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No set-top box spells gain for DTH operators
The shortage of set-top boxes in the city seems to have boosted the sale of DTH connections in the past few days, especially after television sets went blank across 38 cities on April 1. Traders have confirmed that the daily sales of direct to home (cable signals) popularly known as DTH connections have grown over 4-5 times as compared to past few months.
While earlier, around 300 DTH connections were sold on a daily basis in the city, the sales have today jumped to almost 1,500-2,000 connections daily. The sales showed a huge jump from April 1 to April 3, and it reached to almost 3,000-3,500 DTH connections daily.
According to the recent figures of the Union ministry of information and broadcasting, around 1,30,000 households have DTH connection in Lucknow.
In Lucknow, Tata Sky is the leading DTH provider with around 30% of market share. This is closely followed by Airtel (around 28%) and then comes - Videocon and Dish TV which are close competitors. A Tata Sky dealer said, "All six DTH companies in the city have already increased their staff last month to seize the opportunity. We have increased our manpower to 11 from just 2."
Most people have also shown preference to DTH. An Airtel executive in Lucknow said, "Almost 20% people have switched to using DTH, because of its better quality transmission and more number of channels. Only those people are waiting for set-top boxes who are under financial constraints."
Dealers said that the increasing trend of installing LCD and LED television sets is also promoting DTH sales. A dealer said, "It is quite understandable that a person who spends around Rs 30,000 - 50,000 on a TV set would not mind buying an expensive connection to have a better quality experience. Around 10%-15% of population here uses LCD or LED TV set, which gives us quite a big market to operate."
Experts have also hinted about cable operators thinking to increase the monthly rental once DAS (Digital Addressable System) is applied everywhere in the city. A DTH dealer said, "Once the new system is applied, cable companies would customize the package and also increase the monthly rent. This would reduce the price parity between DTH and cable." Today installation of a DTH costs around Rs 2200 and a cable connection costs Rs 1200.
They said that DTH gives more advantages over a cable connection as it offers high definition transmission, which is a value proposition for LCD and an LED TV and also more number of channels as compared to a cable connection.
"Normally people who have multiple connections in their house think that DTH installation would be costlier than a cable one. But this is a one time fee and is quite reasonable for the kind of value DTH offers. DTH companies have special secondary packages at reduces monthly rates for customers with multiple connections. While the monthly rent on one connection would cost around Rs 500, the secondary connections in the house can be availed for just around Rs 160," said a dealer.
DTH also comes as a preferred choice among houses which require single cable connection as it offers more value for the money.
Experts have also hinted about cable operators thinking to increase the monthly rental once DAS (Digital Addressable System) is applied everywhere in the city.
Source: No set-top box spells gain for DTH operators - The Times of India
The shortage of set-top boxes in the city seems to have boosted the sale of DTH connections in the past few days, especially after television sets went blank across 38 cities on April 1. Traders have confirmed that the daily sales of direct to home (cable signals) popularly known as DTH connections have grown over 4-5 times as compared to past few months.
While earlier, around 300 DTH connections were sold on a daily basis in the city, the sales have today jumped to almost 1,500-2,000 connections daily. The sales showed a huge jump from April 1 to April 3, and it reached to almost 3,000-3,500 DTH connections daily.
According to the recent figures of the Union ministry of information and broadcasting, around 1,30,000 households have DTH connection in Lucknow.
In Lucknow, Tata Sky is the leading DTH provider with around 30% of market share. This is closely followed by Airtel (around 28%) and then comes - Videocon and Dish TV which are close competitors. A Tata Sky dealer said, "All six DTH companies in the city have already increased their staff last month to seize the opportunity. We have increased our manpower to 11 from just 2."
Most people have also shown preference to DTH. An Airtel executive in Lucknow said, "Almost 20% people have switched to using DTH, because of its better quality transmission and more number of channels. Only those people are waiting for set-top boxes who are under financial constraints."
Dealers said that the increasing trend of installing LCD and LED television sets is also promoting DTH sales. A dealer said, "It is quite understandable that a person who spends around Rs 30,000 - 50,000 on a TV set would not mind buying an expensive connection to have a better quality experience. Around 10%-15% of population here uses LCD or LED TV set, which gives us quite a big market to operate."
Experts have also hinted about cable operators thinking to increase the monthly rental once DAS (Digital Addressable System) is applied everywhere in the city. A DTH dealer said, "Once the new system is applied, cable companies would customize the package and also increase the monthly rent. This would reduce the price parity between DTH and cable." Today installation of a DTH costs around Rs 2200 and a cable connection costs Rs 1200.
They said that DTH gives more advantages over a cable connection as it offers high definition transmission, which is a value proposition for LCD and an LED TV and also more number of channels as compared to a cable connection.
"Normally people who have multiple connections in their house think that DTH installation would be costlier than a cable one. But this is a one time fee and is quite reasonable for the kind of value DTH offers. DTH companies have special secondary packages at reduces monthly rates for customers with multiple connections. While the monthly rent on one connection would cost around Rs 500, the secondary connections in the house can be availed for just around Rs 160," said a dealer.
DTH also comes as a preferred choice among houses which require single cable connection as it offers more value for the money.
Experts have also hinted about cable operators thinking to increase the monthly rental once DAS (Digital Addressable System) is applied everywhere in the city.
Source: No set-top box spells gain for DTH operators - The Times of India
