Amarjeet
Contributor
- Joined
- 6 May 2011
- Messages
- 1,146
- Reaction score
- 284
E very fifth satellite pay TV subscriber in the world is an Indian, no mean feat considering that DTH operators have been in India for just five years. Unfortunately, all six DTH operators together rake in just 1 percent of the global subscription revenue, according to research firm Screen Digest. Also, every single one has yet to post profits.
“Most DTH operators are still seeding the market and, in the process, still bleeding,” says Rajesh Jain, head of KPMG, India’s media and entertainment practice. The DTH operators now want channel owners, commonly called broadcasters, to share their burden.
The Conundrum
DTH operators pass on 40 to 60 percent of each subscriber’s fee to broadcasters as license fees. For DTH operators to make profits, this needs to come down to 30 to 40 percent, says Jain. That can only happen if either the subscribers pay more or broadcasters charge less.
detail here
“Most DTH operators are still seeding the market and, in the process, still bleeding,” says Rajesh Jain, head of KPMG, India’s media and entertainment practice. The DTH operators now want channel owners, commonly called broadcasters, to share their burden.
The Conundrum
DTH operators pass on 40 to 60 percent of each subscriber’s fee to broadcasters as license fees. For DTH operators to make profits, this needs to come down to 30 to 40 percent, says Jain. That can only happen if either the subscribers pay more or broadcasters charge less.
detail here