Digitization: Dish TV initiates a revenue sharing model with LCOs
June 18, 2012
In the process of speeding up the process of digitization, Dish TV has come up with a lucrative initiative for the LCOs.
According to a report published in indiantelevision.com, the new scheme now offers local cable operators revenue for each set-top-box (STB) they sell, as an incentive to encourage consumers to migrate from cable TV networks to its direct to home (DTH) platform.
Dish TV, which is considered to have the largest DTH base, aims to add more subscribers with the initiative of providing incentive to the LCOs. It posted 9.6 million customers on 31 March 2012 – or a 41% market share - but will face increased competition from cable TV networks during their mandatory transition to digital distribution between now and the end of 2014.
Salil Kapoor, chief operating officer, Dish TV said that, when a subscriber will approach his cable operator for installation of set-top-box, the LCO can suggest a switchover to Dish TV. The LCO will reportedly earn Rs 400 for each basic Dish TV set top box and Rs 600 for each high definition (HD) box, plus an additional Rs 200 installation charge.
The monthly recharge will reward LCOs with 100 per consumer on Super Platinum and Rs125 for HD STB. The local cable operator will also get to earn Rs150 for every visit to the consumer's home for repairs or problem solving.
The standard set-top-box will now bear a price of Rs 740, while HD set top boxes will bear Rs 1340. The users will have to pay 20% for booking the boxes via LCOs.
The move follows a scheme announced earlier this month by multi system operator Wire and Wireless (India) Ltd (WWIL) whereby it will share 25% of its carriage income from digital addressable systems with the local cable operators.