Videocon targets 10% DTH subscription for first year

The Videocon group's direct-to-home (DTH) venture, which is all set to launch on April 27, is aiming a subscription of 10 per cent in the first year, according to sources close to the development.

To be called D2H+, the company will launch integrated digital televisions (iDTVs) and set top boxes (STBs) with 4-5 packages, sources said. Without divulging the investment details, sources further said that of the total sales, the company is planning to sell 70-80 per cent IDTVs and 20 per cent STBs.

The product, according to sources, will be launched only in district towns and not rural areas across India as launching partly would help the company understand the operations better and provide better service. According to a highly placed source, "Initially, every company faces problems in DTH, so it makes sense to launch it to a limited audience. Currently, the company is testing the STBs by installing at employees' homes at no cost.

Company officials said that the technology for STBs may be imported from Korea or China and later assembled at the company's Aurangabad plant. Gradually, D2H+ will also be manufactured from other plants of Videocon.

Videocon will be entering the DTH space in India in the presence of ventures like Dish TV, Doordarshan, Tata Sky, Big TV and Airtel.

The company is ensuring a strong sales network and has been recruiting sales and service staff through its media arm, Bharat Business Channel.

The Venugopal Dhoot promoted Videocon Industries, has decided April 27 as the launch date the DTH after many delays. The consumer electronics company has put its mobile phone business on hold for a year amid the ongoing meltdown scenario.