Tata Sky – Value for Money

I came across at a very interesting article in the recent issue of Business Standard magazine which analyzes Tata Sky’s strategy to attract more customers. With 5 million subscribers in March 2010, Tata Sky now controls almost a quarter of the 20 million strong DTH customer base. However, in communication to Business Standard, Tata Sky explained that it is no longer focused on volumes alone; it wants to focus also on the quality of customers and maximise revenues.

Vikram Kaushik, Tata Sky CEO says and I quote “We will never sacrifice volume share completely for value share. But we believe that a sustainable business model will come from adequate share in value terms and not from volume for volume's sake from them”.

As far as the subscriber numbers are concerned, while Kaushik did not reveal absolute numbers, he said that his average revenue per user (ARPU) is double of its publicly-quoted rival (Dish TV). Tata Sky wants customers who are willing to pay a small premium for more value. It has put in place a segmented strategy with products, services and features aimed at different segments, skewed of course towards the quality-conscious subscriber.

The article is quite revelatory of how Tata Sky is positioning itself in the market and how its plans for the future. To read the complete article, checks out the following link:

http://www.business-standard.com/india/news/money-for-value/390857/