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The fierce price war in the direct-to-home (DTH) industry has finally taken a toll on the DTH companies. Essel Group-owned Dish TV has taken the first step to increase prices of its offerings.
The market leader has revamped its entire price structure and would now pass on the service tax to its customers, which will increase monthly subscription by about 12-12.5 per cent. Since the past few months, the players were absorbing the taxes.
Jawahar Goel, managing director, Dish TV, explains, "Dish TV is known to drive down DTH prices, but as we import set-top boxes (STBs), it may not be possible anymore. Our fixed costs have gone up significantly, and we have no option, but to pass the burden on to the consumers. We are looking at innovative ways of increasing prices, so that it does not hurt the consumer in a big way."
All the private DTH players import their set-top boxes from foreign manufactures, and the price of STBs varies according to the technology used by the DTH company.
As of today, the DTH players are selling STBs to customers below their cost price, and with the dollar touching Rs 50 a few days ago, the cost of acquiring customers have gone up.
Dish TV to increase prices of its DTH offerings | Televisionpoint.com News
The market leader has revamped its entire price structure and would now pass on the service tax to its customers, which will increase monthly subscription by about 12-12.5 per cent. Since the past few months, the players were absorbing the taxes.
Jawahar Goel, managing director, Dish TV, explains, "Dish TV is known to drive down DTH prices, but as we import set-top boxes (STBs), it may not be possible anymore. Our fixed costs have gone up significantly, and we have no option, but to pass the burden on to the consumers. We are looking at innovative ways of increasing prices, so that it does not hurt the consumer in a big way."
All the private DTH players import their set-top boxes from foreign manufactures, and the price of STBs varies according to the technology used by the DTH company.
As of today, the DTH players are selling STBs to customers below their cost price, and with the dollar touching Rs 50 a few days ago, the cost of acquiring customers have gone up.
Dish TV to increase prices of its DTH offerings | Televisionpoint.com News
