It’s only 3 months since BigTV was launched and it already has 1 million subscribers. From using a very good ad initiative to leveraging Airtel DTH’s teaser ads, BigTV has done it all. 1 million subscribers in 90 days is no small feat.
To put things in to perspective DishTV has recently crossed 4.4 million subscribers and has 53% market share. DishTV is the first to offer DTH services in India. Tata Sky comes second. With 15% market share already Reliance is surging towards the top.
How exactly did Reliance do this? If there is one principle in economics that Reliance likes, it is ‘economies of scale’. It always works for Reliance. Along with using its own retail outlets tt has given the distribution to 3rd party vendors (1 lakh retail outlets disbursing BigTV’s) and did that on a massive scale.
The other thing that Reliance did is the pricing. BigTV provides the same number of channels for less money. There is one time payment of 2000+ which is valid for a year. No other charges. After one year, the monthly rental will come to 120+ rupees. This varies on the type of subscription you take but it is much less than the competition.
Airtel on the other hand was slow in rolling out their operations and did not provide any value in pricing. Their value packs are expensive and there is a installation charge. Having got the taste of Reliance, consumers did not take Airtel DTH very well.
So, What worked for BigTV and Reliance :Â
- Speed of execution (sense of urgency)
- Economies of scale
- Undercutting the price and thus employing a Blue Ocean Strategy
Will Reliance BigTV be a case study for our management students who have gave CAT?
[…] the entry of corporate giants such as Dish TV, Tata Sky, Airtel Digital TV and Big TV among other players, the market for DTH services is more organized than the Cable industry and has […]
@Vinu, @Phani Raj : Point taken. I hope you liked the rest of the post.
Price Undercutting is not Blue Ocean Strategy – please don’t use jargons for the sake of it.
Dish TV reaches 4.5 m subscribers
New Delhi, Nov. 24 The DTH market seems to be continuing its rapid acquisition of customers.
Dish TV recently celebrated its 4.5 million customer milestone, by having its brand ambassador give away a Hyundai Verna to its 4.5 millionth consumer.
The first to launch its services, Essel Group’s Dish TV claims leadership position with a market share of more than 53 per cent of the total 8 million subscriber base.
In a release the company said it added 4.3 lakh subscribers in October. “This landmark, of 4.5 million customers, is testimony to the superior and affordable DTH services that we offer to all our customers across India. It is clearly the fastest growth achieved by any DTH service provider in the country,†said Mr Jawahar Goel, Managing Director, Dish TV, in a release.
How can price undercutting become a Blue Ocean Strategy, its done by all . Blue Ocean Strategy is some thing that none have ventured in to . But we see Dish,Sun Direct every one trying to given Set Top Box at discounted prices.
But one thing to notice is the quantity vs quality which determines is sustability.
Check this link: [ http://broadbandforum.in/reliance-big-tv-dth ] not sure how many of these are genuine.