India's Dish TV is offering local cable operators revenue for each set top box they sell, as an incentive to encourage consumers to migrate from cable TV networks to its direct to home (DTH) platform.
The move would establish a new distribution chain for Dish TV, the largest DTH operator in India in terms of subscriber figures. It registered 9.6 million customers on 31 March 2012 – or a 41% market share - but will face increased competition from cable TV networks during their mandatory transition to digital distribution.
Salil Kapoor, chief operating officer, Dish TV reportedly told Indian Television that if a subscriber approaches his cable operator for installation of a digital set top box, the latter can now suggest they switch from cable to Dish TV.
The LCO will reportedly earn INR 400 for each basic Dish TV set top box and INR 600 for each high definition (HD) box, plus an additional INR 200 installation charge.
On monthly recharge, the LCOs will earn a commission of INR 100 per consumer on Super Platinum and INR 125 for HD.
The local cable operator will also get to earn INR 150 for every visit to the consumer's home for repairs or problem solving.
The cost of a standard set top box is around INR 740, while HD set top boxes are priced at INR 1340. An advance of just 20% for booking the boxes via LCOs will reportedly need to be paid by the customer.
The move follows a scheme announced earlier this month by multi system operator Wire and Wireless (India) Ltd (WWIL) whereby it will share 25% of its carriage income from digital addressable systems with the local cable operators.