smaller towns and cities. That will continue to be the trend especially in rural areas and smaller towns that have limited or no cable, thereby tapping new audiences for TV. DTH is therefore the primary audience but there will be a greater share in metros in time to come; only it will be incremental as opposed to seismic. Also, analog cable will prove hard to displace in some metros.
B&E: What are the roadblocks that might hinder the growth of DTH segment in India?
VC: The dominance of analog cable is the key issue. The only way is to encourage a multi-room DTH mentality as is prevalent in overseas markets – connect DTH sets across the home, also ramp up pay per view (PPV) services, PVR and others. In India, PPV and PVR are the key current limiters of churn. In certain markets, PPV and VOD substantially limits churn with 50% of subscribers not electing to churn in certain instances because of VOD but it's hard to monetise directly. PVR is easier to monetise and limits churn effectively.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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