Speaking at the Kagan International-organised seminar on the future of cable and satellite television in India here, Chandra said there is definitely a market for a DTH service in India, though it will be a very niche one.
The are eight prospective players eyeing the Indian market through a DTH service, but the first one to start it will be successful, while the second entrant will always be chasing the first to break even.
There is no room for a third player in this field, Chandra said while delivering the keynote address.
In an address which was controlled, without hyping up Zee TV's success, Chandra told the delegates and mediapersons that had Zee TV not succeeded in India all of us would not be sitting here and discussing various issues relating to the cable and satellite industry.
Touching on the uplinking issue, which is hanging fire with the government as far as non-Indian companies are concerned, Chandra said healthy competition was always good for any industry.
Elaborating on his group of companies' relationship with Rupert Murdoch-controlled News Corporation, Chandra said under the joint venture agreement they are jointly running three channels, Zee TV, Zee Cinema and El TV.
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We both do talk to each other for business plans, but both of us are free to pursue any other businesses and are independently pursuing DTH projects.
Admitting that Zee TV holds the number one position in India, Chandra made it clear that the entry of new players has made life a little difficult.
We have to work harder each day now, he said.
Earlier, taking part in a discussion on the DTH and pay TV scenario in India, ESPN's chief in India, RK Singh, said pay channels will ultimately succeed, but there will be a number of hiccups on the way.
According to him, the sooner the cable industry consolidates its position in India, the better it will be for attracting structured finances.
However, Home Box Office's (HBO) William Fischer felt the setting is still not right for HBO to enter the pay channel arena in India. HBO's transponder on PAS-4 is lying idle.
Chittaranjan Kaul, vice-president and head of corporate finance of Bank of America in India, said the potential of the cable distribution network has not been fully exploited by the cable operators here.
James Capel CEO Manoj Murarka said the ad spend on the electronic media is now approximately Rs 1,000 crore and is expected to grow at the rate of 20 per cent.
But channels will have to get quality conscious to attract viewers and raise money for expansions, he added.
However, he felt Indians have not yet understood the media properly and over the next five years investments largely will come from foreigners.