Tata sky Case Study

Sunset in the morning

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Joint Venture

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Initial Shoot up…

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1.5 million

Subscribers

Losses…

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Rs. 5000 per Conn.

50 Months Recovery Time

FY 06 53 Cr.

FY 07 815 Cr.

FY 08 864 Cr.

Competitors & Loss Factors

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TATA (Sky

BIG TV

SUN TV AIRTEL

DISHTV

VAS

NEWTECH.

ADVERTISING

TAXES

MARKETING

COC

SUBSIDY

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QUESTIONS FOR DISCUSSIONS

Q1. Is it an intelligent approach of Tata Sky to continue spending, despite of such huge losses?

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TOTAL MARKET

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Tata Sky EXISTING

CUST.POTENTIAL CUST.

UNDISCOVERED CUST.

ACQUIRED CUST.

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Q2. Do you think that Tata sky will loose Red ink in future from its

balance sheets?

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TOTAL LOSS

53 Cr.815 Cr.

864 Cr.

1732 Cr.

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Q3. Can you make out, what strategy Tata sky is following currently?

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CURRENT STRATEGIES

• Gain Market Share• Price Cut Down• Average Revenue Per

Consumer• Calculated Risks• Planned/Budgeted

Losses

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