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Launches 30 channels in high definition: Another first
Mr. R.C. Venkateish, CEO, Dish TV, said on 17th February 2011 that with 30 high
definition (HD) channels, the company will have a significant differentiated
offering, a big competitive advantage. Though many DTH players in the industry
have launched the HD format, most of them do not have more than 3-5 HD
channels. The company now has an enhanced product portfolio of 267 channels
in standard definition, which is substantially higher than any competing DTH
operator.
HD pack to be big; will expand ARPU over medium/long term
We expect HD will lead to higher ARPU and market share for Dish TV. Currently,
only about ~2% of the 3-4 mn HD-ready TV sets have HD service, indicating the
huge potential. Dish truHD will be offered at a price of INR 2,390 (earlier price of
INR 2,990) which will include one month’s Platinum subscription and all 30 HD
channels. Alternatively, Dish truHD packs will be available in two variants—Base
pack of 15 channels at INR 125 per month and A-La Carte of 15 channels at INR
100 per month. It will also showcase the World Cup and the French Open
through a special INR 150 pack for both tournaments.
Subscriber addition strong in January
In January, Dish TV added ~0.316 mn subscribers and had an incremental
market share of ~29% (25% in Q3FY11). Historically, the month has been good
in terms of subscriber addition in spite of hardly any cricket or festivals. We
expect Dish TV to be one of the biggest beneficiaries of 90 day cricket over the
next few months (Cricket World Cup in India in February-April and post that in
Q1FY12 IPL followed by a heavy sports calendar). Overall gross figure in terms
of subscribers for the company is ~9.8 mn and industry at ~32 mn. Competitors
and consumer durables (TV manufacturers) are spending heavily, which is aiding
Dish TV in terms of subscriber addition.
Outlook and valuations: Attractive; maintain ‘BUY’
We are bullish on the Indian pay TV market. Dish TV is at an inflection point with
expected higher growth on the back of low penetration, favourable regulatory
environment, increasing margins, and a strong balance sheet. Hence, we
maintain ‘BUY’ recommendation on the stock and rate it ‘Sector
Outperformer’ on relative return basis.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Launches 30 channels in high definition: Another first
Mr. R.C. Venkateish, CEO, Dish TV, said on 17th February 2011 that with 30 high
definition (HD) channels, the company will have a significant differentiated
offering, a big competitive advantage. Though many DTH players in the industry
have launched the HD format, most of them do not have more than 3-5 HD
channels. The company now has an enhanced product portfolio of 267 channels
in standard definition, which is substantially higher than any competing DTH
operator.
HD pack to be big; will expand ARPU over medium/long term
We expect HD will lead to higher ARPU and market share for Dish TV. Currently,
only about ~2% of the 3-4 mn HD-ready TV sets have HD service, indicating the
huge potential. Dish truHD will be offered at a price of INR 2,390 (earlier price of
INR 2,990) which will include one month’s Platinum subscription and all 30 HD
channels. Alternatively, Dish truHD packs will be available in two variants—Base
pack of 15 channels at INR 125 per month and A-La Carte of 15 channels at INR
100 per month. It will also showcase the World Cup and the French Open
through a special INR 150 pack for both tournaments.
Subscriber addition strong in January
In January, Dish TV added ~0.316 mn subscribers and had an incremental
market share of ~29% (25% in Q3FY11). Historically, the month has been good
in terms of subscriber addition in spite of hardly any cricket or festivals. We
expect Dish TV to be one of the biggest beneficiaries of 90 day cricket over the
next few months (Cricket World Cup in India in February-April and post that in
Q1FY12 IPL followed by a heavy sports calendar). Overall gross figure in terms
of subscribers for the company is ~9.8 mn and industry at ~32 mn. Competitors
and consumer durables (TV manufacturers) are spending heavily, which is aiding
Dish TV in terms of subscriber addition.
Outlook and valuations: Attractive; maintain ‘BUY’
We are bullish on the Indian pay TV market. Dish TV is at an inflection point with
expected higher growth on the back of low penetration, favourable regulatory
environment, increasing margins, and a strong balance sheet. Hence, we
maintain ‘BUY’ recommendation on the stock and rate it ‘Sector
Outperformer’ on relative return basis.
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