Dish TV India Limited Investor Presentation Stock Code: BSE - 532839 NSE- DISHTV LSE: DTVL 1
Disclaimer Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of Dish TV India Limited about its business and the industry and markets in which it operates. These forward-looking statements include, without limitation, statements relating to revenues and earnings. The words “believe”, “anticipate”, “expect”, “estimate", "intend”, “project” and similar expressions are also intended to identify forward looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Company and are difficult to predict. Consequently, actual results could differ materially from those expressed or forecast in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Dish TV India Limited does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication. 2
Investment rationale Str Strategic par partnerships to o Le Leadin ing di distrib ibutio ion fuel fuel gr growt wth pl platfor orm in n Indi ndia Partnership with Amazon Prime Video, Amongst both cable TV and DTH Amazon Alexa, ShortsTV, Zee5, Hungama 01 players Play, Voot, Sony Liv, Alt Balaji and many 07 06 more Annuit Ann ity busin business 05 Annuity business with significant Free Cash Flow potential 02 04 Supr Su premacy in n mar markets 03 Mu Mult ltip iple le pr prod oduct Largely buffered from alternate of offer erin ings gs technologies with supremacy in tier-2 and rural areas Portfolio of offerings; DTH service, smart connected devices, OTT platform – tapping on new growth opportunities Growt Gr wth 3 On course to deliver healthy growth and margins
Leading distribution platform Tot otal Revenues s (Rs Rs Bn. n.) Year ending 31 March 2020 50 36 29 24 25 18 16 13 0 Dish TV India Airtel Digital TV GTPL Hathway Hathway Cable & Datacom SITI Networks Den Networks EBI EBITDA (Rs Rs Bn. n.) Year ending 31 March 2020 24 21 20 16 8 5 4 3 2 0 Dish TV India Airtel Digital TV GTPL Hathway Hathway Cable & Datacom SITI Networks Den Networks 4 Source: Company filings. Tata Sky & Sun Direct revenues & EBITDA for FY20 not available yet.
Supremacy in tier-2 and rural areas DTH - easiest to reach / most economical for TV viewing TV viewing is Distributed a family affair row houses India outside Growing big cities Large family penetration size of wireless broadband Negligible Unfeasible to requirement lay fibre/ for wired wired broadband broadband 5 Dish TV Di V India India has has majo ajority of of its ts sub subscribers out outside bi big cit citie ies, in n tie ier-2 and and rura rural are areas
Multiple product offerings Online Linear TV Apps** Dish SM Dis SMRT HU HUB Access to more than 500,000 Apps & games from Google Play store Acce ccess s to o sa satell ellit ite D2H D2H str tream TV TV cha channels Access to curated content across genres and premium original shows HD quali lity con ontent Dish SM SMRT Kit it – Di with ith Ale Alexa 6 ** ** Brand logo’s are trademarks of respective brand owners.
St Stay con onnected on on the the go go - WATCHO Personali lized TV TV exp xperience every rywhere • The first OTT service to feature user generated & Growing content allowing users to create and upload their own content • Focused on short format storytelling - apt for digital consumption • 22 original shows and 1000+ hours of library content including movies and short films • Content availability across various genres including but not limited to; Drama, Comedy, Thriller, Romance, Food, Fashion and Poetry 7
Indian TV Industry 8
The Indian TV industry TV Industry Size (INR Bn.) 2018 018 2021 021 INR 495 IN 495 Bn Bn. 2022P 495 388 2022 2022 TV subscription revenues 298 m 311 m 2020P 449 341 Tot otal l ho house usehold lds (i (in n Mn. n.) CAGR of 2% (2019-2022P) 2019 468 320 0 200 400 600 800 1000 Total l TV TV ho house usehold lds s (i (in n Mn. n.) 197 7 m 220 0 m Subscription revenues Advertising revenues Broadcas Br asting Ind ndustry Mar arket shar hare - Dis Distribution Ind ndustry 66% 66% 71% 71% TV penetration (of total HH’s) 17% Multiple broadcasters, having 332 17% pay channels, 586 FTA channels, 43% producing content in more than 185 185 163 63 15 languages 40% C&S HH’s (in Mn Mn.) .) m m 83% TV Industry ry to to gain from rom incr creasin ing Analog pay-tv Digital pay-tv Digital cable DTH TV an and d Pay ay -TV pe penetratio ion Televisio ion shou should ld main aintain pole pole posit position as as the lar argest seg segment with thin the India Indian M&E se sector 9 Source: TV industry size: FICCI-E&Y 2020; Households: BARC India Universe Update 2018; Distribution Industry: MPA Report 2018 & DTH: TRAI Dec. 2019 ; Pay & FTA channels :TRAI Dec. 2019
TV viewing HHs - Pay & FTA TV V hou households 197 Mn. Pay -TV TV Non on - Pay 163 Mn. 34 Mn. Cab Cable Sub Subs DTH Su Subs Fr Free Di Dish 94 Mn. 70 Mn. 30 Mn. 10 Source: TV & Pay – TV HH: BARC Universe Update 2018; Distribution by platform: MPA Report 2018, DTH: TRAI Dec. 2019; Free Dish subscriber base: Prasar Bharti website
TV viewing in India Share of TV viewership universe across age groups TV continues to remain the most popular form of entertainment Senior Avg.daily (>50 years) Kids Daily tune in Dail in on on TV: tim ime spe spent 16% (2-14 years) 836 Mn 836 Mn. . Ind ndividuals per pe 20% individual ind al 03:42 :42:00 14% (hh hh:mm:ss ss) Youth (15-30 years) Adults (31-40 yrs) 33% 93% % of of all l video o con ontent con onsump mptio ion 17% happ ha ppens ns throu through gh line near ar TV TV Percentage of single TV households 79% of Indian households still 99% 99% 98% 98% have CRT TV’s 97% 97% Urban All India Rural 77% large and affluent joint families have single TV’s, implying co -viewing as as a a con onsumption pa pattern 11 Source: Percentage of single TV households: BARC ; Daily time spent: FICCI-E&Y 2020
Popular across age groups despite rising internet penetration Share of TV viewership universe by age groups All India internet penetration- 54% (in Mn. impressions) Broadband subscribers (in Mn.) 700 2-14 yrs 643 22% gr 22 growth th 600 507 15-30 yrs 500 400 345 31-40 yrs 300 218 41-50 yrs 200 120 100 70 41 51+ yrs 17 18 18 18 19 15 15 0 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2017 2016 Wireless Broadband Subs (mn) Fixed Broadband (mn) Contrary to Con o popu popular per percepti tion, the you youth con ontrib ibutes s a a mass assiv ive 33% 33% shar share of of TV V vie viewership, , and and has has se seen a a gro growth th of of 22% 22% in n impressio ions ove ver the ye year 12 Source: Share of TV viewership: BARC; Broadband subscribers : TRAI Dec 2019
Emergence of OTT The glob Th obal OTT T phenom omenon on Annual cost of Netflix 1/10th of Pay -TV cost in the US Low cost of OTT vs Pay -TV drove adoption 80 1,439 1,131 1,064 54 997 30 11 11 8 8 8 7 6 103 DirecTV Charter Dish Comcast Netflix USA Australia Sweden Mexico Nigeria Pay TV monthly ARPU (USD) OTT monthly fee (USD) Annual ARPU (USD) -2016 Lo Low OTT costs comp mpared to to tra radit itio ional l Pay -TV pl platf tforms, led to to hi high gher r ad adoptio ion of OTT content gl globall lly The Th e Ind ndia a exception on Pricing (p.m.) of Popular Packages in OTT, cable and DTH in India Pay TV monthly ARPU (USD) Cost of OTT vs Pay -TV per month (in USD) 80 ₹ 649 54 OTT monthly fee (USD) ₹ 275 30 ₹ 233 11 11 9 8 8 8 7 6 4 Netflix Cable Pack DTH popular packs USA Australia Sweden Mexico Nigeria India Ind ndia ia is s an an exceptio ion to to the e gl global l OTT ph phen enomenon, wi with th hi high gher cost t of OTT vs s Pay ay -TV TV 13 Source: Cost of OTT vs Pay – TV: Digital TV Research; Annual cost of Netflix : Marymaker Internet Trends Report 2017, : Cost of OTT vs Pay – TV: Digital TV Research & internal est.; Pricing of OTT services : Market Estimates
IPTV as an offering 14
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