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DEN, Snapdeal.com to apply for satellite TV shopping channel licence

MUMBAI: Macro Commerce Pvt Ltd (MCPL), the 50:50 joint venture between online shopping hub Snapdeal.com and multi-system operator (MSO) DEN Networks, plans to launch a satellite TV home shopping channel.

MCPL has already launched a TV commerce channel called DEN Snapdeal TV Shop on DEN’s cable TV platform and plans to distribute it on other cable TV platforms.

The ultimate aim of the JV is to take the channel to 100 million households across India over the next 12 months. However, in order to launch the channel on direct-to-home (DTH) platform, the channel needs to be beamed from a satellite.

“Currently, it is on our platform but we will definitely be taking it to other platforms. Today it’s only DEN that is giving it a significant traction. Once we go to other parts of the market, it will scale up very fast,” said a source close to the development.

“We will apply for a licence with the ministry. The work to launch a satellite channel is in progress. If you want to take it to DTH that is the only way you can do it,” the source added.

To launch on other platforms, the JV can also buy ad slots on other platforms. “We can also have it on other platforms by buying ad slots like Naaptol. The idea is to get it on other platforms as well,” the source stated further.

DEN Snapdeal TV Shop is currently available for viewers on channel number 132 on DEN cable network and will be extended to other cable and DTH networks in the next six months.

“The traction is really good and it has been scaling up month on month big time. We have the infrastructure that Snapdeal.com has already built, which will benefit this platform significantly,” added the source.

As reported by TelevisionPost.com, DEN and Snapdeal.com each will initially invest Rs 50 million in the JV. The home shopping TV channel is hoping to break-even in the first year itself.

To provide customers easy access to the wide assortment of products across home, lifestyle and electronics categories with great value deals, Snapdeal.com will leverage this robust distribution network of DEN which reaches about 13 million households in over 200 cities across 13 states in the country.

DEN Snapdeal TV Shop will benefit those customers, particularly in Tier II and III cities, who have limited access to the internet and top retail products and brands at competitive prices. Additionally, every purchase made on the channel comes with quality and delivery assurance from Snapdeal.com and the flexibility to pay on delivery—an option largely confined to e-shopping.

The products will be featured on DEN Snapdeal TV Shop through dedicated TV shows providing customers details of the products along with their various features, thus enabling them to make an informed purchase decision.

Snapdeal.com co-founder and CEO Kunal Bahl said, “Innovation lies at the heart of Snapdeal.com and with this initiative we are taking yet another step to fulfil our promise of providing accessibility to the best products at best prices to consumers across India. We are delighted to partner with a likeminded brand like DEN Networks which enjoys massive reach and brand loyalty across the entire country and especially in smaller towns of India. India is a country with many heterogeneous segments of consumers, and we believe that by reaching 150 million households with 600 million people that have a TV, we can create another revolution through TV commerce.”

DEN Networks CMD Sameer Manchanda said, “We are extremely thrilled to partner with Snapdeal.com on this game-changing initiative. By leveraging Snapdeal.com’s and DEN’s nationwide distribution networks, we will now be able to engage with a much larger audience which is still not exposed to the benefits of online shopping and internet access.

“Together, we aim to offer customers a wide assortment of products and provide them with a hassle-free buying experience.  The response to the pilot has been extremely encouraging and we are sure DEN Snapdeal TV Shop will be well received by our viewers.”

DEN Snapdeal TV Shop was launched as a pilot in September last year. The channel has been receiving tremendous response from the customers with a massive growth rate of 200 per cent month-on-month since inception. The pilot was launched in select geographies based on the availability of the network, offering products in primarily three categories, namely home and kitchen, electronics, and fashion and lifestyle.

Also read:

DEN Networks, Snapdeal float JV for a home shopping TV channel