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How Videocon d2h plans to grow its ad revenue

MUMBAI: Having substantially scaled
up their subscriber base, direct-to-
home (DTH) operators are tapping new
revenue streams. Carriage income has
grown for the leading DTH operators
in the fiscal ended 31 March 2015. Also
getting new attention is advertising
Videocon d2h, the DTH arm of
Videocon Group, earned $1.5 million
of ad revenue in FY15. The company
feels that the stage has arrived to
exploit this revenue stream through
targeted advertising across its
bouquet of regional-language and
proprietary channels.
Claiming a reach of 65 million
consumers, Videocon d2h expects to
post faster ad revenue growth this
fiscal. A structure is being put in
place to expand this revenue pool.
The company has appointed Tanmay
Srivastava to spearhead the ad sales
operations. He has a rich media
experience and was heading ad sales
for Multi Screen Media (MSM)
network. In this post, he supervised
ad sales revenue generation from
India-based clients for 16
international feeds from the US,
Canada, UK, South Africa, Middle East
and Asia Pacific. He has also worked
for media organisations like Star TV,
National Geographic Channel, NDTV
and Zee Network.
Srivastava will report directly to
Videocon d2h deputy CEO Rohit Jain.
Videocon d2h said it has also recruited
two other senior executives with
extensive local advertising sales
The ad pie will also organically grow
as Videocon d2h launches its own
branded channels in future. The
company believes that it will offer
high-margin growth opportunities.
Says Videocon d2h CEO Anil Khera,
“With the goal of generating new
revenue through an expansive,
targeted ad sales platform, we have
assembled a solid team that is more
than capable of moving this initiative
forward for us. We look forward to
being a part of their success in
tapping Videocon d2h’s reach of 65
million consumers with exciting, new
options, and we anticipate the
advertising programme to expand even
further as we launch our own branded
channels in future.”
Media buyers will, thus, be able to
advertise on Videocon d2h’s home
channel and info bar when changing
The advertising initiative, which will
target inventory opportunities on the
Videocon d2h platform, comes in
response to positive feedback from
Videocon d2h advertisers like
Volkswagen, Honda, Disney, Sony TV,
Zee Group and Star Sports, and taps
the rapidly expanding Indian digital
media space.
Says Silver Eagle Acquisition Corp co-
founder Harry Sloan, “During the
recent NASDAQ listing process, we
focused on advertising sales as one of
the important high-margin growth
opportunities. As we look to roll out a
bouquet of new branded channels, we
will be able to use the extensive reach
of our platform to turn ad sales into
bottom-line dollars. This is a
programme that will benefit our
growing consumer base, as well as
those advertisers seeking their stake
in the lucrative Indian TV market.
Given the exciting growth in overall
Indian advertising and the television
ad market in India, we are very
pleased to see the development of an
effective advertising sales force
implemented quickly and effectively.”
Videocon d2h’s net subscriber base
stood at 10.18 million, as of 31 March
2015. The DTH company expects to add
1.3-1.4 million gross subscribers in
the first half of FY16, similar to what
it mopped up in the year-ago period.
Carriage revenue for Videocon d2h
grew over 75 per cent in FY15 to Rs 58
crore (Rs 580 million). “We continue
to focus on this stream of revenue.
Clearly, we have achieved a
significant scale in our business, and
having a big chunk of the last-mile
subscriber base in India on a platform
today, we are the premium choice of
many new broadcasters. New channels
are coming up in India so we only
continue to see very good traction
and very good increase in carriage
revenue going forward,” Videocon d2h
executive chairman Saurabh Dhoot had
earlier told investors.
Market leader Dish TV booked Rs 81
crore (Rs 810 million) as carriage
revenue in FY15. In fact, Dish TV’s
carriage revenue slowly increased
from Rs 35 crore (Rs 350 million) in
FY13 to Rs 50 crore (Rs 500 million) in

How Videocon d2h plans to grow its ad revenue

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