Two leading companies of Essel Group, Dish TV and SITI Cable have formed a common entity named “Comnet” which will help synergize the strengths of both the organizations in dealing with broadcasters.
The primary reason for forming this venture is to ensure that consumers have an access to quality content at affordable prices. This move would also help that the content cost is in sync with consumer ARPUs and market realities. The mandatory digitization is underway and this initiative will ensure a larger participation in digitization for both the entities.
The pay TV market is predominantly controlled by few broadcasters and the balance of power always remains in the hands of popular content owners which is a major hurdle for any distribution platform. Signing year to year contracts with broadcasters in an environment where scales are always tilted in favor of popular content is a difficult process particularly when the consumer ARPU’s are under pressure.
Dish TV CEO Mr. R.C. Venkateish said that “this move will help both the entities to provide quality content at affordable price to their consumers.”
SITI Cable CEO Mr. Wadhwa said that “the joint efforts between Dish TV and SITI Cable will help in servicing the combined base of over 20 Million customers and aggressive expansion for both the organizations. According to Mr. Wadhwa, there is a need to unite to ensure that consumer remains central to both broadcasters and the distribution platforms.”