Contrary to the perception that Direct-to-Home (DTH) television technology is an urban or a metro phenomenon, 70 per cent of its DTH subscribers reside in rural areas and towns with a population under a million. And metros like Delhi or Mumbai contribute only 2-3 per cent to the overall DTH subscriber base of 13.2 million, say the findings of a report by Francis Kanoi, a leading marketing research firm.
Within the rural markets, it is Dish TV and DD Direct Plus DTH services that have the most penetration. Tata Sky, Dish TV and Sun Direct DTH services are preferred brands in top metros, the report says. The southern market is dominated by Sun Direct DTH services, while in high-income households (monthly income above Rs 50,000), Tata Sky is the dominant DTH brand, the report adds.
Over seven million DTH subscribers, or more than half the total of 13.2 million, come from rural markets alone, where Dish TV and DD Direct Plus are the clear leaders. Towns of a population under one million (semi-urban towns) contribute another two million DTH subscribers, the report states.
“There are several new channels that are only launched on the DTH platform and who tend to charge a premium from the advertisers on their spot-rates, based on the feeling that DTH is watched by high-end consumers with large disposable incomes. The report breaks this myth,” says a senior executive of a leading media agency.
This is significant because none of the five private DTH operators (and DD Direct) provide a state-wise or a region-wise break up of their subscriber base. Such data are also not provided by the DTH companies to the government. This is also significant because DTH is a fast growing market, estimated to touch Rs 3,000 crore in the current financial year based on sales turnover, with the bulk still expected to come from rural India and semi-urban towns. In 2008-09, the size of the DTH market was around Rs 1,500 crore.
The states of Maharashtra, Goa, Punjab, Uttar Pradesh, and Rajasthan are the leaders in DTH subscription, contributing over 6.4 million DTH connections or 48 per cent to the overall DTH subscriber base, the report says.
“The top seven metros have a huge potential for DTH services, as 91 per cent of households still prefer cable TV over DTH,” says the report. Agrees Salil Kapoor, COO, Dish TV, the largest DTH operator: “We have a big challenge in the metros and a tough competitor in digital cable operators. However, it is these metro towns where our average revenue per user is better, as our value-added services are consumed largely. Rural markets are important but competitive when it comes to offering the content, as it’s largely language-driven, with sharp preferences on what they want to watch.”
In terms of geographical location, North India and Western India together contribute over 8.4 million DTH subscribers, while the southern market contributes 3.2 million. The report also states that there are 126 million cable homes in the country, of which 50 per cent are based in rural India.
