Reliance Communications Ltd. is expecting to acquire 40% DTH market share by 2009
On August 19, 2008, Reliance Communications Limited (BOM:532712), the second largest telecommunication company in India, launched its direct-to-home (DTH) channel, Big TV. The company is expecting 40% market share in a year in its DTH service.
Initially, Reliance Communications Limited will provide Big TV service in 6,500 towns. It will offer set-top boxes and three months subscription of Rs. 1490. Bulk of Big TV’s initial cost would come from the subsidization of the set-top boxes. Big TV, will compete with Dish TV, DD Direct, Sun TV’s DTH arm and Tata Sky. Bharti Airtel Ltd., and Videocon Industries are also planning to enter the DTH market.
In a news conference, Arun Kapoor, Chief executive, Big TV, said that the number of DTH subscribers will increase 17 million to 18 million by 2009. He said,
“There is a huge opportunity, as less than 5 percent of all TV homes in India are DTH.”
Famous research firm, Media Partners Asia, forecasted a growth of 25 million subscribers by 2012 in the Indian DTH market. It also forecasted that the revenue of Indian television industry will become more than double over the next four years but price controls and content-sharing regulations for DTH operators will limit the profit.
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