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DTH subscription price increase and its impact on ARPU
MUMBAI: Leading direct-to-home (DTH) companies in India are expected to see a lift in ARPU by 4–7% as a result of price increase in their monthly subscription packs, according to industry estimates.
The ARPU for the companies will depend on the nature of packages that the customers subscribe to. For a DTH company that has more subscribers taking the low-end pack, the ARPU rise will be lower. There is also a possibility of subscribers downgrading their pack.
Videocon d2h has increased the price of its packs in the range of 4–11%. The price offering of Rs 99 per month at the lowest end has remained unchanged.
Videocon d2h has also introduced two new base packs—Gold Kids and Gold Sports Kids. They are priced monthly at Rs 330 and Rs 400 respectively. Gold Kids is an extension of Super Gold, and Gold Sports Kids is an extension of New Gold Sports, with inclusion of nine additional kids channels.
For the rest of India, Videocon’s price hike is ~8% across the packages. The price increase is between Rs 21 and Rs 38.
The price increase for Delhi packages is ~7–9% (Rs 23–40). In the South India packages, the price increase is in the range of 4–11% (Rs 12–38).
Add on (Flexi – Rs 99 Pack)
Videocon d2h has said that the price increase, effective 12 March, has been led by rise in service tax, various levies and other input costs.
Tata Sky has introduced four packs while doing away with some.
Dhamaal kids is an extension of Dhamaal Mix pack in addition to 13 kids channels and sports. Dhamaka is also an extension of Dhamaal Mix Pack in addition to sports channels (Includes Taj Sports channels).
Mega pack is renamed as Ultra Plus.
The price of the base pack has increased by Rs 20 per month.
The regional add-on pack has increased by Rs 10 a month.
Airtel Digital TV has increased ‘My Plan’ pack price from Rs 179 to Rs 199 per month. In the other ‘My Plan’ package, the price is Rs 99 per month and customers have to subscribe to at least two paid add-ons.
Add on – (My Plan 99 – Rs 99 Pack)
The ‘Ultra’ pack in the rest of India has increased by Rs 20 from Rs 472 to Rs 492 a month.
Dish TV is expected to announce a price increase soon. However, Dish TV’s Zing offering will not increase subscription rates as it aims to mop up subscribers from Phase III and IV towns of digital addressable system (DAS).
Will the new pricing affect subscriber growth? “We have taken a calculated risk. While cable TV has not increased monthly subscription prices, we have taken an increase. Still, we feel there will be no impact,” a senior DTH executive said.