MUMBAI: Dish TV India Ltd, the Essel Group-promoted direct-to-home (DTH) service provider, is in talks with foreign institutional investors to raise money. The company, which has a market share of 65%, plans to invest Rs 850 crore for expansion over the next three years.
Jawahar Goel, additional vice-chairman, Dish TV, told DNA Money: “We are in talks with a few FIIs but can’t reveal the names at this stage.”
Competition is hotting up in the sector. Tata Sky is already present here and Sun TV and Reliance ADAG are expected to enter in 2007-08 and Bharti Group in 2008-09. Though Dish TV, being the early mover in the space, stands to gain, to survive in the competition, it has to invest heavily to increase subscribers’ base before other started operations.
The company expects to touch a subscriber base of about 4.5 million by the end of fiscal 2009. It is increasing the number of channels to 400 by next year from current 170 channels on offer. The DTH player is also planning to introduce new products for the niche and premium segments.
Meanwhile, Dish TV has launched a new set-top-box that can convert the PC into a television. Initially, it has launched in metros, including Delhi, Mumbai, Bangalore, Kolkata, Pune, Ahmedabad and Hyderabad.
According to an estimate, the DTH reach in the country is likely to expand from 2.5 million households now to 16 million by 2010.
Analysts believe fierce competition will lead to Dish TV’s market share falling to around 32% after fiscal 2009 from the current 65%.
It will have 4.4 million subscribers and garner Rs 1,400 crore in revenues by fiscal 2010 and will turn profitable after fiscal 2010.
Globally, the DTH segment has either grown on the back of subsidies as in the US or content exclusivity (BSkyB in UK).
Experts said DTH in India has to be driven by subsidies, as content exclusivity is not permitted here.
