Ten years after Dish TV’s entry, DTH has become a force to reckon with. With over 40 million active subscribers (as of March 2013), it has grown tenfold from just 4 million customers six years ago. And it is no longer a rural phenomenon: 60 per cent of its subscribers are in the country’s top 20 cities. Its share of the total satellite (cable and DTH) homes has gone up from 23 per cent in 2009-10 to 30 per cent now. Industry analysts say that by 2017-18, it will control over 36 per cent of the total subscriber base. That is why private equity funds like India Opportunities Fund (which has invested in Tata Sky) and a whole host of others like KKR and Bain Capital (it is in talks with Airtel DTH) are keen to invest in the sector.
The reasonwhy they are bullish is that DTH is adding over 8.5 million subscribers a year, while cable is growing at a fourth of that number. The phenomenal growth is backed by huge investments: the seven DTH operators have together put in over $4 billion to make it happen. So, what explains the magic of DTH? Obviously, the key is its high-quality signal, especially for those consumers who were used to analog TV. Also, it has provided customers the choice to see what they want rather than being at the mercy of the cable operator.
Read more at Business Standard (http://www.business-standard.com/article/companies/dth-readies-for-final-assault-on-cable-business-113100101283_1.html)
Netflix has found a surprising ally as it tries to boost its subscriber base: cable operators. Firms that stand to be disrupted by Netflix’s distribution model are now working out deals to make the streaming service directly available through their own boxes.
Earlier this month Netflix inked a deal with U.K.-based Virgin Media to bring the streaming service to the cable operator’s 1.7 million subscribers who have TiVo set-top boxes. A similar deal was announced last week in Sweden with Com Hem, which is the country’s largest cable provider with almost 1.8 million subscribers.
While both deals still require viewers to purchase a Netflix subscription, they open the door for an increased cooperation between traditional cable operators and Internet-based streaming services. Users will now be able to seamlessly switch between watching cable and viewing content on demand via Netflix within the set-top-box interface. Currently, users typically have to switch between a cable box and other Netflix-enabled devices, like Roku gadgets or video-game consoles.
Read more at TIME: http://business.time.com/2013/10/01/netflix-is-coming-after-your-cable-box/