Dish TV is planning to launch a “fully integrated OTT service enable time-shift as well as live TV viewing of television content by Dish TV subscribers while on the go.” This is a bit odd, because the Zee group, which is the promoter group of Dish TV, also has Zee5 as a streaming (OTT) service. In any case, Dish TV had launched a streaming app almost five years ago, called Dish Online. That app is no longer online, and Dish TV Group CEO Anil Dua told Television Post that the company “will be tying up on the content side and providing specialised content which will be available only on this platform.”

MediaNama’s Take: Frankly, we don’t understand the need for yet another streaming app, unless it is to show shareholders that the company still has a streaming play.

At some point in time, the worlds of Dish TV and Zee5 are going to collide, and as carriage shifts to broadband, either Zee5 or Dish TV shall cease to exist because they will be mirrors of each other, barring some original content. One of the two is just biding its time. Which one will the Zee group back?

Q4-FY18 Results

Direct-to-home (DTH) operator Dish TV has published results following the merger of Videocon D2H into the company. While results are not directly comparable, here are some data points to look at:

  • Subscriber base: the combined entity now has a subscriber base of 23 million, and a marketshare of 37%; prior to the merger, Dish TVs subscriber base was 16.1 million, and it had added 0.25 million net subscribers during the last quarter.
  • APRU: The combined entity had an ARPU of Rs 201. Note that prior to the merger, Dish TV’s standalone ARPU was Rs 144.
  • Subscription revenues: The combined entity posted subscription revenues of Rs 1377.1 crores for the quarter. The Dish TV business had reported subscription revenues of Rs 691.8 crore for the quarter.
  • Operating revenues of Rs 1532.4 crores. Dish TV had reported Operating revenues of Rs 740.8 crore in Q3FY18.
  • Adjusted EBITDA of Rs 460.6 crore. EBITDA stood at Rs 200.5 crore for Dish TV at the end of Q3FY18
  • Adjusted EBITDA margin of 30.1%. EBITDA margin for Dish TV had been 27.1% in Q3FY18.

The company says that:

“presuming that the financials for fiscal 2018 had represented 12 months each of Dish TV India Limited and Videocon d2h Limited, operating revenues of the company would have been Rs. 62,377 million (Rs 6237.7 crores) and corresponding Adjusted EBITDA [2] would have been Rs. 19,690 million (Rs 1969 crores) with an Adjusted EBITDA margin of 31.6%.”

On the merger

“A healthier urban mix would be beneficial to the revenue pool while at the same time a stable, paying, rural base would help buffer the platform from alternate technologies”…”While in the short term, digitization will continue to feed subscriber additions, government schemes focused on bridging the urban/rural divide, increasing farm incomes and electricity connection to rural households will create demand for new televisions and pay-tv connections in the years to come.”

“While Dish TV has always had a high top-of the-mind consumer brand recall, [Videocon] d2h had the advantage of having high brand loyalty in trade circles”…”[Videocon] Zing on the other hand has been the undisputed leader when it comes to having tailor-made packages for regional audiences”…”Dish TV India Limited is targeting 450 company owned service centres and around 5,500 company technicians that would be capable of doing more than 1 million home visits every month. Aiming to cross utilize critical infrastructure for synergies, the Company is also confident of a faster turnaround time for customer resolutions in the process. Revenue, cost and financial synergies to the tune of Rs. 5,100 million are expected in FY19″…”The year ahead should be positive for Dish TV India Limited as the company expects to outgrow the industry growth rate backed by launch of new set-top-boxes that would be full HD compliant yet would be more economical than the existing consumer premises equipment. The company plans to up its High Definition base so as to ramp up its ARPU in the coming years.”…”“Revenue would be further fortified through Value Added Services, some of which have already been cross rolled-out on all three brands.”…”Following the merger, Dish TV India Limited has harmonized the recognition of subscriber churn in line with industry practice. The Company now recognizes churn 60 days past due date, instead of 120 days past due date earlier.”

Download: Financials