The cabinet approved an ordinance on digitisation of cable network on Thursday. Talking to CNBC-TV18 in an interview, RC Venkatesh, chief executive officer of Dish TV feels that the development on cable network digitisation will be positive for the direct to home (DTH) industry. "The DTH industry has well funded players, very good business model in place and a solid distribution network to reach the customer and strong brand names," he pointed out.
According to Venkatesh, Dish TV stands to benefit the most as the market leader. He expects additional growth pace of 8-10% post the cable digitisation. Here is the edited transcript of his interview. Also watch the accompanying video. Q: How would dynamics play out for the DTH industry now that the digitisation has been approved for the cable space?
A: With this ordinance, mandating digitisation from 2012 to 2014, the customer will have to move from the analogue mode to the digital mode. The customers would have two choices, either to move towards digital cable or to move towards DTH connection.
This entire move will be significantly beneficial for the DTH industry because the industry has well funded players. The industry also has a very good business model in place and a solid distribution network to reach the customer and strong brand names. When the question of choice comes for the customer, there would be a fairly substantial gain accruing to all the DTH players in the industry. Q: Would it be right to assume that price sensitive players or lower rung subscribers would still go the cable way? Won
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