Dish TV India Ltd, India’s largest direct-to-home service provider by customers, is strengthening its war chest as it prepares to acquire more customers in the next two years in India’s highly competitive DTH market. The Essel Group company today said it will raise upto $200 million (Rs940 crore) through an issue of foreign currency convertible bonds (FCCBs). This is in addition to the Rs1,100 crore it is raising in a three-part rights issue. So the company will raise about Rs2,000 crore in all.
“This money will be utilized for customer acquisition for the next two years,” Dish TV managing director Jawahar Goel told contentSutra. “After that, the company will generate enough money to fund customer acquisition,” he added. DTH companies subsidize the cost of set top boxes (STBs) so that they can acquire more customers and enjoy economies of scale.
The 2008 Ficci-PwC report on India’s media industry forecasted that DTH will reach 25 million households by 2012. Apart from Dish TV, TataSky, Airtel, Reliance Communications and Sun DTH are the other players in the segment.
This is an agressive move by Dish TV. Considering the number of players entering the DTH fray, higher customer base will definitely be a great advantage for any player. this will lead to good times for the customer though.
This is strong moves by Dish TV. Dish TV is one of the largest direct-to-home service provider. Now Dish TV will be moving to make more complacent to customers. Dish TV will be utilize that fund to subsidize the cost of set top boxes and its services. So, customers will get benefit by the innovative decision of Dish TV. It can make cost war in between direct-to-home service providers. Itâs beneficial for customers. Now DTH war becomes so strong and more competitive.
thts really a nice move :)
now a days the competition in market is vry tough so one'll hve to prepare theirselves to compete :) bdy good strategy
Raising $200 million fund for customer acquisition is great move for Dish TV. In this way, the company can get a high percentage of the overall market share.