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A DISSERTATION ON

INDIAN DTH SATELLITE TV SERVICES:


A COMPARATIVE STUDY OF VARIOUS DTH
SATELLITE TV PLAYERS WITH CABLE TV
IN GHAZIABAD REGION
Submitted for partial fulfillment of the Requirement of the Degree

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM- 2008-2010)

BY

BARUN ADAK
ROLL NO. – 2008044

UNDER THE GUIDANCE OF

PROF. SOUMENDU BHATTACHARYA


SUPERVISOR
Faculty Member of
Institute of Technology & Science
Mohan Nagar, Ghaziabad

I.T.S- Management & IT Institute,


Mohan Nagar, Ghaziabad
JANUARY, 2010
CERTIFICATE

Certified that Barun Adak has carried out the research work presented in
this thesis entitled “INDIAN DTH SATELLITE TV SERVICES: A
COMPARATIVE STUDY OF VAROIUS DTH SATELLITE TV PALYERS
WITH CABLE TV IN GHAZIABAD REGION” for the award of
Post Graduate Diploma In Management from I.T.S-Management and IT
Institute, Mohan Nagar, Ghaziabad under my supervision. The Dissertation
embodies result of original work and studies carried out by Student himself and
the contents of the thesis do not form the basis for the award of any other degree
to the candidate or to anybody else.

Date: (PROF. SOUMENDU BHATTACHARYA)

Place: Faculty Member of


Institute of Technology & Science.
Mohan Nagar, Ghaziabad
CANDIDATE‟S DECLARATION

I hereby declare that the work presented in this project entitled “INDIAN DTH
SATELLITE TV SERVICES: A COMPARATIVE STUDY OF VARIOUS DTH
SATELLITE TV PLAYERS WITH CABLE TV IN GHAZIABAD REGION”
submitted towards completion of project in Forth Semester of PGDM at the Institute of
Technology & Science, Ghaziabad, is an authentic record of my original work carried
out under the guidance of Prof. Soumendu Bhattacharya, Faculty member of Institute of
Technology & Science, Ghaziabad.

I have not submitted the matter embodied in this project for the award of any other
degree.

(Barun Adak)
PGDM (2008-2010)
Roll No. - 2008044
Institute of Technology & Science
Ghaziabad
PREFACE
The PGDM programme is well structured and integrated course of business
studies. The PGDM programme provides student with a fundamental knowledge of
business and organizational functions and activities, as well as an exposure to strategic
thinking of management.

The dissertation report is an integral part of this PGDM course which gives us
the knowledge of industry environment well and theoretical concept which applied by
the industry players. The main objective of this dissertation report at PGDM level is to
develop skill in student by supplement to the theoretical study of business management
in general. Here we analyze the market situation of the industry on the basis of market
situation, data collected by which we come to the strategic implementation of the
organization in the industry.

The dissertation we have to do on the topic to the field of our interest in the
future where we have to prepare a project report. I have done my dissertation on the
topic of “INDIAN DTH SATELLITE TV SERVICES: A COMPARATIVE STUDY OF
VARIOUS DTH SATELLITE TV PLAYERS WITH CABLE TV IN GHAZIABAD
REGION”. During this project I have got a lot of knowledge of this industry & about
this market also. In this project I have analyze why people switch over or want to
switch over their TV network from Cable TV network to DTH satellite TV network. I
have done the factor analysis to analyze the impact of various influencing factors to
that switch over. And also find out various substitutes and their position in the market.
In this project I have give so many recommendation on the basis of the analysis which
is the implementation of the strategic thinking.

This research work helps me to challenge the competition in this competitive market.
Understand the consumer first is very important in present market scenario. So to do
this research work is very important on the basis of the market situation, market
environment, buying behavior & so on. This would help me immensely in my future
learning of marketing.
ACKNOWLEDGEMENT

I am overwhelmed with pleaser and my deep sense of gratitude to my college for


assigning me such opportunity to do dissertation project which opened my vision
towards research experience of the theory implications and practical applications
studied in this PGDM course.

I express my heartfelt thanks to my SUPERVISOR in college Prof. Soumendu


Bhattacharya who has been help me to choose the topic & do this project and all
faculties in my institute who has been provided us with guidance, inspiration,
perspective and stimulating discussion throughout the writing of this project.

I would like to extend my sincere thanks to Dr. Manoj Kr. Dass, Dr. Sapna Rakesh,
Dr. Kavita Srivastav and Prof. Priya mam for acting as the constant motivating force
for direct me towards right path and for the completion of the project.

I have all my appreciation for my parents whose unfailing inspiration, love and
arduous effort have enabled me to reach this level. And I would like to thanks to my
friends and all the people who are involved in this project directly or indirectly.
TABLE OF CONTENTS:

CHAPTER 1- INTRODUCTION

1.1 INTRODUCTION 2

1.2 OBJECTIVE OF THE STUDY 5

1.3 METHODOLOGY 6

1.3.1 SAMPLING & POPULATION 6

1.3.2 DATA 6

1.3.3 AREA COVERED 6

1.3.4 QUESTINNAIRE 6

1.3.5 TOOLS & TECHNIQUES 6

1.3.6 SOFTWARE 7

1.4 SCOPE OF THE STUDY 7

1.5 LIMITATION 8

CHAPTER 2- REVIEW OF THE STUDY

2.1 REVIEW OF THE STUDY 9

CHAPTER 3- THEORITICAL CHAPTER

3.1 INDIAN CABLE TV SERVICES 15

3.2 DTH INDUSTRY

3.2.1 INDIAN DTH SATELLITE TV SERVICES 16

3.2.2 WORK OF DTH 17

3.2.3 CURRENT SCENERIO OF DTH 17

3.2.4 STRUCTURE OF DTH INDUSTRY 19

3.3 ENVIRONMENT ANALYSIS OF DTH 21

CHAPTER 4- DATA ANALYSIS

4.1 DEMOGRAPHIC CHARECTERISTIC 27


4.2 FREQUENCY ANALYSIS 28

4.3 CROSS TABULATION 40

4.4 MEAN, SD & VARIENCE 43

CHAPTER 5 DATA ANALYSIS: SPECIFIC TOOLS

5. FACTOR ANALYSIS 45

5.1 RELIABILITY TEST 46

5.2 FACTOR ANALYSIS 47

CHAPTER 6- FINDINGS, SUGGESTIONS

6.1 SUMMERY OF FINDINGS 51

6.2 SUGGESTIONS 53

6.3 SCOPE OF FURTHER STUDY 54

6.4 CONCLUSION 55

BIBLIOGRAPHY I

REFERENCES III

ANNEXURE V
CHAPTER 1 – INTRODUCTION
1.1. INTRODUCTION
1.2. OBJECTIVES OF THE STUDY
1.3. METHODOLOGY
1.3.1. SAMPLE & POPULATION
1.3.2. DATA
1.3.3. AREA COVERED
1.3.4. QUESTINNAIRE
1.3.5. TOOLS & TECHNIQUES
1.3.6. SOFTWARE
1.4. SCOPE OF THE STUDY
1.5. LIMITATION OF THE STUDY
CHAPTER 1 - INTRODUCTION

1.1 INTRODUCTION:
In earlier days there was only one TV channel in India the “Doordarshan”,
Channel doordarshan was owned and operated by government of India. In those eras
every home which had a TV set used to have its own antenna to capture the signals.

The Cable Television Ordinance Law was passed in January 1995. This enabled
cable operators to feed channels and later on private companies were allowed to air their
own channels and this led to the explosive growth in number of TV channels and number
of cable operators. The growth of TV channels & cable operators created a big industry
and market opportunities.

Until few years back there were as many as 1,00,000 cable operators across India.
However the services provided by cable operators were poor. The strikes, increase in
tariff plan, selective broadcast and poor services were major cause of dissatisfaction
among the customers. This has created an opportunity for DTH, which serves an
immediate threat to the high-end cable networks. Some of the key players in the industry
are DishTV by Zee group, TataSky joint venture of Tata & Star TV, Big TV by Anil
Dhirubhai Ambani Group, Digital TV by Bharti Tele media, SUN Direct from the
promoters of Sun TV. There are some other companies who are contemplating to start
their own DTH like Videocon.

The Indian market was till now dominated by the presence of local cable TV
operators and had complete monopoly over it. DTH opened an option for Indian
Consumers to opt for the satellite service to obtain television channels direct to their
homes without any intermediaries. It also provided several value added services to
enhance their television watching experience.

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,
Reliance BIG TV, SUN Direct, AIRTEL Digital TV, DD Direct+ & Videocon d2h to
educate the consumers about the advantages of the service and in turn create an urge to
invest in it.

There is an immense opportunity for DTH in the Indian market. The opportunity
in India almost 10 times that in developed countries like the US and Europe. For every
channel there is a scope for broadcasting it in at least ten different languages. So every
channel multiplied by ten that is the kind of scope for DTH in the country.

The way DTH reaches a consumer's home is different from the way cable TV
does. In DTH, TV channels would be transmitted from the satellite to a small dish
antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster
directly connects to the user. The middlemen like local cable operators are not there in
the picture.

DTH can also reach the remotest of areas since it does away with the intermediate
step of a cable operator and the wires (cables) that come from the cable operator to your
house. As we explained above, in DTH signals directly come from the satellite to your
DTH dish.

DTH offers better quality picture than cable TV. This is because cable TV in
India is analog. Despite digital transmission and reception, the cable transmission is still
analog. DTH offers stereophonic sound effects. It can also reach remote areas where
terrestrial transmission and cable TV have failed to penetrate.
Apart from enhanced picture quality, DTH has also allows for interactive TV services
such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing
that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc
are pushing for it.

In DTH, the payments will be made directly by the subscriber to the satellite
company offering the service. A big problem that broadcasters face in India is the issue of
underreporting of subscribers by cable operators.
Consider the cable operators pyramid. Right at the top is the broadcaster. Next
comes the Multi Service Cable Operator (MSOs) like Siticable, InCable, etc. Below them
are the Access Cable Operators (ACOs) or your local cable guy who actually lays the
wires to your house. The local cable operators or the ACOs then allegedly under-report
the number of subscribers they have bagged because they have to pay the MSOs
something like Rs 30-45 per household. Showing a lesser number of households benefits
ACOs.
With no way to actually cross check, the MSOs and the broadcasters lose a lot.
Broadcasters do not earn much in subscription fees and are mostly dependent on
advertisement revenue to cover their costs, which is not sustainable and does not
offer high growth in revenues for broadcasters.
The way out of this is to use a set-top box so that it will be clear how many
households are actually using cable or going for DTH where broadcasters directly
connect to consumers and can actually grow revenues with a growth in the subscriber
base.
Today, broadcasters believe that the market is ripe for DTH. The prices of the
dish and the set-top box have come down significantly. Overall investments required in
putting up a DTH infrastructure has dropped and customers are also reaping the benefits
of more attractive tariffs.
The major thing that DTH operators are betting on is that the service is coming at
a time when the government is pushing for CAS (conditional access system), which will
make cable television more expensive, narrowing the tariff gap between DTH and cable.

DTH faces stiff competition from the terrestrial, cable and IPTV. As per the
industry estimates, there are 130 million TV homes of which 85 million are served by
cable and around 16 million by DTH with the remaining taken by terrestrial transmission.
1.2 OBJECTIVES OF THE STUDY:

 To study the reasons behind the switching over of multi TV channel users from
cable TV to DTH services.
There are so many reasons behind this switching over. People sometimes think
that both network operators give various channels but it is the picture quality
which differentiates those. Sometime pay only for those channels which you need
is also a reason for that switch over. So here we want to study the reason behind
the switching over of multi channel users from cable TV to DTH TV.
 To analyze the factors which influence these switching over from cable TV to
DTH services in Ghaziabad region.
All factors not influence more the people to that switch over, there we want to
make a series of factors on the basis of influencing power of the factors by
applying statistical tools.
 To analyze the position of substitutes of DTH services with respect to DTH
services in the market.
IPTV, cell phone TV these are the substitute of the DTH satellite TV which are
now introduce themselves in the market. Here we want to analyze the position of
those substitutes in the market.
 To analyze the opportunities of Indian DTH services.
Analyzing the environmental analysis we try to analyze the market of the TV
networks which are quite helpful to find out opportunities of Indian DTH
services. How the present DTH players capture the opportunities to stay in the
growth.
1.3 METHODOLOGY:

1.3.1 SAMPLE & POPULATION:


The sample size is , which is sufficient to do the analysis more effectively. As a
general rule of thumb 300 data is more enough to analyze, however in the present
study the total sample size is .The target population of the survey constitutes the
TV households in Ghaziabad region. I take the Ghaziabad area to collect the
primary data from households as this is the most growing area in NCR region.
1.3.2 DATA:
Here mainly primary data collected from the TV households in Ghaziabad region
by filled up the questionnaire.
1.3.3 AREA COVERED:
The area targeted here is Ghaziabad region which is the more growing area in
NRC region in the scenes of population, industrial growth & economical growth
also. The data have collected randomly from this region. I mainly covered
Sahibabad area, Vasundhara area, Ghaziabad market area and Sastri nagar area to
collect the data.
1.3.4 QUESTINNAIRE:
The questionnaire is well designed and close ended type, so that people easily
filled the questionnaire according to their perception. People always flexible to
give their answer objectively. So here open ended question is more effective as
the target population is households.
1.3.5 TOOLS & TECHNIQUES:
Descriptive statistics used here to analyze frequency of the DTH TV satellite and
cable TV and have used Factor analysis also to analyze the various influencing
factors of DTH TV services which influenced people to switch over from DTH
TV to Cable TV.
1.3.6 SOFTWARE:
SPSS & EXCEL used here to analyze the primary data. SPSS is very useful here
to effectively analyze the data and get effective result which is reliable enough as
sample size is sufficient to analyze.

1.4 SCOPE OF THE STUDY:


The study is mainly all about the comparison between DTH TV & Cable TV
services and analysis various factors which influenced people to switch over from
cable TV to DTH TV. So we analyze the factors which influenced people more to
switch over and the study also said about the substitutes/ threats of DTH services
such as IPTV, Online TV so that company make new strategy in future to face the
new competition.
From this study we know the perception of the households towards various DTH
TV players, cable TV so that they use it in company‟s strategy to make them
prepare for that competitive market. Various DTH players also use new
technology to give more facility to the customers to avoid extra competition in the
market. The market share of various TV network suppliers helps them to analyze
their business so that they capture the opportunities & also the market share of
various DTH players give them information to placed them in the market
situation. All of this information helps players to carry DTH industry in a good
position and helps to analyze future strategy.
From this study people also take advantage to choose the suitable TV network
providers by analyzing the market environment.
1.5 LIMITATION OF THE STUDY:

 Only Ghaziabad region will consider as research area.


Only Ghaziabad area not sufficient enough to analyze the market of DTH satellite
services, there we should also consider the other region for this analysis.
Ghaziabad is now growing area in NCR region but there is rural area, small cities
which we have to consider to getting back effective result from the analysis.
 There are various payment systems of cable TV operators in various areas.
Depending on area whether it is big town or small city or any industrial area or
any rural area there are various payment system of cable TV operators. So here
we can‟t consider all these system so that we analyze effectively. People are more
sensitive towards price which they have to pay monthly so that plays an important
role here for the buying behavior of the customer. So by considering only one
region payment system we can‟t say anything more about the buying behavior of
the consumer.
 Future analysis of DTH satellite TV will be based on those data which collected
from Ghaziabad only.
CHAPTER 2 – REVIEW OF
THE STUDY
2.1. REVIEW OF THE STUDY
2.1.1. SANDEEP VARMA & DORIS JOHN, “DTH
VS. CABLE TV: SKY WARS IN INDIA” IN
2006
2.1.2. SHIVASUNDARAM UPADHAY,
“INDUSTRY ANALYSIS- DTH INDUSTRY
IN INDIA” PULISHED 2007
2.1.3. RESEARCHER FROM GARTNER, 2007
2.1.4. “INDIAN READERSHIP SURVEY 2008
R2”
2.1.5. “INDIAN ERTERTAINMENT & MEDIA
OUTLOOK 2009” IN 2009
2.1.6. RNCOS INDUSTRY RESEARCH
SOLUTION, “INDIAN DTH MARKET
FORECAST TO 2012” IN 2009
Sandeep Varma and Doris John published a Case study: “DTH vs. Cable TV:
sky Wars in India” in the year 2006. Home entertainment in India had come a long way
from the days when there was only one national channel, Doordarshan, to the age of
satellite television and, now, the latest development called DTH (Direct to Home)
technology. With the Government of India having set the end of 2006 as the deadline to
introduce CAS (Conditional Access System), in selected metros and later all over India,
the scene would become more competitive. Cable operators have started pressurizing the
Indian Government to speed up the process of changing the analog technology to digital.
Once cable is digitized, cable operators would also be in a position to provide programs
in high quality as like DTH.

Apart from DTH, new emerging technological advancements in TV viewing like


Internet Protocol Television (IPTV) and Cell Phone TV would also compete among
themselves to get their share of the market in the Indian home entertainment industry.
The Indian customer would have more options in terms of TV entertainment and the main
deciding factor would be service support. The case allows for discussion on the present
scenario of home entertainment in India.

They highlight the various technological advancements that happened in the field
of TV broadcasting and also throw light on various service providers and their services.
They discuss the emerging technologies in home entertainment in India.

Industry analyst Sivasundaram Umapathy published his literature „industry


analysis- DTH industry in India‟ in 2007. In this paper he analyzed the challenges and
opportunities present for the DTH industry within the Indian contest. We would look at
the history of Indian broadcasting followed by looking at the current DTH market. An
environment analysis done using the Potter‟s five forces model and and the various
challenges faced by the industry identified. Finally we look at the possible suggestions
taking a long term view.

With the existing regulatory restrictions, Increasing content cost and lack of
transponders, DTH terrain too steps to climb. With content differentiation not happening
in the near future, companies have to differentiate only the service and cost levels. The
increasing consumer awareness and expectations also make it difficult to satisfy the
consumer. Today‟s consumer is sensitive to price as well as the quality. Apart from the
volumes business, a prudent DTH operator should also take a serious look at the
substitutes and complements. He should diversify and create his presence in the entire
spectrum of broadcasting and telecommunication services. The final winner cannot be a
pure DTH player but a convergent player who offers all in one to the value-conscious,
price sensitive Indian consumer.

Researchers from Gartner [2007] believes that IPTV will struggle in India for
following reasons

Cable TV users pay almost half of what digital subscribers pay


Low broadband penetration will inhibit IPTV uptake;
2007 is a critical year for pay TV, with CAS being mandated in a phased manner,
and more players are moving into DTH, which is growing.
IPTV will be priced at the same price as digital cable or DTH, so no price
differentiation

As the numbers of broadband users are increasing in urban and semi urban cities
IPTV can pose serious threat to DTH player in long run.

The „Indian Readership Survey 2008 R2‟ findings have shown that the Dish TV
is the largest player with over 3.1 million subscribers, followed by DD Direct, Tata Sky
and Sun Direct, which has a predominance in the southern zone.

“Indian entertainment and media outlook 2009” published in 2009 where they
discussed about all the entertainment industry.
In 2008, there is a significant churn of subscribers from cable in favour of DTH, as the
latter subsidizes hardware, reduces installation costs and introduces value packs.
Aggressive marketing and promotions also helped DTH lap up subscribers in 2008 which
reached ~11.5 million at the end of the year from ~3.5 million in the beginning of 2008.

2008 also witnessed a „technology-war‟ amongst DTH players. With new players
Bharti Airtel‟s Digital TV and Reliance‟s DTH service Big TV launched in 2008, a
technology war erupted between these new players and the older players, Dish TV and
Tata Sky use of technology in the set-top-boxes. The older DTH players claimed that the
latest MPEG-4 technology, as used by the new DTH players, violates existing guidelines
for DTH operations citing reasons of inter operability. In the view of the older DTH
players, the new DTH players are required to offer commercial inter-operability with the
existing MPEG-2 set top boxes being used by the older DTH players. The matter is
currently under dispute with BIS.

RNCOS industry Research Solutions published new report as “Indian DTH


Market Forecast to 2012” in 2009.

In their report they said that 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. The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009
and the numbers are forecasted to surge further at a CAGR of around 30% through 2012.

"With over 130 Million TV homes, India offers large room for growth in DTH
services as the technology can be used to offer DTH services in remote location, where
setting up of cable networks seems impossible, or is highly expensive", says a Sr. analyst
at RNCOS. It is forecasted that DTH will capture over 21% of TV homes in India by
2012, up from around 10% now.
Their report, "Indian DTH Market Forecast to 2012”, provides thorough
analysis of the current market performance and the future outlook of DTH services
market in India. It gives detailed analysis of the success factors and also helps in
determining what all are the issues or the hurdles in front of the burgeoning DTH services
market in the country. The study also explains the reason for why all the incumbent
players have been investing huge amounts into the promotion and marketing of DTH
services in the country, despite the current economic slowdown.

This research provides extensive research and rational analysis of the DTH
market in India. It will help clients to understand the underlying potential of DTH
services in the Indian television industry. Various factors which will drive the future
growth of the DTH market in India have been thoroughly analyzed in the report. The
report will also help in gaining insight into the prevailing key trends and developments
that are contributing positively towards the growth of the market.
CHAPTER 3 – THEORETICAL
CHAPTER
3.1. INDIAN CABLE TV SERVICES
3.2. INDIAN DTH SATELLITE TV SERVICES
3.2.1. INDIAN DTH SATELLITE TV
3.2.2. WORKING OF DTH
3.2.3. CURRENT SCENERIO OF DTH TV
3.2.4. STRUCTURE OF THE DTH INDUSTRY
3.3. ENVIRONMENT ANALYSIS OF DTH INDUSTRY
3.1. INDIAN CABLE TV SERVICES:
The history of Indian Television dates back to the launch of Doordarshan, the
country‟s national television network in 1959 when the transmission was in black &
white. The 9th Asian games which were held in 1982 in the country‟s capital New Delhi
heralded the mark of colour television broadcast in India. In 1991, Indian economy was
liberalized from the license raj and major initiatives like inviting FDI, deregulation of
domestic businesses emerged. This led to the influx of foreign channels like Star TV and
creation of domestic satellite channels like Sun TV and Zee TV. This virtually destroyed
the monopoly held by Doordarshan. In 1992, the cable TV industry started which
changed the way the average Indian watches the television. Every city in India had a new
breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in
charge of distribution. Since this was a disorganized sector carrying new channels on the
existing infrastructure required new investments which the operators were reluctant to
make. This led to the emergence of a new breed of firms called as Multi System
Operators (MSO) who had heavy financial muscles to make capital investments and
liaised between the cable operators and the channels. MSOs provide the feed to the local
operators for a fee.
In 1995, government felt the need of regulation in Cable TV and passed the Cable
TV network (Regulation) Act. This was also the time when the state owned Doordarshan
and All India Radio came under a new holding called as Prasar Bharati to give them
enough autonomy. The LCOs reported a lower number of connections where as the
broadcasters demanded a higher rate. MSOs were finding it difficult to operate under
these conditions. This led to an amendment of the Cable TV networks(Regulation)Act in
2002 to provide Conditional Access System (CAS). With CAS, the last mile distribution
could be addressable with accuracy and digitalization of broadcast was also possible.
CAS was rolled out in 2003 staring from Chennai and later to parts of Delhi, Mumbai and
Kolkata.
3.2.1 INDIAN DTH SATELLITE TV SERVICES:

DTH stands for Direct-To-Home television. DTH is defined as the reception of


satellite programmes with a personal dish in an individual home. DTH does away with
the need for the local cable operator and puts the broadcaster directly in touch with the
consumer. Only cable operators can receive satellite programmes and they then distribute
them to individual homes.
DTH services were first proposed in India in 1996. But they did not pass approval
because there were concerns over national security and a cultural invasion. In 1997, the
government even imposed a ban when the Rupert Murdoch-owned Indian Sky
Broadcasting (ISkyB) was about to launch its DTH services in India. Finally in 2000,
DTH was allowed. The new policy requires all operators to set up earth stations in India
within 12 months of getting a license. DTH licenses in India will cost $2.14 million and
will be valid for 10 years. The companies offering DTH service will have to have an
Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the
number of companies that can apply for the DTH license. On the DTH front, TRAI
issued the guidelines for operating DTH. Country‟s first DTH license was awarded to
Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product
DD-Direct+.
In 2007, TRAI proposed a new initiative by name “Headend-In-The-Sky (HITS)”
model as an alternative to the existing cable distribution. Instead of the MSOs providing
the bundle, there will be a single HITS operator who will prepare the bundle of channels
and beam it to the Headend in the satellite. With the average Indian getting younger, and
hence more likely to spend on nonessentials, the entertainment industry has the potential
to grow explosively in the future. Now the industry is ready to enter a second stage of
growth powered by the twin engines of technology (availability of quality infrastructure
and the accelerated penetration of digital connectivity) and an enabling regulatory
environment.
3.2.2 WORKING OF DTH

Direct To Home (DTH) is a distribution platform for multichannel TV


programmes on Ku brand (high frequency of 11.7 to 14.55 Gigahertz) by using a satellite
system which transmits signals directly to subscriber premises.
The term predates DBS satellite and is often used in reference to services carried
by lower power satellite which required larger dishes.

Following are the simplified steps


on how DTH works:

1. Broadcoster Sends the signals

2. The satellite receives the


signals at Ku Band

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

3.2.3 CURRENT SCENERIO OF DTH SATELLITE TV SERVICES:

In the current context of the global financial meltdown, the Direct to Home
(DTH) industry in India is in the throes of multifarious challenges and opportunities. The
“big game” is all about shaping up grandiose plans to master the winning rules to garner
as much portion of the Indian DTH pie as possible by a handful of players. Since the
DTH space denotes “big value”, akin to the space occupied by television and telephony,
inter-firm rivalries have thrown up price wars, discount schemes, procurement of
transponders, ambitious targets for improving the subscription base, popular bouquet of
channels, set top boxes with superior quality of videos, improving content, etc as a
desperate means to entice the Indian viewer. A neat 20 per cent annual growth is being
witnessed in the DTH sector in India with over 16 million households having digital pay-
TV.
According to Harsh Bijoor, a brand consultant, “Since Dish TV, the biggest
market player on the Indian soil, has not scraped even five per cent of the pie, there is
plenty left for other players to eat”.
In the early 2008, five major players, Zee‟s Dish TV, Tata Sky, Reliance ADAG,
Sun Direct and Bharti Telemedia formed an umbrella body – DTH Operators Association
of India (DOAI). Dish TV is the largest DTH provider with a subscriber base of around 5
million, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert
Murdoch) and the Tata Group (20:80), now has around 3.4 million connections and the
forecast for 2012 is that it will further increase to eight million, Sun Direct, the 80:20 JV
between the Maran family and the Astro Group of Malaysia, over 2.3 million, Big Tv
about 1.2 million and Airtel Digital Tv about 0.3 million subscribers (Source: Business
Standard, May 1, 2009). According to sources, DD Direct Plus has a subscriber base of
about 3-4 million subscribers, mostly in the remote corners of the country not connected
by terrestrial or cable television.
DTH operations in India could be enhanced if the dearth of satellite capacity is
removed by increasing the number of available Ku-band transponders that at present is 12
on Insat 4A, which in turn would mean more channels for viewing.
Tax burdens on DTH are another area of complaint for operators. Around 40 per
cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for
services imposed by the Central government. Apart from this, there are entertainment
taxes that differ from state to state.
3.2.4 STRUCTURE OF THE DTH INDUSTRY:

The structure of the DTH industry in India can be categorized as an “Oligopoly”.


The word Oligopoly is derived from the Greek for few (entities with the right to) sell.
An oligopoly is a market form in which a market or industry is dominated by a small
number of sellers (oligopolists).

An oligopoly is a market dominated by a few large suppliers. The degree of market


concentration is very high. Firms within an oligopoly produce branded products and there
are also barriers to entry.

Key characteristics of “Oligopoly” are following:

Few larger supplier dominates the market


Interdependence between firms
Each firm produces branded products
Significant entry barriers into the market in the long run which allows firms to
make supernormal profits
Each oligopolist is aware of the actions of the others.

Analysis of the Indian DTH industry:

Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+ was
launched since DD Direct+ is non commercial and free DTH service hence we would
focus our discussion on private players in the industry.

As of now DishTV, TataSky, BigTV, AirTel Digitel TV, Sun Direct are in the
industry. There are some other players like Videocon, who want to join this high lucrative
industry. Since there are only 3 major players and the market concentration is very high
Indian DTH industry is oligopolistic.
DTH Industry Market Share 2009*

Market
Promoter
Brand Share

Dish TV Zee group 31.25%

TataSky Tata Sons & Star TV 20.6%

Big TV Anil Dhirubhai Abani Group 16.25%

AirTel Digital AirTel by Bharati telemedia 18.7%

Sun Direct 18.7%

DD Direct+ 20%

Videocon d2h 3.15%


3.3 ENVIRONMENT ANALYSIS OF DTH INDUSTRY:

Here is the Porter‟s 5 forces model in the context of DTH industry. The observations are
categorized into the 5 forces as below.

1. Threat of substitutes:

DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry
estimates, there are 130 million TV homes of which 85 million are served by cable and
around 16 million by DTH with the remaining taken by terrestrial transmission.
India Broadcasting

DTH
12%

Terrestrial
22%
Cable TV

Cable TV Terrestrial
66% DTH

 Terrestrial Television:

Doordarshan is the world‟s largest terrestrial broadcaster with over 1400 terrestrial TV
transmitters. The reach provided by this route is phenomenal with Doordarshan covering
88% of India‟s geographical area. Covering the remaining 12% area required substantial
capital investments which does not outweigh the benefits. The transmission was done
originally in Analog mode but beginning from 2002, Doordarshan has partnered with
BBC resources – the consulting wing of BBC, in offering digital terrestrial TV. The
transmission could be received using a low cost Yagi antenna. However, due to lack of
attractive content it does not seem to be a formidable threat for DTH.

 Cable TV:

Cable TV currently operates in 2 modes viz. through CAS covering cities like Chennai,
Delhi, Mumbai and Kolkatta, and through non-addressable system in the rest of the
country. As seen from the above diagram Cable TV enjoys the maximum share as
compared to other medium. In case of CAS controlled areas, the subscriber has to buy Set
Top Box (STB) to see the pay channels. On the other hand, in areas where non-
addressable system is used, nearly all the channels are available without the need of any
separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on
the place. Due to phenomenal reach of Cable TV, it poses a serious threat to the growth
of DTH industry.

 Internet Protocol Television (IPTV):

IPTV is a service where television signals are digitally sent over the telecommunications
line. It is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data
(Broadband Internet) services. With widespread adoption of broadband in the country and
the growing techno savvy population, IPTV has a potential to become a huge success.
IPTV takes the interactivity to a newer level. In regular mediums, all the channels are
pushed to the consumer regardless of his preference. IPTV encourages a two-way request
response model where the consumer chooses the programs he wants to view. Right now
thos medium is totally unregulated and cable companies are urging the TRAI to issue a
consultation paper process to include IPTV under the aegis of Cable TV act. IPTV is a
considerable threat to DTH in urban and semi urban areas where broadband has made its
mark.

 Online TV:

The World Wide Web is changing lot of things, the way data & information are stored,
and shared has changed dramatically. Web 2.0 offers users to watch TV programs online.
There are already websites like:

www.indiatvonline.com
www.tvdekho.com

Apart from this website TV channels are also streaming live videos of their programs.

 Online TV though is a niche industry as of now but with increased penetration of


broadband connection, it can pose significant challenge to DTH industry.
2. Bargaining power of suppliers:
DTH industry relies on three major supplies: Customer Premise Equipment (CPE)
comprising of the satellite dish, Set Top Box with the necessary Access card, the Ku band
transponders in the orbiting satellites and content. With India overtaking Japan as Asia‟s
largest DTH, the bargaining power of Indian DTH operators with CPE supplies have
increased.
However, the availability of transponders is increasingly becoming difficult. 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 as its cash cow for the next 5 to 10 years. 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.

3. Bargaining power of buyers:

With enough options to choose both from the pont of alternate mediums like Cable, IPTV
and Terrestrial broadcast and from the point of increasing DTH operators, the consumer
is at his will to decide. Customers will continue to have a high bargaining power until
DTH platforms try to differentiate them as superior players with better content and
clarity.

4. Inter firm rivalry:

With 6 operational players, the inter firm rivalry is quite high. The competition from state
owned DD-Direct to private players is negligible from the content point of view as the
number of channels offered by DD-Direct is very limited. However, DD-Direct does not
charge any monthly subscription fee which poses a threat to the private players. Between
Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount
schemes offered to new connections. Being the first mover, Dish TV has price advantage
in both the STB as well as procuring the transponders. On the other hand, Tata Sky
claims its STB having superior DVD quality video.
Other than price wars and intense competition in increasing customer base, there is also a
competition at acquiring the content. Dish TV, Tata Sky and Sun Direct are part of big
groups that also have popular bouquet of channels like Zee, Star and Sun respectively.
The channels indirectly refuse content for DTH operators by charging exorbitantly or
mandating that all the channels of their bouquet to be transmitted when the vendor is
already capacity constraint.

5. Threat of new entrants:

With already 6 players in the DTH space, threat of new entrants is relatively low. There is
already enough competition which will discourage new firms to enter this business.
While getting a license is relatively easy, the barriers to entry are high when it comes to
pricing of CPE and getting the required transponders.
CHAPTER 4 –DATA ANALYSIS
4.1 DEMOGRAPHIC CHARECTERISTIC
4.2 FREQUENCY TABLE
4.2.1 ANALYSIS OF MEAN, SD
4.2.2 FREQUENCY TABLE
4.3 CROSS TABULATION
4.4 MEAN, SD & VARIENCE ANALYSIS
4.1 DEMOGRAPHIC CHARECTERISTIC:

This project has been done with the help of primary data that has been collected from the
households of Ghaziabad region. The purchasing behavior mainly depends on the full
family‟s perception. Now a day‟s TV is the main entertainer of a family, every household
take it as necessary item. There is no difference between perceptions of a middle class
family and a high class family towards TV network regarding their income. As the study
is regarding the comparison between Cable TV & DTH TV so here we neglect the
perception towards consumption of lower class family. So whatever may be the age
factor of an individual or the occupation they always need multi channel TV network.
Form this study I come to know that people need multi channel TV network rather than
terrestrial TV network.
4.2 FREQUENCY ANALYSIS:

NETWORK CONNECTION USED

Statistics

Type of network connection using


N Valid 329
Missing 0
Mean 1.5502
Median 2.0000
Mode 1.00
Std. Deviation .57759
Percentiles 25 1.0000
50 2.0000
75 2.0000
Type of network connection using

Cumulative
Frequency Percent Valid Percent Percent
Valid cable
162 49.2 49.2 49.2
network
dth
153 46.5 46.5 95.7
satellite
terrestrial 14 4.3 4.3 100.0
Total 329 100.0 100.0

type of network connection using

cable
network
4.3
dth
satellite
terrestrial

49.2
46.5
MARKET OF DTH SATELLITE TV

Statistics

if DTH then which company's


N Valid 153
Missing 176
Mean 3.0784
Median 3.0000
Mode 4.00
Std. Deviation 1.74163
Percentiles 25 1.0000
50 3.0000
75 4.0000

Cumulative
Frequency Percent Valid Percent Percent
Valid tata sky 42 12.8 27.5 27.5
reliance big
19 5.8 12.4 39.9
tv
airtel digiltal
23 7.0 15.0 54.9
tv
dish tv 48 14.6 31.4 86.3
sun direct 5 1.5 3.3 89.5
dd direct 7 2.1 4.6 94.1
videocon
9 2.7 5.9 100.0
d2h
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

if DTH then which company's

tata sky
reliance big
tv
27.5
airtel digiltal
tv
12.4 dish tv
sun direct
15 dd direct
videocon
115 d2h
Missing
31.4

3.3
4.6
5.9
SWITCH OVER OR FROM CABLE TV TO DTH TV

Statistics

switched over from cable TV to DTH or not


N Valid 315
Missing 14
Mean 1.5143
Median 2.0000
Mode 2.00
Std. Deviation .50059
Percentiles 25 1.0000
50 2.0000
75 2.0000

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 153 46.5 48.6 48.6
no 162 49.2 51.4 100.0
Total 315 95.7 100.0
Missing System 14 4.3
Total 329 100.0

switched over from cable TV to DTH or not

yes
no
4.4
Missing

48.6

51.4
REASON BEHIND NOT SWITCHED OVER FROM CABLE TV TO DTH TV

Statistics

if no then whats the reason


N Valid 163
Missing 166
Mean 2.5215
Median 2.0000
Mode 2.00
Std. Deviation 1.11298
Percentiles 25 2.0000
50 2.0000
75 4.0000

Cumulative
Frequency Percent Valid Percent Percent
Valid high price of dth 36 10.9 22.1 22.1
high price of combo
50 15.2 30.7 52.8
pack
diif of channel
package choosing 33 10.0 20.2 73.0

others 44 13.4 27.0 100.0


Total 163 49.5 100.0
Missing System 166 50.5
Total 329 100.0

if no then whats the reason

high price of
dth
22.1
high price of
combo
pack
diif of
30.7
channel
package
choosing
101.8 others
Missing
20.2

27
ALTERNATIVE OF DTH

do you using any alternatives of DTH

Cumulative
Frequency Percent Valid Percent Percent
Valid yes 19 5.8 5.8 5.8
no 310 94.2 94.2 100.0
Total 329 100.0 100.0

which alternatives you are using

Cumulative
Frequency Percent Valid Percent Percent
Valid iptv 13 4.0 68.4 68.4
cell phone
6 1.8 31.6 100.0
tv
Total 19 5.8 100.0
Missing System 310 94.2
Total 329 100.0
PICTURE QUALITY AS AN INFLUENCING FACTOR TO SWITCH OVER

Statistics

How picture quality of DTH influence you to switched over


N Valid 153
Missing 176
Mean 4.4967
Median 5.0000
Mode 5.00
Std. Deviation .66019
Variance .436
Percentiles 25 4.0000
50 5.0000
75 5.0000

Cumulative
Frequency Percent Valid Percent Percent
Valid moderate
14 4.3 9.2 9.2
influence
high influence 49 14.9 32.0 41.2
very high
90 27.4 58.8 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

how picture quality of DTH influence you to


switched over

moderate
influence
9.2
high
32
influence
very high
influence
Missing

115

58.8
CHANNEL PACKAGE AS AN INFLUENCING FACTOR TO SWITCH OVER

Statistics

how channel packaging of DTH influence you to switched over


N Valid 153
Missing 176
Mean 3.8497
Median 4.0000
Mode 4.00
Std. Deviation .99188
Variance .984
Percentiles 25 3.0000
50 4.0000
75 5.0000

Cumulative
Frequency Percent Valid Percent Percent
Valid not influence 8 2.4 5.2 5.2
less influence 2 .6 1.3 6.5
moderate
34 10.3 22.2 28.8
influence
high influence 70 21.3 45.8 74.5
very high
39 11.9 25.5 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

how channel packaging of DTH influence you to


switched over

not infuence
less
5.21.3 influence
22.2 moderate
influence
high
influence
very high
45.8
influence
115 Missing

25.5
NO DISTURBANCE OF SERVICE AS AN INFLUENCING FACTOR

Statistics

how no disturbance of service of DTH influence you to switched over


N Valid 153
Missing 176
Mean 4.2157
Median 5.0000
Mode 5.00
Std. Deviation 1.12356
Variance 1.262
Percentiles 25 4.0000
50 5.0000
75 5.0000
how no disturbance of service of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 5 1.5 3.3 3.3
less influence 12 3.6 7.8 11.1
moderate
17 5.2 11.1 22.2
influence
high influence 30 9.1 19.6 41.8
very high
89 27.1 58.2 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

how no disturbance of service of DTH influence


you to switched over

not infuence
less
3.3 7.8 influence
11.1 moderate
influence
19.6 high
influence
very high
influence
Missing
115

58.2
EXTRA SERVISE AS AN INFLUENCING FACTOR

how extra services of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 27 8.2 17.6 17.6
less influence 56 17.0 36.6 54.2
moderate
34 10.3 22.2 76.5
influence
high influence 11 3.3 7.2 83.7
very high
25 7.6 16.3 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

SERVICE OF INSTRUMENT SUPPLY AS AN INFLUENCING FACTOR

how service of instrument of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 18 5.5 11.8 11.8
less influence 25 7.6 16.3 28.1
moderate
45 13.7 29.4 57.5
influence
high influence 38 11.6 24.8 82.4
very high
27 8.2 17.6 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0
ONLINE PAYMENT AS AN INFLUENCING FACTOR

how online payment of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 45 13.7 29.4 29.4
less influence 44 13.4 28.8 58.2
moderate
30 9.1 19.6 77.8
influence
high influence 17 5.2 11.1 88.9
very high
17 5.2 11.1 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

EXTRA FACILITY AS AN INFLUENCING FACTOR

how facility(record, pause, load) of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 12 3.6 7.8 7.8
less influence 17 5.2 11.1 19.0
moderate
47 14.3 30.7 49.7
influence
high influence 62 18.8 40.5 90.2
very high
15 4.6 9.8 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0
CELEBRITY ENDORSEMENT AS AN INFLUENCING FACTOR

how celebrity endorsement of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 38 11.6 24.8 24.8
less influence 30 9.1 19.6 44.4
moderate
47 14.3 30.7 75.2
influence
high influence 27 8.2 17.6 92.8
very high
11 3.3 7.2 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0

DIRECT CONNECTION TO SERVICE PROVIDER AS INFLUENCING FACTOR

how direct connection to service provider of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid less influence 14 4.3 9.2 9.2
moderate
33 10.0 21.6 30.7
influence
high influence 70 21.3 45.8 76.5
very high
36 10.9 23.5 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0
ELECTRICITY DISTURBANCE IN CABLE PROVIDER

how no both way electricity disturbance of DTH influence you to switched over

Cumulative
Frequency Percent Valid Percent Percent
Valid not infuence 5 1.5 3.3 3.3
less influence 13 4.0 8.5 11.8
moderate
23 7.0 15.0 26.8
influence
high influence 45 13.7 29.4 56.2
very high
67 20.4 43.8 100.0
influence
Total 153 46.5 100.0
Missing System 176 53.5
Total 329 100.0
4.3 CROSS TABULATION

TYPE OF NETWORK CONNECTION VS SATISFACTION

Crosstab

do you satisfy or not with


present service

yes no Total
type of network cable network Count 113 49 162
connection using
% within type of
network connection 69.8% 30.2% 100.0%
using
% within do you satisfy
or not with present 45.0% 62.8% 49.2%
service
% of Total 34.3% 14.9% 49.2%
dth satellite Count 133 20 153
% within type of
network connection 86.9% 13.1% 100.0%
using
% within do you satisfy
or not with present 53.0% 25.6% 46.5%
service
% of Total 40.4% 6.1% 46.5%
terrestrial Count 5 9 14
% within type of
network connection 35.7% 64.3% 100.0%
using
% within do you satisfy
or not with present 2.0% 11.5% 4.3%
service
% of Total 1.5% 2.7% 4.3%
Total Count 251 78 329
% within type of
network connection 76.3% 23.7% 100.0%
using
% within do you satisfy
or not with present 100.0% 100.0% 100.0%
service
% of Total 76.3% 23.7% 100.0%

Chi-Square Tests

Asymp. Sig. (2-


Value df sided)
Pearson Chi-Square 26.143(a) 2 .000
Likelihood Ratio 24.888 2 .000
Linear-by-Linear
1.215 1 .270
Association
N of Valid Cases
329

a 1 cells (16.7%) have expected count less than 5. The minimum expected count is 3.32.
Since value p value is less than alpha i.e. .05 (95%confidence value) or calculated Chi-
Square statistics had a value of 26.143 which is higher than the critical value of 3.841,
therefore h0 is rejected. This shows that there is high association between network
connection & satisfaction with this network. This is an indication of the fact that people
more satisfied with DTH connection rather that cable connection.

DTH SATELLITE PLAYERS VS SATISFACTION


if DTH then which company's * do you satisfy or not with present service Cross tabulation

do you satisfy or not with present


service Total

yes no
if DTH then which tata sky Count
37 5 42
company's
% within if DTH then
which company's 88.1% 11.9% 100.0%

% within do you satisfy


or not with present 27.8% 25.0% 27.5%
service
% of Total 24.2% 3.3% 27.5%
reliance big tv Count 13 6 19
% within if DTH then
which company's 68.4% 31.6% 100.0%

% within do you satisfy


or not with present 9.8% 30.0% 12.4%
service
% of Total 8.5% 3.9% 12.4%
airtel digital tv Count 20 3 23
% within if DTH then
which company's 87.0% 13.0% 100.0%

% within do you satisfy


or not with present 15.0% 15.0% 15.0%
service
% of Total 13.1% 2.0% 15.0%
dish tv Count 45 3 48
% within if DTH then
which company's 93.8% 6.3% 100.0%

% within do you satisfy


or not with present 33.8% 15.0% 31.4%
service
% of Total 29.4% 2.0% 31.4%
sun direct Count 5 0 5
% within if DTH then
which company's 100.0% .0% 100.0%

% within do you satisfy


or not with present 3.8% .0% 3.3%
service
% of Total 3.3% .0% 3.3%
dd direct Count 7 0 7
% within if DTH then
which company's 100.0% .0% 100.0%

% within do you satisfy


or not with present 5.3% .0% 4.6%
service
% of Total 4.6% .0% 4.6%
videocon d2h Count 6 3 9
% within if DTH then
which company's 66.7% 33.3% 100.0%

% within do you satisfy


or not with present 4.5% 15.0% 5.9%
service
% of Total 3.9% 2.0% 5.9%
Total Count 133 20 153
% within if DTH then
which company's 86.9% 13.1% 100.0%

% within do you satisfy


or not with present 100.0% 100.0% 100.0%
service
% of Total 86.9% 13.1% 100.0%

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 12.799(a) 6 .046
Likelihood Ratio 12.578 6 .050
Linear-by-Linear
.125 1 .724
Association
N of Valid Cases
153
a 6 cells (42.9%) have expected count less than 5. The minimum expected count is .65.

Since p value is less than alpha i.e. .05 (95%confidence value) or calculated Chi-Square
statistics had a value of 12.799 which is higher the critical value of 3.841, therefore h0 is
rejected. This shows that there is high association between various DTH players &
satisfaction with these connections.
4.4 ANALYSIS OF MEAN, SD & VARIENCE

Descriptive Statistics

N Mean Std. Deviation Variance


how picture quality of DTH
influence you to switched 153 4.4967 .66019 .436
over
how channel packaging of
DTH influence you to 153 3.8497 .99188 .984
switched over
how no disturbance of
service of DTH influence 153 4.2157 1.12356 1.262
you to switched over
how extra services of DTH
influence you to switched 153 2.6797 1.30613 1.706
over
how service of instrument
of DTH influence you to 153 3.2026 1.24794 1.557
switched over
how online payment of DTH
influence you to switched 153 2.4575 1.31783 1.737
over
how facility(record, pause,
load) of DTH influence you 153 3.3333 1.05755 1.118
to switched over
how celebrity endorsement
of DTH influence you to
switched over 153 2.6275 1.23481 1.525

how direct connection to


service provider of DTH
influence you to switched 153 3.8366 .89190 .795
over
how no both way electricity
disturbance of DTH
influence you to switched 153 4.0196 1.10900 1.230
over
Valid N (list wise) 153

It is clear from table that the mean of the most of the variables is more or less over 3, i.e.
consumers are agreeing with most of the related variables being present in a positive
manner among the service provider. Maximum customers agree to accept that these
variables are the most influencing factors to switch over from cable TV to DTH TV.
Higher means of variable picture quality indicates that according to the users picture
quality is the main influencing attribute towards consumer buying behavior. No
disturbance & no both ways electricity disturbance has also high mean variable these also
a good influencer. Whereas extra service, online payment & celebrity endorsement has no
such type affect on buying behavior of customers.
CHAPTER 5 –DATA ANALYSIS
SPACIFIC TOOLS
5. FACTOR ANALYSIS
5.1 RELIABILITY TEST

5.2 FACTOR ANALYSIS


5. FACTOR ANALYSIS

5.1 Reliability

Reliability Statistics

Cronbach's
Alpha N of Items
.683 10

5.2 Factor Analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling


Adequacy. .634

Bartlett's Test of Approx. Chi-Square 379.369


Sphericity df 45
Sig. .000

The result of KMO (0.634) and Bartlett‟s Test of Sphericity (Chi-Square- 379.369 &
significance- 0) indicates that Factor analysis done with the 10 service related variables
are effective. There were four factors extracted using the method of Principle Component
Analysis and Rotation Method of Varimax with Kaiser Normalization, with criteria of
eigenvalues greater than 1. Following table show the value of eigenvalues of various
variables.
Communalities

Initial Extraction
how picture quality of DTH influence you
to switched over 1.000 .666

how channel packaging of DTH influence


you to switched over 1.000 .667

how no disturbance of service of DTH


influence you to switched over 1.000 .681

how extra services of DTH influence you


to switched over 1.000 .779

how service of instrument of DTH


influence you to switched over 1.000 .728

how online payment of DTH influence


you to switched over 1.000 .730

how facility(record, pause, load) of DTH


influence you to switched over 1.000 .659

how celebrity endorsement of DTH


influence you to switched over
1.000 .699

how direct connection to service provider


of DTH influence you to switched over
1.000 .536

how no both way electricity disturbance


1.000 .763
of DTH influence you to switched over
Extraction Method: Principal Component Analysis.

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings


Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.842 28.419 28.419 2.842 28.419 28.419
2 1.831 18.314 46.733 1.831 18.314 46.733
3 1.177 11.766 58.499 1.177 11.766 58.499
4 1.059 10.587 69.087 1.059 10.587 69.087
5 .815 8.154 77.241
6 .710 7.103 84.343
7 .492 4.916 89.260
8 .480 4.797 94.057
9 .336 3.365 97.422
10 .258 2.578 100.000
Extraction Method: Principal Component Analysis.
Component Matrix(a)
Component
1 2 3 4
how extra services of DTH
influence you to switched .806 -.052 -.087 -.346
over
how online payment of DTH
influence you to switched .751 -.370 -.025 -.169
over
how facility(record, pause,
load) of DTH influence you .734 -.064 .144 .309
to switched over
how service of instrument
of DTH influence you to .701 -.097 -.346 -.327
switched over
how direct connection to
service provider of DTH
influence you to switched .469 .271 .277 .407
over
how no both way electricity
disturbance of DTH
influence you to switched .152 .702 .484 -.112
over
how no disturbance of
service of DTH influence .239 .691 -.346 .164
you to switched over
how picture quality of DTH
influence you to switched .174 .661 .176 -.410
over
how celebrity endorsement
of DTH influence you to
switched over .393 -.387 .589 .217

how channel packaging of


DTH influence you to .336 .219 -.467 .537
switched over
Extraction Method: Principal Component Analysis.
a 4 components extracted.

According to the loading of variables on the four factors they can be labeled as:

FACTOR 1: Competitiveness
1. Extra Service
2. Online Payment
3. Facility (record, pause, load)
4. Quick Service of Instrument Supply
FACTOR 2: Service Quality
1. One Way Electricity Supply
2. No Disturbance of Service
3. Picture quality
FACTOR 3: Media Influence
1. Celebrity Endorsement
FACTOR 4: Personal Interest
1. Channel Packages

Attribute those were not important:


1. Direct Connection To Service Provider of DTH

The perceptual maps show the mapping of different factors in the mind of
customers and the association between them. The data reduced from many
attributes to 4 factors that have similar attributes.
The various factors mapped according to the rotated results of factor analysis. The
factors were given names based on the attributes in them. These factors were used
to form the factor analysis where two factors were mapped on X and Y axis to
know the relation between them.
The factors help the company to know how the product is currently mapped in the
customer‟s mind. If a target consumer is focused upon then the factors can be
changed and a different map can be formed.
The attribute Direct Connection To Service Provider is not a major attribute in
any of the factors. This means that the Direct Connection to service provider is
not motivating or influencing people enough to buy a new a connection of DTH.
CHAPTER 6-SUMMERY OF
FINDING, SUGGESTIONS &
CONCLUSION
6.1 SUMMERY OF FINDING
6.2 SUGGESTION
6.3 SCOPE FOR FURTHER STUDY
6.4 CONCLUSION
6.1 SUMMERY OF FINDING

 In this study I found that out of 329 respondent 49.2% are cable TV network user
and 46.5% DTH satellite TV network user and only 4.3% terrestrial customer
which indicate that if we compare it with all over Indian market then there are
only 12% DTH customer. So here we say that in Ghaziabad region the DTH
satellite TV market is rapidly growing, we can say not only in Ghaziabad it arises
in full NCR region. Here the new players in this market like Videocon d2h, Airtel
digital TV also rapidly increases their market share day by day as we see from the
analysis Videocon has 5.9% market which came in the market few months ago
where as Airtel has 15% which also show rapid growing market share. Which is
totally different result from the market analysis of RNCOS Industry Research
Solution survey where they showed different market analysis.

 Maximum DTH customers are switched over customer from cable TV network.
Those cable TV customers who still not change their network they said about the
high price of combo pack of DTH services as a reason for not switch over. That
means maximum people want to consume all type of entertainment from all
channels.

 Out of 329 respondent only 19 are using alternatives out of which 68.4% iptv &
31.6% cell phone TV. This shows that in future this kind of alternative will create
a big challenge. Now a day‟s people are crazier about internet & cell phone so
they always take advantage of that kind of TV. So DTH players should make a
good strategy in future for that challenge.

 In this study we find that 30.2% cable TV customers were not satisfied with their
services where as 13.1% DTH customers also not satisfied with their DTH
services. So there is a big market for DTH players to capture the dissatisfied cable
TV customers & terrestrial customers also.
 In we analyze the current DTH player‟s service satisfaction level among
consumers then we find that Reliance Big TV & Videocon d2h consumers were
more dissatisfied (31.6% & 33.3% respectively) where as Tata Sky, Airtel Digital
TV, Dish TV & Sun Direct has 11.9%, 13%, 6.3% and 0% dissatisfied customers
respectively in Ghaziabad region. We find that cable TV network users were
moderately satisfied where as DTH customers were highly with picture quality
services. Cable TV users were moderate or less satisfied where as DTH TV users
were highly satisfied with their continuous network services. Maximum cable TV
users not satisfied with extra services like repair of wire, after sales services of
network providers. Here we find that DTH customers were not a very interested
with online payment services they use it rarely.

 In the analysis we found that maximum customers of DTH were strongly


influenced by picture quality (58.8% strongly influenced) for the switch over from
cable TV to DTH TV network. Channel Packaging attributes influenced
consumers highly (45.8% highly influenced) where as no disturbance of service of
DTH influenced strongly (58.2% strongly influenced), facility (record, pause,
load) attribute (40.5% highly influenced), direct connection to service provider
(45.8% highly influenced), one way electricity connection (43.8% strongly
influenced) influenced highly for that switch over. But extra service like after
sales service (36% less influenced), online payment (29.4% not influenced &
28.8% less influenced) attributes did not influenced sufficiently. Quick Instrument
supply (29.4% moderately influenced) & celebrity endorsement (30.7%
moderately influenced) influenced moderately to consumer buying behavior
towards DTH TV network.
6.2 SUGGESTION

 There are lots of customers who dissatisfied with DTH satellite TV services. The
maim sufferer is Reliance Big TV & Videocon d2h the percentage is 31.6% and
33.3% respectively. They should satisfy the customer first which is very common
in the current business scenario.
 DTH satellite players should focus on cable TV customer to increase their market
share as there are lots of cable TV market share which is not satisfied with their
network services. This market is larger in urban & semi urban area than
Ghaziabad region. So there are lots of opportunities of DTH players in future.
 The main reason behind not switching over is the high price of combo pack that
means people always want to entertain by seeing all channels not limited
channels. So DTH players make the pricing strategy in such a manner so that all
the monthly charge of combo pack reduced.
 Now a day‟s people are crazier about the internet & Cell phone, so IPTV & Cell
Phone TV will play an important role in future. Now 6.1% customer using this
type of alternatives along with original one. But in future it will be a big threat to
DTH services. So DTH players should take advanced technology to provide
services.
6.3 SCOPE FOR FURTHER STUDY

The result obtained by this study pertain to only those respondents chosen through
convenience sampling, and since the profile of the sample is not a replica of actual
market share of different DTH satellite network providers in India, this study should be
seen as giving a direction for future research, and generalization from this study to a
wider population of DTH industry should be done with some caution. However this
research work can be extended by collecting additional samples. Further in order to
measure the customer satisfaction, overall satisfaction consumers perception has been
consider. Service loyalty as an after effect of satisfaction could be added as an additional
variable for further research.
Another direction provided by the research is related to the gap between customer
perception and expectation as a driver of satisfaction. Also the DTH service in India is
now growing so here the viewpoints of DTH players can be explored. There are factors
influencing customer satisfaction where we further carry this research toward satisfaction
level from how to switch over.
Further, to identify the proper factors influencing switch over from cable TV to DTH TV,
in methodical manner, DTH services can be compared with other types of network
providers.
6.4 CONCLUSION

On the basis of the data collected and the tests conducted I have arrived at the following
conclusions:
With the help of frequency table I was able to find the market share cable TV, DTH
satellite TV, terrestrial TV networks and also market share of various DTH players in
DTH market. Such as 49.2% market share cable TV, 46.5% of DTH TV and 4.3% of
terrestrial TV.
Cross tabulation between network connection and overall satisfaction showed that there
were lots of dissatisfied customers of cable TV rather than DTH services. Also cross
tabulation between DTH players and overall satisfaction showed that Reliance &
Videocon suffers from customer dissatisfaction factor most than other players.
There is high association between network provider and satisfaction of the services they
get from network provider. The most important factor came out is to be picture quality
and no disturbance of services.
There is also high association between switch over and various influencing factors.
Picture quality, no disturbance of services, channel packaging are more affective here.
In factor analysis I found out 4 factors which mainly have an impact on consumer buying
behavior or influence customer to switch over from cable TV to DTH TV or buy first TV
network service.
I also found out the market position of various alternatives of DTH TV players. They are
growing now.
BIBLIOGRAPHY

KOTLER, P. & KELLER L. K. (2009) MARKETING MANAGEMENT,


PEARSON PRENTICE HALL, DELHI
LOVELOCK, C., WIRTZ, J. & CHATTERJEE, J. (2009) SERVICE
MARKETING, DELHI
MALHOTRA, K. NARESH (2008) MARKETING RESEARCH, PEARSON
PRENTICE HALL, NEW DALHI

4 P‟S
BUSINESS WORLD
BUSUINESS NEWS
INDIA TODAY, FEBRUARY 2008

BASU, P. (2008) RESEARCH PROPOSAL ON CONSUMER DECISION


ANALYSIS FOR PURCHASE OD FRUIT DRINKS
BUYERS GUIDE- ELECTRONICS FOR YOU- FEB 2009
GANGULI, S. (2008) DRIVERS OF CUSTOMER SATISFACTION IN THE
INDIAN CELLULAR SERVICES MARKET, THE ICFAI UNIVERSITY
PRESS, NEW DELHI
GARTNER (2007) RESEARCHER
INDIAN READERSHIP SURVEY 2008 R2 (2008)
KOTHARI, AMI & VELISETTY SWATHI SOOD PALAK (2008) COMSTAT
2008- TATA SKY
KUMAR, G. (2008) COMPETITIVE STRATEGY: INDIAN DTH MARKET,
RELIANCE BIG TV
PRICEWATERHOUSECOOPERS PVT. LTD, (2009) INDIAN
ENTERTAINMENT AND MEDIA OUTLOOK 2009
RAJPUT, S. S. (2008) MAKRET STRUCTURE: INDIAN DTH INDUSTRY
RNCOS INDUSTRY RESEARCH SOLUTION (2009) INDIAN DTH MARKET
FORECAST TO 2012
SINGH, S. V. (2008) DIRECT TO HOME(DTH)
UMAPATHY SIVASUNDARAM (2007) INDUSTRY ANALYSIS- DTH
INDUSTRY IN INDIA
VARMA S. & HOHN D. (2006) DTH VS CABLE TV: SKY WARS IN INDIA

HTTP://EN.WIKIPEDIA.ORG/WIKI/COMPLEMENTARY_GOOD
HTTP://EN.WIKIPEDIA.ORG/WIKI/OLIGOPOLY
WWW.AIRTEL.IN/WPS/WCM/CONNECT/DTH/BHARTI+DTH/HOME.DTH-
PG-HOMEPAGE
WWW.APNADTH.COM/TECH_OVER.HTM
WWW.BIGTV.CO.IN.ABOUT-BIGTV.HTML
WWW.CONTENTSUTRA.COM/ENTRY/419-IPTV-WILL-STRUGGLE-IN-
INDIA-SAYS-GARTNER/
WWW.DISHTV.IN/STATIC/PDF/MGMT.%20DISCOUNT%20&%20ANALYS
IS.PDF
WWW.GOOGLE.COM
WWW.IBSCDC.ORG/COMPETITIVE_STRATEGIES_CASE_STUDIES.ASP_
DTH_VS_CABLETV
WWW.INDIASTUDYCHANNEL.COM/RESOURCES/CATEGORY3.ASPX/C
OMPARISON_CABLETV _DTHTV
WWW.MANAGEMENTPARADISE,COM
WWW.SCRIBD.COM
WWW.TATASKY.COM/WHY-TATA-SKY.HTML
REFERENCES

KOTLER, P. & KELLER L. K. (2009) MARKETING MANAGEMENT,


PEARSON PRENTICE HALL, DELHI
MALHOTRA, K. NARESH (2008) MARKETING RESEARCH, PEARSON
PRENTICE HALL, NEW DALHI

GANGULI, S. (2008) DRIVERS OF CUSTOMER SATISFACTION IN THE


INDIAN CELLULAR SERVICES MARKET, THE ICFAI UNIVERSITY
PRESS, NEW DELHI
PRICEWATERHOUSECOOPERS PVT. LTD, (2009) INDIAN
ENTERTAINMENT AND MEDIA OUTLOOK 2009
UMAPATHY SIVASUNDARAM (2007) INDUSTRY ANALYSIS- DTH
INDUSTRY IN INDIA
RNCOS INDUSTRY RESEARCH SOLUTION (2009) INDIAN DTH MARKET
FORECAST TO 2012
KUMAR, G. (2008) COMPETITIVE STRATEGY: INDIAN DTH MARKET,
RELIANCE BIG TV
KOTHARI, AMI & VELISETTY SWATHI SOOD PALAK (2008) COMSTAT
2008- TATA SKY
VARMA S. & HOHN D. (2006) DTH VS CABLE TV: SKY WARS IN INDIA
RAJPUT, S. S. (2008) MAKRET STRUCTURE: INDIAN DTH INDUSTRY
BUYERS GUIDE- ELECTRONICS FOR YOU- FEB 2009
INDIAN READERSHIP SURVEY 2008 R2 (2008)
GARTNER (2007) RESEARCHER
WWW.INDIASTUDYCHANNEL.COM/RESOURCES/CATEGORY3.ASPX/C
OMPARISON_CABLETV _DTHTV
WWW.IBSCDC.ORG/COMPETITIVE_STRATEGIES_CASE_STUDIES.ASP_
DTH_VS_CABLETV
WWW.AIRTEL.IN/WPS/WCM/CONNECT/DTH/BHARTI+DTH/HOME.DTH-
PG-HOMEPAGE
WWW.TATASKY.COM/WHY-TATA-SKY.HTML
WWW.BIGTV.CO.IN.ABOUT-BIGTV.HTML
WWW.SCRIBD.COM/WHAT-IS-DTH/2004
ANNEXTURE

Questionnaire of
Dissertation Report On

INDIAN DTH SATTELITE TV SERVICES: A COMPARATIVE STUDY OF


VARIOUS DTH SATTELITE TV PLAYERS WITH CABLE TV IN GHAZIABAD
REGION

Name :
Occupation :
Address :
Contact No :

1. What type of network connection you are using for your TV-
(a) Cable Network (b) DTH satellite services

2. –if DTH then which company services you are using-


(a) Tata Sky (b) Reliance Big TV
(b) Airtel Digital TV (d) Dish TV
(e) Sun Direct (f) DD Direct
(g) Videocon d2h

3. Do you satisfied with your TV network services?


(a) Yes (b) No

4. Which type of channel package you used most for your entertainment?

5. Have you switched over your TV network from Cable network to DTH satellite
services?
(a) Yes (b) No
6. –if No then what is the reason behind that-
(a) High price of DTH at subscription time.
(b) High price of combo pack with respected to Cable network.
(c) Difficulties of choosing different channel packaging.
(d) Others.

7. Give mark to the following factors on a scale of 1-5 (1= lowest……. 5= highest)

How much the following factors had influenced you to switch over from Cable network
to DTH satellite service / to buy DTH satellite service as first TV network.
FACTORS 1 2 3 4 5
Picture Quality
Channel Packaging
No Disturbance in service
Extra service
Quick services of instrument supply
Online Payment
Facility (record, pause, load)
Celebrity Endorsement
Direct connect to Service provider
Electricity Disturbance

How much the following facilities and services you are getting well from your network
provider.
FACILITIES/ SERVICES 1 2 3 4 5
Picture Quality
Channel Packaging
No Disturbance in service
Extra service
Online Payment
Facility (record, pause, load)

8. Do you using any other alternatives of DTH services like IPTV / Cell phone TV?
(a) Yes (b) No

9. –if Yes then specify the alternative-


(a) IPTV (b) Cell phone TV