October 8, 2008

Indian DTH space hotting up

Posted by Bizaholic | 9:18 PM | , , with 0 comments »

With Airtel's foray in DTH services, the DTH arena is hotting up. In August this year, Reliance ADAG entered this segment with the launch of Big TV. With Airtel's entry, it's a clash of titans now. The Ad ware has already started and if recent ads of Airtel digital TV and Big TV are are any indications, it is taking virtually turning into the infamous cola wars.

Already Rs 30-40 crore is being pumped up every month in advertisemnt forthis category by the existing players making it one of the costliest product segment.

The growing competition in this category must be a cuase of worry for market leaders - Dish TV and Tata Sky. Meanwhile, Dish TV is tieing up with ICICI Bank to launch interactive banking services. It seems to be a good strategy to climb up the value ladder when faced with me-too kind of mindless competition, particularly when you are an early market leader.

For Airtel and Reliance ADAG, entering the DTH segment and playing aggressively to capture significant market share is an apt strategy. They are already significant players in telephony and broadband business. By becoming a significant player in the DTH segment, they would be in the best position to reap the benefits of emerging convergence of mobility, internet, and entertainment.

An interesting marketing battle to watch out for!