DTH cos launch high-definition services price war

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A furious price war is playing out in the direct-to-home (DTH) television segment, with broadcasters that beam high-definition (HD)
pictures slashing rates by 50% in recent days to make the most of the Fifa World Cup fever.

Last week, Tata Sky launched HD services at Rs 2,599, forcing market leader Dish TV to cut prices by more than 50% within days of launch. The competition is likely to intensify with rivals such as Videocon and Airtel expected to launch similar services in the coming days.

Tata Sky chief marketing officer Vikram Mehra said the aggressive pricing strategy was to ensure that, “it becomes a mass product and not a premium product”.

Marketers said DTH companies had planned to introduce HD services before the Commonwealth Games, but the huge interest in the soccer world cup has advanced launches. Fifa world cup broadcaster ESPN has an optional HD service exclusively for the tournament.

Dish TV said sales of HD services will build up in soccer-crazy regions like Kerala and West Bengal as well as metros. “We had launched our offering with conservative growth projections but with new prices, growth will be much faster,” said Dish TV COO Salil Kapoor.

The price war means the difference in rates between a standard definition box and HD has shrunk significantly.

An upshot of the development would be entertainment companies rolling out HD-ready content faster than planned. Now, only a dozen-odd channels such as Discovery, National Geographic, Colors, Zee TV, Star Plus, Star Movies and Sun TV are available in the two formats. That is set to change.

“Within the next two months we expect at least 12 more channels to be available in HD format,” said Anil Khera, CEO of Videocon D2H, the latest entrant in the DTH segment.

A consumer needs an HD-ready LCD or Plasma TV to receive content in this format. There is also a premium of up to 30% for receiving HD signals.

DTH cos launch high-definition services price war-Media-Media/Entertainment -News By Industry-News-The Economic Times
 
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Have to wait and watch how it goes as everyone is jumping onto this.
 
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Yes true, as Videocon and Airtel are expected to be in arena, we can see further price drops. :)I will wait.