No South Indian company has such a dream run like sun TV in the recent years. The business acumen of the Marans plus the political might has given them one success story after the other. Today Sun TV has 70% share , as per TAM[ if you believe them], Almost all other sister channels being either number one or two, SCV- the channel distribution company has crushed all competition and Sun DTH is number two in the nation and number one in the state.
Forbes carried an article about Mr. Kalanidhi Maran and also about this stupendous success of them. Here are few excerpts
*South accounts for 47% of the cable and satellite households in India.
*Sun DTH success is mainly because of clever market segmentation, free set top boxes and offering fewer but the most liked channels as choices.
*Outside south, Sun DTH concentrates on B towns and villages, unlike competition
* In the south, 36 channels enjoy 80% of viewer's television time on an average which includes 25 regional channels and 11 national.
* The Average revenue per user[ ARPU} for Sun DTH is 85 against Tata Sky 200 etc. But by clever purchase strategies their content cost is very low,. it is 150 crores annual against 300 crores for Tata Sky. it is approx 25 per user for Sun DTH against 100 for competition.
* However Sun DTH may make ;losses till 2014 when it is expected to turn around with a large subscriber base It might turn around earlier if base touches 7.5 million and above. Right now it has 4.6. Accumulated losses by 2014 is expected to be 750 million dollars
The way they have bounced back after a brief eclipse thanks to the Madurai smoke and shadows, it is possible that they will prove their tenacity and acumen and beat all expectations and come out winner sooner than expected. Probably when they named it they knew Sun is top of everything and every living being needs Sun for its sustenance. for more see Forbes India
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