Tuesday, November 13, 2007

“India, with over a billion souls is the largest market in the world and there is enough for every DTH player to survive and grow”

Even Zee which though has a pan-spectrum presence (in TV channels, print, DTH, Cable, et al) and does qualify for the conglomerate tag to a large extent is also not willing to tune into radio. Instead, the group which has recently restructured itself is concentrating its energies on other things. Top on the agenda is ensuring the success of the Indian Cricket League, the brain child of Chandra which will run parallel to BCCI. Also, maintaining Zee TV’s current position and taking it back to the position from where it started – No.1, features high on the list. Moreover, Zee’s DTH service Dish TV which is the market leader in the space is facing tough competition from the newly launched Tata Sky (a 80:20 JV between Tata and Star) and has posted huge loses of Rs 2.51 billion for the fiscal ended March 31, 2007. Moreover, competition in the DTH space is all set to go through the roof. Sun TV (along with Malaysia based Astro), Reliance (Bluemagic) and Bharti all have huge plans for this space which is considered to be the future of Indian television. “India, with over a billion souls is the largest market in the world and there is enough for every DTH player to survive and grow,” says Ashish Kaul, Executive Vice President, Essel Group. Even the Phase II of CAS is nearing and unlike 2003, things seem to be moving pretty smooth this time. “Generally, a GEC doesn’t get to monetise more than 35 odd percent of the total subscriber base due to non-declaration by the local cable operator. Which is where new technologies like CAS and DTH will help streamline market and also bring in transparency thus aiding higher yield in subscription revenues.” While CAS and DTH will definitely ensure more profitability for the broadcasters, media houses like Zee and Star have been smart enough to have a presence in both, DTH (through Dish TV and Tata Sky) and CAS (through cable operators – Siti Cable and Hathway). This way, they will get the best of both worlds.

For Complete IIPM Article, Click on IIPM Article

Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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