 "Zing will compete directly with cable operators: Salil Kapoor")
Dish TV, a leading DTH player of Zee Network, is rejigging its brand strategy with a new regional-content brand, Zing. Designed for tier III and IV towns, Zing would play a role in the third and fourth phase of digitisation, according to the parent which has 16 million gross consumers. Salil Kapoor, COO, tells Digbijay Mishra that while the need to communicate in local languages is the need of the hour, India will remain a low ARPU (average revenue per user ) market, unlike foreign countries. Edited excerpts:
How will Zing help?
There are 90 million who have TVs and we feel that Zing will have potential in phase three-four. Firstly, Zing will offer the product/ content that the consumers want and at the price that they want.
Lower tier towns are important for your digitisation strategy?
The potential is huge as there are 242 million homes. People who don't have TVs and people who do not have DTH in their homes are mostly coming up to us from tier III and IV towns, where regional content demand is high. There we will compete directly with local cable players. That is why Zing was launched.
In DTH, Airtel and Tata Sky have gained substantial share. How will you keep your lead?
To stay ahead, we have brought Zing. Doing what all of us have been doing is not enough to beat local cable now because the customer has very different needs from urban areas. We have 16 million out of the total 60 million. In the last quarter, we added about 350,000 subscribers.
Will you take Zing to other states?
We are starting in West Bengal and Odisha. We will take our time to move on to other states. The packaging would be different in different regions for Zing.
Will Zing score points with only local advertisors?
MNC marketers have to understand that we are not a one language-country. We are like a Europe. Every state is a country in its own right, and want you to talk in its language to relate to us.
Any other revenue-growing services to be introduced?
Ad sales is one of the platforms. Everytime you recharge, you get an SMS. We are experimenting with the idea to tag it with advertiser's brands, it couldmake for a good source of revenue, which will be helpful. We have mobile TV which you can on the go but is expensive at present. We are planning to make it affordable by bringing it to sub-Rs 25,000.
So, the focus is not on increasing subscription but on adding services to boost revenue?
DTH is in a phase where both hunting and farming has to go hand in hand. While we have to go for more DTH subscribers, we have to understand that youngsters are shifting to devices like mobiles, and computers for TV-viewing. We we are also making car-TV affordable.
Mostly the ARPU rates have been flat. What is your outlook on that?
It is inching up. We had ARPU of Rs166 in the last quarter. India is a low ARPU market and if you look at things, it is not even $3, while in the US it is about $80. So, this market is different and we make it up here with the volume. ARPU will not jump and that is why we do several launches, to have mulytiple revenue sources.
How is the movie box office concept doing?
It is about back to back movies, not by a broadcaster but by us. But it is movie-on-demand where not one but a package of multiple films are on the offer.
This is quite unique and we are already being approached by advertisers who want to own that but we are not yet sure about it. If we do so, we will keep it clutter-free and ads will be for a very limited time.
How will Zing help?
There are 90 million who have TVs and we feel that Zing will have potential in phase three-four. Firstly, Zing will offer the product/ content that the consumers want and at the price that they want.
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The potential is huge as there are 242 million homes. People who don't have TVs and people who do not have DTH in their homes are mostly coming up to us from tier III and IV towns, where regional content demand is high. There we will compete directly with local cable players. That is why Zing was launched.
In DTH, Airtel and Tata Sky have gained substantial share. How will you keep your lead?
To stay ahead, we have brought Zing. Doing what all of us have been doing is not enough to beat local cable now because the customer has very different needs from urban areas. We have 16 million out of the total 60 million. In the last quarter, we added about 350,000 subscribers.
Will you take Zing to other states?
We are starting in West Bengal and Odisha. We will take our time to move on to other states. The packaging would be different in different regions for Zing.
Will Zing score points with only local advertisors?
MNC marketers have to understand that we are not a one language-country. We are like a Europe. Every state is a country in its own right, and want you to talk in its language to relate to us.
Any other revenue-growing services to be introduced?
Ad sales is one of the platforms. Everytime you recharge, you get an SMS. We are experimenting with the idea to tag it with advertiser's brands, it couldmake for a good source of revenue, which will be helpful. We have mobile TV which you can on the go but is expensive at present. We are planning to make it affordable by bringing it to sub-Rs 25,000.
So, the focus is not on increasing subscription but on adding services to boost revenue?
DTH is in a phase where both hunting and farming has to go hand in hand. While we have to go for more DTH subscribers, we have to understand that youngsters are shifting to devices like mobiles, and computers for TV-viewing. We we are also making car-TV affordable.
Mostly the ARPU rates have been flat. What is your outlook on that?
It is inching up. We had ARPU of Rs166 in the last quarter. India is a low ARPU market and if you look at things, it is not even $3, while in the US it is about $80. So, this market is different and we make it up here with the volume. ARPU will not jump and that is why we do several launches, to have mulytiple revenue sources.
How is the movie box office concept doing?
It is about back to back movies, not by a broadcaster but by us. But it is movie-on-demand where not one but a package of multiple films are on the offer.
This is quite unique and we are already being approached by advertisers who want to own that but we are not yet sure about it. If we do so, we will keep it clutter-free and ads will be for a very limited time.