Excerpts from the interview:
Is UTV planning an entry into the DTH market?
UTV is not planning to get into the DTH business directly. However, we have multiple areas in our diversified group that we are gearing up for, to have a presence in the DTH sector.

What are the areas that UTV is looking at for the DTH market?
First of all, for the DTH segment, much more content will be required. As the largest content producer in India, we have already started augmenting our capacity.

How else is UTV preparing itself for a foray into DTH?
DTH will herald the arrival of niche channels. Keeping that in mind, we have started developing multiple formats of niche programming.

Apart from that, we wish to have at least two to three channels for a DTH platform provider. These channels will be in the category of children's programming, education, food and others.

Dubbing is another area we are focussing on. We have a large dubbing division that dubs over 60 per cent of the international programming in Indian languages. Since a fair amount of the DTH channels will have international programming, we will be looking at ramping up our dubbing facilities.

We are also exploring a captive 24-hour home shopping channel.

What kind of tie-ups does UTV envisage for the DTH business?
Since we are operational in South-East Asia, we are looking at tying up a bouquet of five to 10 niche channels to offer them to a DTH service provider.

Do you think DTH is a commercially viable project, looking at the high entry fee of Rs 10 crore and the revenue sharing model suggested by the government?
I think, DTH is a commercially viable operation. The barrier is not going to be the Rs 10-crore fee or the revenue sharing model suggested by the government.

The big challenge of its commercial viability will depend on how many players enter the market. For instance, a DTH operator charging Rs 400 for a bouquet and having multiple subscription by year three, can expect to have a revenue base of Rs 40 crore per month and Rs 480 crore per annum.

With that kind of a revenue base, as you can see, the viability is not so heavily dependent on the tariff laid down by the government.

You are a big player in Broadband streaming. How do you draw comparisons between DTH and broadband?
The biggest commonality between DTH and Broadband is that they both directly reach the consumer. Also DTH is a platform to provide multiple choice to 50 to 100 channels and Broadband is ditto.

However, the big difference is that the cost of distributing Broadband, once the last mile cabling has already been done is not as high as setting up a DTH platform.

How does your experience in Broadband help you get into the DTH arena?
Although we are not looking at getting into DTH directly, other than the areas that I have mentioned, our pioneering efforts in Broadband will definitely help us in DTH initiatives.