Video Reliance to give Toshiba LCD TVs free with DTH

C

cybertragic

Disciple
May 25, 2005
145
5
0
This is crazy stuff. According to today's Economic Times, Reliance may be giving away free LCD TVs along with their DTH connection though the size is not mentioned.

"Reliance is in advanced talks with Toshiba to sign an agreement for about 15 million LCD TVs, to be given along with the DTH connection. The proposal deal stands like this: BIG DTH will offer its DTH connection for Rs 10,000-12,000 and the consumer will get a Toshiba LCD TV free along with the DTH hardware. Also, subscription will be free for the first six months or so. "

Source: R-ADAG to storm DTH market in March next- Media-Media / Entertainment -News By Industry-News-The Economic Times

Only Reliance can come up with something seemingly so preposterous. What can the other subscribers offer to counter this? An LCD TV, settopbox and 6 months subscription for Rs. 10,000. Going by current DTH offers thats just Rs. 7000 extra for the LCD.
 
S

stalker

Skilled
Mar 17, 2005
5,231
270
222
still gonna be better than what most ppl have :)

am sure they will end up enticing a huge bunch of mid-lower mid class ppl to jump over.. like they did wid de mobiles..

wat they managed in cdma was truly a revolution nd now they've even gotten de national gsm license
 
K

KingKrool

Skilled
Mar 16, 2005
3,556
71
136
I'm thinking this is unlikely to happen...

The cost of an LCD, let us assume is 10k. This is completely unrealistic, but let's just assume that. So that would mean the cost of 15million of them = 10000 * 150 lakhs = 15000 crore rupees.

OK, suppose the cost of a TV is 5000 Rs.

well that still means 7500 crore rupees.

I am sorry, but Anil Ambani doesn't have that money.
 
R

Ronnie22

Disciple
Sep 26, 2006
74
1
0
KingKrool said:
I'm thinking this is unlikely to happen...
The cost of an LCD, let us assume is 10k. This is completely unrealistic, but let's just assume that. So that would mean the cost of 15million of them = 10000 * 150 lakhs = 15000 crore rupees.
OK, suppose the cost of a TV is 5000 Rs.
well that still means 7500 crore rupees.
I am sorry, but Anil Ambani doesn't have that money.
Click to expand...

If you ever happen to get an insider's view on what happened with the "Dhirubhai Ambani Scheme", you'll find out how economies of scale works for Reliance (All Mukesh and Anil groups).
While I will not elaborate here, I'm sure you can find someone who has worked in Reliance Infocomm to tell you the inside scoop. But just fyi
Reliance made money even when ppl vanished with the phones when they were first launched during the scheme. I'm sure u remember what happened duringthat period.

Also ADAG needs to raise XX amount (7500 in your reasoning) and not Anil.
 
K

KingKrool

Skilled
Mar 16, 2005
3,556
71
136
Yes, and I used economies of scale to get to the 7500 crore. Yes, ADAG will need to raise that money, but it is not at all easy.
 
kauzy

kauzy

Skilled
Jul 9, 2005
1,673
128
102
37
KingKrool said:
I'm thinking this is unlikely to happen...
The cost of an LCD, let us assume is 10k. This is completely unrealistic, but let's just assume that. So that would mean the cost of 15million of them = 10000 * 150 lakhs = 15000 crore rupees.
OK, suppose the cost of a TV is 5000 Rs.
well that still means 7500 crore rupees.
I am sorry, but Anil Ambani doesn't have that money.
Click to expand...

did u forget that anil ambani is the richest person on earth :bleh: :bleh:
 
C

cybertragic

Disciple
May 25, 2005
145
5
0
kauzy said:
did u forget that anil ambani is the richest person on earth :bleh: :bleh:
Click to expand...

Lol .. that was Mukesh Ambani. And that too coz of the combined effect of his inflated share price and miscalculation.
 
Switch

Switch

Skilled
Jan 13, 2005
5,579
342
227
KK... That base price of the LCD is the key to the whole project... 10K is quite high according to me... What will be given away will be cheap chinease LCD TV's mostly...
 
Emperor

Emperor

Skilled
Jan 12, 2006
4,184
697
203
They may earn huge amount from Advertisement.

LCD from Reliance (via Toshiba) so Reliance logo, DTH service by Reliance so Reliance Channel (may be like zee TV), Adlabs movies premier + free advertisements with 92.7 FM

They get lots much than what they Invest - Gujrathi manas che - pura pais VASSOL kari leshe (He is PAKA Gujrathi - who are well know to get more than what they Invest) :)

And they are not going to invest 7500 crore at one time but in coming years STEP By STEP. :)

And Maximum Finance Companies in line to lend money to Reliance. :)

Jiten wale gode pe sabhi DAAV lagate hain :tongue:
 
Party Monger

Party Monger

Skilled
Jul 15, 2007
4,849
1,258
251
Woohooo..man..Now thats an OFFER!!!

I think he might put up more than 1size of tv, like 21, 29 inch etc..

also wat abt those who already hav the tv???

And if i heard correctly tata sky has 2million connections..

Lets say raliance outdo them by 5:1, still they'l hav 5million tvs to spare...lol
doesnt make a lot of business sense to me,, i don see those number of tv getting sold in even a 5 yr timeslot..

perhaps there's more to this deal than wat meets the eye...
Lets hope for the best!!!
 
TheIndian

TheIndian

Skilled
Sep 19, 2007
1,067
112
102
59
Mumbai
KingKrool said:
.........
well that still means 7500 crore rupees.
I am sorry, but Anil Ambani doesn't have that money.
Click to expand...

AA does not have 7500 Cr? Damn where have you been living?

And even if the scheme is announced, work out the cash flow, you won't need even 500Cr to start it up.

About the LCD TV part, Toshiba and Canon had a rival flat panel technology since about 2 year which is superior to the current LCD technology and was supposed to be ~50% cheaper but for some reason it got stuck in the labs. Maybe this is it ? Anyone wanting to take a product out of the labs what better way then an order for 15 million pieces?
 
K

KingKrool

Skilled
Mar 16, 2005
3,556
71
136
TheIndian said:
AA does not have 7500 Cr? Damn where have you been living?
Click to expand...

In the land of the real world, where spending 1.7 BILLION USD isn't something you do without thinking. Even over a longish period. Remember, they have to recover the price of those LCDs from the customers... I don't think that is so easy unless they do something like 5 year contracts (which may well be what they do). More likely they'll go with 3 and hope no one jumps.

TheIndian said:
About the LCD TV part, Toshiba and Canon had a rival flat panel technology since about 2 year which is superior to the current LCD technology and was supposed to be ~50% cheaper but for some reason it got stuck in the labs. Maybe this is it ? Anyone wanting to take a product out of the labs what better way then an order for 15 million pieces?
Click to expand...

Too risky for them. When you have to fulfill a massive contract, you generally start with something you already know. Still, who knows what they are up to. LCD prices are crashing everyday, and it may be they have factored that cost in already.
 
Top Bottom