7. In 5 years…
We have managed to overtake Japan
as the largest DTH market in Asia
And in the next 5 years (by 2012) we will
be
able to add another 30 million subscribers
(which is about the same as the population of
Belgium, Portugal and Greece put-together!)
9. Playing the volume game… DTH in India
Indian cable TV subscribers are currently spending about
1.5 - 2% (US$ 4 - 5) of their monthly income on cable services
Globally, consumers spend 3 - 4% of their
monthly income on pay television services
While this indicates a sizeable growth opportunity,
only a mass service can achieve the economies of
scale to fully exploit the market potential
This clearly is expensive business
(At least in the short-medium run)
10. • Rise in Disposable Incomes
75% percent rise in per capita income ( 1990 – 2007)
Source: NCAER
• Appetite for Entertainment is growing
$25 Billion being spent annually by Indians on travel
45 Million credit card subscribers growing at 35% annually
10 Million color TVs sold annually
125 Million TV homes ….have doubled in last 6 years
• Rapid adoption of new technologies by Indians
5 - 6 Million mobile phone subscribers are added every month
350,000 Satellite TV subscribers added every month
But , the Indian market is changing
11. DTH …congruence of interests for all
stakeholders
Consumers
Consistent and professional service
Superior video / audio quality
Multiple channel packages to choose from
Interactivity
Access to niche content
Movies on pay-per-view – 800 films
produced in India every year
Ability to move anywhere across India
w/o buying a new STB
Extensive rural reach
Broadcasters
Transparent / auditable platform with
no under-declaration
New revenue stream
Convenience of dealing with a single
operator rather than with multiple
MSOs
Will minimize piracy
Government
Plug the tax leakage through
declaration
Additional source of revenue – license
fee payable by DTH operators
12. With its proven, superior technology, value added
services & professional customer service
Along with the ability to offer all India coverage at low
incremental per subscriber cost
(upgrading cable infrastructure across India will need huge investments
& appeal of Broadband service will be
limited to metros & large cities)
DTH is set to win…
13. Finding the perfect mix for DTH
Monetising volumes. Improving ARPU.
Reach1
Brand Building
VAS2
Customer
Service3
• National coverage
(Urban & Rural)
• Subscriber Mgmt
Payment,
Renewals,
Recoveries
• Focus on
Interactive
Services
• PPV
• Alerts
• Red Button promos
• New Innovations
• Outstanding Customer
Service at all Touch
Points
24/7 Call Center
Language support
Engineering support
Value4
• ‘Value’ for money
brand
• Quality content
• Relevant packaging
• Exclusive / Niche
content
15. DOING IT DIFFERENTLY
• “To get to the bottom of the
pyramid, start at the top”
• Make technology
aspirational to early adopters
• 1 Mn subscribers in 1 year…
fastest ever in the world
Upper
Middle
Low
16. 24x7 Call Centres, Over 800 associates,
supporting 11 languages
Technology…partnerships
with global leaders
3000 engineers across India
Professional installations across
the country
EXECUTION
17. CUSTOMER SATISFACTION…best
in class performance scores
Durable Sector Telecom Sector
Norms
Best In
Class
Norms
Best In
Class
eQ Index 75 86 74 86
Commitment
Share
66 62
Vulnerable
Share
9 9
Tata Sky
88
88
3
Comparison with global industry norms & global best in class scores
Source :
AC Nielsen Customer Satisfaction study , April 2007
19. the dish will also have a
different look
Tata Sky+Tata Sky+……taking digital TV totaking digital TV to
the next levelthe next level
20. DTH in India…key imperatives
Reduction in License Fees
Level playing filed with Cable /CAS rollout
Content exclusivity
Burdensome Tax structure
FDI Norms and investment restrictions
21. Play the volume game
Address the mass market with a volume-led strategy
Value based pricing will be the key to success
Innovate to differentiate
Adoption of global success…Red button applications
Payment modes
Interactive programming
New VAS & Products ( PVR)
Execute Effectively
Address market complexity
Rapid scale up
To Make Most Of This Opportunity, we need to…
Engage and advise the government / Regulator
Develop a pragmatic regulatory framework
Correct current policy anomalies
22. In Sum
What is important to recognise is this is a transitory phase
Many players means lots of investment
And only lots of investment will help to grow the market
In the shorter run though competition may trigger lower tariffs
and increase SAC & Cash burn
The need is to focus on :
• Creating Reach to build volume
• Offer affordable pricing
• Innovation to create customer value
& increase ARPU
• Outstanding execution to keep & gain new customers
And
Lots of patience!
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Customers
Multiple channel packages to choose from Interactivity
Access to niche content
Movies on pay-per-view – 800 films produced in India every year
Ability to move anywhere across India w/o buying a new STB
Extensive rural reach
Broadcasters
Transparent / auditable platform with no under-declaration
New revenue stream
Convenience of dealing with a single operator rather than with multiple MSOs
Will minimize piracy
Government
Plug the tax leakage through declaration
Additional source of revenue – license fee payable by Satellite TV operators