Dish TV’s subscription revenue drops, net loss widens

Net DTH additions for the quarter remained in the negative zone, Dish TV said, citing increasing viewership of cricket on free streaming platforms as a reason.

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| August 14, 2024 , 9:35 am
Dish TV India has also been focusing on reviving its DTH base amongst the lower-most category of subscribers.
Dish TV India has also been focusing on reviving its DTH base amongst the lower-most category of subscribers.

Dish TV India Limited, on August 13, reported first quarter FY25 consolidated subscription revenues of Rs. 306.2 crore as against Rs 397.4 crore in the corresponding period a year ago. The company recorded operating revenues of Rs 455.3 crore, down from Rs 500.2 crore a year ago. As subscription revenue dropped, net loss widened to Rs 1.6 crore as against Rs 20.5 crore in the same quarter last fiscal.

Ad revenue was up 7.2% to Rs 9.7 crore in the June quarter and income from marketing and promotional fees went up by 59.2% to Rs 130.7 crore.

Major sporting events like the IPL and the T20 World Cup dominated the first quarter and saw Dish TV introduce sports centric offers to drive net additions. However, net DTH additions for the quarter remained in the negative zone, Dish TV said, citing increasing viewership of cricket on free streaming platforms as a reason.

Dish TV India has also been focusing on reviving its DTH base amongst the lower-most category of subscribers.

Dish TV offers OTT content, bundled in bouquets with price points catering to customers with different entertainment budgets. “Notwithstanding the 70 million non-TV households and the 45 million pay-TV dark homes in the country, growth of linear pay-television homes is expected to be modest as compared to the spurt expected in the number of households choosing OTT content as a complementary source of entertainment over linear television,” the company said.

The ‘Dish TV Smart+’ service offers complimentary OTT content to every content viewer who chooses the Dish TV DTH platform for watching television. Both new as well as existing Dish TV viewers can choose one OTT app, free of cost, from amongst the multiple OTT apps available on the Dish TV platform, every time they recharge their DTH subscription package. Five other, pre-selected OTT apps, are also provided in addition to the app chosen by the customer.

To boost the reach and awareness of ‘Dish TV Smart+’ the Company carried out an extensive marketing campaign across print, digital, ATL and BTL channels during the quarter.

The company also said green shoots in rural recovery have started becoming visible and “the distribution network of the Company remains optimistic about the revival in entertainment spends in the countryside, where a significant DTH subscriber base is situated.”

In its exchange filings, Dish TV said, “The Board of Directors (Board) of the Company at its meeting held on July 24, 2024, considered and granted its In-Principal approval to explore and initiate the process of raising of funds through permissible means under applicable laws including but not limited to, by way of, issue of equity shares / convertible bonds / debentures / warrants / preference shares / foreign currency convertible bond (FCCB) / any other equity linked securities and/or any other securities including through preferential issue on a private placement basis, qualified institutional placement or any other methods or combinations thereof, listed or unlisted, for an amount not exceeding Rs. 10 billion, in one or more tranches, subject to such approvals as may be required.”

It added, “The Board also considered and approved incorporation/establishing of a Wholly Owned Subsidiary of the Company in India with such name as may be approved by the concerned approving authority, inter-alia to undertake the business of distribution of products and services through a robust digital platform and also provide ancillary services.”

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