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Videocon d2h, the direct-to-home (DTH) arm of the Videocon Group, is anticipating strong subscriber growth this fiscal due to Phase III of digital addressable system (DAS) while average revenue per user (ARPU) is expected to grow by 10 per cent.
The DTH company expects to add 1.3–1.4 million gross subscribers in the first half of FY16, similar to what the DTH company mopped up in the year-ago period. Subscriber additions in the second half of the fiscal will be stronger, with 31 December 2015 as the deadline for Phase III digitisation. “In the first half, subscriber additions will be similar to the corresponding period of the previous year, which had general election.
But digitisation will be a big growth kicker in the second half of FY16,” said a Videocon d2h executive. In FY15, Videocon d2h mopped up 1.75 million net subscribers to take the total to 10.18 million.
The company had 2.64 million new gross subscribers, thus taking the total to 13.09 million.
The fiscal 2016 ARPU is expected to be 215 compared to the year-ago period’s ARPU of Rs 196. The ARPU for the fourth quarter of FY15 was Rs 202. Videocon d2h implemented a price increase across all their packages in February.
The percentage of increase varied for different packs, from 5 per cent to 10 per cent.
The average increase across packages was 6–7 per cent. Videocon d2h has guided content cost to drop by 100 to 150 basis points in the fiscal amid the rise in the number of subscribers and in ARPU.
Content cost currently accounts for 36 per cent of the company’s total revenue. While half the company’s contracts with broadcasters are on fixed-fee basis, the remaining half is linked to subscriber growth.
Read more at:
http://www.televisionpost.com/dth/videocon-d2h-eyes-1-4-mn-gross-subscriber-adds-in-first-half-of-fy16/
The DTH company expects to add 1.3–1.4 million gross subscribers in the first half of FY16, similar to what the DTH company mopped up in the year-ago period. Subscriber additions in the second half of the fiscal will be stronger, with 31 December 2015 as the deadline for Phase III digitisation. “In the first half, subscriber additions will be similar to the corresponding period of the previous year, which had general election.
But digitisation will be a big growth kicker in the second half of FY16,” said a Videocon d2h executive. In FY15, Videocon d2h mopped up 1.75 million net subscribers to take the total to 10.18 million.
The company had 2.64 million new gross subscribers, thus taking the total to 13.09 million.
The fiscal 2016 ARPU is expected to be 215 compared to the year-ago period’s ARPU of Rs 196. The ARPU for the fourth quarter of FY15 was Rs 202. Videocon d2h implemented a price increase across all their packages in February.
The percentage of increase varied for different packs, from 5 per cent to 10 per cent.
The average increase across packages was 6–7 per cent. Videocon d2h has guided content cost to drop by 100 to 150 basis points in the fiscal amid the rise in the number of subscribers and in ARPU.
Content cost currently accounts for 36 per cent of the company’s total revenue. While half the company’s contracts with broadcasters are on fixed-fee basis, the remaining half is linked to subscriber growth.
Read more at:
http://www.televisionpost.com/dth/videocon-d2h-eyes-1-4-mn-gross-subscriber-adds-in-first-half-of-fy16/