ppt tatasky
TRANSCRIPT
Tata sky “isko laga dala toh life
jhingalala”
1
In India it has taken DTH 5 years to get to 6 million plus subscribers!
2
0
0.5
1
2
0
0.5
1
1.5
2
2.5
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Mill
ion
s (S
ub
s.)
And Tata Sky crossed 2 Million subscribers in And Tata Sky crossed 2 Million subscribers in 20 months… the fastest subscriber ramp-up 20 months… the fastest subscriber ramp-up ever by a DTH platform ever by a DTH platform
3
The Indian Telecom miracle took 6 years to reach half the DTH number
Wireless Subscriber Growth
Source : COAI Data4
0.06 0.18 0.751.925
4.8
9.8
15
20.9
26.1
30.4
33.8
36.237.6
0
5
10
15
20
25
30
35
40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Subsc
ribers
(M
illio
ns)
2007 to 2015…Growth of 683 %
Source : MPA report , March 2007
The DTH category is expected to grow by 680% or so in the next 7 or 8 years!
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In 5 years…We have managed to overtake Japan
as the largest DTH market in Asia
And in the next 5 years (by 2012) we will be
able to add another 30 million subscribers
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Playing the volume game… DTH in India
Indian cable TV subscribers are currently spending about 1.5 - 2% (US$ 4 - 5) of their monthly income on cable
services
Globally, consumers spend 3 - 4% of their monthly income on pay television services
While this indicates a sizeable growth opportunity, only a mass service can achieve the economies of
scale to fully exploit the market potential
This clearly is expensive business(At least in the short-medium run)
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• Rise in Disposable Incomes 75% percent rise in per capita income ( 1990 – 2007)
Source: NCAER
• Appetite for Entertainment is growing
$25 Billion being spent annually by Indians on travel
45 Million credit card subscribers growing at 35% annually
10 Million color TVs sold annually
125 Million TV homes ….have doubled in last 6 years
• Rapid adoption of new technologies by Indians
5 - 6 Million mobile phone subscribers are added every
month 350,000 Satellite TV subscribers added every month
But , the Indian market is changing
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DTH …congruence of interests for all stakeholders
Consumers
Consistent and professional service Superior video / audio quality Multiple channel packages to choose from Interactivity Access to niche content Movies on pay-per-view – 800 films produced in India every year Ability to move anywhere across India w/o buying a new STB Extensive rural reach
Broadcasters
Transparent / auditable platform with no under-declaration New revenue stream Convenience of dealing with a single operator rather than with multiple
MSOs Will minimize piracy
Government
Plug the tax leakage through declaration
Additional source of revenue – license fee payable by DTH operators
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With its proven, superior technology, value
added services & professional customer
service
Along with the ability to offer all India coverage at low incremental per subscriber
cost
(upgrading cable infrastructure across India will need huge
investments & appeal of Broadband service will be
limited to metros & large cities) DTH is set to win…
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Finding the perfect mix for DTH
Monetizing volumes. Improving ARPU.
Reach1
Brand Building
VAS2 Customer Service3
• National coverage (Urban & Rural)
• Subscriber Mgmt
Payment, Renewals, Recoveries
• Focus on Interactive Services
• PPV• Alerts • Red Button
promos• New
Innovations
• Outstanding Customer Service at all Touch Points
24/7 Call CenterLanguage supportEngineering
support
Value4
• ‘Value’ for money brand
• Quality content• Relevant
packaging• Exclusive / Niche
content
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Innovation
Tata Sky’s Approach
Execution
Tata Sky…setting new standards
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DOING IT DIFFERENTLY
• “To get to the bottom of the pyramid, start at the top”
• Make technology aspirational to early adopters
• 1 Mn subscribers in 1 year… fastest ever in the world
Upper
Middle
Low
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24x7 Call Centres, Over 800 associates, supporting 11 languages
Technology…partnerships with global leaders
3000 engineers across India
Professional installations across the country
EXECUTION
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Partnership with Global Partnership with Global Leaders…Leaders…
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the dish will also have a different look
Tata Sky+Tata Sky+……taking digital TV taking digital TV to the next levelto the next level
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DTH in India…key imperatives
Reduction in License Fees
Level playing filed with Cable /CAS rollout
Content exclusivity
Burdensome Tax structure
FDI Norms and investment restrictions
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Play the volume gameAddress the mass market with a volume-led strategy
Value based pricing will be the key to success
Innovate to differentiateAdoption of global success…Red button applications
Payment modesInteractive programming
New VAS & Products ( PVR)
Execute Effectively Address market complexity
Rapid scale up
To Make Most Of This Opportunity, we need to…
Engage and advise the government / Regulator Develop a pragmatic regulatory framework
Correct current policy anomalies
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In Sum
What is important to recognise is this is a transitory phase
Many players means lots of investment And only lots of investment will help to grow the market
In the shorter run though competition may trigger lower tariffs
and increase SAC & Cash burn
The need is to focus on :
• Creating Reach to build volume• Offer affordable pricing
• Innovation to create customer value & increase ARPU
• Outstanding execution to keep & gain new customers
And
Lots of patience! 19
Thank you
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