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IOL Broadband stock has been hitting circuits quite regularly, going up 5% for the day as well. Experts say it could be a very interesting broadband play once Video On Demand hits Indian households in the next few months.
Director of IOL Broadband, AS Oberai says the company has almost 20,000 hours of content in its library. "We have Hindi movies, regional movies, English movies and have tied up with Hollywood studies," he informs.
Therefore, as fa
r as demand is concerned, in the next four months, he expects it to go to about 50,000 subscribers and in the next year it is expected to reach about 3 lakh subscribers. And how will this huge jump in the subscriber numbers impact the company's numbers? "That will take our topline to about Rs 40 crore this year. Next year we expect about Rs 300 crore and the year after about Rs 600 crore," he answers.
He also discusses the costs that the company has to incur, "Our cost involves four things: infrastructure, the hardware and software - which will constitute about 60% and the remaining 40% will go towards procurement of content."
Oberai also discusses the company's tie-up with MTNL, along with other possible mergers and acquisitions.
For the complete interview, watch the video.
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