Tata Play CEO weighs in Hindi GECs on or off FTA in letter to broadcasters

As we embark upon a week when the fate of this industry will be decided, based on whether Hindi GEC continues on FTA or not, I would like to share some data to help you take an objective call:

• For April 17-Feb 19, when Hindi GEC was on FTA, in 23 Months, DTH net adds of 0.6 Mn or 24k/Month
• For March 19-July 20, when Hindi GEC was off FTA, in 17 months, DTH net adds of 1.7 Mn or 100k/Month
• For August 20-Jan 22, when Hindi GEC has been back on FTA, in 18 months, DTH net adds of -1.8 Mn or -102k/Month

This data would be available on your records too.

Meanwhile, a year ago, when a similar discussion commenced, Airtel, Dish and Tata Play had shared an estimate with the broadcasters that we would together contribute an incremental 2.8 Mn net adds in 12 months, leading to 419 Cr of extra distribution revenue in year 1 and a run rate of 720 Cr PA incremental revenue, in the 12th month.

Given that a year and 1.5 Million net adds have been lost since then, today’s incremental revenue estimate can be easily multiplied by 1.5, before considering a price increase.

Needless to add that if GEC continues on FTA, we will have no incentive to continue to throw more Capex to chase subscribers and our gross adds will remain at <50% of what they could be, as has been the case since mid December ‘21.

This would further dent the already declining distribution revenues for the industry, and could one day lead to a fully FTA business, dependent solely on advertising revenue, which may not be a bad state versus the halfway house we’re in today.

We are available for any discussion you may wish to have, whenever.