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Just Shoot Me

Bala, 28, Gordon Gekko in the making, pseudo-intellectual, cynic, bibliophile, obsessive compulsive ranter...

Economics of a Colour TV scheme

December 28, 2006

A simple math calculation:

The TN Govt Plans to Distribute 25,00,000 free colour TVs over the next five years.

Assuming around 75% of the TV recepients are first time TV getters then that means there will be 18,75,000 new households with TVs

Assuming around 75% of the new households with TV go for a sun TV connection (now in Tamil Nadu, Cable TV = Sun TV), then it translates to 14,06,250 New cable (sun tv) connections.

@12 Rs per Connection, the new Pay channel mode for SUN TV will generate Rs 1,68,75,000 extra per month and Rs 20,25,00,000 per year.

For a company that has revenues of Rs 300 Crore and operating profit of Rs. 170 Cr this financial year, this means an increase of Rs 20 Crore extra per year
WITHOUT ANY EFFORT. And this doesnt take into consideration the increased ad rates, SUN TV will be able to charge due to the increased viewership!!!

whew... These guys are geniuses..
posted by Bala, 4:02 PM


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