New Delhi: Essel group-promoted Dish TV, which pioneered Direct-to-Home service in the country, on Sunday said growing competition was good for the industry and that it would spend Rs 1,100 crore by 2011 to expand market share.
DTH market would witness increased competition in the future as telecom majors Bharti and Reliance, besides consumer durables company Videocon are slated to enter the field.
“The increased competition in DTH space will have a positive effect... it will accelerate the growth of the market besides making it easy for people to change from traditional cable to digital DTH technology,” Dish TV CEO Arun Kapoor said.
Besides Dish TV, which has 2.3 million subscribers, the two other operational players are Prasar Bharati-owned ‘DD Direct´ with over two million users and private player Tata Sky with about one million subscribers.
Betting big on its new campaign with bollywood actor Shah Rukh Khan in addition to its new offerings, DishTV is also expecting over three-fold increase in its subscriber base to eight million by 2011.
“We will invest Rs 1,100 crore in the next two years for expansion which includes introducing new services, advertising among other things,” he said.
He said with 4-5 players operating in DTH segment, the investment would increase to Rs 1,500 crore per annum.
“With more players entering the DTH market, average revenue per user will not decline but prices might go down,” Kapoor added.
The company would also increase the number of channels on its network to 400 from current 180 in the next two years.
DishTV has roped in Shah Rukh Khan to make people aware about DTH technology and its benefits through a new advertisement campaign.
It is aggressively targeting people through print, electronic, outdoor and other advertising media to strengthen the company’s brand and maintain its dominant position in the industry.