“Direct-to-home television company Tata Sky will soon offer Netflix, Hotstar and Amazon Prime,” says Tata Sky managing director and chief executive officer Harit Nagpal in an interaction with The Mint.
According to Nagpal, this can be accomplished by changing the normal set-top-box in your home to one which can receive signals from both satellite and broadband.
"We are going to be the supplier of Netflix, Hotstar, YouTube and Amazon Prime. We can change the box which can receive both the signals—from the satellite and from the broadband. So, I will change the hardware in your house which will enable you to watch on your TV screen, live TV via satellite whenever you want to, and OTT via broadband whenever you want to," said Nagpal.
Despite the trends of cord-cutting getting popular across the globe and the challenges from over the top services, Tata Sky saw their net profits increase by Rs 400 crore to Rs 408 crore in the last fiscal years. The firm also earned a revenue of Rs 5,719 crore and its ratings have been upgraded by Crisil.
"Cord-cutting happened in America as cable prices were much higher compared to OTT (over the top) prices. Cable cost $100 per month. And OTT, let’s say, Netflix, came at $10. So people switched. In India, cable TV is $5 a month. So, when Netflix or something comes at $10 and to watch that product you have to consume $15-20 worth of broadband, the cost rises to $30. How many customers can afford that? India will always be an “and” and not an “or” market. We have OTT, we watch online but we have not given up our TV," said Nagpal to The Mint.
Presently, Tata Sky has a market share of 24% in India's DTC space with around 15 million active subscribers, going neck to neck with rival Dish TV. – PC Mag