Cable TV Vs DTH : Price War in the Digitization Era

[tech_genie]

Digitization not only means introduction of a better technology, it also means mandatory STBs. So cable wallahs can't lie about the number of actual subscribers to the MSOs and rely more on better ARPUs. Thereby subscription rates charged by them are bound to go up. :nj

Is this good news for the DTH service providers? :sp

Or will the quintessential local cable guy still have an edge and force the DTH players to go for a price war? :c

WHATEVER HAPPENS, YOU WILL ALWAYS FIND THE UPDATES HERE

 

[Arsh25]

RE: Can Cable TV maintain their low-cost edge over DTH post-digitization?

The major advantage to the Digital Cable operator will be bandwidth,if the operator can can satisfy the public with channels it will have an edge over the space crunched DTH operators.

 

[SUNIEL]

RE: Can Cable TV maintain their low-cost edge over DTH post-digitization?

But if DTH adopt latest tech like Airtel and d2h then DTH will win the race. Because there are 50 mn charge of one tp per annum for DTH.

 

[tech_genie]

RE: Can Cable TV maintain their low-cost edge over DTH post-digitization?

With new satellites being launched and technology getting updated now and then, DTH may be able to come over the bandwidth issue.

But the MSOs have spent 300-400 crores on Digitization, how will they recover those costs?

Also can cable TV continue the low prices even after declaring the exact subscriber figures?

 

[Bapun]

RE: Can Cable TV maintain their low-cost edge over DTH post-digitization?

I think yes, after digitisation also the cable tv prices will be lower than DTHs. That will be a plus point for them to gain more customers.

 

[tech_genie]

RE: Can Cable TV maintain their low-cost edge over DTH post-digitization?

See the Hathway Cable CAS Channel List Here:

MSOs unveil channel packages

 

[tech_genie]

RE: Cable TV Vs DTH : War in the Digitization Era

Here is an example of how MSOs are gearing up for the fight:

(Source: Den Networks website)

 

[tech_genie]

CONFUSED CABLE OPERATORS...IS DTH GOING TO BENEFIT?

With only a few weeks left for the TRAI-set deadline to end, switching over to digitised cable TV services, under which set top boxes (STBs) would become mandatory for all households in Chennai, cable TV operators are in a dilemma.

While state-owned Arasu Cable TV Corporation Limited is yet to start distributing STBs, private MSOs seem to make the most of it and have been busy selling STBs at ‘offer’ prices.

While a few subscribers have started to drift towards ‘Direct to Home’ (DTH) services, cable operators have expressed their concern over ACTCL losing a major chunk of the 20 lakh subscribers to private MSOs and DTH providers owing to delay in distribution of STBs.

“We are confused whether to opt for STBs of ACTCL or private MSOs. Though ACTCL convened a meeting of cable operators on September 27 and assured to start services soon, the delay has caused concern among the 20,000 cable operators in Chennai and the suburbs as the TV sets will go blank after November 1 if we do not provide STBs to our customers,” lamented an
operator from south Chennai.

At the ACTCL meeting, the authorities assured the operators that they would launch services before the deadline and insisted on collecting `500 as advance towards STBs from the subscribers.

“We have printed bill books, but we are still not sure whether to collect the advance in the name of ACTCL or SCV.

A few operators have already supplied private MSO STBs in south Chennai. Hence, ACTCL authorities should act swiftly,” said a perplexed operator.

However, ACTCL chairman Udumalai Radhakrishnan expressed confidence about launching the facility soon.

“We have already set up digitised control room, but procuring STBs is getting delayed as they have to be imported.

A few international firms have shown interest among others and will finalise the supplier within a week or two and launch services on a date selected by chief minister Jayalalithaa,” Mr Radhakrishnan told DC.

As regards STBs, we are hopeful that the Union government would extend the deadline, he said.

“There is no threat of losing connections to private operators as they also find it tough to distribute STBs and are just collecting money from the subscribers.”

Source: Cable operators confused over STB | Deccan Chronicle

 

[tech_genie]

RE: Cable TV Vs DTH : War in the Digitization Era

I SAID IT FIRST IN THIS THREAD :c

...The Hindu Business Line confirmed it later-

With the launch of monthly subscription packs by four national Multi System Operators last weekend, Direct to Home (DTH) players believe they finally have the much needed level playing field with cable services.

Most of the basic packs offered by digital cable operators, which include popular channels, are priced similar to DTH packs after taxes, while some high-end packs may work out a tad cheaper than DTH.

This may not be a deterrent for the industry, as players believe a price war between DTH and digital cable is unlikely because of high content costs and taxes which include service and entertainment tax.

Vikram Mehra, Chief Marketing Officer, Tata Sky, said, “With digitisation coming in, the unfair pricing advantage arising out of structural anomalies such as under-declaration will go away, thus putting all-pay TV operators on level playing ground. With pricing becoming similar, the brand that provides the greatest customer experience will win.”

DTH industry has been suffering from losses due to high acquisition costs. This is because they offer the hardware and monthly packages at a subsidy to the consumers. Digital cable’s customer acquisition cost is estimated to be less than DTH. However, as MSOs share revenues with local cable operators besides paying taxes and content cost in the transparent digital cable scenario, subsidising their offering to consumers is going to be a big challenge. For instance, Mumbai has entertainment tax as high as Rs 45.

Salil Kapoor, COO, Dish TV, said, “With structured packages being offered from digital cable players, now one can look at increase in average revenue per user.

DTH has been attracting traction from consumers even after competing with cheaper analogue cable prices. Even if some packages work out to be cheaper than DTH, we believe we will continue to gain higher number of subscribers.”

While some MSOs say their pricing is 10-15 per cent cheaper, others believe digital cable will be coming out with more aggressive pricing in the future.

“Digital cable pricing, especially in a city like Mumbai, is not yet very aggressive, but in the future we might see more aggressive pricing from digital cable,” said Jagjit Singh Kohli, MD, Digicable.

MSOs also say they will be coming out with several other packages, especially focusing on a la carte, offering consumers the choice to pay for what they want.

 

[Bapun]

RE: Cable TV Vs DTH : War in the Digitization Era

so digital cable operators also in the way...