Friday, June 4, 2010

“Who is leading race?”


In the current era of Digital TV – the wide spread Cable operators and the fast emerging DTH players both are ready to capture the market share with increased consumer demand.

Cable connections have an advantage of price and local programming. Where as, multi-choice functions of DTH and its interactive and personal services attract consumers.

Even as the DTH players are gradually increasing their market share but the Cable connections still form the preferred choice for the majority.

With the entry of corporate giants such as Dish TV, Tata Sky, Airtel Digital TV and Big TV among other players, the market for DTH services is more organized than the Cable industry.

According to the ‘TAM Annual Universe Update –2010’ study, out of the estimated 135 million total number of TV households in India, 80% of the them are subscribed to cable and satellite connection. From this cable subscriber base, only one in every five households avails of digital connection.

Most of the cable connections come with fixed charges and cost, mostly cheaper than DTH services, with out any add-on packages and free access to most of the channels including latest yet pirated movies on local connections.

DTH is gradually gaining ground in rural India where the subscriber base has almost doubled since past couple of years.

The positive about DTH connection is it provides interactive programming choices and interactive features such as movie on demand and other informative and active services.

Many analysts are of the view that both cable and DTH services can grow simultaneously in the Indian market. DTH players seem to target 33% of cable market in the next couple of years. It certainly seems that after mobile revolution, it could be turn of the DTH market to explore Indian market. Competition and involvement of the big corporate would ultimately benefit the consumers.

Both have their own individual merits and demerits and this makes it easy for their survival. But, yes, with the advent of DTH services a Cable TV providers job has become more cautious, attentive and service oriented, as compared to their days of monopoly.

Both cable and DTH – are ready to take the benefit of the rising consumer demand. But, question is who will make money? The cable guy or a DTH service provider? Any answers? Please write back.