Description
Launch of exclusive digital household panel by TAM
Provides option for broadcasters and DTH operators to maximize revenues through
dual feed
Increased emphasis on carriage fees / Adv revenue / a-la-carte / MOD as revenue
option for DTH operators
Initial findings reveal that digital households spend 20% more time on TV as compared
with analogue households
Providing Single window option to new & small broadcasters by way of teleport /
distribution
DTH Operators association formed
Collaborative effort to address common issues such as
— Service tax allocation
— License fees reduction
— Other regulatory issues
1
DISH TV India Ltd
Investor Presentation Q3FY09
All data provided in the presentation is upto Dec-08
2
Content
Dish TV – Operating and Financial Performance
DTH Industry
3
Startup Phase
Single player market
Customer education on
DTH services
Industry growing at ~
42,000 subs per month
Content Resolution Phase
Enhanced Competition
Tata Sky, Sun Direct
Content disputes resolved
Star v/s DTH operators
Sun Direct v/s DTH operators
Digitalization Triggered
Mandatory CAS (select parts)
Voluntary Digitalization in Cable
Industry growing @ ~ 1.7 lakhs subs / month
Strong Competition
5 – player market
Big TV, Digital TV
Price wars
High SAC
Rapid subscriber growth ~ 5
lakhs subs / month
Competition driving growth 10 mn subs (Dec 2008)
Subs (In Mn.)
Industry Evolution
-
2
4
6
8
10
12
Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08
Dish TV (mn) DTH HH (mn)
4
DTH HHs estimated to reach ~ 57 mn by end of 2015
Y/E Mar 2008 2009E 2010E 2012E 2015E
HHs in India (mn) 221 226 232 245 266
TV HHs (mn) 125 134 143 161 191
C&S HHs (mn) 77 82 87 97 116
Additional Subscribers in Multi-TV HHs (mn) 3 5 7 12 22
Total C&S Subscribers (mn) 80 87 94 109 138
Analogue Cable HHs (mn) 67 66 58 49 35
DTH HHs (mn) 7 11 21 35 57
Digital Cable HHs (mn) 6
10
15 25 45
Industry Outlook
5
89
127
81
101 100
85
99
147 150
167
186 177
431
237
120
74
72
197
182
135
219
165
195
202 180
200
330
730
854
575
0
200
400
600
800
1,000
1,200
1,400
Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Dish Other Players
Two player
market
Three player
market
Four player
market
Five player
market
C
A
G
R
a
t
~
1
0
%
f
o
r
1
5
m
o
n
t
h
s
in ‘000s
Trends in Subscriber Additions
6
Dish Tata sky Sun Direct Big TV Digital TV
Subscribers
(million)
4.7 5.5
Geographical
spread
(no. of towns)
***** *** ** ** *
Distributors
***** *** ** **** *
Dealer Network
***** *** ** **** **
Subscriber
Acquisition
Strategy
Bundled
Free STB +
subscription
packs
Bundled
charged STB +
subscription
pack
Standalone
charged STB
Bundled Basic
charged STB
+ subscription
packages
Bundled Value-
Added
higher cost STB
+ subscription
packages
Bundled
Free STBs +
subscription
packs
Standalone
charged STB
Standalone
subscription
packs
Bundled STB
+ subscription
pack
Bundled
charged STB +
subscription
packs
Technology MPEG2 S1 MPEG2 S1 MPEG4 S1 MPEG4 S1 MPEG4 S2
Source: Company, websites
Competitive Landscape
7
Dish Tata sky Sun Direct Big TV Digital TV
Channels
tie ups
182 channels 145 channels 164 channels 153 channels 138 channels
Services 40 services 19 services 29 services 54 services 32 services
Content
Strategy
All major
entertainment/niche
channels
Subscriber packs with
popular channels
offering + tailor made
add-on packages to
enhance ARPU
All major
entertainment
channels + value
added services eg.
VAS (showcase),
DVR, Ala-carte
Topup
Strong regional
language bouquet
Strong movie
library
emphasizing on
PPV
Carries world
space satellite
Radio
Variety of Active
services fast into
roads to other
markets
Key
Subscription
packs
Platinum Rs 275,
165 channels
Diamond Rs 220,
140 channels
Gold Rs 160, 125
channels
Silver Rs 99, 110
channels
Annual Mega Pack
Rs 5000
Base packages
South Jumbo
Rs 310
South Value
Pack Rs 260
Super Saver
Pack Rs 260
Family Pack
Rs 200
Super Hit Pack
Rs 99
Jumbo Pack
Rs300
North Pack
Rs 90
South pack
Rs 75
South Starter
Rs 190
Starter 3 Rs190
Starter 2
Rs 175
Starter 1 RS 98
South Starter lite
Rs 98
Ultra Rs 424
Mega Rs 249
Economy
Rs 199
Value North
Rs 125
Value South
Rs 99
Source: Company, websites
Competitive Landscape
8
Recent Developments in the industry
Launch of exclusive digital household panel by TAM
Provides option for broadcasters and DTH operators to maximize revenues through
dual feed
Increased emphasis on carriage fees / Adv revenue / a-la-carte / MOD as revenue
option for DTH operators
Initial findings reveal that digital households spend 20% more time on TV as compared
with analogue households
Providing Single window option to new & small broadcasters by way of teleport /
distribution
DTH Operators association formed
Collaborative effort to address common issues such as
— Service tax allocation
— License fees reduction
— Other regulatory issues
9
Content
Dish TV – Operating and Financial Performance
DTH Industry
10
Pioneer and leader of DTH services in India
First mover advantage
One year lead over nearest competitor
~ 3-year lead over others
Largest subscriber base ~ 4.7 mn (Dec-08)
Backed by Zee Group India’s strongest Media group
Full-service business model
Basic subscription packs
Value added services
Bandwidth
Teleport services
Leveraging on first mover advantage backed by strong industry understanding
Diversified content offering
225 channels + Services
Content tie-ups at reasonable rates
State-of-the-art infrastructure
Large distribution network
Aggressive subscriber acquisition strategy to ensure continued market leadership
Focus on cost rationalization
Key Areas Of Focus
Key Strengths
Funding For Growth
Strengthening of competitive position
Improving Business Economics
Dish TV | Key Strengths & Areas of Focus
11
Current FY08 9MFY09
Capital Employed 570 899
Rs cr
Completion of Rights Issue in Jan-09
Committed amount of Rs 1140 cr
Raised ~ Rs 310 cr in rights
Balance commitment to be received over 18 month period
Additional Debt tie-up already in place amounting to Rs 300 cr
Funding For Growth
12
Market Share on Total Subscriber Base Market share in Subscriber Additions
2,385
959
1,240
2,948
5,146
44%
41%
43%
27%
33%
0
1,000
2,000
3,000
4,000
5,000
6,000
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
10%
20%
30%
40%
50%
Total Addition ('000) Dish Share %
5,075
6,034
7,274
10,222
59%
46%
56%
54%
0
2,000
4,000
6,000
8,000
10,000
12,000
FY 08 Q1 FY09 Q2 FY09 Q3 FY09
10%
20%
30%
40%
50%
60%
70%
Total Subscibers ('000) Dish Share %
Strengthening of Competitive Position
13
1,920
2,634
2,601
2,832
0
500
1,000
1,500
2,000
2,500
3,000
FY 2008 Q1 FY09 Q2 FY09 Q3 FY09
Subscriber Acquisition Cost (Rs/sub) Gross and Net Subscribers
2.49
2.89
3.40
4.00
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Mar-08 Jun-08 Sep-08 Dec-08
S
u
b
s
m
n
Net Subs Mn Gross less Net subs
3.01
3.41
3.94
4.72
Robust Subscriber Acquisition
14
(200.0)
(150.0)
(100.0)
(50.0)
-
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
Total Revenues 413 164 173 193 531
Income towards Subscriber Acquisition 60 19 22 28 70
Income From Operations 352 145 151 165 461
Total Expenditure 631 231 261 232 723
Expenditure towards Subscriber Acquisition 133 40 40 54 134
Expenditure towards Operations 498 191 220 177 589
Reported EBIDTA -218 -67 -87 -39 -193
Reported EBIDTA Margin (%) -35% -29% -34% -17% -27%
EBIDTA from Operations -146 -46 -70 -13 -128
EBIDTA Margin from Operations (%) -41% -32% -46% -8% -28%
Improving Business Viability
(250.0)
(200.0)
(150.0)
(100.0)
(50.0)
-
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
Reported EBITDA (Rs Crs.) EBITDA from Operations (Rs Crs.)
(Rs Crs.)
15
2,323
804 867 863
2,534
654
540
529
926
1723
29%
40%
39%
43%
40%
0
800
1,600
2,400
3,200
4,000
4,800
FY08 Jun-08 Sep-08 Dec-08 YTD
R
s
m
n
0%
10%
20%
30%
40%
50%
Content Cost Contribution Contribution (% Subs Revenue)
Improving Contribution Margins
131
164
156
137
146
0
50
100
150
200
Mar-08 Jun-08 Sep-08 Dec-08 YTD
Trends in ARPU (Rs.)
Improving Contribution
16
Particulars Quarter Ended Year Ended
Jun-08 Sep-08 Dec-08 Mar-07 Mar-08 YTD
Gross Operating Revenue 164.4 173.3 192.7 190.9 412.7 530.5
Expenditure 231.1 260.7 231.7 379.9 632.3 723.5
EBITDA -66.7 -87.4 -39.0 -188.9 -219.6 -193.0
Add: Other income 0.2 - 0.2 3.4 3.0 0.4
Less: Depreciation 44.6 49.5 57.0 57.5 149.0 151.0
EBIT -111.0 -136.9 -95.8 -243.1 -365.7 -343.6
Less: Financial Exps 14.3 17.1 22.1 8.6 46.9 53.5
PBT -125.3 -153.8 -117.9 -251.6 -412.6 -397.1
Provision for Tax 0.2 0.2 0.2 0.3 0.6 0.6
PAT -125.5 -154.1 -118.1 -251.9 -413.2 -397.7
Subscriber Added (in lacs) 4.0 5.3 7.9 10.7 10.4 17.2
SAC (Rs/sub) 2634 2601 2832 1445 1920 2715
Rs Crs.
Financial summary
17
License Fee from 10% to 6% with retrospective effect from 01-Apr-08
Consensus is being sought for Entertainment Tax to be recovered from subscriber
Reduction in CENVAT @ 4% to benefit @ Rs. 100 per CPE
Revenue initiatives
Increasing ARPU
New Packages launched, Service Tax Charged from subscriber
Price increased for Base Packages
Introduce of smaller A-la-Carte Packages as Top-up on normal packages
Recharge Free Scheme launched to improve the renewal collection (Subscriber offered
Free Movies / A-la-Carte package equivalent to his renewal amount)
Increasing bandwidth charges
Cost Rationalization
Content cost Moving from variable ( per sub basis) to Fixed costs
Collection Cost reduced to 5% from 6% (01-Dec-08)
Rationalization of Marketing Cost and Sales & distribution costs
Reduce in Box Price from $32.5 to $ 29.5 (Effective from Jan’09)
Hedging of Forex transaction
Increasing geographical spread across the country
Shift from providing “ Free STBs” to charging subscriber on the box
Bare Box price introduced @ Rs 1,490
Strategy going forward
Industry level
initiatives
Subscriber
Acquisition
strategy
Improving
Business
Profitability
18
Thank you
doc_213606183.pdf
Launch of exclusive digital household panel by TAM
Provides option for broadcasters and DTH operators to maximize revenues through
dual feed
Increased emphasis on carriage fees / Adv revenue / a-la-carte / MOD as revenue
option for DTH operators
Initial findings reveal that digital households spend 20% more time on TV as compared
with analogue households
Providing Single window option to new & small broadcasters by way of teleport /
distribution
DTH Operators association formed
Collaborative effort to address common issues such as
— Service tax allocation
— License fees reduction
— Other regulatory issues
1
DISH TV India Ltd
Investor Presentation Q3FY09
All data provided in the presentation is upto Dec-08
2
Content
Dish TV – Operating and Financial Performance
DTH Industry
3
Startup Phase
Single player market
Customer education on
DTH services
Industry growing at ~
42,000 subs per month
Content Resolution Phase
Enhanced Competition
Tata Sky, Sun Direct
Content disputes resolved
Star v/s DTH operators
Sun Direct v/s DTH operators
Digitalization Triggered
Mandatory CAS (select parts)
Voluntary Digitalization in Cable
Industry growing @ ~ 1.7 lakhs subs / month
Strong Competition
5 – player market
Big TV, Digital TV
Price wars
High SAC
Rapid subscriber growth ~ 5
lakhs subs / month
Competition driving growth 10 mn subs (Dec 2008)
Subs (In Mn.)
Industry Evolution
-
2
4
6
8
10
12
Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08
Dish TV (mn) DTH HH (mn)
4
DTH HHs estimated to reach ~ 57 mn by end of 2015
Y/E Mar 2008 2009E 2010E 2012E 2015E
HHs in India (mn) 221 226 232 245 266
TV HHs (mn) 125 134 143 161 191
C&S HHs (mn) 77 82 87 97 116
Additional Subscribers in Multi-TV HHs (mn) 3 5 7 12 22
Total C&S Subscribers (mn) 80 87 94 109 138
Analogue Cable HHs (mn) 67 66 58 49 35
DTH HHs (mn) 7 11 21 35 57
Digital Cable HHs (mn) 6
10
15 25 45
Industry Outlook
5
89
127
81
101 100
85
99
147 150
167
186 177
431
237
120
74
72
197
182
135
219
165
195
202 180
200
330
730
854
575
0
200
400
600
800
1,000
1,200
1,400
Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Dish Other Players
Two player
market
Three player
market
Four player
market
Five player
market
C
A
G
R
a
t
~
1
0
%
f
o
r
1
5
m
o
n
t
h
s
in ‘000s
Trends in Subscriber Additions
6
Dish Tata sky Sun Direct Big TV Digital TV
Subscribers
(million)
4.7 5.5
Geographical
spread
(no. of towns)
***** *** ** ** *
Distributors
***** *** ** **** *
Dealer Network
***** *** ** **** **
Subscriber
Acquisition
Strategy
Bundled
Free STB +
subscription
packs
Bundled
charged STB +
subscription
pack
Standalone
charged STB
Bundled Basic
charged STB
+ subscription
packages
Bundled Value-
Added
higher cost STB
+ subscription
packages
Bundled
Free STBs +
subscription
packs
Standalone
charged STB
Standalone
subscription
packs
Bundled STB
+ subscription
pack
Bundled
charged STB +
subscription
packs
Technology MPEG2 S1 MPEG2 S1 MPEG4 S1 MPEG4 S1 MPEG4 S2
Source: Company, websites
Competitive Landscape
7
Dish Tata sky Sun Direct Big TV Digital TV
Channels
tie ups
182 channels 145 channels 164 channels 153 channels 138 channels
Services 40 services 19 services 29 services 54 services 32 services
Content
Strategy
All major
entertainment/niche
channels
Subscriber packs with
popular channels
offering + tailor made
add-on packages to
enhance ARPU
All major
entertainment
channels + value
added services eg.
VAS (showcase),
DVR, Ala-carte
Topup
Strong regional
language bouquet
Strong movie
library
emphasizing on
PPV
Carries world
space satellite
Radio
Variety of Active
services fast into
roads to other
markets
Key
Subscription
packs
Platinum Rs 275,
165 channels
Diamond Rs 220,
140 channels
Gold Rs 160, 125
channels
Silver Rs 99, 110
channels
Annual Mega Pack
Rs 5000
Base packages
South Jumbo
Rs 310
South Value
Pack Rs 260
Super Saver
Pack Rs 260
Family Pack
Rs 200
Super Hit Pack
Rs 99
Jumbo Pack
Rs300
North Pack
Rs 90
South pack
Rs 75
South Starter
Rs 190
Starter 3 Rs190
Starter 2
Rs 175
Starter 1 RS 98
South Starter lite
Rs 98
Ultra Rs 424
Mega Rs 249
Economy
Rs 199
Value North
Rs 125
Value South
Rs 99
Source: Company, websites
Competitive Landscape
8
Recent Developments in the industry
Launch of exclusive digital household panel by TAM
Provides option for broadcasters and DTH operators to maximize revenues through
dual feed
Increased emphasis on carriage fees / Adv revenue / a-la-carte / MOD as revenue
option for DTH operators
Initial findings reveal that digital households spend 20% more time on TV as compared
with analogue households
Providing Single window option to new & small broadcasters by way of teleport /
distribution
DTH Operators association formed
Collaborative effort to address common issues such as
— Service tax allocation
— License fees reduction
— Other regulatory issues
9
Content
Dish TV – Operating and Financial Performance
DTH Industry
10
Pioneer and leader of DTH services in India
First mover advantage
One year lead over nearest competitor
~ 3-year lead over others
Largest subscriber base ~ 4.7 mn (Dec-08)
Backed by Zee Group India’s strongest Media group
Full-service business model
Basic subscription packs
Value added services
Bandwidth
Teleport services
Leveraging on first mover advantage backed by strong industry understanding
Diversified content offering
225 channels + Services
Content tie-ups at reasonable rates
State-of-the-art infrastructure
Large distribution network
Aggressive subscriber acquisition strategy to ensure continued market leadership
Focus on cost rationalization
Key Areas Of Focus
Key Strengths
Funding For Growth
Strengthening of competitive position
Improving Business Economics
Dish TV | Key Strengths & Areas of Focus
11
Current FY08 9MFY09
Capital Employed 570 899
Rs cr
Completion of Rights Issue in Jan-09
Committed amount of Rs 1140 cr
Raised ~ Rs 310 cr in rights
Balance commitment to be received over 18 month period
Additional Debt tie-up already in place amounting to Rs 300 cr
Funding For Growth
12
Market Share on Total Subscriber Base Market share in Subscriber Additions
2,385
959
1,240
2,948
5,146
44%
41%
43%
27%
33%
0
1,000
2,000
3,000
4,000
5,000
6,000
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
10%
20%
30%
40%
50%
Total Addition ('000) Dish Share %
5,075
6,034
7,274
10,222
59%
46%
56%
54%
0
2,000
4,000
6,000
8,000
10,000
12,000
FY 08 Q1 FY09 Q2 FY09 Q3 FY09
10%
20%
30%
40%
50%
60%
70%
Total Subscibers ('000) Dish Share %
Strengthening of Competitive Position
13
1,920
2,634
2,601
2,832
0
500
1,000
1,500
2,000
2,500
3,000
FY 2008 Q1 FY09 Q2 FY09 Q3 FY09
Subscriber Acquisition Cost (Rs/sub) Gross and Net Subscribers
2.49
2.89
3.40
4.00
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Mar-08 Jun-08 Sep-08 Dec-08
S
u
b
s
m
n
Net Subs Mn Gross less Net subs
3.01
3.41
3.94
4.72
Robust Subscriber Acquisition
14
(200.0)
(150.0)
(100.0)
(50.0)
-
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
Total Revenues 413 164 173 193 531
Income towards Subscriber Acquisition 60 19 22 28 70
Income From Operations 352 145 151 165 461
Total Expenditure 631 231 261 232 723
Expenditure towards Subscriber Acquisition 133 40 40 54 134
Expenditure towards Operations 498 191 220 177 589
Reported EBIDTA -218 -67 -87 -39 -193
Reported EBIDTA Margin (%) -35% -29% -34% -17% -27%
EBIDTA from Operations -146 -46 -70 -13 -128
EBIDTA Margin from Operations (%) -41% -32% -46% -8% -28%
Improving Business Viability
(250.0)
(200.0)
(150.0)
(100.0)
(50.0)
-
FY 08 Q1 FY09 Q2 FY09 Q3 FY09 YTD FY09
Reported EBITDA (Rs Crs.) EBITDA from Operations (Rs Crs.)
(Rs Crs.)
15
2,323
804 867 863
2,534
654
540
529
926
1723
29%
40%
39%
43%
40%
0
800
1,600
2,400
3,200
4,000
4,800
FY08 Jun-08 Sep-08 Dec-08 YTD
R
s
m
n
0%
10%
20%
30%
40%
50%
Content Cost Contribution Contribution (% Subs Revenue)
Improving Contribution Margins
131
164
156
137
146
0
50
100
150
200
Mar-08 Jun-08 Sep-08 Dec-08 YTD
Trends in ARPU (Rs.)
Improving Contribution
16
Particulars Quarter Ended Year Ended
Jun-08 Sep-08 Dec-08 Mar-07 Mar-08 YTD
Gross Operating Revenue 164.4 173.3 192.7 190.9 412.7 530.5
Expenditure 231.1 260.7 231.7 379.9 632.3 723.5
EBITDA -66.7 -87.4 -39.0 -188.9 -219.6 -193.0
Add: Other income 0.2 - 0.2 3.4 3.0 0.4
Less: Depreciation 44.6 49.5 57.0 57.5 149.0 151.0
EBIT -111.0 -136.9 -95.8 -243.1 -365.7 -343.6
Less: Financial Exps 14.3 17.1 22.1 8.6 46.9 53.5
PBT -125.3 -153.8 -117.9 -251.6 -412.6 -397.1
Provision for Tax 0.2 0.2 0.2 0.3 0.6 0.6
PAT -125.5 -154.1 -118.1 -251.9 -413.2 -397.7
Subscriber Added (in lacs) 4.0 5.3 7.9 10.7 10.4 17.2
SAC (Rs/sub) 2634 2601 2832 1445 1920 2715
Rs Crs.
Financial summary
17
License Fee from 10% to 6% with retrospective effect from 01-Apr-08
Consensus is being sought for Entertainment Tax to be recovered from subscriber
Reduction in CENVAT @ 4% to benefit @ Rs. 100 per CPE
Revenue initiatives
Increasing ARPU
New Packages launched, Service Tax Charged from subscriber
Price increased for Base Packages
Introduce of smaller A-la-Carte Packages as Top-up on normal packages
Recharge Free Scheme launched to improve the renewal collection (Subscriber offered
Free Movies / A-la-Carte package equivalent to his renewal amount)
Increasing bandwidth charges
Cost Rationalization
Content cost Moving from variable ( per sub basis) to Fixed costs
Collection Cost reduced to 5% from 6% (01-Dec-08)
Rationalization of Marketing Cost and Sales & distribution costs
Reduce in Box Price from $32.5 to $ 29.5 (Effective from Jan’09)
Hedging of Forex transaction
Increasing geographical spread across the country
Shift from providing “ Free STBs” to charging subscriber on the box
Bare Box price introduced @ Rs 1,490
Strategy going forward
Industry level
initiatives
Subscriber
Acquisition
strategy
Improving
Business
Profitability
18
Thank you
doc_213606183.pdf