Pugazhbalaji
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@nskaran bro.
Pl provide channel list.
Pl provide channel list.
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tech_genie
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New initiative to be ARPU accretive in medium-term: Dish TV
DTH major Dish TV has launched a new initiative under which its new subscribers will be able to watch more than 70 channels for Rs 400 for a year. RC Venkatesh, chief executive officer, Dish TV says the product is average revenue per user (ARPU) accretive in the medium-term, about six-nine months.
Below is the edited transcript of his interview with CNBC-TV18's Sonia Shenoy.
Q: What is the rationale behind this particular scheme? How would it make Dish TV more competitive going ahead?
A: We have been working on this product for quite sometime. The product has been extensively researched on our existing database. There is a lot of customer angst, when the TV completely goes blank. That happens when the recharge drops below zero or drops to zero. So, the stickiness improves because the customer irritation is reduced. He sees value in the box. The propensity for churn is substantially reduced amongst the customers.
This product is ARPU accretive in the medium-term, about six-nine months. It actually reduces the propensity to churn. That is the rationale behind that. It is also providing a lot of comfort to the customer and a lot of positive value. I don’t think there will be any price war because we have not reduced the price of our entry packs or any other packs. All those packs are being offered at the same price.
The important benefit, which we will get, is we would be able to target the cable customers.
Q: The concern is that analysts have is that if the pick of the scheme is significant then it may lead to some pressure on ARPUs in the immediate-term. Where are ARPUs currently? Do you expect any kind of pressure?
A: No. We have already measured the impact on a fairly extensive sample of almost close to about 60,000 internal customers. The impact on ARPUs is negligible, less than 0.5%. It is more than compensated by the reduction in the churn metrics. So, we believe it’s actually accretive for ARPU in the medium-term.
Q: How will this help increase your subscriber addition?
A: When the customer has to evaluate between different offers either between other DTH companies and cable, against other DTH companies, there is a significant benefit for no extra cost. He is getting those additional facilities, even if he forgets to recharge or he is travelling or something, his TV doesn’t go completely blank. He always sees value in set-top box. Vis-à-vis cable, it’s a benefit because customer again fails to recharge. So, this is fairly unique position that we have adopted. We believe that will create that differentiation.
DTH major Dish TV has launched a new initiative under which its new subscribers will be able to watch more than 70 channels for Rs 400 for a year. RC Venkatesh, chief executive officer, Dish TV says the product is average revenue per user (ARPU) accretive in the medium-term, about six-nine months.
Below is the edited transcript of his interview with CNBC-TV18's Sonia Shenoy.
Q: What is the rationale behind this particular scheme? How would it make Dish TV more competitive going ahead?
A: We have been working on this product for quite sometime. The product has been extensively researched on our existing database. There is a lot of customer angst, when the TV completely goes blank. That happens when the recharge drops below zero or drops to zero. So, the stickiness improves because the customer irritation is reduced. He sees value in the box. The propensity for churn is substantially reduced amongst the customers.
This product is ARPU accretive in the medium-term, about six-nine months. It actually reduces the propensity to churn. That is the rationale behind that. It is also providing a lot of comfort to the customer and a lot of positive value. I don’t think there will be any price war because we have not reduced the price of our entry packs or any other packs. All those packs are being offered at the same price.
The important benefit, which we will get, is we would be able to target the cable customers.
Q: The concern is that analysts have is that if the pick of the scheme is significant then it may lead to some pressure on ARPUs in the immediate-term. Where are ARPUs currently? Do you expect any kind of pressure?
A: No. We have already measured the impact on a fairly extensive sample of almost close to about 60,000 internal customers. The impact on ARPUs is negligible, less than 0.5%. It is more than compensated by the reduction in the churn metrics. So, we believe it’s actually accretive for ARPU in the medium-term.
Q: How will this help increase your subscriber addition?
A: When the customer has to evaluate between different offers either between other DTH companies and cable, against other DTH companies, there is a significant benefit for no extra cost. He is getting those additional facilities, even if he forgets to recharge or he is travelling or something, his TV doesn’t go completely blank. He always sees value in set-top box. Vis-à-vis cable, it’s a benefit because customer again fails to recharge. So, this is fairly unique position that we have adopted. We believe that will create that differentiation.
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