Industry Overview

History:

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 liberalised 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

1
broadcast was also possible. CAS was rolled out in 2003 staring from Chennai and later
to parts of Delhi, Mumbai and Kolkata. 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.

2
Current Scenario:

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.

3
 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.

4
 Company Overview

About Videocon

5
Product Portfolio:

Home Appliances Consumer Displays Components

Electronics

Refrigerators CRT TV CPT Glass

Washing Plasma TV Plasma panel Panels
Machines LCD TV LCD panel Funnels
Air conditioners Home Compressors
Air coolers Entertainment Motors
Mixers, toasters, Systems Plastic
irons Audio/Video Mouldings
Microwave products Packing
ovens
Vacuum cleaners
Water Purifiers

6
 Manufacturing Facilities

INDIA (7) CHINA (2) ITALY MEXICO POLAND OMAN

Figure in bracket indicate the number of manufacturing facilities in that country.

Introduction to Bharat Business Channel Limited (BBCL):

Videocon Group is launching Direct To Home services & Mobile Handsets in India
under the banner of BBCL (Bharat Business Channel Limited) with brand name of
Videocon d2h.

DTH stands for Direct To Home which is a direct mode of transmission between
„Broadcaster‟ and „Subscriber‟ through satellite.

7
Broadcast centre collects the signals from different programming sources (like Sony,
Zee, and Star). It processes the Signals and beams it to the Satellite. Satellite will
reprocess the signals and retransmits the signal to the subscribers.

8
 Objectives of the project:

Porter‟s analysis of DTH industry.

A study of TRAI rules pertaining to DTH industry.
To keep a weekly track on various channels and their ratings based on TAM
ratings.
Do a comparative study of the various DTH players on their interactive services.
To conduct marketing research regarding -
 the interactive services
 cable TV consumers
Reviews on DTH players from various blogs.
To do perceptual mapping of DTH players.

9
 Porter’s Analysis of DTH industry:

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.

Indian Broadcasting
DTH
12%

Terrestrial
22%
Cable
66%

 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.

10
 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.

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

11
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

12
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.

13
 TRAI Rules

The Direct to Home Broadcasting Services (Standards of Quality of Service and

Redressal of Grievances) Regulations, 2007, were issued on 31st August, 2007. These
regulations were issued to lay down the standards of quality of direct to home services
and to protect the interests of direct to home subscribers. At the time of issue of these
regulations, only two direct to home operators apart from Doordarshan were providing
direct to home services in the country. Since then, three new direct to home operators
have started commercial operations. With the evolution of the direct to home segment
and the increase in the number of direct to home subscribers, new issues relating to
quality of direct to home service have arisen. In order to address these issues the
Authority has decided to amend the Direct to Home Broadcasting Services (Standards
of Quality of Service and Redressal of Grievances) Regulations, 2007.

Rationale for making amendment to the Direct to Home Broadcasting Services

(Standards of Quality of Service and Redressal of Grievances) Regulations, 2007:

The Authority noted that a large number of complaints have been received from
the Direct to Home subscribers regarding dropping of channels from subscription
packages offered by DTH operators. In case of subscription to DTH services, a
subscriber subscribes to the service on the basis of specific channels included in the
subscription package. If any channel is taken out of a subscription package and it is
replaced by another channel then the DTH subscriber may be getting the same number
of channels as earlier, but will be deprived of viewing the particular channel which has
been removed. In case the channel which is removed is offered to the subscriber as an
add-on package then the subscriber ends up paying more for viewing that channel
which was earlier included in his subscription package. This subverts the tariff
protection provided to DTH subscribers by Regulation 9 of the Direct to Home
Broadcasting Services (Standards of Quality of Service and Redressal of Grievances)
Regulations, 2007. This calls for DTH subscribers to know about the following new
rules.

14
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.

15
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.

7. Subscribers are allowed to request their DTH operator to suspend their services 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.

16
 Television Audience Measure (TAM) Report

Media planning is all about being able to communicate efficiently and effectively with
your potential consumers. Not only selection of media vehicle but content, timing, and
placement of the ads can be aptly mapped to reach out to the potential Target Group,
making them an invaluable part of any campaign. In view of that, TAM ratings become
the backbone and one of the most vital variable for any media plan.TAM is Television
Audience Measure that keeps track of the ratings of different channels on weekly basis
that provides a good platform for advertisers to decide on the channel to advertise.

Observations:

Hindi GEC:

Week 23
star Zee NDTV
week plus colors Tv SET Imagine Top 5 TVRs
Programes Genre Channel 000's
wk
22 19.9 21.4 20.3 8 8.9 Yeh Rishta
Kya Kehlata
wk
Hai Serials Star Plus 7215
23 20.7 22.7 19.8 7.6 8.9
Bidayi Serials Star Plus 5912
wk
24 22.9 20 19 7 8.9 Featur
Hff Ghajini e Films Colors 5455
wk
25 20.7 20.6 19.4 8.4 8.9 Balika Vadhu Serials Colors 5286

Chhoti Bahu Serials Zee TV 4946

17
 Hindi GEC
25

20

15 wk 22
wk 23
10
wk 24
wk 25
5

0
star plus colors Zee Tv SET NDTV
Imagine

Analysis:

Star Plus, Colors and Zee TV fared almost equally well during the period from week 22
to 25. Their viewership was comprehensively higher than SET and NDTV Imagine.
For reaching to maximum viewers, the company would like to advertise their product on
Star Plus and Colors channel.

18
Hindi & Subtitle Movies:

SET Zee Star UTV Week 23

week MAX Cinema Gold Movies Filmy Top 5 TVRs

wk Programmes Genre Channel 000's

22 39.5 27.7 13.9 4.4 3.8 Hum Saath Zee

wk Saath Hain N/A Cinema 2978

23 31.5 32 17.7 5.4 3.6 Soorya

wk vansham N/A MAX 2240

24 29.2 33.2 17.7 6 3.9 Chakde India N/A MAX 1751

wk Singh Is Kinng N/A MAX 1711

25 30.2 30.9 19 6.2 4.3 Meri Jung

One Man
Army N/A MAX 1638

Hindi and Subtitle Movies

40
35
30
25 wk 22

20 wk 23
15 wk 24
10 wk 25
5
0
SET MAX Zee Cinema Star Gold UTV Movies Filmy

19
Analysis:

In Hindi and Subtitle Movies sector, SET MAX and ZEE Cinema share the maximum pie
from this category though Star Gold is also faring well as compared to UTV Movies and
Filmy channel. Looking at the top five viewed programmes Zee Cinema has the highest
viewership as compared to SET Max in the 23rd week. This being a movie channel the
reach to the population is comparatively higher than any other category of channels.
The viewership to some extent also depends upon the movie being shown on the
channel.

20
Cartoon/Animation/Child Prog:

Hun- Week 23

Cartoon Nickel gama Disney Top 5

week Pogo Network odeon TV Channel Program TVRs

wk mes Genre Channel 000's

22 22.8 21.5 20.7 18 8.8 chhota

wk Bheem Cartoon POGO 900

23 23.4 23.5 20.7 16.3 8 my friend Feature

wk Ganesha Films CN 671

24 21.9 20.5 23.1 18.6 8 mr Bean Cartoon POGO 617

wk tom &
25 22.9 21.9 22.1 17.2 7.5 Jerry Feature
Tales Films CN 587
Stuart
Little
Series Cartoon POGO 484

Cartoon/Animation/Child Prog
25

20

15 wk 22
wk 23
10
wk 24

5 wk 25

0
Pogo Cartoon Nickelodeon Hungama TV Disney
Network Channel

21
Analysis:

There is high viewership of this category of channels due to the fact of being a children
programme. POGO, Cartoon Network, Nickelodeon, Hungama Tv share almost
equitable viewership. An advertiser may select any of these channels for his product
advertisement to reach the target population. Popular shows being Chhota Bheem, Mr
Bean and Tom & Jerry series.

22
Hindi News:

Aaj India Star NDTV Week 23

week Tak TV News IBN 7 India Top 5
wk Programm Chann TVRs
22 18.3 15.1 13.8 9.8 9.5 es Genre el 000's
wk Saas Bahu Channel Star
23 18.7 16.8 14.9 9.4 8.4 Aur Saazish Presentation News 383
wk Danke Ki Reviews/Rep
24 18.3 17.7 15.6 7.7 8.3 Chote Par orts IBN 7 334
wk India Tv News India
25 17.5 17.2 15.3 8.3 9.1 News Bulletin TV 304
Aap Ke Religious/De Aaj
Tare votional Tak 261
Khabar Din News Star
Bhar Bulletin News 246

Hindi news
20
18
16
14
wk 22
12
10 wk 23
8 wk 24
6
wk 25
4
2
0
Aaj Tak India TV Star News IBN 7 NDTV India

23
Analysis:

The news channel too fare a high viewership as compared to other categories of
channels. The viewers of this category are mostly adult and matured and therefore we
observe that there are hardly any advertisements for kids on such channels.
Aaj Tak and India TV fare the maximum proportion with Star News too sharing a decent
proportion of viewership. The viewership of such channels have increased due to
telecasting of sensational and mythological programs which has created a buzz among
the viewers.

24
Sports:

Ten Star Star Neo Week 23

week Sports Cricket Sports Cricket ESPN Top 5
wk Programm Chann TVRs
22 50.4 25.7 9.5 5.5 5.4 es Genre el 000's
wk ICC T20 Star 1222
23 8.1 78.2 4.6 1.3 6.1 WC-09 Match Cricket 1
wk ICC T20 Star
24 4 92.1 1.2 0.6 1.3 WC-09 Match Cricket 5919
wk ICC T20 Star
25 8.4 86.7 1 0.6 2.5 WC-09 Match Cricket 5610
ICC T20 Star
WC-09 Match Cricket 5564
ICC T20 Star
WC-09 Match Cricket 3832

Sports
100
90
80
70
wk 22
60
50 wk 23
40 wk 24
30 wk 25
20
10
0
Ten Sports Star Cricket Star Sports Neo Cricket ESPN

25
Analysis:

ICC T20 World Cup has given the maximum viewership to Star Cricket as compared to
Ten Sports, ESPN and Neo Cricket. Similar high viewership was observed during IPL
cricket matches telecasted on SET Max. During such events the advertisements rates
touches new heights due to the fact of tremendous viewership.

26
Recommendations:

 Videocon being an established brand in consumer durables, it has wide network of

distribution across the country which could be tactfully used for its DTH product.

 From the above observations, it could be concluded that Hindi GEC category has
the maximum viewership among the various type of channels. Therefore Videocon
can advertise their product on this category of channels and specifically on Star Plus
and Colors channels. Some of the popular shows on this channels are „Yeh Rishta
Kya Kehta Hai‟, „Bidayi‟, „Balika Vadhu‟ which will result in maximum reach to the
population.

 It was observed that the TVR‟s of the Sports channels go high during the telecast of
Indian cricket matches on this channels. A creative advertisement like Vodafone‟s
Zoo-Zoo being shown during IPL matches will leave high product awareness among
the masses. Therefore Videocon should look for sponsoring of cricket series
particularly of India and Pakistan and then advertising in such channels.

 The viewership of Hindi and Subtitle movies is also high particularly for SET Max
and Zee Cinema. An advertisement in any of those channels will help in achieving
high reach of masses.

 The viewers of Cartoon/Animation/Child Prog are mostly children who also play a
part in deciding which company DTH should be purchased. An advertisement in
POGO, Cartoon Network can spread the awareness about the product.

27
A study was taken on comparison of interactive services of DTH players.

Observation:
Interactive
Services Tata Sky Airtel digital tv Dish Tv Big tv
Shopping Active Mall iShop
Active Wizkids,
Active Learning,
Active topper in
Children association with iLearn by
learning 24x7guru.com 24x7guru.com Active Feature
Stories Active Stories
Games Active Games Game Zone Games iGames
Active Darshan
(Mythology) in
partnership with Bhakti Acitve
Travel Star News iTravel (Mytho)
Active Feature with
camera angle,
match highlights,
player statistics,
multiple languages
Sports Active Sports iSports commentary
Active Matrimony
(bharat
Matrimony matrimony.com)
Active Cooking
Cooking (masters chefs) iCooking
Active Astrology Astroactive with
Astrology (Bejan Daruwala) iAstro Pandit Ajay Bhambi iAstro
News Active Star News iNet, iNews Active Feature iNews
Movies Showcase Airtel live iCinema
City
Information iCity
Book Movie
Tickets iMatinee
Banking ICICI ACTIVE
Reminders Alert Reminders
Child lock Available available
Electronic
Widgets, Quick Electronic Programming
Extras View, iPizza Programming Guide Guide

28
Findings:

 Tata Sky is in the numero uno position with respect to provision of interactive
services as compared to other players like Airtel Digital TV, Dish TV and Big TV.
 Airtel Digital TV is in the second position only after Tata Sky with respect to the
variety of interactive services been provided.
 Dish TV is the only DTH player among the above players that does not provide
gaming option. Rest all the players are well equipped with the gaming feature.
 Astrology and news are the only features which are provided by all the DTH
players.
 One of the distinguishing features of Dish TV is the banking facility known as
ICICI ACTIVE which no other players provide in any format.
 Some of the common services which are found in most of the DTH players are
children learning programmes, games, travel, cooking, astrology and movies.

Recommendations:

 It is recommended for Videocon to include those common services which other

DTH players provide since most of them are highly viewed by the population.
 Videocon should come up with innovative services like „instant Travel Booking‟,
„Weather report of the city‟, „Video Songs on demand‟ for having an edge over its
competitors.
 Videocon may come up with a service that gives information about rates of house
rent, lease, purchase, selling of land property of Tier II cities which no other DTH
company has brought forward.
 It may come up with an idea of storing photos or videos in its DTH Share folder
which could be shared with friends and distant families.

29
 Market Survey on Interactive Services and Cable consumers

RESEARCH METHODOLOGY/ DESIGN

The methodology adopted for eliciting the data required for the study was survey
method. It is the overall pattern or framework of the project that will dictate as to what
information is to be collected, from which sources and by what procedures.

RESEARCH METHOD
Research methodology must be classified on the basis of the major purpose of the
investigation. In this problem, description studies have been undertaken, as the
objective of the project is to conduct the market survey about the interactive services of
DTH players and study of Cable consumers.

DATA COLLECTION
The information needed to further proceed in the project had been collected through
primary data and secondary data.

PRIMARY DATA
Primary data consists of information collected for the specific purpose at hand for the
purpose of collecting primary data, survey research was used and all the retail outlets
sellers using different brands and their competitors were contacted. Survey research is
the approach best suited gathering description.

SECONDARY DATA
The secondary data consists of information that already exists somewhere, having been
collected for another purpose. Any researcher begins the research work by first going
through the secondary data. Secondary data includes the information available with the
company. It may be the findings of research previously done in the field. Secondary
data can also be collected from magazines, newspapers, other surveys conducted by
known research agencies etc.

30
RESEARCH METHODOLOGY
The respondents are consumers of various DTH. The survey was carried in the city of
Mumbai with the sample size of 100. The survey was carried out with the help of a
structured questionnaire, which helps in accomplishing the research objectives. The
respondents by means of personal interview administer this structured ended
questionnaire.

31
Following are the observations and recommendations of market survey done on
interactive services.
Observation:

Share of DTH players

Sun Direct
Big TV 3% Others
7% 10%
Tata Sky
40%

Dish Tv
25%

Airtel Digital TV
15%

 In the survey it was found that Tata Sky had the maximum share of subscribers
among the five prominent DTH players. This is attributed to the fact of better
service provision with prompt reply and wide variety of interactive services.
 Dish TV and Airtel Digital TV are the next players after Tata Sky to grab the
subscribers market. Dish TV being the oldest player in the DTH sector has
gradually lost its grip to Tata Sky, Airtel Digital TV being new in the sector has
readily caught the market in a fast pace.
 Big TV and Sun Direct have low market share. Sun direct is not catching up with
other players due to lack of attractive features and high concentration of south
Indian channels.
 Others include player like Hathway which has caught the market before arrival of
many DTH players like Tata Sky, Airtel Digital TV.

32
 Active Services

News
Travel 8% Movies
9% 28%

Astrology
13%

Games
Cooking 35%
7%

 The survey indicated that the customers preferred the Gaming feature more than
any other interactive service which indicates that children interest too play
significant part in selecting the DTH.
 The Movie was the second preferred segment of the customers.
 It was not surprising to see Astrology catching the customers interest with
famous astrologers like Bejan Daruwala, Pandit Ajay Bhambi hosting the shows
in the channel.
 Travel, News and Cooking showed neck to neck competition. With middle
income group growing in India, it is predicted that there will be increase in
tourism which will ultimately increase the need of portals giving travel services.

33
 Remote control operation
Complicated
11%

Easy
89%

 When asked to the customers about the ease of operating the remote control to
find the interactive services then about 89% agreed to be it as easy while 11%
found it difficult to operate.
 The operation of remote control was found to be easiest in Tata Sky than any
other DTH remote. This was due to the fact of having being written the function of
each and every button than mere symbols which some other DTH remote do
have.
 Generally senior citizens and children aged less than 4 years find it difficult to
operate the remote.

34
 Commercials seen Favourite
advertisement
Sun
Direct
Big TV 8% Dish Tv
Tata Sky
11% 32% 15%

Dish Tv
24% Tata Sky
55%
Airtel
Digital
Airtel
TV
Digital
30%
TV
25%

 Tata Sky seems to be successful in its aggressive marketing plan where it is

seen as the most widely viewed advertisement. Tata Sky was also voted as their
favourite advertisement featuring Aamir Khan and Gul Panag.
 Airtel Digital TV and Dish TV are the next most viewed advertisements after Tata
Sky.
 The brand advertisements of Tata Sky, Dish TV and Airtel Digital TV are Aamir
Khan, Shah Rukh Khan and Saif Ali Khan & Kareena Kapoor respectively.
 Heavy advertisements results in better brand recall which results in higher sales
of the product as could be seen in case of Tata Sky.

35
 View about watching Cricket from different angles

Not useful
25%
Interesting
46%

Very Innovative
29%

 The most viewed game in our country i.e. Cricket was found to be interesting in
viewing from different camera angles by 46% of the population interviewed.
 29% of population voted this feature to be innovative.
 25% of population did not find it worth improving the experience in watching
Cricket.

36
 Does Interactive services increase the value of DTH package?

No
29%

Yes
71%

 Almost three fourth of the population been interviewed felt that the Interactive
services increase the value of DTH package.
 Interactive services like shopping, travel earns revenue for the DTH company if
properly executed.

37
Recommendations:

 Since Videocon is launching its new DTH – „d2h‟, it should follow aggressive
advertising plans to create awareness about the product. As Videocon is the 6th
private player in the market it will be a Herculean task to grab the market share
from well established players like Tata Sky, Dish TV etc. However placing itself in
the niche segment of iDTV with STB will earn fortunes for itself.
 Providing the apt Interactive services is the key for the success of any DTH as
could be seen from the survey. In addition to common services like games,
movies, astrology, cooking, travel it should have some innovative service like the
one of record+rewind+play of Tata Sky +
 Operation of remote should be user friendly with functions written on button
rather than symbols which can complicate the understanding of remote. Also the
shape of the remote should be innovative like of Tata Sky, Big TV with use of
attractive colours on remote.
 Videocon should advertise about the interactive features that it is going to
provide because it was observed from the survey that many customers were not
aware of Dish TV‟s banking facility of ICICI Direct, Big TV‟s 32 Cinema hall
feature.
 Selection of a proper brand ambassador is also important as it conveys a lot
about the product. It should have a brand ambassador which is an icon of style,
reliability and trustworthiness.

38
Following are the observations and recommendations on market survey done on
consumers of Cable.

Observation:

Monthly Cable Subscription

Rs326-400
10%

upto 150
20% Rs 226-325
50%

Rs151-225
20%

 The survey showed that the majority of the cable consumers paid a monthly
subscription in the range of Rs 226 to 325. Upto 20% each paid in the range of
Rs upto 150 and Rs 151 to 225.
 It also indicates that majority of the consumers are ready to pay in the range of
Rs 226 to 325 and so the DTH players should cast their monthly subscription in
this range only.
 The price range of Rs 151 to 225 is also a lucrative one since the consumers
would be readily willing to pay in this range.

39
When the consumers were asked about the reasons given by their cable operators for
not providing their required channels, following were their comments:

 May be because other DTH players are paying more than them.
 As some are paid channels they are not able to receive it.
 As some are paid channels the cable operators demand extra fee for the
particular channel to be provided
 Some cable operators do not reply to the consumers or avoid giving answers to
them.
 Those channels are not available in their area.
 The particular channel is available on particular bandwidth which is not available
with the consumers.
 The channels are been provided however the consumer television is not able to
receive it due to technical problems.

40
 Awareness of DTH operators

Sun Direct
13% Tata Sky
27%
Reliance Big tv
13%

Airtel Digital Tv
20% Dish Tv
27%

 Tata Sky and Dish Tv share equal platform in terms of popularity among the
cable TV consumers. This is because of popular celebrities like Aamir Khan and
Shah Rukh Khan endorsing for the products.
 The Airtel Digital Tv gained popularity by advertising during IPL matches 2009 on
SET Max. The result is within a short period after its launch it spread its
awareness.
 Sun Direct followed an extension advertisement of Bajaj Exceed which had
become very popular. This achieved wide popularity for Sun Direct.
 Reliance Big Tv gained awareness in about 13% of the population interviewed.

41
 Intent to change from cable Preferred DTH operator to
to DTH change from Cable

Sun
Relianc Direct Tata
e Big tv 7% Sky
No 14% 36%
30%

Yes
70%
Airtel
Digital
Dish Tv
Tv
25%
18%

Factors causing change to a particular DTH

Easy availability
11% Schemes &
packages
33%

Brand Image
45%

Referrals from
relatives & friends
11%

 With the population interviewed, about 70% showed the intention to change from
cable to DTH.
 Tata Sky was the most preferred player among the consumers to change from
cable.
 Sun Direct was the least preferred among the consumers because of the heavy
regional content.
 Brand Image of the DTH was the most influencing factor among the consumers
for changing to a particular DTH.
 Schemes & packages was the next factor of consideration for rational consumers

42
 Reasons for not changing to DTH

Feel suitable others

package is not 5% High cost ofDTH
available 21%
23%

Satisfied with
Don’t understand Cable
the schemes 31%
15%
More than one
TV
5%

 Most consumers were satisfied with their existing customers and do not intent to
switch to any DTH player.
 High initial cost of DTH including the STB was one of the inhibitions to change to
DTH player.
 Some consumers were not satisfied with the existing package offered by the
DTH players and some did not understand the schemes of the DTH players.
 Peculiar problems like having more than one TV also restricted the consumers to
go for DTH.

43
Recommendations:

 The consumers will be very happy to pay in the price range of Rs 151 to 225 as a
monthly subscription since most of the cable consumers pay more than Rs 225
to existing cable operators.

 Many a times cable consumers are fooled by their operators about the
unavailability of particular channels which Videocon can make aware to the
masses.

 Tata Sky and Dish TV are most popular among the masses due to their distinct
brand ambassadors. Videocon should be very particular in choosing their brand
ambassador for d2h product since that will decide in gaining the mileage.

 Videocon has an established brand image in consumer durables which could be

definitely used as a leverage to launch its d2h. Since the survey showed that
brand image is the most influencing factor for change, its reputation as a king for
consumer durables would be an advantage.

 Around 40% of the population interviewed do not understand the DTH schemes
or are not satisfied with the existing schemes. Videocon should design their
schemes and packages keeping the understanding level of common people.

44
 Reviews about various DTH players

 Tata Sky by Devilhead satish from forums.techarena

Audio
The audio is nothing short of amazing. All the frequencies are reproduced quite
brilliantly, and the better the speaker system you have, the better your experience.

Showcase
Tata gives you the option of watching certain movies of their choice and a lot of times of
the day. You select, pay 75 bucks through phone or SMS, get the popcorn and watch
the whole movie with just a single ad break. Neat, I say.

Active Content
This is the real fun part and what makes Tata Sky better than the competition. Active
Content, is their way of offering a range of interactive content and keeping everyone
happy.

Verdict
DTH is nothing short of an eye-opening experience and Tata Sky makes it all the more
better. If you're still stuck with cable TV, you're genuinely missing something. No, a lot
more, actually. Go, get it, quick!! The idiot box is dead, the smart box is here.

Radhaiyer from forums.techarena

I am using a tata sky connection for a while now and have faced no problems till
date. I have made changes to my packages almost 3 times in last 6 months and
whenever i have made any requests, they have been very prompt to revert and handle
my issues. Their service quality is what impresses me the most. From what I have
gathered, in comparison to other dth operators, TS has the best customer care service!

45
  Dish TV by Dr V.Gupta on indiatdh.com

They sell cards in the market with lot of instructions in small words which are not
easily readable. Even if you are lucky to read that you will not be able to get the work
done. Their user manual mentions different formats on different pages for the same
thing. At least the card should contain the latest instructions/formats.

There is no warranty/guarantee, you manage the things yourself. You should abide by
the T&Cs so that there is no financial loss to the company. Company can't take care of
you because you have already paid to the company.

You have to be sharp in understanding 'English'. You should be intelligent enough to

arrive at conclusion that "16 digit pin no." as mentioned in the instructions for sending
SMS is actually: 'Account No. + Password'.

One more thing the card does not mention is that there should be a gap between
account no. and password in the SMS. There are no marks for this correct guess.

By the time you know the correct method; you have also wasted 15-30 minutes in the
process of listening to the steps at call centre, waiting with music and finally in listening
to the 'expert advice' of the BPO advisor. Thus, you waste not only precious time but
also another 50-100 rupees on calls and SMSes. The telephone network becomes
busy on account of avoidable inconvenience.

Moral of the story:

No body from DISHTV will tell you the correct thing instantly, you go on calling
call centre then only you will know it. This is because they are themselves not
having consensus which is the correct method even for sending a simple SMS.

You complain to customer care you don't get a proper reply. The things go like this only

46
because you are santusht with them. Where is that SRK now?? He has got his money
for advertising for them; he will not be seen now.

I recharged my DISHTV but it is not working even after 14 hours, should I go on wasting
my money calling customer care? Who will listen to this?

We know that DTH is new to India and company is not experienced, it experiments but
at whose cost? The customer, The Nation.

There is National wastage of money, electricity, resources and no body cares.

K.Mohan on indiadth.com

Although Mr. Sachin promised to instal in first week of August, no progress was made
and he was not responding to our calls. We had to run from pillar to post for 5 weeks .
when we called your executive Mr. Vivek Mishra given in you web site (Ph 9324256888)
he directed us to Mr. Sekar( Ph 9920023467 ) who after several days being not
effective, gave his superior‟s no Mr. Eric Samuel ( Ph. 9820179326)

After continuous follow up with your executives after paying money in advance, finally it
was installed and activated from first week of September 2008. We thought our agony
will end there, however it is only start of our never ending problem

When we saw on TV suddenly our validity period being reduced to 15 June 2009 from
our original date of 7 September 2009, we contacted your call centre. We were told that
money is deducted for movies. Since the call centre was callous in not responding to
our pleas, we contacted Mr. Eric Samuel and as advised by him sent the e mail dt 13
Nov. 2008.
We are totally disappointed and anguished at the arbitrary and intensive
callousness of your billing section.

47
  Airtel Digital TV by Dinesh Kumar on indiadth.com:

You must have seen the ads on TV – Airtel has launched its DTH service called
Digital TV. I buy one, from Saak Communication, SCO 279, Sector 32-D, Chandigarh
(Phone: 0172-461995, 4616655) for Rs 2000. I am told that activation is very easy, I
have to call a toll-free number: 1800 102 8080. It seems that the number can only be
connected from Airtel phones, which was not told to me. I try for two days, and then
approach Saak Communications, who tell me that it is not possible. See they can get
the number anytime! (Translation: the customer is a fool or a liar).

The number for Chandigarh, 0172-467 0021 is either not functional or is overwhelmed
by complaints. They just do not answer the phone. So much for the call center number
and the nodal center! If they are not answering the phone now, what will they do if my
system develops a snag?
I go to another Airtel dealer, who tells me that the number cannot be dialed from any
other phone apart from Airtel phones. He also tells me that the price of Digital TV is Rs
1699 and I have been overcharged by Rs 301 by Saak Communications.

So buy the Airtel Digital TV only if you have an Airtel phone. But then if you have an
Airtel phone, you probably know about Airtel service, in which case you are better off
with some other service provider!

48
  Big TV by Ganesh Iyer on bigtvdth.com:

I ordered for South Smart pack (Rs. 2990/-) and South Premium Pack along with Tamil
regional pack. But to my surprise I got Popular Pack and our favourite Sun channels
missing. I am complaining to the toll free number where they talk very sweetly but
people sitting there don't know anything about Big TV packages. One even said that
Sun TV is available only in South India and not in North India! Very funny! Foolish
people! They never pass on my problems to their superiors. Every time I have to explain
my problem to the person who receive the phone. Just they talk sweetly and end with
"aap ka din subh ho". Till now, there is no solution to my problem.

Only on Saturday (20th September 08), one operator was kind enough and gave me a
complaint number. There has been no reply to E-Mails sent to them. Big TV is providing
very pathetic and very horrible service. I can't believe it!

I am in such a position that I am ready to forfeit Rs. 3000/- which I have incurred
in the purchase of Big TV and switch over to Tata Sky whose services are far
better than Big TV. I will just feel that someone has cut my pocket and took away my
purse with Rs. 3000/- in it. That‟s all. It is not a big amount. Let it go.

49
  Sun Direct on consumer.admanya.com:

TERRIBLE, HORRIBLE, WORST, PATHETIC, WIERD...I am not finding words to

abuse SunDirect Customer Care Service. This is worst service I have ever experienced
in my life, Probably never in future too...
I have been trying from a month, to recharge my plan, Both customer care numbers: toll
free # 18002007575, 044-39407575 are always busy, the second number a couple of
times i got connected with an automated voice said, waiting time will be 1 hour...Worst...
Can not they setup enough number of phone lines and tel.reps while they are charging
good amount of money from the customers.
I would never suggest to this service to any one.

SUN Direct is a piece of CRAP!!!,

I have subscribed to Sun Direct DTH at NOIDA on 23/02/2009 with 5 months free 105
channels - as advertised by SunDirect. 105 channels included COLOURS channel.
From 1/4/2009 Colours was withdrawn from free channels and they are charging Rs
25/- per month.

SunDirect company is cheating the customer by advertising something else and not
providing the promised service.

Is there any regulator or Customer Interest protector in India who can protect interest on
customer and protect the customer from such frauds?

50
 Perceptual Mapping

A perceptual mapping of the five strong players in the DTH market was carried out to
produce a picture of the competitive landscape from a customer‟s point of view
identifying the aspects or factors that customers use to conceptualise their choices.
In this research technique, a questionnaire was designed and responses were
collected from 80 customers surveyed which were put into statistical package of SPSS
known as Multi Dimensional Scaling (MDS). Following are the observations obtained
from MDS –

Data Options-

Number of Rows (Observations/Matrix). 5

Number of Columns (Variables) . . . 5
Number of Matrices . . . . . . 1
Measurement Level . . . . . . . Interval
Data Matrix Shape . . . . . . . Symmetric
Type . . . . . . . . . . . Dissimilarity
Approach to Ties . . . . . . . Leave Tied
Conditionality . . . . . . . . Matrix
Data Cutoff at . . . . . . . . .000000

Model Options-

Model . . . . . . . . . . . Euclid
Maximum Dimensionality . . . . . 2
Minimum Dimensionality . . . . . 2
Negative Weights . . . . . . . Not Permitted

Algorithmic Options-

Maximum Iterations . . . . . . 30
Convergence Criterion . . . . . .00100
Minimum S-stress . . . . . . . .00500
Missing Data Estimated by . . . . Ulbounds

51
Iteration history for the 2 dimensional solution (in squared distances)

Young's S-stress formula 1 is used.

Iteration S-stress Improvement

1 .06111
2 .05111 .01000
3 .05031 .00079

Iterations stopped because

S-stress improvement is less than .001000

52
In the above perceptual mapping there are two dimensions along which the mapping
was done. Dimension 1 indicates „Customer Service‟ ranging from Poor to Excellent,
whereas Dimension 2 indicates „Emotions‟ ranging from Rational to Emotional.
Following were the conclusions drawn –

 Tata Sky was rated as the best player with respect to provision of Customer
Service.

 Big TV was rated as a poor player in terms of Customer Service.

 Sun Direct was considered to be rational in terms of its schemes and packages,
Set Top Box (STB) and monthly subscription.

 Customers appeared to be more emotionally attached with Dish TV, being the
oldest player in the DTH market and endorsement of its brand ambassador i.e.
Shah Rukh Khan.

 Small distance between Airtel Digital TV and Dish TV indicate that they are more
or less perceived similar by the customers. It also indicate a close competition
between the two players.

 The other brands viz. Tata Sky, Sun Direct and Big TV have distinct images in
the customers mind.

53
 Annexure 1

Questionnaire on DTH Interactive Services

1. Which DTH brand service do you use?

TataSky, Dish tv, Airtel digital tv, Big tv, Sundirect

2. Since how long have you been using DTH service?

Less than 6 months, 6 months to 1 year, 1 to 2 year, 2 to 3 year,
more than 3 years

3. Are you aware of the interactive services offered by the various DTH players?
Yes No

4. Which active service do you use frequently?

Games, Movies, cooking, Astrology, Others (please
specify)____________

5. How do you find the interactive system to use?

Complicated, Easy

6. Does the interactive service offered by the DTH companies influence your
decision of purchasing a particular DTH?
Yes No

7. Do you find the interactive service helpful in your daily needs for example
cooking, learning etc
Yes No

54
8. Are you willing to purchase your existing DTH without any interactive services
being offered, though with reduced price?
Yes No

9. Any other service which you would to have in the interactive package?

10. Which company DTH commercial have you seen so far on tv?
TataSky Dish tv Airtel digital tv Reliance Big
tv Sun direct

11. Which is your favourite commercial among the DTH players?

TataSky(Aamir Khan & Gul Panag, Hrithik Roshan, Paresh Rawal)
Dish tv(Shah Rukh Khan)
Airtel digital tv(A.R Rehman, Saif & Kareena)
Reliance Big tv
Sun direct

12. Are you aware of the add of Tata Active Learning featuring small school boys as
Einstein?
Yes No Don‟t remember

13. Are you aware of Dish tv‟s service of banking facility with ICICI bank?
Yes No

14. Are you aware of Big tv‟s 32 cinema hall feature?

Yes No

55
15. Which interactive service have you purchased recently?

16. Have you made use of the services like iPizza?

Yes No

17. Do you take part in the various contests held in the interactive channels ?
Yes No

18. What do you feel about the feature of watching cricket from different angles as
provided by TataSky and Dish tv?
Very innovative Interesting not useful

19. Overall , do you feel that the interactive services increase the value of the DTH
package?
Yes No

56
 Annexure 2

Questionnaire for Consumers of Cable tv

1. Since how long you have been using cable tv?

Past 6 months 6 months to 1 year 1 to 3 years more than 3 years

2. How much do you pay for monthly cable?

Upto Rs 150 Rs 151-Rs 225 Rs 226-Rs 325 Rs 326-Rs 400 Above
Rs 400

3. Do you get all your required channels from your cable operator?
Yes No

4. If answer to Q3 is no, then what reason does your cable operator gives for not
providing the required channel?

5. From the list provided below which DTH players are you aware of?
TataSky Dish tv Airtel Digital tv Big tv SunDirect others(then
specify)_____________

6. Are you satisfied with the services of your cable operator?

Yes No

7. Would you like to change from your cable operator to any of DTH players?
Yes No

8. If answer to Q7 is Yes, then which DTH provider would you like to change?
TataSky Dish tv Airtel Digital tv Big tv SunDirect others(then
specify)_____________

57
9. Your choice of the DTH player is due to
Schemes & packages, Referrals from relatives & friends, Brand Image,
Easy availability,
others(thenspecify)_________________________________________________

10. What difficulty you see in changing from cable to DTH?

High cost of DTH, satisfied with not aware of DTH, not suitable
the existing cable, package
available
other reason(specify)______________________________________________

11. What is it you feel that a DTH lacks but a cable tv has ?

12. How do you feel about the concept of having an inbuilt DTH in the tv itself?
Very innovative, Normal, Idea will not work

58
 Annexure 3

Questionnaire for Perceptual Mapping

Q1 – Give your ratings regarding the redressal of complaints for the DTH companies?
1 denotes Excellent and 5 is Poor

1 2 3 4 5
Tata Sky
Dish TV
Airtel Digital TV
Big TV
Sun Direct TV

Q2 - Give your ratings for the promptness of response from the DTH companies?
1 denotes Excellent and 5 is Poor

1 2 3 4 5
Tata Sky
Dish TV
Airtel Digital TV
Big TV
Sun Direct TV

Q3 – Rate the given below DTH companies according to the overall customer service
provided by them?
1 denotes Excellent and 5 is Poor
1 2 3 4 5
Tata Sky
Dish TV
Airtel Digital TV
Big TV
Sun Direct TV

59
Q4 – Give your ratings for the economy of the schemes and packages of the various
DTH players?
1 denotes Excellent and 5 is Poor
1 2 3 4 5
Tata Sky
Dish TV
Airtel Digital TV
Big TV
Sun Direct TV

Q5 – Give your ratings according to the emotional impact of the advertisements of the
DTH companies?
1 denotes Excellent and 5 is Poor
1 2 3 4 5
Tata Sky
Dish TV
Airtel Digital TV
Big TV
Sun Direct TV

Q6 – Give your ratings according to the overall entertainment level provided by the DTH
companies?
1 denotes Excellent and 5 is Poor
1 2 3 4 5
Tata Sky
Dish TV
Airtel Digital TV
Big TV
Sun Direct TV

60
 References

About TAM from exchangeformedia.com

Reviews about DTH from forums.techarena, indiatdh.com, bigtvdth.com,

consumer.admanya.com

TELECOM REGULATORY AUTHORITY OF INDIA. NOTIFICATION. New Delhi

www.dot.gov.in/Acts/legislation

Industry analysis from www.sivasundaram.com

Information on DTH industry from www.merinews.com

Information on schemes and packages of various DTH players was collected

from the advertisement materials and brochures of the company.

www.saveondish.com

www.indiatelevision.com

www.tamindia.com

61