BUSINESS VIABILITY OF DISH TV.

1.15 million television viewership in the country. DTH (direct to home) involves multi channel distribution by using satellites. The journey for DTH in India was not smooth. First proposed in 1996 but got rejected due to national security. 1997,I sky B( Indian sky broadcasting)was banned.

 Dish TV is the pioneer which was launched in January 9th 2001. Formerly known as ASC Enterprises Ltd, its a part of the Essel group.
It offered improved TV viewing with digital technology, stereophonic sound effects. New level of sophistication by introducing movie on demand, video games, etc. Only way to achieve a high acquisition is linked to advertisements and marketing budgets and customer acquisition skills.

BUSINESS VIABILITY OF DISH TV : WOULD IT BREAK OR BREAKEVEN ?

Case synopsis

Costs associated
Transponder Lease
License Fees
License Fees 7% Middleware Charges 2% Subscriber Management 3% Transponder Lease 15%

Uplink Charges Entertainment Tax Content Charges

Content Charges 69%

Uplink Charges 3% Entertainment Tax 1%

Trends in customer acquisition

1400 1200

Subscribers in 000s

1000
800 600 400 200

0
Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

Dish Tv

Customer acquisition strategy

Focused marketing leading to creation of a BRAND SRK campaign. Largest content offering and digital viewing experience. Aligned dealer incentive structure-Higher incentives for subscriber at higher packs. Competitive pricing, A-la carte offerings and ease of making payments. Distribution and after sales services.

Customer retention strategy

Promotions and dealer incentives offered on an ongoing basis to retain customers through innovative packages. Over 350 Dish Care Centres (DCCs) & service franchisees providing installation and after sale-service as of Mar-09. In-house call centre, operating 24*7 with capacity of up to 1600 operators.

competitors

PROFIT MAXIMIZATION
DISH TV FINANCIAL STATEMENT 2008 (INR million) Total Revenues Income from subscriber acquisition Income from operations 4130 600 3530

Total costs
Expenditure towards subscriber acquisition Expenditure towards operations Reported EBITDA

6310
1330 4980 -2180

Margin EBITDA

-35%

TC
BREAKEVEN

TR

QUANTITY

Competitors

Conclusion
Focus on business economics Reframing the price structure 12%-12.5% hike in monthly subscription Value Added Services Reduced license fee from 10% to 6% Reduced CENTVAT from 14% to 10%

Number of subscribers
2008
2010

2013

5 million

7.5 million

13.4 million

Thank You