Dish TV banks on data analytics to increase ARPU and reduce churn

Launches a new service named 'Only For You', which uses the data collected by Dish's IT backend to profile each individual connection and customise packages and offers for them

Direct-to-home service provider Dish TV has introduced a new service for is customers in order to upsell products and packages. Named ‘Only For You’, the service uses the data collected by the company’s IT back-end to profile each connection and customise packages. “We see opportunity in customising and deals for upselling our products and services to existing customers using the data collected by the back-end,” says Dish TV India COO Salil Kapoor. “We predict this strategy will not only help increase ARPUs, but also reduce churn,” he adds.

In the July-September quarter, Dish TV reported ARPU of Rs 171, Rs 3 less than the street expectation of Rs 174. This was mainly due to increase in service tax, which had caused the company to revise its ARPU growth guidance from 7-7 per cent to 4.5-6 per cent. Its monthly churn rate (number of people disconnecting/leaving its service) also increased marginally from 0.7 per cent in the April-June quarter to 0.8 per cent in the July-September quarter. The company has a net subscriber base of 13.6 million according to the latest financial results.

The service will be available to new subscribers in three to six months of getting the connection, once the company has enough data to customise packages according the profile of the user. Kapoor reiterates that this strategy has little to do with the upcoming phase three deadline, but is in fact a step towards consolidating the current base of subscribers, reducing churn and increasing ARPU.

The company’s second brand – Zing, which is a region/state/language specific service will for now not offer this service. “Zing is part of our strategy in phase three and four where penetration at a regional level is crucial,” explains Kapoor. While Dish TV is focusses its communication on the HD services it provides, Zing provides region or state specific customised packages. For example, in Orissa, the Odiya channels will form a part of base pack, instead of the usual mix of Hindi channels.