Let me begin by expressing my joy in connecting with you once again. Asyou would be aware the year gone by has been replete with changes which have impacted theentire broadcast industry and subscribers. The changes have brought about much neededtransparency and a level playing field for all the players more so for the subscribers.The subscribers have now achieved the real "choice" which was missing in theindustry. While the changes have been implemented by the stakeholders considering theextremely dynamic nature of our industry and the role technology is playing in reshapingit I expect new changes to come up which would enable a guided evolution in theindustry benefiting all stakeholders.
The New Tariff Order brought about by TRAI has engineered acomprehensive overhaul of the broadcast industry. It was conceived and designed keepingthe subscriber as the focal point and has brought about a level of transparency and choicewhich never existed . Subscribers' interest have always been at the forefront for yourcompany and it's a matter of great pride that your company had ushered in this revolutionbefore it was mandated by TRAI. Breaking the barrier of fixed packs which was the normacross the industry your Company had launched "Mera Apna Pack" & "MeraWala Pack" under 'DishTV' and 'd2h' brands respectively where subscribers couldchoose individual channels to make their own pack. We are the pioneers in our field andthat spirit lives on and drives us to do things before anyone else does. Today themajority of our subscribers are on packs they have made or customized as per requirement.And I believe that the early introduction to this practice is a key reason behind it.
Implementing the New Tariff Order was an unprecedented and mammothexercise getting into unchartered territory. The entire subscriber base of millions had tobe explained enabled and migrated to their chosen content and a new system of billing.Your company devised and deployed automated tools at all touchpoints (call center retailpoints website and App) to enable subscribers to choose what they wanted to watch.Further your company adopted an AI driven tool which analyzed packs channels and VASsubscribed by individual customers to come up with suggested "Best Fit Packs"to facilitate the choice.
The definition of good customer service has evolved over time.Customers largely still expect friendly personalised service of the traditional channels.However they have also become used to the speed 24-hour availability and security thatis additionally offered by technology driven "self- service" channels providedin sectors like banking entertainment and communication . We have kept pace with thisdevelopment and offer our customers various self-help modes to make their payments edittheir packs and access their account information- any time any place.
In fact we go a step further and give our customers a range ofself-care channels to choose from as per their comfort. So a customer can make their ownpack by giving a missed call or by accessing a fully automatic IVR or by using the MAPtool on our website and app. Similarly recharges can be as easy as scanning a QR code ontheir TV screen and using any of the now universal UPI apps besides being able to do soon the website and app. The focus is to empower customers to get quick solutions withadded advantage of savings on both time and money front. In the same direction ADI thechat bot evolved further to service customers on our mobile app and on Facebook besidescontinuing to offer enhanced services on the website.
With this armory of self-care options which cater to all customersacross the technology band - from basic phone users to the more-savvy internet adopters -your Company will continue to service its customers in the most secure efficient and costeffective way.
From being a pioneer in satellite DTH with three differentiated brandswe now reach out to existing and new subscribers with our new Online streaming brand'Watcho' to provide a wide array of differentiated content within video-on-demandecosystem. With the launch of this product we expect to gain a higher wallet and screenshare of not only our own subscribers but also new users across regions . In this highlycompetitive and crowded arena Watcho plans to make a mark with short format snackablecontent that consumers can watch as per their time location language and type ofentertainment. This app has differentiated itself from its competitors by not restrictingusers to only watch but "Create" their own content as well. The OTT segment hascreated a wonderful cycle of content development and consumption and has unleashed a levelof creativity in the field which is an absolute delight to me on the personal andprofessional front. Hence empowering our users to contribute to the platform and enrichenour content library adds to our overall proposition. I am sure with the positive responsewhich we have gotten from the market this product would leap beyond and make a mark foritself in this dynamic industry.
Your other brands have gone from strength to strength. Dish TV took thenext big leap in brand evolution with a new avatar. Or should I say a 'Dishkiyaon' avatar.In the universe of entertainment everything is fun vibrant unique and full of youth& zing . Here we do things our way as we strive to add a little 'life' to life. Andwho better to help us do that than our very own Ranveer Singh . He is the true embodimentof Dishkiyaon Entertainment a quirky and anti-ordinary personality who will mostdefinitely sneak you out of your mundane life just like Dish TV.
Our d2h brand al so reinvented itself and launched a campaign titled'Aiag Hi View' during the festive season. The campaign was aimed at the younger andposition d2h as an innovation driven brand high on technology. To leverage the addition ofchannel s in the South markets a strong market for d2h another new TV campaign titled'Go for Highera' wa s run to establi sh the proposition of highest in the content in theSouth markets. These campaign s were supported by exten sive countrywide activationprogrammes and digital marketing.
Our vi sion of synergies took a concrete shape during the previou s fiscal. With continued momentum and the merger your company has become the second largestDTH operator in the world. Thi s is a natural stepping stone in our endeavor to take thepole position in the industry. During the year we con solidated operations on the frontof broadca st IT finance sales new product development & HR.
Performance for the year
For FY 2018-19 our consolidated subscription and operating revenueswere Rs. 56638 million and Rs. 61661 million respectively. An EBITDA of Rs. 20443million with EBITDA margin of 33.15% were achieved
We are confident that the fi scal 2020 would be a year of exceptionalgrowth for Dish TV and we are targeting higher EBITDA margins compared to fi scal 2019.
Entertainment has forever been a centerpiece of our lives. Innumerablestories and characters have striven to install a set of virtues and values among streaders and audiences alike. Today entertainment has attained a stature like neverbefore. Boundaries of consumption like time place and availability have been erased bytechnology which is available to all segments of our society.
We have always been quick to adopt technology and that coupled with ourspirit of innovation led to launch the Dish Smrt Stick for our subscribers. It is anextremely cost effective add on to the subscribers set top box enabling him to get accessto online content and view it on his TV. We will continue to provide such solution s andplatforms which allow subscribers to seamlessly access linear as well as digital content.
The Road Ahead
Consumer interest in entertainment is at an all-time high and iscontinuing to grow. The entertainment industry evolution is primarily influenced bytechnology and the viewers. Over the last few years both have seen a sei smic shift.Technology continues to grow and improve at lighting speed on one hand and is penetratinggetting adopted by all segments of society. The where we are consuming how we areconsuming and what we are consuming is all changing at a very rapid pace. Consumers aregetting younger more mobile willing to look at differentiated content and enjoying theva stness of content which is available to them at the mere touch of a button or screen.
This is a huge and growing opportunity for us and it's our constantendeavor to meet the needs of our subscribers under these dynamic circumstances. To thatend your company has launched a low-cost device which can be attached to the subscribersexisting set top box to connect to the internet and stream content. Such innovativeproducts would get continued to launch in the current fi scal and beyond.
Subscriber's appetite for content continues to increase and thi s bodeswell for the entertainment & broadcast industry as a whole. The DTH industry can beexpected to make the most of this due to the following reason s. The first one being theimplementation of the New Tariff Order. The second reason is that DTH continues to be avery cost-effective platform for the subscribers. The third reason is the coming togetherof linear and digital content via one platform. We have already introduced it through theDish Smrt Stick and will continue to offer similar services through other hybrid connecteddevices. This interest in differentiated content al so augurs well for value addedservices such as our own Active Services which we have on both our platforms - Dish TV& d2h.
At another end rural demand in the Hindi speaking markets should pickup with the reduced availability of Hindi GEC & movie content on FTA platforms.
The amalgamation of technology and entertainment on one hand and TRAi sbringing about a level playing field on the other will enable further growth in theindustry. We are already seeing the green shoots of growth and I expect them to growstronger in the fi scal 2020. On behalf of the board I would like to extend a heartfelt& sincere thanks to all our shareholders our subscribers partners Central &State Governments TRAI and other regulatory bodies.
With all your support and good wi shes we embark on another year todeliver even better than before to build a solid institution!!
|Regard s |
|Jawahar Lal Goel |
|Chairman & Managing Director |