X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Media: CAS vs. DTH (Part II) - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Sep 12, 2007

    Media: CAS vs. DTH (Part II)

    In an earlier article we had described the CAS and the DTH technologies and the benefits of the digitisation process. In this article we will compare CAS and DTH on the basis of pricing, picture quality and value added services.

    Pricing: CAS service is offered by the multi service operators (MSOs) such as WWIL in conjunction with the local cable operators while DTH is offered by DISH TV, Tata Sky, DD Direct.

    CAS offered by WWIL DTH offered by DISH TV
    Entry Cost Rs 999 (Refundable Deposit) plus Rs 30 Rs 3,999
    monthly rent
    Or Rs 250 (Refundable Deposit) plus Rs 45
    monthly rent
    Monthly Charge Rs 30 or Rs 45 Plus Rs 77 for Free to Air Various packages ranging
    channels plus Rs 5 per pay channel chosen from Rs 100 to Rs 300
    Minimum charges/month Rs 107 (30 +77) or Rs 122 (45+77) Rs 100 plus taxes

    In its latest scheme, Dish is offering six months of free subscription on every new connection. On multiple connections in the same household customers can receive 12 months of free subscription. Against this, Tata-Sky is offering 3 months of free subscription on one connection and 5 months on two connections. Dish TV offers 170 digital channels and management is targeting 200 channels by end FY08. Thus, while CAS is cheaper than DTH, it offers better transmission quality.

    Recently, Telecom Regulatory Authority of India (TRAI), the regulator for the media sector, has issued a set of regulations pertaining to DTH broadcasting services. As per these regulations DTH operators can carry only the popular channels and refuse to carry the unpopular channels that are a part of the bouquet. Thus the DTH players will be able to offer DTH services at lower rates which may lead to a further reduction in the DTH subscription rates.

    Convenience: DTH operators deal with their consumers directly. The middleman - the local cable operator - is eliminated. DTH also scores over cable in terms of geographical mobility. If a DTH subscriber is shifting his residential or office location, he just needs to relocate his dish and set top box and re-install them at the new location. DTH satellites have a national footprint and can reach anywhere in the country. With a cable box, one needs to encounter hassles of having to switch his cable operator, get the refund and acquire a fresh connection.

    However, DTH service may not work properly in poor atmospheric conditions such as heavy rainfall. However cable transmission is not susceptible to poor atmospheric conditions. The biggest advantage that cable (CAS) has is the reverse path that does not exist in the satellite based DTH. The cable box is highly interactive and one can give commands for content that can be fetched from the server immediately. DTH operators will have to use a phone line for interactive commands. The only trouble is that MSOs in India have no experience in building special content and the reverse path advantage may be lost. Several value-added services such as electronic programme guide, commercials-free films channel, gaming, child lock are similar in the two systems.

    To sum it up... Both CAS and DTH have their own advantages and disadvantages. CAS is cheaper than DTH but the latter offers better picture quality and eliminates the need for the local cable operator. However, DTH service may not work properly in poor atmospheric conditions such as heavy rainfall. Thus a viewer may have to settle for a lower budget or preference for picture quality and content.

    DTH is a capital-intensive business and it will take time for DISH TV to break even. The entry of Reliance ADAG, Bharti group in the DTH space is likely to lead to a further reduction in prices. At present, DISH TV (the only listed player) has the highest market share in DTH but Tata Sky is fast catching up. MSO's, which will bring more local cable operators under their network and are able to have a pan India network, will succeed in the long run.

     

     

    Equitymaster requests your view! Post a comment on "Media: CAS vs. DTH (Part II)". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    Zee Ent: Advertising drives revenues (Quarterly Results Update - Detailed)

    Aug 1, 2016

    Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.

    Zee Ent: Taxes, lower other income mar bottomline (Quarterly Results Update - Detailed)

    Feb 3, 2016

    Zee Entertainment has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline grew by 17% YoY, bottomline fell 11% YoY during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE TECK


    Aug 18, 2017 (Close)

    S&P BSE TECK 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS