As Direct To Home industry booming and buzzing around the India and some top players enter in this industry, this Direct To Home Industry hike their prices and offers just because of their costing per connection is like higher and they can’t continue with low cost offers. It also makes impact on their sales and Dish TV first to announce that their sales are dropped from 5 Lakh customers to 1.5 Lakh customers. They can’t do anything except hiking price since they have many problems which need to be shorted out by governments if they want to popular digital television viewing across India, Let’s we see different factors which caused behind this price hike.
First big factor which also be vital one is multiple taxation issue. Currently, Direct To Home sector is subjected to both entertainment and service tax from Central Government and state government. So it make costing higher and DTH are operators can save atleast Rs 50 corers if Government give some relief to them. Also Central government can reduce license fees on each subscriber to give some benefits to Direct To Home operators.
Second thing is costing too much because of dollar’s rate goes up and as per DTH industry estimates, each DTH operator buys the normal MPEG2 STB at about Rs 1,568- Rs 2,450 per STB and higher end MPEG4 STB (higher compression technology) at Rs 2,500-Rs 3,038. So it’s impossible for them to offer at low cost since losses is huge one. One estimated number suggests currently Direct To Home industry suffering from 2,000 to 3000 Rs corers and estimated that it can be high in next years.
Also such a tight competition among all Direct To Home make things more worried as they already drop their price to lowest possible and increase high in their price would hit their market share and strategy. Most of Direct To Home operators hike price up to 15% but it can be lowered soon as they are planning to meet Planning commissioners and also Information And Broadcasting ministry soon to shorted out their problems by offering some cut of tax or offer some package.