Who would forget the scene of Jesse Pinkman (Aaron Paul) and Jane Margolis (Krysten Ritter) holding hands in front of a TV with a blank screen from the American crime drama television series, Breaking Bad? The popularity of television has seen its fair share of ups and downs in India. According to a study by market intelligence platform, Statista, the overall viewership of television in India amounted to 1508 billion impressions in 2023. Furthermore, as per the Telecom Regulatory Authority of India’s (Trai) latest report, the total number of paid direct-to-home (DTH) subscribers stood at 63.52 million as of December 31, 2024. To further capitalise on the growing DTH users, especially those keen to have a one-touch point of content to view over-the-top (OTT) content, and TV content, Dish TV recently launched a Smart+ service, allowing customers access to DTH along with 21 OTT platforms.
According to the company’s financial reports, revenue from operations declined 20.13% to Rs 203.69 crore in Q3, FY24 from Rs 255.04 crore in Q3, FY23. Additionally, the company’s net loss widened by 13.74% to Rs 15.81 crore in Q3, FY24 from Rs 13.90 crore in Q3, FY23. In a conversation with BrandWagon Online, Manoj Dobhal, CEO, Dish TV, talks about marketing strategies, Dish TV Smart+, technological advancements and the company’s future roadmap. (Edited Excerpts)
What are the reasons for the net loss widening and the revenue from operations shrinking?
The bottom line (net profit/loss) is an impact of the top line (total revenue), middle line (production cost) and the efficiency of capital expenditure (CapEx) utilisation. We are addressing all the three points. The initiative that we’ve taken today is to address the top line. A lot of CapEx goes into hardware such as the -top box (STBs), an outdoor unit (ODU), a dish, a low-noise blow downconverter (LNB), a cable modulator, and a remote among others, in the industry. We are in the middle of technological advancements in hardware which will reduce my expenses or my CapEx towards these expenses substantially. The advancements in technology that we would be introducing would squeeze my middle line which will result in a healthier bottom line going forward.
What are your marketing strategies for the product and what would be customer acquisition cost and strategy?
The marketing strategies that we have deployed have two parts. Firstly, we have an existing base of customers and we have different mediums to cater to their needs and engage with them. We need to raise awareness about the product and then facilitate the upgrade and help them transition from a traditional DTH to a Smart+ pack. The execution of this part is underway. Lastly, we plan to acquire new customers. We are executing a 360-degree communication and awareness program for potential customers who are outside our network. We have planned a go-to-market (GTM) strategy. We would market our product using print, above-the-line (ATL), below-the-line (BTL), digital mediums and roadshows, communicating and raising awareness effectively.
Airtel, Jio and Tata Play have been in the smart set-top box space for some time now. Why has Dish TV delayed its entry into the segment?
I would still like to consider that the product we have launched is the first of its kind. Usually, there is a minimum threshold or a certain condition a consumer needs to meet before they start availing of the benefits of the apps. It can entail an expensive plan or a broadband connection for the company. We differentiate ourselves from the competition by offering the OTT service on any WiFi or data service and doing so at a low price point. A customer can subscribe to our service from Rs 200 onwards and avail of all the services.
According to a report by global brokerage firm CLSA, the DTH market in India had 72.4 million subscribers in FY19. As per Trai, the total number of paid direct-to-home (DTH) subscribers stood at 63.52 million as of December 31, 2024. Would DTH connections still be relevant as CTV has floated into the picture? How do you intend to cater to the changing consumer habits?
Staying relevant comes down to the technological advancement of the brand and putting an ecosystem of devices together. We have lined up a few initiatives and for the next four quarters, we’ll be launching a few devices. We have collaborated with technology giants for advancements in our technology. This won’t be incremental, rather we are planning something drastic. We have made inroads into that development and the initiatives. One of our potential launches might require you not to buy a step-top box because it would be in the TV with the tuner. We are finished developing the product and the product is being tested now. There will be a lot of changes that we intend to introduce to DTH.
What is the future roadmap of the company? While Zing is popular in the rural areas competing against DD Free Dish, are there any other strategies the company wants to implement for the rural areas?
Zing has made very good inroads into the rural areas of the country. Strategically, it is neither required to be tampered with nor changed for the next two years. We have seen a trend emerging from the rural channels and customers now are seeking something else. Customers want differentiation in terms of having the ability to build channels on their existing plan or subscribe to a bouquet of channels which piques their interest. We are witnessing that shift as consumers are slowly moving from complete free-to-air channels to free-to-air channels with a few paid channels as an addition to their pack and this is a strategy that is in place.
Additionally, we want to penetrate further. Catering to rural India is not an easy task. We are tweaking a few of our go-to-market (GTM) strategies. The plan is underway which will enable us to cater to a larger audience. One of our ideas is that we’ll reach out to the customer, so the customer can relax at his home. From the product perspective, I think we’ve pulled the right levers which we have established in the market. We have taken a big step to introduce 21 OTT apps to our customers, including regional OTT apps. We have taken some time to develop technology and for the past three to four quarters we have been in development. As for the future, we will roll out a few products in upcoming quarters.