Videocon may sell DTH business

SVK

svknet.wordpress.com
[OP]
Regulars
Jan 19, 2007
9,846
843
svknet.wordpress.com
Videocon looks to sell DTH biz to rival firms

Videocon will begin talks with rivals independently after it partners with a foreign operator. “Videocon is in talks with one of the largest DTH operator in the US to form a joint venture,” the same person said. He did not reveal the name of the partner.

Consultants say a merger will have its challenges.

“If any merger happens, two things have to be taken into account — there should be minimal overlap in the customer footprint and synergies in the DTH positioning should be taken care of,” said Jehil Thakkar, head (media and entertainment), KPMG India. “For instance, if Tata Sky, which is considered a premium operator, merges with a middle-to-low-end player like Videocon d2h, the new entity would have a complete spectrum of customers and services.”

Tata Sky and Dish TV denied any talks with Videocon. “These are market speculations and we are not in talks with anybody,” Harit Nagpal, managing director and chief executiver, Tata Sky, said.

Dish TV, too, denied any talks with Videocon or any other DTH player. “Dish TV is not in talks with any operator for any sort of consolidation,” a company official said. Airtel Digital TV did not respond to a mail from FE.

Some DTH operators have been trying to sell a part of their stake. Reliance Digital TV had plans to dilute stake to raise anywhere between R2,000 crore and R2,500 crore.

“Consolidation is bound to happen among cable and satellite companies,” head of an investment bank said.

However, DTH companies disagree. “Consolidation is a very difficult exercise because you have to go to every subscriber and change his dish,” said Nagpal of Tata Sky.

Videocon, though the last entrant in the DTH sector, has been the fastest in adding subscribers. It crossed 4 million subscribers in October 2011 and has added another 1.1 million until June this year. It adds 0.17 million subscriber per month, only trailing behind Airtel’s 0.19 million additions, data released in February 2012 by Singapore-based consulting firm Media Partners Asia (MPA) showed.

The company occupies 11.4% share of the DTH market, ahead of Reliance Digital TV with 9.5%, according to the MPA data. Until 2011, 44.4 million subscribers held DTH connections, of which 30 million are active, the report said.

Foreign DTH operators are also keen to enter India, but the government’s restriction of foreign ownership to 26% in domestic companies is stopping them. DirectTV and Dish Network of US, Bell TV of Canada, BSAT of Japan, Tricolour TV of Russia and Foxtel of Australia have been looking to gain a foothold in the Indian DTH sector, riding on the hope of an increase in the FDI limit, which offers them controlling ownership.

“If the FDI limit goes up, we could see a complete change in the DTH space with both foreign and domestic companies looking to come together,” Thakkar said.

Another failed business strategy for Videocon after mobile service?
 

Sushubh

Administrator
Oct 29, 2004
413,747
12,756
Gurugram
:dont-know: they have been doing such a great job it would suck to deal with zee or airtel.
 

abhishek.techie

Newbie
Regulars
Feb 23, 2012
98
0
Someone reported NDTV Profit's news today : "Dish is looking for acquisition of other DTH company" . Might be d2h.I wonder why Reliance Digital TV isn't sold yet. Their financial and customer growth are statistically.. the crappiest :D
 

Jignesh

Regulars
Regulars
Jun 6, 2008
3,330
206
Hyderabad
Someone reported NDTV Profit's news today : "Dish is looking for acquisition of other DTH company" . Might be d2h.

I wonder why Reliance Digital TV isn't sold yet. Their financial and customer growth are statistically.. the crappiest :D

RDTV growth mite be crappiest but they will not sell their business as of now to anyone, infact future looks more bleak for Sun direct
 

IndianMascot

Addicts
Regulars
Jun 17, 2011
7,371
433
RDTV has more bigger plans. What happened to the news of RDTV and Sun Direct partnership ?
 


SVK

svknet.wordpress.com
[OP]
Regulars
Jan 19, 2007
9,846
843
svknet.wordpress.com
I was expecting this merger and sale of service by new operators. These new/small operators just jumped in business, but they didnt had experience to run the service.After few years only few large operators may exists. Same could happen with Mobile operators.
 
Jul 11, 2012
1
0
Videocon is doing so Good. they are adding subscribers at tremendous pace. The customer care is amazing with very good after sales support. They are best I don't think they will exit the d2h business.As far as I know the licensing agreement will not allow any other operator to buy DTH. They just cant sell licenses to each other.
 

ajuravi007

Regulars
Regulars
Aug 11, 2006
21,015
1,499
RDTV growth mite be crappiest but they will not sell their business as of now to anyone, infact future looks more bleak for Sun direct

Why so?

I think they might sell some of their stakes to a new company...how about selling to Vijay Mallya...Atleast he would fight for the viewers to telecast pornography movies ...
 

MAX 24

HERO FOREVER!
Regulars
Jun 29, 2010
1,310
81
Curtain raiser plzwhich company going to accept we as customers? :( maybe change software of boxes