Dish TV claims 42 per cent share in private DTH market

By afaqs! news bureau , afaqs!, New Delhi | In Media Publishing | June 19, 2009
The company has earned Rs 739 crore in gross revenue during 2008-09

Dish TV, the DTH (direct to home) company of the Essel Group, has announced its results for the fiscal year 2008-09. Though the company announced gross revenue earnings of Rs 739 crore in this fiscal, its net loss stands at Rs 476 crore, up from Rs 413 crore in 2007-08, though the gross revenue has grown 79 per cent over the previous year.

As the competition in the DTH industry gets tougher with five players and a sixth planning its launch, the operators continue to straddle losses. It is estimated that in 2008-09, DTH operators suffered a loss of Rs 2,000 crore, of which Dish TV and Tata Sky accounted for nearly half.

Perhaps contributing to its losses is Dish TV's acquisition cost of Rs 2,505 per subscriber.

Dish TV added 2 million subscribers last year, double the number added in the previous fiscal year. Currently, its subscriber base is the highest for a private operator at 5 million.

In terms of packaging, Dish TV added 37 new channels during the last fiscal and now has 240 channels, which it claims is the highest in the category.

The company also claims that its market share is 42 per cent among private DTH operators, which has come down from 53 per cent in 2007.

During 2008-09, Dish TV spent 12 per cent of its revenue, close to Rs 90 crore, on advertising.

The operator recently restructured its packages, creating 50 a la carte packs in the range of Rs 15-45.

"The exceptional quality of digital services and superior brand connect has ensured that the DTH industry in India continues to grow at an astronomical pace, despite the widespread economic turmoil. In the present environment, Dish TV has delivered a strong performance in terms of revenue growth and has further consolidated its leadership position in a much more intense competitive scenario," said Subhash Chandra, chairperson, Dish TV, in a statement.

The company also announced that it will focus on increasing the ARPU, value added services, commercial sales, brand building and customer service.

© 2009 afaqs!