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Dish TV Posts Huge Loss Hurt By Competition, Higher Costs

By Anupama Chandrasekaran - Tue 17 Jul 2007 07:31 PM PST

Dish TV, Zee’s demerged direct-to-home (DTH) company, posted a huge first-quarter loss, despite adding substantial subscribers, as competition intensified and operating costs surged. [via Indiantelevision.com] Net loss stood at Rs 897.64 million for the quarter. The company’s operating revenues were just Rs 892.86 million while expenditure hit the Rs 1.38 billion mark. Dish TV’s main expenses are towards content, selling and distribution, employees and administrative. Operating loss was Rs 488 million largely due to growth invesments, the company said. Revenue rose 35 percent to Rs 893.37 million as Dish TV added 180000 new subscribers during the quarter ended 30 June 2007.

Posted in: DTH, TV

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5 Responses:

From prasath Wed 18 Jul 2007 01:37 AM

they can try online advertising than tv media ads targetting the 18 to 35 group

From SAM Sat 18 Aug 2007 04:13 PM

THEIR VISUAL SERVICE IS FINE… BUT ADMINSTRATION /CUSTOMER SERVICE IS PATHETIC.... SO A LOSS IS LIKELY TO OCCUR.

From Lt Col (Retd) VC Khare Mon 10 Sep 2007 09:47 PM

DTH operators are keeping monthly subscription for their lowest bundle related to average cable TV subscriptions in non-CAS areas. As such they are operating with a ‘budgeted loss’ . Hence posting losses is not revealing any reflections on business. They should convey to stake holders as to what is the critical subscribar base at which a break even will be achieved and what is fare monthly subscription at which they will not be running in loss. What is that figure .... Rs 300/-, Rs 400/- or Rs 500/- per month? If DTH is a service superior to Cable TV, then while adding so many customers why are they in loss. People should have provided them with land slide churn.