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