India's Direct to Home(DTH) Service - Market View

 India's Direct to Home(DTH) Service - Market View

Direct to Home(DTH) service is a method of receiving Satellite television through Signals from broadcasted Satellites. In India, the said live broadcast was approved by the Central Government in the year 2000. There are about 18 Crore Television and 7 Crore Subscribers for DTH service domestically.

As per subscriber numbers, India is the Largest Direct to Home Market globally. There are 4 Paid service providers are on the private sector and Only one Free Service provider which is governed by the Govt of India - Prasar Bharati. Dish TV is the first DTH service provider in Indian, which was launched in the year 2003.

The Free DTH service is provided by the Public broadcaster Prasar Bharati. The Four Paid service providers are,

  • Dish TV

  • Tata SKY

  • Airtel Digital

  • Sun Direct

Dish TV is the part of Zee group, which have a domestic Market share of around 30.50 Percent. d2h and Zing Digital were also the product of Zee Entertainment Enterprises. TATA Sky leads in the DTH sector, which holds a market share of 32 Percent and the holding company is Tata Sons, Walt Disney and Temasek Holdings.

The Walt Disney company holds a share of 30 Percent in the TATA Sky DTH service. In the Third and Fourth place, Airtel Digital have a market share of 23 Percent and Sun Direct holds with 14.30 Percent in the DTH Indian Market.

In the Sun Direct DTH Service, the South India's Sun Network holds with 80 Percent share and the rest with Malaysia based Astro Group. There are around 8 Satellites are used by the Indian DTH Service providers.

As per the Television Networks Amendment act 2011, it has made digital satellite and cable televison transition is mandatory in four phases. Likewise, Mumbai, Delhi, Kolkata and Chennai were in the First phase. In the Second phase, it is covered around 38 Cities where the population is more than 1 million. All other urban areas with Municipality comes under the 3rd Phase.

The Fourth phase comes with the rest of what is not covered in the first three phases. There was a deadline to complete the Digital Terrestrial TV transition for the four phases before December 2023.

Zee Entertainment Enterprises have a Market capitalization of Rs.21,000 Crore and the company is said to be as Debt Free. It's main business are: Broadcasting of Television Channels, Space selling agent for other Satellite Television channels and sale of media content.

On the other side, Sun TV Network is doing its business in Producing and broadcasting Satellite Television and Radio software programming for the South Indian Languages and Channels. Sun TV have a market cap of Rs.20,000 Crore and it is almost a debt free company with more cash flows.

Recently, the Union Cabinet has approved for the 100 Percent FDI(Foreign Direct Investment) in the DTH Service sector in India. The investments could help for the Rapid growth and additional security in this segment.

The Government also gives boost to this sector by reducing the license fee and extended the renewal period from 10 years to 20 years. This will not only generate additional revenue for the Govt, but also provide an improved service to the Public.

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