The cable companies, along with the DTH service providers, are reaping benefits from the annual Rs 1,000 crore marketing blitz undertaken by the six DTH providers.
DEN Networks is set to double its cable subscriber base to 20 million within next 12-18 months, that too without spending any money on promotions. As a result, by end-2011, mid-2012, DEN is hopeful of becoming the single-largest cable firm in India commanding 35-40% in the overall market.
DEN says the ad-marketing blitz by DTH companies over the past years has helped spread awareness about digital cable. This, according to DEN, has helped the company acquire large number of cable subscribers by offering digital cable at competitive costs coupled with customised services. And thanks to the high-marketing spends of all DTH firms, DEN has not indulged in any advertising or marketing campaigns to achieve its existing 10 million subscribers.
“Offering digital cable at competitive costs and localised services has helped us reach from zero to 10 million cable subscribers within 15 months of our launch,” DEN Networks president (strategy & business development) MG Azhar told FE.
According to Azhar, DEN aims to become the market leader soon in the organised cable industry which is still marred by under declarations and local cable operators who have no capital to expand or upgrade their networks.
DEN is moving in to reach the 20 million cable subscriber-mark in next 12-18 months mainly through acquisitions. It will use its Rs 270 crore of cash raised in the public offer two-months ago. According to sources, DEN is in talks with a host of cable operators and large cable distribution companies across states.
The combined subscriber base for all six DTH firms currently stands at 24 million while there are at least 85 million cable homes in the country.