“The DTH market is not a volume game-it's about getting higher ARPUs (average revenue per user), which in turn helps to cover the subscriber acquisition costs as fast as possible”, said Vikram Kaushik, managing director and CEO, Tata Sky, one of the early players in the DTH (direct to home) market. He explained that the company will never take its eyes off ARPU in a bid to get more subscribers.
This explains the company’s strategy to focus more on Tata Sky+, a premium product it introduced last year, while continuing to add subscribers for its base service, which is also at a premium over services of other players.
“The company was able to sell 40,000 units of Tata Sky+ last year and expects to sell more units this year”, said Kaushik. It has recently slashed the price of Tata Sky+ by Rs 4,000 from Rs 8,999 to Rs 4,999. The company will also use its brand ambassador Aamir Khan for communicating and promoting the offer.