Why Dish TV Share Price is Rising

Entertainment, entertainment, entertainment - that's the name of the game, and Dish TV, a leading satellite television provider in India, seems to be taking the game to a whole new level.

Its share price recently experienced an uptick. Yesterday it rallied 11% in just a single day. This is an exciting movement for investors as Dish TV share price was under pressure recently. In 2024 so far, it is down 14.6%.

While the reason for recent rally might not be entirely clear-cut, one factor could be the company's embrace of innovative technology.

Let's delve deeper into this exciting development and explore how it, along with other potential factors, might be contributing to the rise in Dish TV share price.

#1 Launch of Mixed Reality Experience

Yesterday Dish TV announced it partnership with Flam. Together they launched an innovative mixed reality (MR) experience.

This innovative ad campaign will be accessible in over 120 locations across 23 Indian states, embedded within newspaper print editions.

The partnership leverages Flam's industry-leading MR platform, known for its interactive content accessible through mobile cameras without requiring downloads or additional hardware.

This innovative approach is expected to reach a massive audience, with the newspapers boasting a combined circulation of over 20 million (m) and an estimated viewership of 40 m.

The rising consumer interest in MR experiences, coupled with the technology's proven ability to seamlessly engage users concurrently (having already reached over 120 m viewers globally), fuelled this strategic partnership.

This collaboration is seen as a significant step towards bringing immersive content to mainstream audiences and setting a new bar for digital-age consumer engagement.

#2 Launch of Dish TV Smart+

In April 2024, the company announced a pioneering initiative: Dish TV Smart+. This first-of-its-kind move offers customers seamless access to TV and OTT content on any screen, anywhere, at no additional cost.

The service prioritises convenience, flexibility, and a wider range of entertainment options, empowering viewers to personalise their experience.

In a press release, the company confirmed that both existing and new Dish TV and D2H subscribers can enjoy popular OTT apps alongside their chosen TV subscription pack through Dish TV Smart+.

The service ecosystem facilitates entertainment on any screen, anytime - through Watcho, the OTT Super App, smart devices like set-top boxes and smart Android set top boxes (STBs).

Additionally, Dish TV plans to collaborate with top TV and mobile original equipment manufacturers (OEMs) for seamless integration of its services into their devices, further enriching the overall experience.

This multi-pronged approach aims to amplify the message of easy access to entertainment - on any screen, anywhere.

What Next?

In FY24, Dish TV investors faced disappointment. Total revenue declined 18.3% to Rs 18.8 bn due to increased competition. Net losses also widened by 16.8% to Rs 19.7 bn, causing even more concern.

However, Dish TV is actively working to turn things around. The company has implemented a three-pronged strategy to attract new customers and retain existing ones, aiming for net positive customer growth in FY25.

Dish TV, once India's leading DTH platform, is steadily losing ground to competitors. Now debt-free after Q1 FY24, the company aims to regain its footing and become a competitive force in a rapidly changing technological landscape.

Management plans to attract premium customers through Android STBs, which offers both linear TV and over-the-top (OTT) streaming. It also has its own OTT aggregation service, Watcho, boasting 3.6 m paid subscriptions and offering 17 OTT apps alongside over 200 linear TV channels.

To prevent lower-end customers from migrating to DD Free Dish, Dish TV launched Zing Super STBs. These come with a two-year validity and offer over 200 free-to-air (FTA) channels. Zing Super customers also have the option to add pay channels, unlike DD Free Dish.

Dish TV's third strategy involves partnering with local cable operators (LCOs) by allowing them to own the customer base. It will provide STBs and content to LCOs, who will then directly service the customers.

The CEO emphasised this as a unique model in the TV distribution industry, as DTH operators typically own their customers without intermediaries.

Dish TV no longer views cable TV as a direct competitor, believing it's losing customers to cord-cutting at a faster rate than DTH.

The company's turnaround efforts hold promise, but the path to profitability remains uncertain. Only time will reveal if these strategies will bear fruit.

How Dish TV Share Price has Performed Recently

In the past five days, Dish TV share price has rallied 13.2%. In the last month, it is up 3.7%.

In 2024, so far its share price has tumbled 14.3% and its up 14% in the last year.

The stock touched its 52-week high of Rs 26 on 20 February 2024 and a 52-week low of Rs 12.9 on 4 June 2024.

About Dish TV

Dish TV India is an Indian subscription based satellite television provider based in Noida, Uttar Pradesh with Yes Bank as its biggest stakeholder. Dish TV was launched by the Zee Group on 2 October 2003.

To know more, check out Dish TV's financial factsheet and its latest quarterly results.

For a sector overview, read our media sector report.

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