Sie sind auf Seite 1von 108

DIRECT TO HOME

A
GRAND PROJECT REPORT

ON

“Vital Purchase Criteria of Customers


While Selecting ‘DTH’ Services
&
INDUSTRY ANALYSIS”
In requirement of partial fulfillment of the
Master of Business Administration (MBA)

2-year full time programme of Gujarat


University

SUBMITTED BY:
Bhavesh Grover [08/MBA/16]

Project Guide:

Prof.Mayank Bhatia

AHMEDABAD INSTITUTE OF
TECHNOLOGY

1
DIRECT TO HOME

DECLARATION

I Bhavesh Grover here by declare that the project report entitled


“Vital Purchase Criteria Of Customers While Selecting DTH service &
Industry Analysis” under the guidance of Prof.Mayank Bhatia in partial
fulfillment of the requirements for the degree of master of business
administration to Gujarat University.

DATE: Signature:

PLACE: AHMEDABAD

2
DIRECT TO HOME

CERTIFICATE

This is to certify that Mr. BHAVESH GROVER (08/MBA/16) , MBA


Batch2008-10 has worked on the project titled “Vital Purchase Criteria
Of Customers While Selecting DTH service & Industry Analysis” under
my guidance. This is his original work and has not been submitted
elsewhere for award of any degree/diploma so far. They have put their
sincere efforts to complete the project.

We wish him all the best.

Project Guide:
Prof. Mayank Bhatia

PREFACE

3
DIRECT TO HOME

The project report has been prepared as a part of the course


curriculum of second year of MBA. At each and every stage of life we
require some sort of theoretical knowledge as well as practical
knowledge. It means, only classroom lectures may not be enough to
get proper knowledge. It has to be supplemented with practical
experience.

I had undertaken the project on “ Vital Purchase Criteria Of Customers


While Selecting ‘DTH’ Services". Through this project I have learnt a lot
about DTH industry and The factors considered by the customers for
selecting a DTH service . Thus in this report I had tried my level best
to cover most of the aspects regarding the same.

4
DIRECT TO HOME

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I am fortunate


enough to get support from large number of persons to whom I shall
always remain grateful.
With immense pleasure I would like to express my sincere thanks and
gratitude to my project guide Prof. Mayank Bhatia and all who helped
me in the project without whom I could not get such an opportunity to
work on this subject.

I conducted the survey at various places

10 ACRES MALL [Maninagar]


BRAND FACTORY [Shyamal]
CITY GOLD [Bopal]
D’ MART [Visat]
AHMEDABAD CENTRAL [Mithakhali]

Executive summary

5
DIRECT TO HOME

DTH market is the most attractive and developing market. due to the
increased importance of latest technology and the increased demand for the
hybrid and new generation products. People are getting more and more
concerned towards the products and the Brands.

More attractiveness results to increased competition from various small and


medium players and dynamics of the market. Thus, the growing concern
requires the marketers to strictly look at consumer buying decision process
and more focus on the factors such as Prices, Perceived quality, Perceived
service, Perceived value, and Purchase intention that subsequently determine
willingness to purchase a brand of DTH service. On this basis, this research
deals with criteria that are vital to the customers for selecting a DTH service

Primary Data collection conducted by the survey of 250 people depicts that
tata sky is the leading and most preferred service provider in DTH industry
and the most effective factors that prompt people to buy a particular DTH
service is low monthly cost along with low initial price which clearly shows how
price sensitive Ahmedabad market is. Variation in price can lead to increase or
decrease in demand of the product. People normally prefer to pay for the service either
monthly or half yearly.

Various other analysis such as Financial Analysis, PEST analysis, Michael


Porters Five Forces analysis , Value Chain analysis, OT analysis and the
Strategic Factor analysis provides in-depth knowledge regarding the DTH
industry

The DTH industry is at the”GROWTH STAGE” of the Industry Life cycle.

6
DIRECT TO HOME

Research Objective:

Primary Objective:
• To know the vital purchase criteria of customers for selecting
DTH service and Study of DTH Industry in India.

Secondary Objective:
• To Find Out Over All Market Condition Of DTH Industry.
• To Study The Political, Economical, Social, And Technological
Factors Affecting Indian
DTH Industry.
• Compare The Market Competition Among Different Players.
• To Find Out Opportunity & Threats In Indian DTH Industry.
• To Study The Reason Behind Growth Of DTH Market.

Information Needs:
• Product History.
• Related To Substitute Product.
• Application Of Product.
• Global Position Of The Market.
• Information About Different Brands In India.
• Various Companies’ Market Share.
• Macro Environmental Factor.
• Size And Growth Rate Of The Market And Economy.
• Opportunity And Threats.

Research Methodology

7
DIRECT TO HOME

Sampling design
Population consist of
• DTH users

Types of sampling
 Cluster

Research Approach
• Descriptive

Techniques to be used in research approach


• Survey and interview

Sampling Unit
 Individual

 SAMPLE SIZE DETERMINATION


1. Let desired level of precision = ± 0.05
2. Confidence level = 95%
3. Ζ value associated with the confidence level = 1.96
4. Suppose 80 % of the people agree to provide information for survey. Thus, value
of p = 0.8
5. Thus, value of q = 0.2
6. Sample size determination using standard error of proportion is given as follows:
p−p p * q 0.05
σp = »» =
z n 1.96

0.16
= 0.0255
n
Therefore, sample size n equals to
n = 246 .05
n ≅ 246
n ≅ 250

Data collection

8
DIRECT TO HOME

Primary Data Collection


 Structured questionnaire for the customer.

Secondary data collection


 Books

 Web-sites,

 News papers

Limitation:
 Some Data Is Based On Secondary Sources. So, It May Be
Insufficient

9
DIRECT TO HOME

Introduction

Product Profile

Definitions:

The Direct-To-Home (DTH) Service:

 In Technical Point Of View: “A Digital Satellite Service That


Provides Television Services Direct To Subscribers Anywhere
In The Country. Since It Makes Use Of Wireless Technology,
Programs Are Sent To The Subscriber's Television Direct
From The Satellite, Eliminating The Need For Cables And Any
Cable Infrastructure.”

 In Customer Point Of View: “The Reception Of Satellite


Programs With A Personal Dish In An Individual Home. And
An Individual Set Top Box Empowering You To Pick & Choose
You Bundles Of Choice And Pay For What You Watch.”2

 The Original Concept Of Satellite Television Started Over 64


Years Ago Almost, Direct To Home (DTH) Satellite Receivers
Were Developed In The Early 1980’s.

 DTH Offers Better Quality Picture Than Cable TV And


Stereophonic Sound Effects. It Reaches Even Those Places
Where Cable Is Not Available. This Service Is Also Providing
Value-Added Services That Include Tale-Text, Dual Audio For
Channels, Parental Control, Electronic Program Guide And
Radio Channels.

 DTH Has Also Allows For Interactive TV Services Such As


Movie-On-Demand, Internet Access, Video Conferencing And

10
DIRECT TO HOME

E-Mail. If You Want To Record Your Favorite Programs You


Can Get A Free DVR (Digital Video Recorder) Receiver. Main
Disadvantage Of DTH Is Fading Of The Signal Due To Rains.
Heavy Rains May Result Into Outage For A Few Minutes In
The DTH Signal.

Direct Broadcast Satellite (DBS) Is A Term Used To Refer To


Satellite Television Broadcasts Intended For Home Reception, Also
Referred To More Broadly As Direct-To-Home Signals.

DTH Service

Direct-To-Home (DTH) Service Refers To Distribution Of Multi-Channel


TV Programs In Ku Band By Using A Satellite System For Providing TV
Signals Direct To Subscribers' Premises.

DTH Provides Subscribers The Advantage Of Geographical Mobility


Meaning Thereby That Once A Customer Purchases DTH Hardware,
He/She Can Continue To Use The Same Unit Anywhere In India.

DD DIRECT+ Is India's First And Only Free To Air (FTA) Direct-To-Home


Service Being Provided By Prasar Bharati. Apart From Prasar Bharati - A
Public Service Broadcaster, M/S Dish TV India Ltd. M/S Tata Sky Ltd,
And M/S Sun Direct TV Pvt. Ltd. M/S Reliance Big TV Pvt. Ltd., M/S
Bharti Telemedia Ltd. M/S. Bharat Business Channel Ltd. And Videocon
India Pvt. Ltd. Have Also Been Granted License For Operating DTH
Service.

The Eligibility Conditions Provide For Total Foreign Equity Holding,


Including FDI/ NRI/ OCB/ FII, In The Applicant
Company Not To Exceed 74%, And Within The Foreign Equity, It
Also Provides That Applicant Company Must Have Indian
Management Control With The Majority Representatives On The
Board As Well As Chief Executive Of The Company Being Resident
Indians.

11
DIRECT TO HOME

12
DIRECT TO HOME

Indian Market

Indian DTH Space Is A Rapidly Rising Industry. Since The Time, It First Arrived
In India, More And More New Players Are Joining The Bandwagon. Because Of
Arrival Of New Entrants, This Industry Has Become Very Competitive Which
Ultimately Results In Customers Having More Benefits And Options.

Direct to Home (DTH)

India has about 130 million TV homes of which, Cable & Satellite (C&S)
services are present in 97 million (74%) of the homes
(www.financialexpress.com/news/thats-entertainment-direct-to-
home/497502/).The DTH market in India comprises 11% of the total market
with almost 15 million homes. The DTH industry growth lagged to 10.3% in
2008 from 16.7% a year earlier. But industry players agree that the
digitization drive is expanding by 35-40% annually. However, industry
estimates DTH to touch 35-40 million subscribers by 2012, and that’s the
number that every DTH brand has set its sights on. By 2015, DTH will enjoy a
market share of 40%, digital cable 40% and analog cable will follow with only
20% market share. The DTH service market in India has emerged as one of
the most lucrative markets which have successfully resisted the impacts of the
current economic slowdown. The slowdown has certainly proved a boon for
the Indian DTH industry as people have now started to cut on their
entertainment expenditure and instead of viewing movies at theatres, they
are preferring to stay at home with their television sets.

13
DIRECT TO HOME

The industry is anticipated to add nearly 5 Lakh subscribers per month during
2009 and the numbers are forecasted to surge further at around 30% through
2012.So apart from Tata Sky, Dish TV, Airtel Digital and Reliance BIG, southern
heavyweight Sun TV has entered the fray with Direct, while Videocon has
entered the market in June 2009. Still, as DTH is still a relatively new category
and most people were hesitant to experiment with it. While Indian consumers
were not completely satisfied with their cable services, they did not feel the
need to switch over to any other means of entertainment. It was therefore
imperative for companies such as Tata Sky, Dish TV, and Reliance BIG TV to
educate the consumers about the advantages of the service and in turn create
an urge to invest in it.

Current Players:

The current players in DTH industry are:

14
DIRECT TO HOME

1. Dish TV - Zee group

Dish TV is a venture by the Essel Group and was launched in 2004. Dish TV is
India’s first private player in DTH industry with a presence in 19 states. It has
a subscriber base of 5.07 million (March2009).
(http://voicendata.ciol.com/content/service_provider/109080102.asp).It has a
bouquet of over 240 channels to choose from. Recently Dish TV has launched
an entry-level subscription at Rs. 99 per month with the largest offering of 110
channels

2. TATA Sky – Joint venture between Tata Group and


UK-based British Sky

Tata Sky was incorporated in 2004. TATA is one of India's largest and most
respected business conglomerates and the SKY brand, owned by the UK-based
British Sky Broadcasting Group has over 20 years of experience in satellite
broadcasting. It launched its services pan-India in August 2006.Within a short
span of time it garnered a subscriber base of nearly 4 million (Aug 2009)
(www.tvnext.in/news/155/ARTICLE/2142/2009-08-06.html).It has over 168
channels to choose from. Tata Sky has launched an entry-level subscription
plan called ‘Super Hit Pack’ at Rs. 99 per month with a bouquet of 53
channels. Tata Sky recently launched Tata Sky Plus which uses the personal
video recording (PVR) technology that allows consumers to record live.

15
DIRECT TO HOME

3. DD-Direct + -Owned by parent company


Doordarshan

DD Direct Plus was launched in December 2004 by Doordarshan. It was India’s


first DTH service offering about 59 TV channels and 21 radio stations. DD DTH
is a free service and has acquired a subscriber base of 60–70 lakh connections
(July 2009).

(www.dnaindia.com/money/report_prasar-bharati-dth-moving-to-pay-
mode_1277779)

4. Sun Direct - Rs 1000-crore Indian DTH television


network based in Chennai from Sun group.
Sun Direct is a DTH service in India headquartered in Chennai, Tamil. Sun
Direct is an 80:20 joint venture between the Maran family and Astro Group of
Malaysia. With 170+ TV channels and 31 Radio channels, Sun Direct has a
subscriber base of 3 million (April 2009) (www.topnews.in/sun-direct-launches-
hd-services-crosses-3-million-activesubscriber-base-mark-2149664). Sun
Direct has a basic pack of Rs 75 monthly subscription which is the lowest
price-point compared to the other service providers

16
DIRECT TO HOME

5. Reliance BIG TV Limited – a part of Reliance Anil


Dhirubhai Ambani Group.
Reliance Communication a more recent entrant in the DTH space has the
brand name ‘Big TV’. It has aggressively priced packages as low as Rs. 1490
with an offering of 64 channels and a three month free subscription in addition
to 20 video-on-demand movie channels. Within a short span of time it
garnered a subscriber base of nearly 1.8 million (Aug2009)
(www.livemint.com/2009/06/21231941/Big-TV-to-go-on-a-content-acqu.html).
Big TV currently offers 202 channels. BIG TV focuses on VAS and claims to
have a next generation user guide which is indexed

6. Airtel DTH - Bharti Airtel Limited

The recent and much talked about player in the market is Bharti- Airtel. A
teaser campaign ‘See you at home’ was followed up by a multi-starrer
campaign with celebrities like Saif Ali Khan and Kareena, Vidya Balan and
Madhavan and Indian cricketers Gautam Gambhir etc.It has a subscriber base
of 1 million (June 2009) (www.indiandth.com/2009/08/airtel-digital-tv-mops-up-
one-million.html) and has a bouquet of over 138 channels and world space

17
DIRECT TO HOME

satellite radio to choose from. Airtel Digital has a basic pack of Rs 99 monthly
for South and Rs 125 monthly for north.

6. Videocon D2H

Videocon – the big Indian consumer durable player launched itself in the DTH
market in June 2009 through its media arm Bharat Business Channel (BBCL).
Right now it has offered services in Punjab, J&K, Chandigarh, Haryana and
Himachal Pradesh with packages as low as 150 per month. Advantage over
other players is that Videocon already makes analog set top box hence they
are likely to manufacture Set Top Box for their DTH service as well

MARKET SHARE:

The current Market Share is:

18
DIRECT TO HOME

Dish TV – 32.56%
• Tata Sky – 25.69
• Sun Direct – 19.27%
• Big TV – 11.56%
• Airtel Digital TV – 6.42%
• Others – 4.5%

PROJECTED GROWTH RATE:

19
DIRECT TO HOME

(http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-but.html)

A Practical Perspective

The Initial Excitement In Nov. 2000 Has Largely Been Transformed By A


Realistic Look At The Guidelines For DTH Service In India.

The Key Features Of The Guidelines Are:

1. The Total Foreign Investment Cannot Exceed 49 Per Cent (Now Its 74%).

2. No Broadcast Or Cable Company Can Own More Than 20 Per Cent.

3. The Applicant Company Will Have To Pay An Entry Fee Of Rs 100 Million,
Pay 10 Per Cent Annual Revenue And Execute A Bank Guarantee Of RS 400
Million For The Duration Of The 10 Years License.

4. Violation Of License Conditions Can Include Revocation Of License And / Or


Penalty Of Up To RS 500 Million.

5. The Licensee Will Have To Set Up An Indian Earth Station In 12 Months And
Provide Access To Various Content Providers On A Non-Discriminatory Basis.

6. The Set Top Boxes Required To Receive The Encrypted Signals Will Have To
Be Open Standard Boxes.

20
DIRECT TO HOME

7. The DTH License Cannot Be Used For Other Modes Of Communication


Including Voice Fax, Data Internet Unless Specific Licenses For These Value
Added Services Have Been Obtained From The Competent Authority.

On The Face Of It, The DTH Regulations Are Quite In Tune


With Media Policy Of The Ruling Alliance. However, There
Are Many Pitfalls In The Policy Some Of Which Are Outlined
Below.

1. A Modest Entry Fee Of RS 100 Million And A Bank Guarantee Of RS 400


Million Has Been Mandated With No Restriction On The Number Of DTH
Operators In The Country. However, The DTH Operator Will Have To Pass On
10 Per Cent Of Revenues As Annual Fees To The Government. It Is Assumed
That This Is Gross Revenue Without Deduction Of Expenses And Is Not 10 Per
Cent Of Net Profit
Which Would Have Been More Equitable.

2. The Period Of License Is For 10 Years And Non Exclusive. However, There Is
No Provision For Automatic Renewal Of The License After 10 Years Based On
Performance Of The DTH Operator.

3. No Broadcasters Or Cable Television Company Is Allowed To Own More Than


20 Per Cent Of DTH. This Has Supposedly Been Done To Prevent Emergence
Of Vertically Integrated Monopoly. This Is Despite The Worldwide Move
Towards Convergence And Even The Provisions Of The Convergence Bill!

4. The DTH Operator Shall Have To Follow The Advertising And Program Code
Of Doordarshan And Maintain A Video Record For 90 Days Of Advertisements
And Programs. A DTH Operator Who Does Not Own Content Will, Like The
Present Cable Operators, Be Solely Responsible For The Implementation Of
Advertising And Program Code. No Liability Has Been Put On The Content
Providers At All.

5. Apart From Open Architecture For Stbs, The Government Has Mandated
That DTH Operators Should Not Discriminate Between Various Channels
Wanting To Get On The Network. This Is A Welcome Development As It Will
Enable Content Providers To Be Available On All Competing DTH Platforms.

21
DIRECT TO HOME

6. I&B Ministry Will Be The Licensing Authority Until One Is Set Up. There Is No
Mention In This Notification About The Broadcast Regulatory Authority As
Mandated By The Supreme Court In Cricket Association Of Bengal Judgment In
1995.

7. The DTH Operator Is Bound To Carry All Prasar Bharati Channels On Most
Favorable Terms Offered To Any Other Channel. No Mention Is Made About
The Present Requirements Under The Cable Act To Carry A Minimum Three
Doordarshan Channels On Prime Band, Despite The Fact That Carriage Of All
Prasar Bharati Channels May Not Be Commercially Desirable. Of Course, It Will
Not Be Easy To Convince Any Government To Leave It To The DTH Operator To
Carry Only Specific Prasar Bharati Channels.

8. The DTH Operator Is Allowed To Carry Value Added Services Such As Fax,
Voice Or Broadband As Long As It Gets Clearance From The Right Competent
Authority. While The Government Is Willing To Allow Data, Fax And Broadband
Service From The DTH Operator, The Stipulations Of Getting Clearance From
The Right Competent Authority Without Creating A Single Window Approach
Will In Effect Delay Provision Of Value Added Services By The DTH Operator
And Is
Against The Provisions Of The Convergence Bill Planned To Be Introduced In
Parliament In May 2001.

‘The Only Positive Announcement After The Government Notification So Far


Has Been From Videsh Sanchar Nigam Limited (VSNL) Which Plans To Set Up A
Neutral DTH Facility Using Its Large Number Of Earth Stations To Give
Opportunity To Broadcasters Wishing To Join A Common Platform.’

Substitutes Of The Product

1.1 Cable Service

22
DIRECT TO HOME

A Private Cable Operator (Also Known As PCO) Is A Private Small Independent


Cable Company Competing Directly With Multi System Operators. Pcos
Typically Offer Services To Multi-Family Dwellings, Gated Communities, Hotels
And Other Small Businesses. In Some Small Municipalities The City May Be A
PCO.

Definition
Cable Operator Means Company Providing Access To Cable And Satellite
Channels Within A Given Region Or Area.

1.2 IPTV

Definition

Internet Protocol Television (IPTV) Is A System Through Which


Digital Television Service Is Delivered Using The Architecture And Networking
Methods Of The Internet Protocol Suite Over A Packet-Switched Network
Infrastructure, E.G., The Internet And Broadband Internet Access Networks,
Instead Of Being Delivered Through Traditional Radio Frequency Broadcast,
Satellite Signal, And
Cable Television (CATV) Formats.

Internet Protocol Television (IPTV) – Is Like Cable TV, But It Uses A


Broadband Connection To The Internet Instead Of Cable For The Delivery
OfVideo Services. IPTV Works On Your TV With A Set-Top Box That Accesses
Channels, Subscription Services, And Movies On Demand. The Advantage Over
Cable Is That The Communication Can Be Two-Way, Making Customized
Programming And Interactive Media Possible Without An Additional
Connection.

“PTV Services May Be Classified Into Three Main Groups: Live Television, Time-
Shifted Programming, And Content (Or Video) On Demand. It Is Distinguished
From General Internet-Based Or Web-Based Multimedia Services By Its On-
Going Standardization Process (E.G., ETSI) And Preferential Deployment
Scenarios In Subscriber-Based Telecommunications Networks With High-Speed
Access Channels Into End-User Premises Via Set-Top Boxes (STB) Or Other
Customer-
Premises-Equipment (CPE)”

1.3 Head-End In The Sky (HITS)16

23
DIRECT TO HOME

To Speed Up The Process Of Digitalization Of Cable Services Located In Non-


CAS Areas Of The Country, The Government Is In The Process Of Taking A View
On The Recommendations Of TRAI On The Issue Of The Proposed Policy
Framework On The Headend In The Sky (HITS) Mode Of Delivery Of Content To
The Cable Operators. This System Will Enable The Packaging Of Content In
Digital Form At The Level Of
HITS Operator Who Will Uplink It To A Satellite To Be Received By The Cable
Operators And Thereafter Distributed In Digital Mode Through Cable Network.
TheKey Factor In Conversion Of Small Time Cable Operators To The Digital
Mode Of Delivery Is The Investment Required To Be Made In The Setting Up Of
Digital Headend, CAS And SMS. Introduction Of HITS Services Can Help Reduce
These Costs For The Small Time Cable Operators, Thus Speeding Up The
Transition And Will Also Be Beneficial To Consumers.

1.4 Television Receive-Only


The Term Television Receive-Only, Or TVRO, Arose During The Early Days Of
Satellite Television Reception To Differentiate It From Commercial Satellite
Television Uplink And Downlink Operations (Transmit And Receive). This Was
Before There Was A DTH Satellite Television Broadcast Industry. Satellite
Television Channels At That Time Were Intended To Be Used By Cable
Television Networks Rather Than Received By Home Viewers. Satellite TV
Receiver Systems
Were Largely Constructed By Hobbyists And Engineers. These TVRO System
Operated Mainly On The C Band Frequencies And The Dishes Required Were
Large; Typically Over 3 Meters (10 Ft) In Diameter. Consequently TVRO Is
Often Referred To As "Big Dish" Or "Big Ugly Dish" (BUD) Satellite Television
.
TVRO Systems Are Designed To Receive Analog And Digital Satellite Feeds Of
Both Television And Audio From Both C-Band And Ku-Band Transponders On
FSSType Satellites. The Higher Frequency Ku-Band Systems Tend To Be Direct
To Home Systems And Can Use A Smaller Dish Antenna Because Of The
Higher Power Transmissions And Greater Antenna Gain.

TVRO Systems Tend To Use Larger Rather Than Smaller Satellite Dish
Antennas, Since It Is More Likely That The Owner Of A TVRO System Would
Have A C-Band- Only Setup Rather Than A Ku Band-Only Setup. Additional
Receiver Boxes Allow For Different Types Of Digital Satellite Signal Reception,
Such As DVB/MPEG-2 And 4DTV.

The Narrow Beam Width Of A Normal Parabolic Satellite Antenna Means It Can
Only Receive Signals From A Single Satellite At A Time. Simulate Or The
Vertex- RSI TORUS Is A Quasi-Parabolic Satellite Earth Station Antenna That Is
Capable Of Receiving Satellite Transmissions From 35 Or More C- And Ku-Band
Satellites Simultaneously.

24
DIRECT TO HOME

Direct To Home Television

Today, Most Satellite TV Customers In Developed Television Markets Get Their


Programming Through A Direct Broadcast Satellite (DBS) Provider, Such As
DISH TV Or DTH Platform. The Provider Selects Programs And Broadcasts
Them To Subscribers As A Set Package. Basically, The Provider’s Goal Is To
Bring Dozens Or Even Hundreds Of Channels To The Customer’s Television In
A Form That Approximates The Competition From Cable TV. Unlike Earlier
Programming, The
Provider’s Broadcast Is Completely Digital, Which Means It Has High Picture
And Stereo Sound Quality. Early Satellite Television Was Broadcast In C-Band –
Radio In The 3.4-Gigahertz (Ghz) To 7 Ghz Frequency Range. Digital Broadcast
Satellite Transmits Programming In The Ku Frequency Range (10 Ghz To 14
Ghz). There Are Five Major Components Involved In A Direct To Home (DTH)
Satellite System:
The Programming Source, The Broadcast Center, The Satellite, The Satellite
Dish And The Receiver.

Programming Sources Are Simply The Channels That Provide Programming For
Broadcast. The Provider (The DTH Platform) Doesn’t Create Original
Programming Itself; It Pays Other Companies (HBO, For Example, Or ESPN Or
STAR TV Or Sahara Etc.) For The Right To Broadcast Their Content Via
Satellite. In This Way, The Provider Is Kind Of Like A Broker Between The
Viewer And The Actual Programming Sources. (Cable Television Networks Also
Work On The Same Principle.) The Broadcast Center Is The Central Hub Of The
System. At The Broadcast Center Or The Playout & Uplink Location, The
Television Provider Receives Signals From Various Programming Sources,
Compresses These Signals Using Digital Compression (Scrambling If
Necessary), And Beams A Broadcast Signal To The Proper Satellite. The
Satellite Receives The Signal From The Broadcast Station And Rebroadcast
Them To The Ground. The Viewer’s Dish Picks
Up The Signal From The Satellite (Or Multiple Satellites In The Same Part Of
The Sky) And Passes It On To The Receiver In The Viewer’s House. The
Receiver Processes The Signal And Passes It On To A Standard Television.
These Are The Steps In Greater Detail:

25
DIRECT TO HOME

Programming

Satellite TV Providers Get Programming From Two Major Sources: International


Turnaround Channels (Such As HBO, ESPN And CNN, STAR TV, SET, B4U Etc)
And Various Local Channels (Sabe TV, Sahara TV, Doordarshan, Etc). Most Of
The Turnaround Channels Also Provide Programming For Cable Television, So
Sometimes Some Of The DTH Platforms Will Add In Some Special Channels
Exclusive To Itself To Attract More Subscriptions. Turnaround Channels Usually
Have A Distribution Center That Beams Their Programming To A Geostationary
Satellite. The Broadcast Center Uses Large Satellite Dishes To Pick Up These
Analog And Digital Signals From Several Sources.

Broadcasting Centers
The Broadcast Center Converts All Of This Programming Into A High-Quality,
Uncompressed Digital Stream. At This Point, The Stream Contains A Vast
Quantity Of Data — About 270 Megabits Per Second (Mbit/S) For Each
Channel. In Order To Transmit The Signal From There, The Broadcast Center
Has To Compress It. Otherwise, It Would Be Too Big For The Satellite To
Handle. The Providers Use The MPEG-2 Compressed Video Format — The
Same Format Used To Store Movies On Dvds. With MPEG-2 Compression, The
Provider Can Reduce The 270-Mbit/S Stream To About 3 Or 10 Mbit/S
(Depending On The Type
Of Programming).

This Is The Crucial Step That Has Made DTH Service A Success. With Digital
Compression, A Typical Satellite Can Transmit About 200 Channels. Without
Digital Compression, It Can Transmit About 30 Channels. At The Broadcast
Center, The High-Quality Digital Stream Of Video Goes Through An MPEG-2
Encoder, Which Converts The Programming To MPEG-2 Video Of The Correct
Size And Format For The Satellite Receiver In Your House.

Encryption And Transmission


After The Video Is Compressed, The Provider Needs To Encrypt It In Order To
Keep People From Accessing It For Free. Encryption crambles The Digital Data
InSuch A Way That It Can Only Be Decrypted (Converted Back Into Usable
Data) If The Receiver Has The Correct Decoding Satellite Receiver With
Decryption Algorithm And Security Keys. Once The Signal Is Compressed And
Encrypted, The Broadcast Center Beams It Directly To One Of Its Satellites.
The Satellite Picks Up

26
DIRECT TO HOME

The Signal, Amplifies It And Beams It Back To Earth, Where Viewers Can Pick It
Up.

The Dish
A Satellite Dish Is Just A Special Kind Of Antenna Designed To Focus On A
Specific Broadcast Source. The Standard Dish Consists Of A Parabolic (Bowl-
Shaped) Surface And A Central Feed Horn. To Transmit A Signal, A Controller
Sends It Through The Horn, And The Dish Focuses The Signal Into A Relatively
Narrow Beam. The Dish On The Receiving End Can’t Transmit Information; It
Can Only Receive It. The Receiving Dish Works In The Exact Opposite Way Of
The Transmitter. When A Beam Hits The Curved Dish, The Parabola Shape
Reflects
The Radio Signal Inward Onto A Particular Point, Just Like A Concave Mirror
Focuses Light Onto A Particular Point. The Curved Dish Focuses Incoming
Radio Waves Onto The Feed Horn. In This Case, The Point Is The Dish’s Feed
Horn, Which Passes The Signal Onto The Receiving Equipment. In An Ideal
Setup, There Aren’t Any Major Obstacles Between The Satellite And The Dish,
So The Dish Receives A Clear Signal.

In Some Systems, The Dish Needs To Pick Up Signals From Two Or More
Satellites At The Same Time. The Satellites May Be Close Enough Together
That A Regular Dish With A Single Horn Can Pick Up Signals From Both. This
Compromises Quality Somewhat, Because The Dish Isn’t Aimed Directly At
One Or More Of The Satellites. A New Dish Design Uses Two Or More Horns To
Pick Up Different Satellite Signals. As The Beams From Different Satellites Hit
The Curved Dish, They Reflect At Different Angles So That One Beam Hits One
Of The Horns And Another Beam Hits A Different Horn. The Central Element In
The Feed Horn Is The Low Noise Blockdown Converter, Or LNB. The LNB
Amplifies The Signal Bouncing Off The Dish And Filters Out The Noise (Signals
Not Carrying Programming). The LNB Passes The Amplified, Filtered Signal To
The Satellite Receiver Inside The
Viewer’s House.

The Receiver

Further Information: Set-Top Box (STB) The End Component In The Entire
Satellite TV System Is The Receiver. The Receiver Has Four Essential Jobs: It
De-Scrambles The Encrypted Signal. In Order To Unlock The Signal, The
Receiver Needs The Proper Decoder Chip For That Programming Package. The
Provider Can Communicate With The Chip, Via The Satellite Signal, To Make

27
DIRECT TO HOME

Necessary Adjustments To Its Decoding Programs. The Provider May


Occasionally Send Signals That Disrupt Illegal De-Scramblers, As An Electronic
Counter Measure (ECM) Against Illegal Users. It Takes The Digital MPEG-2
Signal And Converts It Into An Analog Format That A Standard Television Can
Recognize. Since The Receiver Spits Out Only One Channel At A Time, You
Can’t Tape One Program And Watch Another. You Also Can’t Watch Two
Different Programs On Two Tvs Hooked Up To The Same Receiver. In Order To
Do These Things, Which Are Standard On Conventional Cable, You Need To
Buy An Additional Receiver. Some Receivers Have A Number Of Other
Features As Well. They Pick Up A Programming Schedule Signal From The
Provider And Present This Information In An Onscreen Programming Guide.
Many Receivers Have Parental Lock-Out Options, And Some Have Built-In
Digital Video Recorders (Dvrs), Which Let You Pause Live Television Or Record
It On A Hard Drive. While Digital Broadcast Satellite Service Is Still Lacking
Some Of The Basic Features Of Conventional Cable (The Ability To Easily Split
Signals Between Different Tvs And Vcrs, For Example), Its High-Quality Picture,
Varied Programming Selection And Extended Service Areas Are Features Now
Seen As An Alternative. With The Rise Of Digital Cable, Which Also Has
Improved Picture Quality And Extended Channel Selection, The TV War Is
Really Heating Up. Just About Anything Could Happen In The Next 10 Years As
All Of These Television Providers Battle It Out.

28
DIRECT TO HOME

29
DIRECT TO HOME

Implication:

1. Introduction Stage

Seven Years Ago, Launching A Direct-To-Home Service Could Have Been


A Recipe For Disaster. Investment Costs Were Very High So Customers Had To
Fork Out Much More.

But Today, The Market Has Been Transformed: Prices Of The Dish And The
Set- Top-Box Have Crashed Through The Roof, Overall Investment In Putting
Up A DTH Infrastructure Has Dropped And Customers Are Also Reaping The
Benefits Of More Attractive Tariffs.

Just A Few Year Ago, When Star TV Made An Unsuccessful Attempt To


Launch DTH, The Same System Cost Rs 14,000 To Rs 15,000 At That Time A
Cable Operators Charging Rs. 1000 To Rs.2000 Deposit (For Cables And Other
Requirement) And Monthly Average Rs.175 (For Channel) Service. And
Because The Costs Were So High, Companies That Were Planning To Offer
DTH Services Hit On The Only Survival Strategy That They Could Think Of:
Subsidies The Box At Rs 5,000, But Make It Up By Asking Customers To Fork
Out A Steep Rs. 700 A Month For The Basic Bouquet On DTH. But The Fall In
Box Prices Have Helped In Offering The Services At An Attractive Price, Which
Is Expected To Start From As Low As Rs. 100 For 38 Channels Going Up
Depending On The Quality Of The Channels Shown.

As A Result, Siti Cable Is Looking At A Large Number Of Subscribers To Get


Hooked On To The DTH Channel. The Target Is To Rope In As Many As 1 Million
Subscribers In A Period Of 15 Months. This Certainly Isn't A Niche Product.
What Has Added To The Viability Is That The Upfront Cost Of Putting Up The
DTH Platform Has Also Fallen. We Are Investing Rs 250 Crore (Rs 2.5 Billion)
On The Project For 38 Channels And The Same Infrastructure Is Being
Leveraged To Run The Company's Head End In The Sky Infrastructure. Even If
We Assume That 50 Per Cent Of The Remaining TV Owners Do Not Have The
Cash To Go For Cable Services, There Are Still As Many As 20 Million
Households Waiting To Be Tapped. Many Of Them Live In Remote Areas,
Isolated
Pockets Where Cable TV Is Unviable, And DTH Could Be The Only Answer.

30
DIRECT TO HOME

2. Growth Stage

After The Introduction Growth Stage Comes. From The Above Graphical
Presentation We Can See That The Subscribers Of DTH Service Industry Is
Increase With Increasing Rate. Year Is Plating On “X” Axis And Subscriber Is On
“Y” Axis.

Here, Life Cycle Of Industry Is Interpreted With The Help Of Six Years Analysis. If We Can
Talk About Earlier Year Means 2004-05, Then At That Time There Was Only One Player And
Also Government Is Not Helping Like Today. And Also Awareness Of This Service Is Not So
Much.

After 2004-05, The Growth In Subscribers Is Increase. Because At That Time


There Were 2 New Companies Also Entered In The Market. And Also
Awareness, Life Style Of Our Country’s People Increase. After 2006-07, It Is
Increase Very Much. Because In 2008 There Were 10mn Subscribers.

 So, We Can Say That This Industry Is On Growth Stage.

31
DIRECT TO HOME

SURVEY ANALYSIS

Primary Tabulation And Interpretation


1) How many DTH service providers do you know about?

DTH service provider known to customer

92% 100%
a Tata Sky
b Airtel
c Dish Tv
96% 94% d Videocon
e Sun Tv
f GTPL
52%
g Reliance
100%
62%

Interpretation;
 Most of the customers are aware about all major brands.
 Sun TV and Videocon d2h are not very much popular in the market.
 Tata Sky, Dish Tv, Airtel & Reliance are well known players in the city of
Ahmedabad.

32
DIRECT TO HOME

Q2) Which DTH connection do you have ?

DTH service purchased by the customers

6%
Tata Sky

24% 34% Airtel


Dish Tv
Videocon
Sun Tv
2%
GTPL
4%
8% Reliance
22%

Interpretation;

 Highest share of Ahmedabad market has been captured by Tata Sky followed
by Dish TV and GTPL
 Sun TV and Videocon d2h are least bought brands in the city.
 Airtel & Reliance Big TV are slowly picking up popularity in the market.

33
DIRECT TO HOME

Q3) How did you came to know about that provider?

Media Of Awareness

90% 80%
80%
68%
70%
60% 54%
50%
40% 32%
30%
20% 16%
12%
10% 6%
0%
TV Ad. News Retailer Friend Relative Magazine Others

Interpretation;

 The major source of brand awareness is TV Advertisements, Friends, and


Retailers.
 News & Magazines are least effective medium for selecting a particular brand.
 Word of Mouth from friend, relative and retailer also proved to be an effective
factor creating Brand awareness in the survey.

34
DIRECT TO HOME

Q4) Whom do you consult to finalise the decision?

Opinion Leaders

90%
78%
80%
70% 64%
58%
60%
50% 44%
40% 36%

30%
20%
10%
0%
Myself Friends Family Retailers Neighbours

Interpretation;

 Most of the people consult friends and retailer while finalizing decision
 Opinion Leaders are an effective factor affecting consumer preference while
selecting DTH service.

35
DIRECT TO HOME

Q5) What are the factors which influenced you to buy the service of your
choice?

Factors Influencing Buyers Behaviour

90% 78%
72% 68%
80%
66%
70%
60% 48%
50%
40% 32%
30% 20%
20%
10%
0%
Low Initial Low Nice Clearity Brand Easy Value
Price monthly Packages Image Access To added
Rental Dealer services

Interpretation;

 The major factor influencing buyers behaviour are Low monthly rental, low
initial price and nice packages.
 Clarity and brand image are also taken into consideration while selection.

36
DIRECT TO HOME

Q6) which are the value added services that are important to be involved in
your package?

P referred V alu e Ad d ed S ervices

70%
58%
60% 52%
50% 42%
38%
40% 34%
28% 28%
30% 24%

20%
6% 8%
10%
0%
Learning M ov ie O n S haadi T rav el M obile Icici B hakti Jobs A s tro G am ing
A ctiv e D em and A ctiv e A ctiv e A ctiv e A ctiv e A ctiv e A ctiv e A ctiv e

Interpretation;

 Most people prefer learning active, gaming and jobs active.


 Movie on demand and bhakti active comes next in preference criteria.
 Astro active, travel active and icici active are least taken into consideration.

37
DIRECT TO HOME

Q7) Which type of package do you prefer?

Packages Preferred

22%
34%
Monthly
Quaterly
Half Yearly
Yearly
28%
16%

Interpretation;

 Monthly and half yearly packages are being preferred the most.
 Yearly packages comes next in the preference criteria.
 Quaterly packages are not being opted by the people.

38
DIRECT TO HOME

Q 8) Do you think your DTH provide value for money?

Value For Money

36%

Yes
No
64%

Interpretation;

 64% of the People Using DTH do feel that that their DTH provides value for
money.
 36% of the people are having the opinion that their DTH doesn’t provide value
for money.

39
DIRECT TO HOME

Q9) Overall how would you rate your DTH provider ?

Rating As Per Satisfaction

16% 12%

Excellent
6% Good
Average
30% Poor
14%
Terrible
No, Sure

22%

Interpretation;

 42% of the DTH users rate their providers as good


 22% of the people rated average to their service provider
 20% of the users rated poor to their DTH providers.

40
DIRECT TO HOME

 16% of people were not sure about their answer.

Sign test for Ratings given to the service provider by their users..

Number of + sign 105


Number of – sign 50
Neutral 95
Total 250

H0:p = 0.5← null hypotheses customers doesn’t rated good


H1:p = 0.5← alternate hypotheses: customers rated good

pH0 = 0.5
qH0 = 0.5
n= 155
_
p = 105/155=0.68
_
q = 50/155=0.32

e= √ (0.5)(0.5) = 0.04
155
_
z = p – pH0 = 0.68-0.5 = 4.5
ep 0.04

z = 1.96

so 4.5 is out of acceptance region. So null hypotheses is rejected.

So we can say that consumer’s response towards their DTH providers are
Favourable.

41
DIRECT TO HOME

Q10) Overall how satisfied are with Network service of your company?

Satisfaction Level

8% 12%

18% Very Satisfied


Satisfied
Neutral
34% Dissatisfied
very dissatisfied

28%

Interpretation;

 46% of the DTH users are satisfied with the network service of their provider.
 28% of the users are neither satisfied nor dissatisfied.

42
DIRECT TO HOME

 26% of the DTH users are dissatisfied with the network service of their
provider.

Sign test for satisfaction level of customers

Number of + sign 115


Number of – sign 65
Neutral 70
Total 250

H0:p = 0.5← null hypotheses: Customers are not satisfied.


H1:p = 0.5← alternate hypotheses: customers are satisfied.

pH0 = 0.5
qH0 = 0.5
n= 185

p =115/185= 0.62
_
q =70/185= 0.38

e= √ (0.5)(0.5) = 0.036
185
_
z = p – pH0 = 0.89-0.5 = 8.86 0.62-0.5 = 3.33
ep 0.044 0.036

43
DIRECT TO HOME

z = 1.96

so 3.33 is out of acceptance region. So null hypotheses is rejected.

So we can say that DTH Users are satisfied with their service providers.

Q11) Reason for the above answer ?

Ans) Most of the people answered that they are satisfied by the uninterrupted
services provided by their service provider, as compared to the cable the
interruption occurs very minorly and that too for a negligible time period. Even the
clearity is far better than as it was in the cable services.

Q12) Whom do you think is the best DTH service provider?

Ans) Tata Sky seems to be the best service provider in the eyes of the customers
followed by the Dish Tv.

Q13) Reason for the above answer?


ANS>
 The postpurchase service provided by DTH is the best among all the
providers.
 The complaints are solved as soon as possible.
 The installation technique and machine used are very good.

44
DIRECT TO HOME

 The Tata Sky plus provides the function of recording the live program, as
well as one can pause the live show too. This is something new and better
technology compared to others.

Q14) Rank all the service provider as per your preferrance?

1st preferred DTH provider

Sun Tv

Videocon

Reliance

Airtel

GTPL

Dish Tv

Tata Sky

0% 10% 20% 30% 40% 50%

Interpretation;

 42% of the people ranked Tata Sky as 1st preferred Brand.


 30% of the people ranked Dish TV as 1st preferred Brand.
 22% of the people ranked GTPL as 1st preferred Brand.
 4% of the people ranked Airtel as 1st preferred Brand.
 2% of the people ranked Reliance Big TV as 1st preferred Brand.

45
DIRECT TO HOME

Implication:

On The Above Graph We Can Say That Revenue Structure Of This Industry Have
Some Fixed Options. And These Are Sales, Subscription Income, Processing
Charges/ Service Income & Other Operational Income. Out Of These All Incomes,
Mostly Companies Get From Subscription. It Is Around

80% Of Total Income. And Then After Other Operational Income Takes Place. It Is
Around 17%. After That Processing Charges/ Service Income And Then Sales Take
Place From Recharges And All Other Things.

46
DIRECT TO HOME

Implication:

On The Above Graph We Can Say That Cost Structure Of This Industry Have Many Different
Expenses. And These Are Raw Material Exp., Power & Fuel Exp., Employee Cost, Production
Exp., General & Administrative Exp., Selling & Distribution Exp. And Miscellaneous
Expenses.

Out Of These All Expenses, Mostly Companies Consume Production Expenses Are The Most.
It Is Around 57% Of Total Expenses. And Then After Selling & Distribution Expenses Take
The Place. It Is Around 29%. After That General & Administrative Exp. And Then Employee
Cost And So And So.

47
DIRECT TO HOME

In The Production Exp. Companies Most Consumed On Programs Production Exp. And
Programs & Film Rights. And In The Selling & Distribution Exp., Companies Most Consumed
On Sales Commission & Incentives And Advertisements & Sales Promotion.

48
DIRECT TO HOME

PEST Analysis

A Scan Of The External Macro-Environment In Which The Firm Operates Can Be Expressed
In Terms Of The Following Factors:

1. Political
2. Economic
3. Social
4. Technological

The Acronym PEST (Or Sometimes Rearranged As "STEP") Is Used To Describe A


Framework For The Analysis Of These Macro Environmental Factors.

Political Factors

Political Factors Include Government Regulations And Legal Issues And Define Both Formal
And Informal Rules Under Which The Firm Must Operate. Some Examples Include:

Opposition By Political Parties:

At Its Entry Stage In Indian Market, Direct To Home Television Has Faced Lot Of Opposition
From All The Political Parties; It Was A Bad Word With Everyone Concerned. Every Politician
Screamed That It Would Pose A Threat To National Security When Star TV Threatened To
Flag Off Its Iskyb Project. The Major Opposition To Iskyb Came From Wannabe DTH Players
Such As Subhash Chandra And Lalit Modi As They Did Not Want Murdoch To Be The First In
This Game In The Indian Market.

But With Passage Of Time Thing Changed, After A Long Brainstorming Session On DTH Issue
Taking Into Consideration The Advantages It Provides To CommonMan, Finally All The
Political Parties Agreed Upon Allowing DTH Technology In India.

49
DIRECT TO HOME

Regulatory Role Of Government


Information & Broadcast Ministry Of India Finalized The Guidelines For The Companies
Entering Into This Business And After Assuring All The Security Aspects, DTH Players Were
Allowed To Start Their Play In India. As They Made Rules For License Fee, Entry Fee, Etc.

Rules For Licensing

1. No. Of Licenses Issued: There Will Be No Restrictions On The Number Of DTH


Service Provider To Issue The License, The License Issued By Any New Service Provider Who
Fulfils The Terms And Conditions Which Are Regulated By TRAI (Telecom Regularity
Authority Of India).

TRAI Also Regulated The Security And Technical Clearances Service Provide To The DTH
Service Holders By The Appropriate Authorities Of The Government.

2. Validity Of License: Wireless Planning And Coordination Wing Of Ministry Of


Communication, The Rules And Regulation Of The Government The License Provide To The
DTH Service Provider Which Is Valid Up To 10 Years From The Date Of Issue Of Wireless
Operational License.

3. DTH License Fee Reduction: The Ministry’s Move To Reduce The License Fee For
DTH Players From 10% Of Gross Revenue To 6% May Soon Bear Fruition. Secretary Singh
Said The Ministry May Be Able To Announce This Soon. This Process Has Been On For Nearly
A Year. Due To The Multiplicity Of Agencies—Telecom Regulator TRAI, I&B Ministry And The
Finance Ministry Are Involved In This Decision—The File Seems To Have Been Moving Back
And Forth For Nearly An Entire Year. One DTH Industry Source, Who Has Followed The Policy
Change Closely, Told Us That The First Time Around, The Finance Ministry Had Some
Reservations About The Change After I&B Ministry And TRAI Had Approved The Change. So
The Ministry Had To Make Some Amendments And Get TRAI Recommendation Once Again
And The File Has Gone Back Again To The Finance Ministry. Singh’s Reiteration Of The
Decision May Be An Indication That The Ministry Is Expecting The Finance Ministry’s Nod
Soon.

50
DIRECT TO HOME

4. Laws For The Termination: Either Party Has A Right To Terminate This
Agreement On Immediate Written Notice To The Other In The Event Of:

a. Material Breach of This Agreement by The Other Party Which Has Not Been Cured Within
Thirty (30) Days Of Being Required In Writing To Do
So;

b. The Bankruptcy, Insolvency Or Appointment Of Receiver Over The Assets Of The Other
Party;

c. The DTH License Or Any Other Material License Necessary For DTH Co. To Operate Its
DTH Service Being Revoked At Anytime Other Than Due To The Fault Of DTH Co. GBN Shall
Have The Right To Terminate This Agreement On Written Notice To DTH Co. If

(I) DTH Co. Breaches Any Of The Anti Piracy Requirements And Fails To Cure Such
Breach Within Two (2) Days Of Being Required In Writing To Do So, Or

(ii) GBN Discontinues CNN-IBN With Respect To All Distributors In The Territory And
Provides DTH Co. With At Least Ninety (90) Days Prior Written Notice.

DTH Co. Shall Have The Right To Terminate This Agreement On Written Notice To GBN If
DTH Co. Discontinues Its DTH Business And Provides At Least Ninety (90) Days Prior Written
Notice.

d. Termination Of This Agreement Shall Not Affect Any Continuing Obligations Of Each Of
The Parties, Including Any Rights And Obligations Relating To Indemnification And Audit.

51
DIRECT TO HOME

Trade Restrictions And Tariffs

Rationale For Making Amendment To The Direct To Home


Broadcasting Services (Standards Of Quality Of Service And
Redresses Of Grievances) Regulations, 2007:

1. No Visiting Or Repair And Maintenance Charges Of DTH Equipment During Warranty


Period. TRAI: The DTH Operators Have Been Prohibited From Charging Any Fee Towards
Visiting Charges Or Repair And Maintenance Charges Of DTH Consumer Premises
Equipment During The Period Of Warranty For Such DTH Consumer Premises Equipment
Acquired On Outright Purchase Basis.

2. The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or
Till Validity Expiry, Of A Subscriber's Enrollment. TRAI: The DTH Operators Have Been
Prohibited From Changing The Composition Of Their Subscription Packages During First Six
Months Of Enrolment To The Subscription Package Or During The Period Of Validity Of A
Prepaid Subscription Package, Whichever Is Longer.

3. In Case A Channel Is Removed From A Subscription Package In The First 6 Months Of


Enrollment, The DTH Operator Must Reduce The Price Proportionately, Or Replace The
Removed Channel With One Of The Same Genre And Language. TRAI: The DTH Operators
Have Been Mandated To Proportionately Reduce The Subscription Charges For A Package
From Which Any Channel Is Removed For First Six Months Of Enrolment Or During The
Period Of Validity Of A Prepaid Subscription Package, Whichever
Is Longer Or To Replace The Channel With A Channel Of Same Genre And Language.

4. The Option Of Choosing The Package With Reduced Charges Or The Package With
Replaced Channel Has Been Given To The Subscriber.

5. In Case A Removed Channel Needs To Be Replaced, The Replacement Option Will Be In


The Hands Of The DTH Operator. TRAI: Option To Select The Channel Of The Same Genre
And Language In A Subscription Package To Replace A Channel Which Has Become
Unavailable On The DTH
Platform, Has Been Given To The DTH Operator.

6. Your DTH Operator Needs To Give A Prior Notice Of Fifteen Days To You Before Changing
The Composition Of Any Subscription Package.

52
DIRECT TO HOME

7. Subscribers Are Allowed To Request Their DTH Operator To Suspend Their


Services

8. For Up To 3 Months. However, This Suspension Period Should Not Comprise The Same
Calendar Month. TRAI: DTH Operators Have Been Mandated To Entertain Requests Of DTH
Subscribers For Suspension Of Services If Requested Period Of Suspension Does Not Exceed
Three Calendar Months
And Does Not Comprise Part Of A Calendar Month.

The Above Rules Are Compulsory For DTH Operators To Adhere To.

Implication:

The Licensing Norms Of This Industry Is Not So Much Strict. Because, Norms Provide Easy
Entry And Exit To DTH Players. But, The Service Norms Are Somewhat Strict. Companies
Have To Give Good Services To Their Customers Especially To Set Top Box. They Don’t Take
Any Repairing Chargers During Warranty Periods. DTH Providers Also Can’t Change The
Composition Of Subscription Of Customer’s Schemes Till The Expiry Date Of Their
Enrolment. FDI Cap In DTH To Go Up To 74%

.
Government Stability

The Era Of Coalition Politics Had Arrived, And It May Be Some Time Before A Single Party
Government Comes Into Power. The Regionalization Of Indian Politics Has Also Led To State-
Level Innovation And Greater Competition Between The State Governments To Attract
Foreign Capital.

Implication

There Is Change In The Political Party And Their Rules For The Particular Company And Its
Service Provides Style. Instability In Rules And Regulation By The Government As A Ruling
Party, As Evidenced In The Pattern Of Shifting Alliances And Collapsing Governments That
Has Marked Recent Policies.

53
DIRECT TO HOME

Economic Factors
.

Economic Factors Affect The Purchasing Power Of Potential Customers And The Firm's Cost
Of Capital. The Following Are Examples Of Factors In The Macro Economy:

Currency Stability

Exchange Rate:

54
DIRECT TO HOME

Implication: The Currency Rate Of India Is Ranging From Rs.40 To Rs.50 Per Dollar. The
Currency Rate Affects To The Importer. The Government Is Helping To The Industry As
Reduced Import Duty Of STB (Set Top Box) To Zero Percent From 7.5 %. But The Final
Amount Paid By Importer Will Depend On Exchange Rate. The Overall Impact Of This
Exchange Rate Will Mix, As The Rate Of Exchange Is Fluctuated. The Overall Impact Of
Exchange Rate In Current Scenario Is Not So Much Favorable. Because Of The Rupee Is
Depreciated

GDP (Gross Domestic Product)

55
DIRECT TO HOME

Implication: The Growth Rate Of The Country Is At Around 6.10% And Sector Growth
Around 25%, So It Is Directly Showing That The Industry Is Very Lucrative. The Growth Rate
Of Industry Will Attract New Players And May FDI Side Because FDI Is Allowed To 74%. The
GDP Rate Of India Is Between 4.40% To 6.10% Respect To 2000-01 To 2009-10 (First
Quarter). The GDP Rate Is Sign Of Boosting The Overall Industry Development And Has
Given Good Support To Our Industry In The Form Of Reduction In Regulations.

Inflation Rate

56
DIRECT TO HOME

Implication: As We Can Say That The Inflation Rate Is Showing Continuously Flexible
Trend. As The Price Of All Things Goes High, Consumers Don’t Have Enough Money To
Spend On Their Extra Facilities Like Pay-Per-View. It Is Obvious That Inflation And Our
Industry Have Positive Relationship. Because Of The Inflation Is Directly Affected To This
Industry.

Social Factors .

Social Factors Include The Cultural Aspects And Include Health Consciousness, Population
Growth Rate, Age Distribution, Career Attitudes And Emphasis On Safety. Trends In Social
Factors Affect The Demand For A Company's Products And How That Company Operates Its
Business.

Consumer Attitudes And Opinions

Consumer Attitude And Opinion Of The Product Affect To More Company’s Growth And
Development. DTH Customer Is Successful To Satisfy The Customer Demand And Their
Needs. And Consumer Attitude Towards DTH Is Positive And It Is Going To Increase. When
DTH Introduce In INDIA, This Industry Do Not Get Support From The Consumer. DTH Is Very
Useful To Wondering Consumer Class. Due To Our Survey, We Show That In “Slum Area
Nearby VASNA, Ahmadabad There Are More Than 20 DTH Is Installed And Nearby That One
Building There Is Only Three DTH Connections. But, There Are Still Some Other Viewers Who
Can Prefer Cable Operators As Per Traditional Thinks.

Brand, Company, Technology Image

Now This Industry Is Development Stage. For This Industry It Is Difficult For Them To Grab
The Market Share Of Cable TV And IPTV TV. This Industry Comes To Forward With New
Technology And New Schemes To Make Image Of The Company In Consumer Mind. Dish TV,
Tata Sky And Big TV Is Able And We Can Say Success To Make Their Awareness In Market.
MPEG-4 Technology Is More Efficient In Broadcasting Superb Quality Video And More
Channels As Well. MPEG4 Standard With DVB S2 Technology Will Be Used By The Company
To Provide Great Picture Quality And Sound Standard. Various Technology Used By
Different Company Provide Greater Satisfaction To Consumer. Dish TV Is Able To Convince
Consumer. And To Say Quality Wise Tata Sky.

Buying Access And Trends

57
DIRECT TO HOME

Dish TV Is Successful To Become Brand And To Grab The Market Share Of The Industry. And
After That TATA Sky Is Second Potion After Dish TV. TATA Sky Come Recent More
Advertisement And New Active Services Like Recent Making Food, News Games And Many
More. Tata Sky Also Come With Unique Service Is That Consumer Can Record Serial /Live
Math On DTH Set Up Box And We Can See Any Time. And Third Potion Going To SUN TV Is
Also Satisfied To Consumer.

Age Distribution And Lifestyle Trend

Age Structure:

58
DIRECT TO HOME

As Per Above Table 15-64 Years Population Is Very High And Median Age Is 25.3 Year. So
India’s Population Has A High Tendency To Spend Than Save. So Demand Of The Product Is
Increase. DTH Industry Is Also Type Of Entertainment As We Know 15-64 Years Have More
Changes In Lifestyle. They Are Ready To Adopt New Innovation And New Changes In These
Age Awareness Increasing Regarding New Era And Increasing The Income Level.

Implication:Indian Population Age Median Is 25.3 Years So We Can Say Large Amount Of
Population Is From Young Generation. So Here Dth Industry Has Positive Impact. Because
They Want New Innovation. And This Industry Will Come New Active Service, Internet Base
Service Etc.

Cultural Implications Of DTH

59
DIRECT TO HOME

 The Social Cause Of The Effect Of Foreign TV Channels On The Indian Citizen
Is Of Paramount Importance And Cannot Be Sacrificed. From A Technology And
Consumer Viewpoint The Entry Of DTH Technology In India Is A Welcome Step, But
As Another Side Of A Coin It Threatens To Spoil The Culture Of The Country. Easy
Access To Foreign Channels, Increasing Television Viewing Hours, Overexposure To
Western Culture All This May Negatively Affect The Mindsets Of People, Especially
The Children.

 Therefore, DTH Should Not Be Green-Signalled From A Regulatory Viewpoint.


Almost Every Country Has Had Some Sort Of Regulatory Framework Built Before
Allowing DTH In Their Country.

 Now The Company Provide The Various Service Like Active Service Which
Provide Food Recipe, Game Yoga Instruction Etc. This Is Very Helpful To Society.

Technological Factors
.

Technological Factors Can Lower Barriers To Entry, Reduce Minimum Efficient Production
Levels, And Influence Outsourcing Decisions. Some Technological Factors Include:

DTH Technology

60
DIRECT TO HOME

As Per Technology DTH Is A Digital Satellite Service That Provides Television Services Direct
To Subscribers Anywhere In The Country. Since It Makes Use Of Wireless Technology,
Programs Are Sent To The Subscriber's Television Direct From The Satellite, Eliminating The
Need For Cables And Any Cable Infrastructure.

Its Technology Eliminates The Need Of Any Intermediary Between The Service Providers
And The Viewer. The Technology Used Is Wireless (With No Cables Running Into The Viewers
Home) Making It Easier To Reach The Remote Areas Of The Country.

The Viewer Has A Dish Antenna32 Installed Outside Of The Location (In Open Air) To
Catches The Signals From The Satellite And Then Directs It To The Set Top Box Installed.
The Set-Top-Box Is Fitted With A Viewing Card-VC (Similar To Sim-Card) Which Is Uniquely
Numbered And Contains Information About The Channels Or User Selected Plan To
Consume/ Entertain That Have Been Subscribed To By The Viewer. It Is Only For Private
Service Provider’s Recharge Policy Also Includes An
Agent For Recharge As Well As Change Service Plan Whether In The Case Of DD Direct –
Pulse User Have Not To Pay After Pay First Installation Charge With All Equipment.

Dish Antenna Has More Than Two Different Ranges Available In Market. As Per Doordarshan
They Provide 120 Mhz And 90 Mhz Frequency Enable Dish Antenna Which Is Suitable In
Rainy Season As Well As A Long Distance Area.

Implication:

A Technology Makes Easy Entertainment For Audience. By This Service Technology A


Customer Can Select Their Suitable And Required Channel Plan And Pay For That. But,
Doordarshan Provides One Time Pay And Get Entertainment At Home Or Your Location
(Office, Shop As Well As On Vehicle Service In Selected South-Indian Region) For Life Time.
So, This Technology Is Very Effective For The
Users.

Govt. Course Of Action Towards Technology

TRAI Has Directed That The DTH Service Providers Will Need To Provide The Rival Channels
Too. However Unlike CAS In Cable TV System, For Which TRAI Has Set Up A Cap For The Pay
Channel Charges, No Such Cap Exists For The DTH Tariffs. Therefore, Viewers May Get Hit
By Subscription Fee Hikes.

61
DIRECT TO HOME

Government Launched INSAT 4A, India’s Most Powerful Communication Satellite. It Provided
Direct-To-Home (DTH) Telecasts From Early 2006. This Was Good News For All Those Of Us
Who Had To Suffer The Cable TV Operators.

At Present There Is Zero Duty On Import Of Set Top Boxes From Existing 7.5 % The Finance
Minister Has Also Removed Duty On Import Of Specified Parts Of The Set Top Boxes. This
Will Provide Leverage And Opportunity For DTH Players To Evaluate The Option Of
Manufacturing STB (Set Top Boxes) Locally. Since The CVD (Counter Veiling Duty) Is
Reduced From 16 Percent To 14 Percent, The Cost Of The C.P.E (Customer Premises
Equipment) Will Go Down To The Similar Affect And Will Benefit The DTH Operator Who
Already Providing Considerable Subsidies To Consumer And Will Further Accelerate The
Date Of Digitalization In The Country. And Also A Government Player Doordarshan, DTH
Service Providers Have To Add Channels In Their Predefined Or Least Channel Package.

Following Are The Simplified Steps On How DTH Works With Ku Band Satellite:

1. Broadcaster Sends The Signals.


2. The Satellite Receives The Signals At Ku-Band36
3. The Dish Antenna At Subscriber’s Home Receives The Signals
4. The Set Top Box Decodes The Signal And Sends It To TV Set

Implication:

By This Technological Service All DTH Service Provider Can Get Direct Service Distribution Initiative To Their
Customer. Service Providers Also Get An Advantage Of This Technology By PPV (Pay-Per-View) Service To The
Customer. Same As A DTH Service User Can Get Direct Privet Channel Service With Better Quality And Sound
Better Then Private Cable Operator Service As Well As By Their Own Dish Antenna And STB They Can Easily
Operate And Change Its Location Anywhere In India And Can Get Initiative Their Customize Channel Out Of
Private Cable Service Providers Barrier.

Michel Porter’s Five Force Analysis

62
DIRECT TO HOME

Threats Of New Entrants

There Are Many Factors Affecting Bargaining Power Of Buyers. As They Are Given Below:

Access To Distribution Net-Work:

For This Business Readily Availability Of Service To Target Segment Is Must. For That Companies Have To Build
Strong Distribution Network. Companies Like Airtel Digital TV , TATA Sky Have Strong Distribution Network.
Airtel Digital TV Has Only 1day Processing Time. And Tata Sky Has Only 2day Processing Time.43 For New
Companies Who Don’t Have Strong Distribution Network Or Not Able To Meet Order In Least Time, This
Business Is Very Tough Task For Them. So, It Is High.

 So, Threat From New Competitor Entry Is Low.

Advertising & Marketing Activity:

For This Starting Of DTH Service, It Is Required To Create Awareness Regarding Brand Name
Among The People. Now A Days, There Is Trend Of Using Brand Ambassador To Promote
Brand. Tata Sky Came Out With Aamir Khan, Dish TV Came Out With Shahrukh Khan , Airtel
Digitel Came Out With Saif Ali Khan & Kareena Kapoor,Etc. To Create And Maintain Strong
Present In The Market It Requires Efficient And Skilled Sales Force. It’s Required Huge
Investment And Expertise To Maintain It And It Is Not For Everyone’s Cup Of Tea.

 So, Threat From New Competitor Entry Is Moderate To Low.

Regulation & Norms:

TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH Service
Industry. DTH Service Covered Under The Direct To Home Broadcasting Services (Standards
Of Quality Of Service And Redresses Of Grievances) Regulations, 2007. Government Has

63
DIRECT TO HOME

Imposed Strong Rules Like No Visiting Or Repair And Maintenance Charges Against DTH
Equipment During Warranty Period, The DTH Operators Cannot Alter The Subscription
Package During The First 6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment, Etc.

 So, The Threat From New Entry Is Moderate To Low.

Capital Requirement:

There Is Low Capital Requirement In This Industry. It Is Just Rs.10 Cr Which Is Non-
Refundable. And Also Need To Investment In Technology. So, It’s Not Easy For Any
Corporate House. And Also Need To Invest In Technology. It Is High.

 So, The Threat From New Entry Is Low.

Cost Design:

In This Service Industry Low Cost Design Is An Important Factor. Dish TV Uses The Multi
Dwelling Unit (MDU). It Is Customized Solution For Connecting Multiple Houses Within The
Same Multi Storied Building With A Single/ Two Dish Antennae To Receive DTH Services. In
This Service, Common Dish Installed On The Terrace Of The Multi Storied Building Powers
TV Sets In Multiple Homes In The Building Through A Cable, Which Runs Into Each Flat.44
Thus, Dish TV Has Lo Cost Design. But, It’s Not A Cup Of Tea For Each And Every Company
To Implement Lo Cost Design.

 So, The Threat From New Entry Is Moderate To Low.

Industry Growth:

Annual Compounded Growth Rate Of DTH Service Industry Is Around 30%, Which Shows
Demand Is Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have
Driven Growth. So, Market Is Attractive For The New Players.

 So, The Threat From New Entry Is High.

Government Policy:

Government Is Providing Good Facilities To DTH Service Industry. As Government Reduced


Import Duty To Zero Percent From 7.5% On Set Top Box. And Also Reduced License Fee
From 10% To 6% And The CVD (Counter Veiling Duty) Is Reduced From 16% To 14%. This
Shows Government Provides Friendly Policy To DTH Service Providers. But, There Is Also
Non-Refundable Fee Of Rs.10 Cr. At The

64
DIRECT TO HOME

Time Of New Entry.

 So, The Threat From New Entry Is Moderate To High.

Summary:

Access To Distribution Is High So Threats Of New Entrants Are Low. Advertising & Marketing
Activity Is Also High So Threats Of New Entrants Are Low. Regulations & Norms Are Strict So
Threats Of New Entrants Are Low. There Is Low Capital Requirement So Threats Of New
Entrants Are High. In Respect Of The Low Cost Design Threats Of New Entrants Is Moderate
To Low. There Is Low Level Of Switching Cost So Threats Of New Entrants Are High. The
Buyer Demand Is Growing Rapidly So Threats Of New Entrants Are High. And Government
Policy Is Somewhat Friendly So Threats Of New Entrants Are Moderate To High.

 The Overall Threats Of New Entrants Is, Moderate To Low.

Threats Of Substitutes
.

Determinants Of Substitution Threat

65
DIRECT TO HOME

In This Industry Mainly Four Type Of Substitute Available And They Are Closely Related To
Dth Industry. Four Substitutes Are: IPTV, Cable Terrestrial, Television And CAS.

 IPTV Provide Services Have Been Very Attractive Levels With The
Subscription Charges Depending On City And Provide Set Up Box Free With
Refundable Security Deposits. And They Provide Unique Features. IPTV Is Expected
To Take Some Time To Catch Up S Infrastructure To
Cover Wider Scale.

 As We Know Cable TV Have Huge Market. 73 Million Households Have Cable


Connection.

 Doordharshan Is World‘S Largest Broadcast With Over 1400 Terrestrial


Television Transmitters. And The Reach Provided By This Route Is Phenomenal
With Provided Coving 88% Geographic Area Of India.

 Introduction Of CAS By The Government In Specified Are Since 2007 And This
Also Put Push Towards Digitization Of Cable. If Regulated And Implemented
Properly Could Pose A Threat To DTH Player In Future.

 New Technology Accepted By TRAI Is Headend In The Sky (HITS). DTH Have
End User Of Consumer, The HITS End User Is A Cable Operator.

 So, Threats From Substitutes Are Moderate To High.

Costs Of Switching To Substitutes:

Package Price Of Services Is Not More Different From Substitute To Substitute. So Buyer Can
Easily Switch From One To Another. They Charge Low Price So That Customer Do Not Incur
Big Cost. They Can Transfer To Substitute. IPTV Provide Subscription Charge s Between Rs.
100 To Rs. 200 Per Month. And DTH Services Have Lowest Price Rs. 90. (Starting Price) And
Cable Provide Services Starts With Rs. 250. So We Can Say Here No Huge Difference.

 So Threat From Substitute Is HIGH.

Availability Of Substitute Products:

66
DIRECT TO HOME

 HITS, The New Technology Is Being Looked At Positive By TRAI.HITS Has The
End Number Of Cable Operator Who Delivers The Signals To The End No. Of
Consumers.

 Mobile Television Is Also Coming Soon In The Market. DOOR DHARSHAN


Launched Its Mobile TV Pilot With Handset Major Nokia And Samsung On DVB-H
Platform.

 LG LCD With New Blue Race Technology Which Can Record A Program At A
Time Of Broadcasting In CD /DVD. Its Affects To Videocon LCD Sales.

 Here Threats From Substitutes Products Are Moderate To High Because


Technology Used By Substitute.

Summary:

Threat From Substitute Is Moderate To High Because Substitutes Have Power On Market
And Also New Technology Is Positively Taken By Government. There Is No Huge Difference
In Price. So, Cost Of Switching Cost Is Low. Because Of It Threat Is High. And Availability Of
Substitute Is Moderate To High In Market. So, Threat Is Also Moderate To High.

The Overall Threat Of Substitutes Is Moderate To High. Bargaining Power Of Suppliers

DTH Industry Relies On Three Major Suppliers:

1. Customer Premise Equipment (CPE)


2. Comprising Of The Satellite Dish
3. Set-Top-Box With The Necessary Access Card.

Satellite:

The Ku-Band Transponders Are In The Orbiting Satellites And Content Are Few Larger
Suppliers. With India Set To Overtake Japan As Asia’s Largest DTH Market. But Government

67
DIRECT TO HOME

Launches INSAT 4A, India’s Most Powerful Communication Satellite. It Will Provide Direct-To-
Home (DTH) Telecasts From Early 2006.

The Ku Band Transponder Is Generally Provided By Astrix, The Commercial Wing Of ISRO
Either Through Its Own Satellites Or By Leasing Transponders From Suppliers. With Only
Two Domestic Satellite Launches Between 2007 And 2010 An D Increasing DTH Players,
Astrix Is In A Better Position To Use DTH. Also The Crash Of INSAT 4C And NSS-8 Has
Worsened The Situation Of DTH Players. As
There Is Not Much Of Regulation Particularly In Terms Of Channel Pricing, Acquiring Content
From The Broadcasters Is Also Difficult. DTH Vendors Are At The Mercy Of The Broadcasters

Indian DTH Service Provider Can Take Initiative Of Indian Satellite For Large Area Coverage
From India As Well As Take Home Base Secure Service Satellite.

Set-Top Box:

As Per A STB Equipment Provider Is Concern Indian Govt. Give An Advantage Of Customs
Duty On Set-Top Box Was Reduced To NIL In The Budget 2006, Whereas, Inputs Attract
Customs Duty Of 5/12.5%.

Most DTH Players Import Their Set-Top Boxes (STB) And Sell Their Products At A Discounted
Price To Consumers In A Bid To Grab Larger Volumes. A MPEG2 STB Could Cost A Company
Between $32-50 And Its Consumer Acquisition Cost Is Around Rs 2,600-5,000 Per STB For
The DTH Players. Similarly, MPEG4 STB Could Cost A Firm Between $50-62 Taking The
Subscriber Acquisition Cost For A DTH
Player Up To Rs 5,600 Per Set Top Box. So As A Service Provider Company Can Import STB
Like Tatasky Import Sky Broadcastings STB From USA For Low Cost And High Quality
Service?

Here The Production Of DTH Instruments, Cables And Other Materials Is Very Costly For The
DTH Service Provider Companies So They Have To Be Dependent On The Suppliers Of This
Equipment. And Because Of This Reason Their Bargaining Power Is High.

Bargaining Power Of Supplier


.

68
DIRECT TO HOME

Backward Integration:

Industry Players Can Get Qualitative Raw Material At Affordable Price. So, They Can Think
To Do Backward Integration In Terms Of Set Top Box, Etc. And Also All The Corporate House
Can Do This.

 So, Bargaining Power Of Supplier Is Low.

Supplier Switching Cost:

The Decision Of Switch From One Supplier To Another Supplier Is Very Critical To Any
Manufacturer. Because At That Time They Have To Check The Cost Of Switching From One
Supplier To Another. But In This Industry It Is Very Low. There Are Many Players Who
Provide Dish And Set Top Box In The World.

 So, Bargaining Power Of Supplier Is Low.

Forward Integration:

Supplier Of Raw Material Providers Can’t Easily Entered In This Industry. Because There Is
Need Of Huge Investment Required While Starting The Business In This Industry.

 So, Bargaining Power Of Supplier Is Moderate To Low.

Summary:

Bargaining Power Of Supplier Is Low Because There Is A Possibility Of Backward Integration.


Inter Firm Rivalry Is High Because Market Share Of The Players Have Not More Differences.
Supplier Switching Cost Is Low So Bargaining Power Of Supplier Is Also Low. And The
Determinants On Supply Power Are Not So Much. So, Bargaining Power Of Supplier Is
Moderate To Low.

 The Overall Bargaining Power Of Suppliers Is Low.

Bargaining Power Of Buyers .

69
DIRECT TO HOME

There Are Many Factors Affecting Bargaining Power Of Buyers. As They Are Given
Below:

Buyer Switching Costs:


The Cost Of Service In DTH Service Industry Is Not That Much High What Consumer Cannot
Afford To Change. So In This Industry Consumer Can Easily Divert From One Brand To
Another. There Are Several Reasons To Change The Brand Like Price Level, Quality Of Set
Top Box, Etc. In That Case Service Provider Can’t Take Any Strong Action To Make
Consumer Brand Loyal Each & Every Players Are Provide DTH Service At Near To Same
Price. That’s Why Consumer Can Easily Change The Brands.

 Due To Low Switching Cost From One Brand To Another, The Bargaining
Power Of Buyer Is Moderate To High.

Brand Awareness:

Customers Are Becoming Literate And Take Interest To Get Aware About Different Brands
And Their Services Which Are Available In The Market. In DTH Service Industry There Are No
More Players But They Provide Many Different Services.Mostly People Are Aware About
Brands And Services, That’s Why They Can Easily Find Out Which Product Is Good In Price,
Quality Of Services, Etc. In This Industry Mostly Each & Every Service Providers Are
Concentrating On High Advertising To Increase Awareness Of Their Brands And Services.

 Due To High Awareness Of Different Brands And Services, The


Bargaining Power Of Buyer Is Moderate To High.

Availability Of Substitute Products:

In Recent Time We Can Easily Find Substitute Product In This Industry. Substitute
Products Are Cable TV & IP TV. Customer Can Easily Get Both Of These Products With
Minimum Charges
.
 Due To Easily Availability Of Substitute Products, The Bargaining
Power Of Buyer Is High.

70
DIRECT TO HOME

Buyers’ Purchase Frequency:

DTH Service Is Such Kind Of Products That Consumers Cannot Purchase It


Frequently. But, Consumer Has To Do Recharge Monthly. They Have To Buy
Monthly Or Yearly Packages. Because Of These Reasons, Purchase Frequency Is High.

 Due To This, Bargaining Power Of Buyer Is Moderate To High.

Innovative Services:

In DTH Service Industry, Service Provider Every Time Launch Different Services Via
Different Types Of Recharges. Consumers Can Easily Get Recharge And Monthly As Per
Their Need.

Example: Reliance Big TV Provides 10 Different Types Of Monthly Pack.


 Due To This, Bargaining Power Of Buyer Is Moderate To High.

Summary:

Buyers Switching Cost Is Low So Bargaining Power Of Buyer Is Moderate To High.


Awareness About Different Brands Is Also High So Bargaining Power Of Buyer Is
Moderate To High. Substitute Products Are Easily Available So Power Of Buyer Is High.
Purchase Of Frequently Is Low So Power Of Buyer Is Also Low. There Are Many Innovative
Services So Bargaining Power Of Buyer Is Moderate To High.

 The Overall Bargaining Power Of Buyers Is Moderate To High.

71
DIRECT TO HOME

Inter Firm Rivalry

No. Of Player In Industry

After Government Approval In 2000 Dish TV Is One The Pioneer In Industry. In This
Year Company Cross 5 Million Subscribers. Dish TV, Part Of Media Conglomerate Zee
Group Has 5.92 Million Subscribers In The Month Of September. Dish TV Is Known For Its
Innovation And Marketing Starting With Roping In Shah Rukh Khan (Arguably The Biggest
Brand In India) For Advertising To Providing Wide Range Of Value Added Services With
Slogan “DISH KARO WISH KARO”. Dish TV Has Done It All. Recent Addition To Its
Innovation Is The Interactive Banking Services Called ICICI Active.

72
DIRECT TO HOME

Tata Sky Is A DTH Satellite Television Provider In India, Using MPEG-4 Digital
Compression Technology. They Provide Service Through First MPEG-2 And Second
Adopted By NDS Technology. It Is A Joint Venture Between The Tata Group, That Owns
80% And STAR TV That Owns A 20% Stake. Tata Was Incorporated In 2004 But Was
Launched Only In 2006. The Company Uses The Sky Brand Owned By British Sky
Broadcasting. In October 2008; Tata Sky Announced Launching Of PVR Service Tatasky+
Which Allowed 45 Hours Of Recording In A MPEG-4 Compatible STB. The Remote Will Be
Provided With Playback Control Keys.

Sun Direct Is The Part Sun TV. Sun Direct Provide Dth Service S From The December
2007. Company Was Incorporated As Sumangali Publications Private Limited On
December 18, 1985.Sun Tv Also Provide Video Quality With Sound Quality. Sun Direct
Have Establish Dec.2007 And Now Have 4.3 Million Subscribers In India.

The DTH Service Of Bharti Airtel Comes From Its Subsidiary, Bharti Telemedia Limited
Launched In October 2008. They Comes With MPEG 4technology.There Are Nine
Interactive Service Currently And Three Recharge Option And Airtel Has Been Position As
A Premium Player In The DTH Market

73
DIRECT TO HOME

Big TV Ltd. Is Part Of Reliance Communication Ltd. It Comes In To Industry In August


2008 With Slogan “TV Ho Toh Big Ho” ("If You Have A TV, Make It BIG"). Now Company
Going To Planned Provide 400 Channels And Begin High Definition Broadcast. Company
Covers In One Year 2 Million Subscribers.

Videocon Industries, An India-Based Electronics Goods Manufacturing Company Has


Finalized May’09 As Launch Of DTH Services With The Name Of 'D2H+'. The Company
Will Launch Integrated Digital Televisions (Idtvs) And Set Top Boxes (STBs). The
Company Is Planning To Sell 70-80 Per Cent Idtvs And 20 Per Cent STBs. The Company
Is Testing The STBs By Installing At Employees' Homes At No Cost. In Addition, The
Company Is Presently Ensuring A Strong Sales Network And Has Been Recruiting Sales
And Service Staff Through Its Media Arm, Bharat Business Channel.

Summary:

Dish TV Is Leader Of Industry. Dish TV Market Share Is 31.62% That Is Highest. But We
See Other Competitor Of Industry Not More Difference In Their Market Share. Tata Sky Is
Very Near To Cross The Dish TV On The Other Hand Big TV And Airtel Able To Get The
Market Share 10.68% Only In One Year. Now Recent Videocon Enter Into Market.
Videocon Is Ready To Beat To Their Rival. DD Direct Is Also Public Company
.
 Here, No. Of Player Is Only 6 (Not Including In DD Direct) Which Have High
Competition To Grab Market Share So. Interval Rivalry Is High.

Industry Growth:

Average Annual Growth Rate Of DTH Service Industry Is Around 30%, Which Shows
Demand Is Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have
Driven Growth. So, Market Is Attractive For The New Players.

74
DIRECT TO HOME

 So, The Threat From New Entry Is High.

Untapped Market:

In India Cable Operators Have Huge Market Share Than DTH And IPTV. Now DTH Service
Providers Have Huge Opportunity To Adopt The Market Share Of Cable And IPTV. There Is
Huge Demand In Rural Area Also That We Can Say Untapped Market.

 There Is Huge Untapped Market For This Industry. So, Inter Firm Rivalry
Is Very High.

Promotional Activities:

All Companies In DTH Come With Different Types Of Schemes And Offers In The Market.
All The Time They Try To Attract More Numbers Of Customers With Huge Marketing &
Advertisement.

 Mostly All Of The Players In Industry Introduced New Promotional Scheme


Almost In One Week Duration. So, Inter Firm Rivalry Is Moderate To High.

Exit Barrier:

To Enter In This Industry, Entry Fee Is Rs.10 Crores Which Is Not Refundable. And Also
Establishment For Technology There Is Huge Investment Needed. This Also Means That
The Players Need To Have A Deep Pocket To Sustain The Losses Till Then.

 So, Exit Barrier Is High. And Inter Firm Rivalry Is Also High.

Summary:

Inter Firm Rivalry Is High Because Market Share Of The Players Have Not More
Differences Between Their Market Share. Switch Cost Is Low So That Competition Is High.

75
DIRECT TO HOME

There Is Huge Untapped Market And Thus New Strategy Adopted By The Players. So It Is
High & Moderate To High Respectively. Exit Barrier Is High For Huge Investment In
Industry. Thus It Is Affected Negatively To Competition.

 The Overall Inter Firm Rivalry High.

Driving Forces

Internet Technology Applications:

76
DIRECT TO HOME

The Internet Is Proving To Be An Important As A Distribution Channel, Allowing


Manufacturers To Access Customers Directly Rather Than Distribute Exclusively Through
Traditional Wholesale And Retail Channel. By The Use Of Internet Applications The
Service Providers Provide The Product Offerings Of Competitors And Shop The Market For
The Best Value To The Customers.

Long Term Industry Growth:

Shifts In Industry Growth Up Or Down Are A Driving Force For The Industry Change,
Affecting The Balance Industry Supply And Buyer Demand. The Industry Growth Of The
Direct To Home (DTH) Is Around 30%, So The Industry Growth For The DTH Companies
Concern As A Driving Force, Which Plays An Important Role For The DTH Service
Providers.

Product Innovations:

The Innovation In The Product Is Very Important Factor Because The New Product
Creates The Market Demand Which Is More Important For The Any Player In The Industry.
Successful New Product Innovations Strengthen The Market Positions Of The Companies
With The Innovative Products. By The Product Differentiation The Service Providers To Be
The Market Leader Or From That The Companies Capture The Market Share. The Product
Innovations & Product Differentiation Will Be A Competitive Advantage For The Company
Among The Rivals Of The Industry.

Technological Changes:

77
DIRECT TO HOME

Advances In Technology Can Dramatically Alter An Industry’s Landscape. There Are


Gradually Upgrade In The Technology. So, The Improved Or Innovative In The
Technologies Of DTH Services Are Enforcing To Drive The DTH Service Industry.

Regulatory Influence:

TRAI (Telecom Regularity Authority Of India) & Ministry Of Broadcasting Both Are The
Governing Bodies For The DTH Industry By Which Regulated To The DTH Industry. By The
TRAI Recommend That The Import Duty On The Set Top Box (STB) Removed Which Is
Beneficial For The DTH (Direct To Home) Service
Providers And The Effects On The Customers Because By That The Price Of The Set Top
Box Reduced And The Benefit From That The Price Of STB (Set Top Box) At The Low Cost
To The Customers.

Changing Societal Concerns, Attitude & Lifestyles:

In India, Generally The Style Of The Family Pattern Is Nuclear Family. So It Helps To The
Family Members To Watch The Different Channel For The Different Member Of The Same
Family. After That The Lifestyles Of The Family Who Are Using The DTH Services For
Their Entertainment Is Different And Attitude Towards The DTH Users Different More
Than The Non-Users. Nowadays The DTH Service Providers Also Provide The Common
Dish For The Same Society.

Innovative Marketing:

Marketing Is Most Important To Become Very Successful In Any Industry. To Grab


The Market Share And Subscriber Base, Player Done High Advertisement And
Marketing. By Creating Marketing Innovation You Can Easily Get Attention Of

78
DIRECT TO HOME

Customer. Many Player Of This Industry Have Done Innovation In Marketing And
Spent Handsome Money Behind This.

 Dish TV Is Leader Of The Industry. It Comes With Most Successful


Slogan
“Dish Karo Wish Karo” Through Brand Ambassador Shahrukh Khan
This Provide Them Most Successful To Grab Subscriber Base. They Are
Also Come With New 360 Dergee Approach In Marketing With Slogan
“Ghar Ayi Jindgi” To Compete With Tata Sky And Big TV.

 Tata Sky Enters Into Market With Brand Ambassador Amir Khan For Their
Advertisement. Through Amir Khan They Try To Make Aware About Their
Schemes.

 Bid TV Is Also Not Behind In Promotion Activates. They Do Not Take Help Of
Any Brand Ambassador But They Done 360 Degree Angle Advertisement
With Popular Slogan “TV Ho Toh Big Ho”

Technology:

This Factor Is Very Important To Drive The Industry Because The Scope Of
Innovation In The Technology Is Very Wide And The Technology Is Upgraded Day
To Day
.
 In The Industry The DTH Service Provider Provides The Moving Picture Expert
Group Version 2 (MPEG2), But Now A Days The Technology Is Upgraded And
Some Of The Service Provides The MPEG4 For The High Standard Quality
Picture At The Low Cost With The Innovative Features Like Airtel Digital TV
And Reliance BIG TV.

 Airtel - Uses The Latest MPEG4 Standard With DVB S2 Technology.

 Sun Direct Is Advanced Technology HDTV (High Definition Television)

 Reliance BIG TV Also Provides The MPEG4 With The Digital Video
Broadcasting (DVB) As Well As The Picture In Picture (PIP) System To The
DTH Service Holder.

Strategic Factors:
Exploit Bottlenecks:

79
DIRECT TO HOME

In This Market, Content And Transponder Capacity Are Scarce And Controlled ByA
Few Players.

With Content, Access To Unique Local Language Material Is Critical. In A Market


Like India, All A DTH Player May Need To Do Is Repackage Existing Channels That
Are Not Universally Available. In Sports, Some Players Have Won An Advantage
Through Long-Term Rights Purchases. Broadcasting Rights To Cricket In India, For
Example, Belongs To ESPN For The Next Five Years. It Also Controls The Right To
Football For West Bengal (The Most Popular League) For Ten Years.

The Second Obvious Bottleneck Is In Transponder Capacity. A Modest DTH Offering


Is Likely To Require A Minimum Of 10 To 15 Transponders-Almost A Dedicated
Satellite. The Number Of Satellite That Can Broadcast To A Particular Region Is
Limited By Physics.

Move First:

In The DTH Industry, A Credible And Well Managed First-Mover Service Has A
Tremendous Advantage Over Others. In India, A First Mover May Effectively Shut
Out Competition.

Exploit Market Niche:

In Some Markets, The Segment Of Consumers Who Desire Highly Specific Content
May Be Large Enough To Form The Core Subscribership Of A DTH Service. An
Example Of This Could Be Again Cricket In Our Country. A Few Things Are Assured
In The DTH Industry Even In The Face Of Paradigm Shifts. First, The Value Of
Transponders Is Likely To Fall As Compression Allows More And More Content To
Go Through The Same Satellite, And As More Satellite Are Launched. Second, As
Bandwidth Explodes, So Will Demand For Content.
Obscure Sports And The Like Will Become More Valuable; Conversely, Much Of The
Content That Is Currently Valuable Will Face Downward Pricing Pressure. Niche
Content Providers Will Emerge. The Industry Is Likely To Be Characterized First By
A Period Of Fragmentation And Then By An Increasing Concentration Of Global
Consortia As Unprofitable Participants Fold. What Is Clearer Than Ever Is That
Satellite TV Is Here To Stay And Will Play Role In Bringing Television To Mass
Around The World?

80
DIRECT TO HOME

81
DIRECT TO HOME

82
DIRECT TO HOME

83
DIRECT TO HOME

Sun Direct:

· Sun Direct Is A 80:20 Joint Venture Between The Tamil Nadu Based Maran Family And
The Astro Group Of Malaysia.

· Sun Direct Is Now Using Most Advanced Technology HDTV (High Definition) Content.
This Technology Makes Their Service Very Effective And Better Quality.

· Sun Direct Provide Their Packages At Low Package Price Rs. 10 To Rs. 115
Per Month And Also.

· Sun Direct Consider To Be Rational In Terms Of Package In Terms Of


Schemes And Packages Set Top Box (STB) And Monthly Packages.

· Sun Direct Concentrates On Regional Channel.

· Sun Direct Using MPEG 4 Technology.

84
DIRECT TO HOME

Airtel:

Big TV:

85
DIRECT TO HOME

Value Chain Of Industry

86
DIRECT TO HOME

Value Chain Analysis:

Value Chain Analysis Help Companies To Analyze Specific Activities, Through Which
Firms Can Create A Competitive Advantage, It Is Also Useful To Model The Firm As A
Chain Of Value Creating Activities. Michael Porter Identified A Set Of Interrelated
Generic Activities Common To A Wide Range Of Firms. The Resulting Model Is Known As
The “Value Chain” And Is Depicted Below. The Goal Of These Activities Is To Create
Value That Exceeds The Cost Of Providing The Product Or Services, Thus Generating A
Profit Margin.

The Following Diagram Contained Value Chain Of The Industry, Which Includes Primary
As Well As Supporting Activity. Contribution Of Each And Every Activity Has Been
Mentioned As Follow As Particularly For DTH Industry.

Value Chain

87
DIRECT TO HOME

Over The Last Three Years, The Direct-To-Home (DTH) Satellite Industry Has Come On
Strongly Worldwide. It Has Grown From A Niche Delivery Mechanism Into A Mainstream
Business. The Spread Of Subscription-Based DTH Satellite TV Promises To Enhance
Choices For Many Households In Developing Countries. With The Government Throwing
Open The DTH Sector In The Country, A Handful Of Players Have Come Up With
Grandiose Plans To Enter The Market. Given The Stiff Level Of Competition This
Premium Services Will Face From The Existing Multi-Channel Cable Network, Possible
Entrants Need To Clearly Grasp A Few Of The Winning Rules Of The Game.

Inbounds Logistic:-

Include Receiving, Warehousing, And Inventory Control Of Input Materials.

Raw Material Sourcing:-

In DTH Service Provider Companies Generally Has No Any Kind Of Raw Material But
Sometimes Given CPE Are Already Supplied By CPE (Dish, STB, Cable) Manufacturer
Company Have To Store It Or Direct Supply To Retailer Or Outlet.

Operation:-

88
DIRECT TO HOME

The Value Creating Activates That Perform Input Into Final Product. DTH Service
Provider Collect Private Channel From Their Collaborated Channel. System Which Has
Specially Designed Program To Provide Service As Per Customer Package As Well As
Request Send A Signal To The Ku-Band Satellite Which Transfer Signals To Subscribers
Set-Top-Box Through Dish Antenna And Serve The Service As Consumer Require
Whether It Is Private Channel Or Service Providers Interactive Service. System Is Similar
Like Mobile Service System So It Is Very Easy Task For Cellular Service Provider.

Outbound Logistics:-

The Activities Required Getting Product Service To The Customers, Installation,


Ordering Fulfillment, Quarry Solution, New Technology And Service Updates (May Free
Or Minor Charges Apply)

POSITION IN A MARKET (SUPPLY)

The Most Important Asset Is Arguably An Ability To Play A Unique Role In The DTH Value
Chain. This Advantage May Reside In Business That Has Little Or No Obvious
Connection With DTH. A Company That Has Pioneered A Business Offering Credit For
Consumer Durables In A Developing Country, For Instance, Might Be Well Placed To
Supply Finance To Purchasers Of CPE.

Sales & Marketing:-

Those Activities Associated With Getting Buyers To Purchase The Product, Including
Channel Selection, Advertising Pricing, Etc. In India Demand Is Over Pacing The Supply.
So, Generally We Find Less Focus On The Marketing Activities From The Companies’
Side. Two Types Of Customers Are There, One Retail & Second Industrial Or
Government. To Attract Business / Industrial Customer Special Commercial And News
Channel Packages Are There In Some Players. Retail Customer Can Be Attracted By
Providing Sales Promotion Or Advertising.

Promotion:-
Currently Companies Are Using Marketing Tool Like Free STB Or Installation, Customize
Channel Package, Special Package To Attract The Special Customer Segment Like
Business Class. And Also Interactive Services Like Educational Program, Same Other
Time Program Recording, Pay-Per-View And Also MDU For Multi User Service.

Build An Appropriate Content Offer


This Is The Single Most Crucial Choice A DTH Company Will Make. In A Remote Town
With No Access To Television, For Example, Even A DTH Bouquet Of Just Two Channels

89
DIRECT TO HOME

Might Seem Attractive. Transponder Costs Are Also A Factor In An Appropriate Content
Offer. It Is The Bouquet Size That Determines How Many Transponders Are Needed,
Creating A Tradeoff Between The Cost Of Transponders And The Richness Of The
Offering.

Advertising:-
Ad Revenue Is Also Available To A DTH Service Provider, So The Existence Of A Robust
Or Growing Ad Market Is Important. For That Have Special Movie Time Commercial,
20:20 And Other Sports Live Telecasting Time Commercial And Also Some Special
Program Like Educational, Own TV Serial Production. DTH Service Provider Companies
Are Using Emotional Approaches In Advertising. But Right Now They Are Started To
Endorse Brand Ambassadors Like Shahrukh Khan In Dishtv, Amir Khan & Gul Panag In
Tata Sky, Saif_
Kareena_ A.R.Rehman_ Gautam Gambhir_ R.Madhvan And Zaheer Khan In Airtel
Digitaltv And Television Serial Celebrities For Bigtv.

Installation
Generally Players Are Provide Installation Service But In Some Cases (DD Direct+) May
Happen Customer Purchase Their Own CPE From The Market. Service Provider Are
Always Try To Provide Indian Standard CPE. Doordarshan Always Prefer To Serve 90
Mhz And 120 Mhz Dish Antenna As Well As Good Quality STB.

Service:-
After Provide An Application Equipment Of DTH Service Companies Should Have To
Provide A Better Broadcasting Service Like Interactive Service, PPV (Pay-Per-View),
Movie-On-Demand And Also A Query Of The Service Users.

Supporting Activity:-
The Primary Activates Described Above Are Facilitated By Support Activities.

Infrastructure:-

Infrastructure Includes Strategic Location In Term Of Nearby Suppliers Or Nearby


Market, Adequate Space To Run The Business, Technological Resources, Transportation
Facility. All Of These Will Lead To Improve The Performance. So, All Of The Players Have
To Develop This.

Human Resource Management:-

90
DIRECT TO HOME

The Activities Associated With Recruiting, Development, Compensation Of Employees.


One In Each Of The Four Regions North, East, South And West For Setting Up Regional
Training Centers (Rtcs) With Commitment To Human Resource Development. The Rtcs
Are Equipped With State-Of-The-Art (High-Tech) Technologies, Teaching Aids And
Equipment And Specially Made Need Based Training Packages. High Quality Technical
Guidance Has Been Translated Into Local Languages Also. Computer Based Training Is
Given To Personnel Even At Operator Level. There Are Specially Trained Employee For
Installation And Service Guide. And Also They Provide Good Remuneration To Their
Employees.

Offer Superior Services


Cable Companies Are Frequently Criticized For Installation Delays, Billing Errors And
Surly Staff And The Nature Of Cable Plant Makes Signals Prone To Disruption. Staff And
Customer Service Issues Relating To CPE Installation And Maintenance May Yield A Fine
Of Differentiation Above And Beyond Picture Quality.

Technology Development:
As This Is Crucial Factor Which Affecting This Service Most. Company Has To Develop
New Technology As It Helps Not Only Him But Also To Customer. Customer Can Get
Good Quality Of Pictures Through Good Technology.

Implication:-

A Few Things Are Assured In The DTH Industry Even In The Face Of Paradigm Shifts.
First, The Value Of Transponders Is Likely To Fall As Compression Allows More And More
Content To Go Through The Same Satellite, And As More Satellite Are Launched.
Obscure Sports And The Like Will Become More Valuable; Conversely, Much Of The
Content That Is Currently Valuable Will Face Downward Pricing Pressure. Niche Content
Providers Will Emerge. The Industry Is Likely To Be Characterized First By A Period Of
Fragmentation And Then By An Increasing Concentration Of Global Consortia As
Unprofitable Participants Fold. What Is Clearer Than Ever Is That Satellite TV Is Here To
Stay And Will Play Role In Bringing Television To Mass Around The World?

OT Analysis

91
DIRECT TO HOME

Opportunity:

·Huge Untapped Market :

 Industry observers, like dish tv believes that the dth market grow
exponentially to touch 37 million subscribers by 2010.

 Dth is the emerging industry in india and there is huge market to provide
the dth service in india.

 Around 2500-3000 new subscriber are being added everyday to private dth
operators, whereas only 200-300 are added to dd’s free network.

 Suggestions are being mooted for the simultaneous release of movies, both
in theaters as well as on dth.

 There are several remote area in india where as dth services are more
suitable than cable connections.

So, there is opportunity to grab untapped market for dth companies.

Govt. In Favors Of Industry:

 Govt. Is Considering 74% FDI Capital In The DTH Sector And Taxation Polices
Need To Be Friendly And Encouraging.

 The Growing Subscriber Base Will Definitely Bring Down The Prices Of Stbs
(Set Top Box) In The Long Run And Import Duty Free On Stbs (Set Top Box).

 Government Reduces The License Fee, Which May Be Reduced From 10 Per
Cent Venues To 6 Per Cent Of The Gross Revenue Of The DTH Service Providers.
For, The Above Points We Can Say It Is Beneficial To New Entrance As Well As
Existing Companies.

New Products Comes In The Market:

92
DIRECT TO HOME

LG LCD With New Blue Race Technology Which Can Record A Programe At A Time Of
Broadcasting In CD /DVD. This Is Very Helpful To DTH Companies To Provide Service To
Customer. The DTH Service Providers Are Improving Their Technology For Their Product
And Also Improvement In Their Service To Provide To The Customers.

·Company Have Own Cable Subscriber:

 Airtel And Reliance Have Huge Mobile Subscribers Base Where As Sun Direct
And Dish TV Have Got The Cable Subscriber Base Of Sun Network And ZEE
Network To Penetrate More Into The DTH Market.

 Airtel And Dish TV Have Easy To Grab The Cable Market Share.

Technology Development And Innovative Services:

Now DTH Companies Are More Concentrating On Their Services And Schemes Them.
All The Players Are Always Ready To Innovative Their Services To Attract The
Customers Dish TV And TATA Sky Provide The A-LA-Carte Services Means Special
Channel That You Can Add As Per Your Choice. And Also MS Service Provides That
Called Multi Services. These Both Are Benefit To Customer To See Their Favorite
Programs. In Short Time Internet Will Also Available On The DTH Service.

Market Developments:

 The Major Factors Which Contribute For The Imminent Growth Are –
Economic And Low End Entry Fee, Free Offers, Value-Added Services, Matrimonial
Information, Educational Kits Etc.

 The Players Can Easily Initiate And Develop Their Market If They Have
Required Capital Availability.

Geographical, Export, Import:

93
DIRECT TO HOME

 Fed Up With Poor, Unpredictable Cable Television Across Small Towns And
Cities, People Are Switching Over To DTH Entertainment For Their Television At The
Speed Of Light.

 This Can Be Justified Because India Has A Varied Geography And Population
Distribution. So Cable Television Is Not Available Everywhere, Particularly In
Remote Hills, Villages, Farmhouses Etc. These Are The Places Where The Demand
For Satellite Television Is Rising.

Industry Or Lifestyle Trends:

 ·India Has A Total Of Almost 90 Million Households Which Have Television.


Out Of These, Cable Television And DTH Services Are Accessed In About 45 Million
(Half).

 ·In The Next Few Years, It Is Set To Increase By Another 10. This Will Then
Make The Indian Market The World’s Biggest Cable Television Market.

 ·The Changing Life Style And Choice May Positively Affect To This Industry.

Implication:

DTH Industry Is At Growth Stage. Industry Has Huge Opportunity And Growth.
Government Is More Concentrating On This Industry. As They Reduced Import Duty On
STB And Also Reduced License Fee. Out Of Six Players, Two Companies Have Own
Cable Subscriber. This Could Be Benefit To Companies. As Companies Are More
Focusing On Advertising Activity, Awareness About DTH Services Is Increasing In The
Market. There Is Huge Untapped Market. Existing Companies Provides Innovative
Services And Schemes. So, DTH Companies Have Benefit To Cover That Market.

94
DIRECT TO HOME

Threats
.

Substitutes

 Internet Protocol Television (IPTV) Is An Upcoming Threat To DTH, But Still In


The Nascent Stage.

 CAS, If Regulated And Implemented Properly, Could Pose A Threat To DTH


Players In Future.

 IPTV And CAS Is Main Substitute Of DTH Industry. They Are Coming With
New Technology And When It Implemented Right Way Then They Become Threat
For DTH Industry.

New Technology In The Market:

 New Technology Accepted By TRAI Is Headend In The Sky (HITS). HITS End-
User Is A Cable Operate Who Delivers The Singles To The End Consumer.

 HITS Technology Directly Connect To Cable Operate And DTH Contact To


Consumer. So, This Technology Will Become Harmful To DTH Industry.

Low Switching Cost:

 There Is Not More Difference Between Package Price Charge By DTH And Its
Substitute.

 Service Provides By DTH And Its Substitute Is Almost Same. So One Can
Transfer From One To Another. So, Here Switching Cost Is Low For The Customers
About The DTH Service.

Government Policy/Regulations:

 TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH
Service Industry. DTH Service Covered Under The Direct To Home Broadcasting
Services (Standards Of Quality Of Service And Redressal Of Grievances)
Regulations, 2007.

 Government Has Imposed Strong Rules Like No Visiting Or Repair And


Maintenance Charges Against DTH Equipment During Warranty Period, The DTH

95
DIRECT TO HOME

Operators Cannot Alter The Subscription Package During The First 6 Months, Or Till
Validity Expiry, Of A Subscriber's Enrollment, Etc.

IT Developments:

The Biggest Threat To The DTH Industry And Also To The Television Industry Is From
The Growth Of The Internet And Other IT Developments Which May Enable Viewers To
Enjoy Their Daily Sops, News Etc. Direct Through Internet

Competitor Intentions:

 After The Higher Charges On License And Availability Of The Capital, It Is


Very Easy To The Firm To Enter In The Industry.

 The Deductions And Relieves Provided By The Government May Also Attract
The New Players.

Seasonality, Weather Effects:

 The Major Obstacle Faced By The Industry Is Lack Of The Proper Signals In
Bad Climate.

 Therefore, In Hilly Or Rainy Areas The Industry Is Unable To Provide The


Services At Its Best.

Lack Of Possibility Of Growth:

 At Present The Industry Is At Growth Stage, Numbers Of Peoples Are Still


Remaining To Be Covered By The DTH.

 But After Covering The As Many Numbers Of The People As It Can, There Is
No Scope For The Industry To Grow Further In The Same Market

 Even It Would Be Difficult To Attract The Users From One Service Provider To
The Other Because Of The Lack Of The Difference In The Core Competency.

96
DIRECT TO HOME

Implication:

DTH Substitutes Will Become Strong By Adopting New Technology Nearby Future. And
HITS (Head End In The Sky) New Technology Comes In To Market If It Successful Than
The It Is Harmful To DTH Industry. Competitors Are More Conscious About Their
Technological Development And Market Expansion By The Innovation In Technology As
Well As With The Innovative Products. The Climate Plays Vital Role To Affect The
Service. The Improvement In The Technology Affect To The DTH Industry. Above These
Factors Can Become Threat For DTH Industry In Future.

Summary:

From The OT Analysis, The Opportunity For The Players To Enter As Well As To Envelop
The Market Because The Market Is Untapped And The Policies From The Government
Are Much More Liberal For The DTH Service Providers Provide To The Customers. So, It
Is The Win-Win Situation For Both The Parties Like, DTH Service Providers And
Customers. There Are Also Some Threats For The DTH Service Providers By The
Improvements In The Technology, Climate Condition, Substitutes Also Affect To The
Rivals Of The Industry Because The Cable Operator Already Covered Market.

97
DIRECT TO HOME

FINDINGS

 The survey has been conducted taking into consideration all age
groups so that the preferences and criteria of total population can be
analyzed.

 The feedback received from sample population depicts that tata sky is
the leading and most preferred service provider in DTH industry.

 Most of the people are getting awareness about DTH providers from
Television advertisement , Friends and Retailers

 TATA sky , dish TV and GTPL are strong players of ahmedabad market

 The most effective factors that prompt people to buy a particular dth
service is low monthly cost along with low initial price which clearly
shows how price sensitive ahmedabad market is. Variation in price can
lead to increase or decrease in demand of the product.

 People normally prefer to pay for the service either monthly or half
yearly.

 People do consult Friends and Retailers while making a decision to


purchase a particular DTH service

 Almost 46 % of customers are satisfied with the DTH provider they


have.

 The feedback provided by the sample population about the network


coverage of DTH service provider is good/satisfied. Most of the times
they receive flawless, un interrupted and better quality programs with
negligible disturbance from their service provider .and these factors
make people think that the DTH provider thay are having is providing
the best service as compared to other medium of entertainment like
cable, doordarshan radio etc.

98
DIRECT TO HOME

Recommended Strategy:

Dish TV:

 As Dish TV Is Already Market Leader. So They Have To Go For Expansion Of


Distribution Network. So Customer Of Dish TV And New Customer Are Easily
Getting Their Service And Recharge Coupon Also.

 The Customer Is King Of The Market And To Win The Customer One Have To
Implement Service Marketing Concept And Provide Complete Satisfaction To
Customer. To Make The Customer Loyal, The Quality Of The Service Provide By The
Company Should Be Best And As Per Customer Wants.

 Service Provided By The Dish TV Is A-La-Carte. This Service Is Satisfy Customer


Need So, To Introduce This Type Of Service May Attract To Customer.

 Dish TV Have To Adopted Aggressive Pricing Strategy To Attract To Customer.

 Indian People Have More Value Of Their Region. Company Has To Adopt The
New Tie Up With Region Channel. And Also Introduce Packages. So Customer Can
Enjoy Their Region Channel In Other State Also.

 Tata Sky Introduces The TV Service On Mobile And Wheel. They Are Able To
Capture The Market. So, Dish TV Has To Introduce This Type Of Services.

 Company Has To Focus On Rural Expansion .There Is Huge Market To Grab The
Market Share.

Tata Sky:

 TATA Sky Is The Best DTH Service Provider Among The Rivals, So They
Should Maintain Their Position With The Differentiation On The Basis On The
Interactive As Well As The Sales After Service To The Customers.

 After That They Should Concentrate On The Top Of The Position With The
Innovation In Product As Well As The More Interactive Services Provide To The
Customers.

99
DIRECT TO HOME

 They Should Also Provide The Recharge System Like The Reliance Big TV
Provides The Recharge Coupon For The Various Schemes.

Sun Direct:

 Sun Direct Is The Silent Well Known Company In Indian DTH Industry.

 Awareness Of Sun Direct Is Less. So, Sun Direct Invest In More Awareness
About Service Provide By Company.

 India Is Having Tremendous Opportunity As More And More Diversify


Population Is Having. There Is Untapped Market In Urban As Well As Rural Area. In
Sun Direct Should Invest For More In Marketing And Advertising So That Grab The
Market Share.

 Sun Direct Should Also Provide Other Good Channel Packages Rather Than
Regional Channel.

 Sun Direct More Concentrate On The South India. So, Sun Direct Should
Cover The Other Region Of India As A Market.

BIG TV:

 Reliance Big TV More Focuses On Their Product Promotion And Innovation In The
Technology For Their Product. So, They Should Also Deliberate On The Services
Like, TATA Sky Provides The Interactive And Active Service, Stock Ticker Etc.

 They Should Also Concentrate On The Development Of Market By Their


Distribution Channel Or The Sales After Service.

 They Should Focus On The Development Of Rural Market As They Have Strong
Back Up Of Parents Company.

100
DIRECT TO HOME

CONCLUSIONS

Key Success Factors

Innovative Services:

 Innovation In Service Provided By DTH Industry Is Must And It Has A Significant


Impact On Growth Of DTH.

 Dish Tv Is Comes With New Innovative Service Called A-La-Carte. This Service
Provides To Choose The Customer Extra 15 Channels From Their ALa- Carle Packs.

 Dish TV Provide Active Service Like Job, Shaadi, Game Etc. They Provide Special
Bank Active Service That Called ICICI ACTIVE Through This You Can Done Your
Bank Transaction.

 Tata Sky Provides Tata Sky Offers A DVD Picture Quality And CD Quality In
Sound. Tata Sky Is Rated As Best Service Provider In The Industry.

 Tata Sky Come With New Service S Called Multi Dwelling Unit (MDU) Model.
This Model Provide One Dish Is Shared By Every Home Is A Good Way To Attract
The Group Of The Customer.

 Low Scheme And Package Charge By Sun Direct. They Offer Regional Channel
To All State In Their Packages.

 Big TV Provides PIP (Picture In Picture) Service. This Service Provide Innovative
Feature And Also Enable Customer To View Twelve Channels At A Same Time.

 They Also Tied With The Oxygen For The Recharge With The Help Of Debit
Cards, Internet Banking, Mobile Mode Payment (SMS) Or By The Calling The Toll
Free Number.

Distribution:

 Intensive Distribution Must Be Used By All Players Because Of Cut-Throat


Competition. Availability Of Product Everywhere Is Very Important And For That
Strong Distribution Network Is Required.

101
DIRECT TO HOME

 All The Players Of The DTH Industry Provide Their CPE Through Retailer And
Their Outlets. Dish TV Provide CPE Through Retailer Only And Big TV, Airtel Digital
And Tata Sky Provide Through Both Retailer And Their Own Outlay.

Annexure

Questionnaire

NAME- ___________________ AREA


____________________
AGE- ________ OCCUPATION-
_________________

Q1) How many DTH service provider you know about?

a) Tata Sky ----------- b) Airtel ---------------


c) Dish TV ------------- d) Videocon
-----------
e) Sun TV --------------- f) GTPL
---------------
g) Reliance --------------

Q2) Which DTH connection do you have?

a) Tata Sky ----------- b) Airtel ---------------


c) Dish TV ------------- d) Videocon -----------
e) Sun TV --------------- f) GTPL ---------------
g) Reliance --------------

102
DIRECT TO HOME

Q3) How did you came to know about that provider ?

a) TV Ad -------------- b) News Papers -----------


c) Hoardings ---------- d) Retailers ---------------
e) Friends ----------- f) Relatives ---------------
g) Magazines ------------- h) Others -----------------

Q4) Whom do you consult to finalize the decision?

a) Myself -------------- b) Family ------------------


c) Friends\ Relatives --------- d) Retailers ----------------
e) Neighbors ---------------

Q5) What are the factors which influenced you to buy


the service of your choice ?

a) Low initial Price ----------- b) Good Clarity --------------


c) Nice packages --------- d) Low Monthly Cost ----------
e) Brand Image ------------- f) Easy Access to Dealer --------
g) Value Added Services ------------

Q6) Which type of package do you prefer?

a) Monthly --------- b) Quarterly ------------


c) Half Yearly -------- d) Yearly --------------

Q7) Do you think your DTH provide value for money?

a) Yes ---------- b) No --------

103
DIRECT TO HOME

Q8) Overall, how would you rate your service provider?

a) Excellent b) Good c) Average d) Poor e) Terrible f) Not Sure

Q9) Overall, how satisfied are you, with network service


of your company?

a) Very satisfied b) Satisfied c) Neutral d) Dissatisfied e) Very dissatisfied

Q10) Reason for the above answer


--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
---------------------------------------------------

Q11) Whom do you think is the best DTH service Provider


?
--------------------------------------------------------------------------------------------------
---------------

Q12) Why
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------

Q13) Rank all the Service Provider as per your preference


criteria ? ( 1 to the first preference and so on)

a) Tata Sky ----------


b) Airtel ---------
c) Dish Tv --------

104
DIRECT TO HOME

d) Videocon --------
e) Sun tv --------
f) GTPL ---------
g) Reliance --------

Bibliography

Reference Books

Jr., A. A. (Special Indian Edition).


Crafting And Executing Strategy. Tata
Mcgraw Hill Pub. Co. Ltd.
Jr., O. C. (5th Edition). Marketing
Stretegy. Tata Mcgraw Hill Pub. Co.
Ltd.
Philp, K. (13th Edition). Marketing
Management. PEARSON.

News Papers
Economic Times
Business Standard
Financial Express
Times Of India

Search Engine
Google
Yahoo
MSN

Web Sites
Www.Mib.Nic.In
Www.Dishtv.In
Www.Tatasky.Com

105
DIRECT TO HOME

Www.Sundirect.In
Www.Airtel.In/Digitaltv
Www.Bigtv.Co.In
Www.Videocond2h.Com
Www.Indiabroadband.Net
Www.Indiatelevision.Com
Www.Indiainbusiness.Nic.In
Www.Strategyr.Com

Contents

1) Executive Summary
---------------------------------------------------------------------06

2) Research Objective
a. Primary Objective
--------------------------------------------------------------07
b. Secondary Objective
-----------------------------------------------------------07
c. Information Needs
-------------------------------------------------------------07
3) Research Methodology
a. Sampling Design
---------------------------------------------------------------08
b. Data Collection
-----------------------------------------------------------------09

4) Product Profile
a. Definitions
-----------------------------------------------------------------------10
b. DTH Service
--------------------------------------------------------------------11
5) Indian Market
a. Current Players
----------------------------------------------------------------14
b. Market Share
-------------------------------------------------------------------18
c. Projected Growth Rate
--------------------------------------------------------19
d. Practical Perspective
----------------------------------------------------------19

106
DIRECT TO HOME

6) Substitutes of the Product


------------------------------------------------------------22
7) Industry Life Cycle
--------------------------------------------------------------------28
a. Introduction Stage
------------------------------------------------------------29
b. Growth Stage
-------------------------------------------------------------------30
8) Survey Analysis

a. Primary Tabulation and Interpretation


---------------------------------- 31

9) Financial Analysis
----------------------------------------------------------------------45
10) PEST Analysis
---------------------------------------------------------------------------47
a) Political Factors
--------------------------------------------------------- 48
b) Economic Factors
-------------------------------------------------------53
c) Social Factors
------------------------------------------------------------56
d) Technological Factors
--------------------------------------------------59
11) Michel Porter's Five Force Analysis
a) Threats Of New Entrants
----------------------------------------61
b) Threats Of Substitutes
--------------------------------------------64
c) Bargaining Power of
Supplier-----------------------------------67
d) Bargaining Power of Buyers
-------------------------------------68
e) Inter Firm Rivalry
-------------------------------------------------70
12) Driving Forces
--------------------------------------------------------------------------75
13) Strategic Factors
------------------------------------------------------------------------78
14) Value Chain of Industry
---------------------------------------------------------------85
15) OT Analysis
------------------------------------------------------------------------------90
16) Findings
----------------------------------------------------------------------------------96

107
DIRECT TO HOME

17) Recommended Strategy


--------------------------------------------------------------97
18) Conclusions
------------------------------------------------------------------------------99
19) Annexure
-------------------------------------------------------------------------------100
20) Bibliography
----------------------------------------------------------------------------103

PRINT THE ABOVE “CONTENTS” SEPARATELY BY


COPYING IT TO NEW DOCUMENTS SO THAT PAGE
NUMBERS DOESN’T GET CHANGED.

108