Tata-Murdoch pay-TV deal

net1

Tata Sons, the country`s largest conglomerate, and the Star Group of Rupert Murdoch`s News Corp. Ltd. have agreed a satellite broadcasting joint venture that could signal a fresh spurt of growth in India`s pay TV industry.

Last week`s deal is a bid to replicate the success of News Corp's 35-per cent-owned subsidiary British Sky Broadcasting, which beams hundreds of channels into small dishes on the homes of more than seven million subscribers in Britain and Ireland.

Pay-TV is almost exclusively distributed via cable in India, reaching 54 per cent of TV-owning households.

The only company currently offering direct-to-home (DTH) satellite TV is Essel Group's ASC Enterprises, which launched Dish TV last October and has signed up 60,000 subscribers.

The service costs about Rs 100 ($2.20) a month on top of equipment costs of Rs 4,000.

According to research firm Media Partners Asia, India's DTH satellite market could grow to 1.8 million subscribers by 2008, compared with a forecast 68 million on cable.

Tata, with interests ranging from tea to textiles, will hold an 80 per cent stake in the satellite service, its first foray into broadcasting.

The service will provide a bouquet of TV channels, interactive features and other premium services, but Tata and Star are saying little else about their plans, other than that they aim to build India's largest digital television system.

Source: Satil.com/Reuters

gameboy

India has thousands of 'Large' Satellite dishes sattered all over towns and villages that receive 'let's just say channels' that are then distributed locally by overhead cables (no companies involved).

It might be a bit difficult to get users to subscibe to pay TV service!

rolfw

Yes, but the thing with India is that it is a huge market and a very small percentage penetration will produce huge amounts of revenue.

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