The company looks to earn blended ARPU next year from its broadband and cable service
The Hinduja Group owned distribution platform operator (DPO) NXTDIGITAL claims to have witnessed a 30% growth to 5.2 million subscribers in FY20 as opposed to four million in FY19. Semi-urban, semi-rural and rural areas are the prominent markets for the company, accounting for 60% of its total subscriber base. “Our focus would stay on these markets because it’s the fastest growing. Tier 3 and tier 4 are aspirational markets which provide huge margins. Users in these markets are currently in the process of upgrading services. While some are migrating from DD Free Dish to a standard definition low cost package, there are those who are migrating to a High Definition (HD) connection,” Vynsley Fernandes, CEO, NXTDIGITAL Ltd. and president, IndusInd Media and Communications Ltd told BrandWagon Online.
In FY20, NXTDIGITAL’s ARPU (company) from Tier 1 market stood at Rs 192, while it earned Rs 165 from Tier 2 cities, Rs 144 from Tier 3 cities and Rs 100 from Tier 4 cities. With over three lakh customers in terms of broadband, the company claims to have earned an ARPU of Rs 350. “Going forward, we will see a blended ARPU coming into play in FY21 because we are expanding our broadband to non-urban markets to promote semi-urban markets where we already have a presence through our cable service,” Fernandes added.
As per the company, the growth in NXTDIGITAL’s subscriber base is largely credited to the headend-in-the-sky (HITS) platform launched in 2015. Of the 5.2 million video subscribers, HITS account for 50%, that is, 2.6 million subscribers, while the remaining 2.6 million belong to the cable business.
The company plans to expand its broadband service to markets including the NorthEast, Telangana, Karnataka and rural and semi-rural parts of Maharashtra by partnering with local cable operators (LCOs). As per the firm it will help LCOs design packages that they can provide to the customers. “It’s a win-win deal as LCOs are able to continue managing and retaining independence of this network. As far as we’re concerned, we have a happy LCOs in those markets whom we’re providing not just video but also now broadband and other services,” he said. In FY20, the company revenue grew 39.3% to Rs 1,162 crore as opposed to Rs 704.6 crore in FY19. Further, the company clocked Rs 110 crore as profit in FY20.