INDUSTRY ANALYSIS ON DIRECT TO HOME (DTH)

Department of Business A ministration Uni!ersit" Of Lu#$no%

Su&mitte to' Dr( )(* S+arma ,repare &"' Mit+un -ar. Mar$etin.

CONTENTS

C+apter /( Intro u#tion 0( -ro%t+ of t+e in ustr" 1( Mar$etin. 2( Inno!ation 3( Strate.ies an #ompetition in t+e in ustr" 4( Business en!ironment 5( Criti#a6 su##ess fa#tors
Appen i#es

C+apter7/

Intro u#tion

INTRODUCTION O!er!ie% of t+e In ustr" T+e +istor" of In ian te6e!ision ates &a#$ to t+e 6aun#+ of oor ars+an8 In ia9s nationa6 T: net%or$ in /;3;( T+e transmission %as in &6a#$ < %+ite( T+e ; t+ Asian .ames %+i#+ %ere +e6 in /;=0 in t+e #ountr"9s #apita6 Ne% De6+i +era6 e t+e mar$ of #o6or T: &roa #astin. in In ia( In /;;/8 In ian e#onom" %as 6i&era6i>e from t+e Li#ense Ra? an ma?or initiati!es 6i$e in!itin. forei.n ire#t in!estments8 ere.u6ation of omesti# &usiness emer.e ( T+is 6ea to t+e in f6u@ of forei.n #+anne6s 6i$e Star T: an #reation of omesti# sate66ite #+anne6s 6i$e Sun T: an Aee T:( T+is !irtua66" estro"e t+e monopo6" +e6 &" oor ars+an( In /;;08 t+e #a&6e T: in ustr" starte %+i#+ 6ea to re!o6ution(

List of p6a"ers in t+e in ustr" Door ars+an B (DD7Dire#t C) of ,rasar B+arati #omprisin. of 11 DTA #+anne6s an /0 A66 In ia Ra io C+anne6s( Dis+ T: of AEE .roup( Tata S$" ?oine !enture &et%een Tata an Rupert Mur o#+9s S$" T:( Sun ire#t of Sun Net%or$( BI- T: of Re6ian#e Ani6 D+iru&+ai Am&ani .roup( Airte6 i.ita6 T: of B+arati te6eme ia :i eo#on 0+ of :i eo#on in ustries

Cate.ori>ation of p6a"ers in t+e in ustr" -o!ernment o%ne p6a"er' DD Dire#tC(

,ri!ate p6a"ers' Dis+ T:8 Tata S$"8 Sun ire#t8 Bi. T:8 Airte6 i.ita6 T:8 :i eo#on 0+

Brief profi6e of p6a"ers in t+e in ustr" DD DIRECTC Door ars+an is t+e pu&6i# te6e!ision &roa #aster of In ia an a i!ision of ,rasar B+arati8 a pu&6i# ser!i#e &roa #aster nominate &" t+e -o!ernment of In ia( It is one of t+e 6ar.est &roa #astin. or.ani>ations in t+e %or6 in terms of t+e infrastru#ture of stu ios an transmitters( Re#ent6"8 it +as a6so starte Di.ita6 Terrestria6 Transmitters( On Septem&er /3 0EE;8 Door ars+an #e6e&rate its 3Et+ anni!ersar"( Door ars+an +a a mo est &e.innin. %it+ t+e e@perimenta6 te6e#ast startin. in De6+i on /3 Septem&er /;3; %it+ a sma66 transmitter an a ma$es+ift stu io( T+e re.u6ar ai6" transmission starte in /;43 as a part of A66 In ia Ra io( T+e te6e!ision ser!i#e %as e@ten e to Bom&a" (no% Mum&ai) an Amritsar in /;50( Ti66 /;538 se!en In ian #ities +a te6e!ision ser!i#e an Door ars+an remaine t+e on6" te6e!ision #+anne6 in In ia( Te6e!ision ser!i#es %ere separate from ra io in /;54( Ea#+ offi#e of A66 In ia Ra io an Door ars+an %ere p6a#e un er t+e mana.ement of t%o separate Dire#tor -enera6s in Ne% De6+i( Dina66" Door ars+an as a Nationa6 Broa #aster #ame into e@isten#e( Nationa6 te6e#asts %ere intro u#e in /;=0( In t+e same "ear8 #o6or T: %as intro u#e in t+e In ian mar$et %it+ t+e 6i!e te6e#ast of t+e In epen en#e Da" spee#+ &" t+en ,rime Minister In ira -an +i on /3 Au.ust /;=08 fo66o%e &" t+e /;=0 Asian -ames &ein. +e6 in De6+i( No% more t+an ;E per#ent of t+e In ian popu6ation #an re#ei!e Door ars+an (DD Nationa6) pro.rammes t+rou.+ a net%or$ of near6" /2EE terrestria6 transmitters an a&out 24 Door ars+an stu ios pro u#e T: pro.rams to a"(

DD Dire#tC is a free Dire#t to Home (DTH) ser!i#e t+at pro!i es sate66ite te6e!ision an au io pro.rammin. to +ouse+o6 s an &usinesses in t+e In ian su&#ontinent( O%ne &"

parent #ompan" Door ars+an8 DD Dire#t ,6us %as 6aun#+e on De#em&er /48 0EE2( No% #+airman of DD p6usC is S+ri Arun B+atna.ar an CEO is B S La66i un er t+e ministr" of information an &roa #astin.(

Dis+ T: Dis+ T: is t+e first pri!ate DTH sate66ite te6e!ision pro!i er in In ia8 usin. M,E-7 0 i.ita6 #ompression te#+no6o."8 transmittin. usin. NSS Sate66ite at ;3(E( Dis+ T:Fs mana.in. ire#tor an Hea of Business is )a%a+ar -oe6 %+o is a6so t+e promoter of Esse6 -roup an is a6so t+e ,resi ent of In ian Broa #astin. Doun ation an Mr( Su&+as+ C+an ra is t+e C+airman of Dis+ T:( Dis+ T: is a i!ision of Aee Net%or$ Enterprise (Esse6 -roup :enture)( E-: +as nationa6 an .6o&a6 presen#e %it+ &usiness interests in me ia pro.rammin.8 &roa #astin. < istri&ution8 spe#ia6t" pa#$a.in. an entertainment( Aee Net%or$ in#orporate is+t! to mo erni>e T: !ie%in.( B" i.ita6i>in. In ian entertainment8 t+is enterprise &rou.+t &est te6e!ision !ie%in. te#+no6o." to t+e 6i!in. room( It not on6" transmits +i.+ Gua6it" pro.rams t+rou.+ sate66iteH &ut a6so .i!es a #omp6ete #ontro6 of se6e#tin. #+anne6s an pa"in. DTH ser!i#e %as 6aun#+e &a#$ in 0EE2 &" 6aun#+in. of Dis+ T: &" Esse6 -roupFs Enterprises( Dis+ T: is on t+e same sate66ite %+ere DD Dire#tC is( Dis+ T: starte its ser!i#e in ,a$istan %it+ t+e #o66a&oration of Bu .et Communi#ation( Dis+ T: %as on6" DTH operator in In ia to #arr" t+e t%o Turner #+anne6s8 Turner C6assi# Mo!ies an Boomeran.( Bot+ t+e #+anne6s %ere remo!e from t+e p6atform ue to un$no%n reasons in Mar#+ 0EE;( Dis+ T: uses NSS74 to &roa #ast its pro.rams( NSS74 %as 6aun#+e on /5 De#em&er8 0EE0 &" European7&ase sate66ite pro!i er8 Ne% S$ies( Dis+ T: +oppe on to NSS74 from an INSAT sate66ite in )u6" 0EE2( T+e #+an.e in t+e sate66ite %as to in#rease t+e #+anne6 offerin. as NSS 4 offere more transpon er #apa#it"(

Tata S$" Tata S$" is a DTH sate66ite te6e!ision pro!i er in In ia8 usin. M,E-70 in 0EE2H Tata S$" is a ): &et%een t+e TATA -roup an i.ita6

#ompression te#+no6o."8 transmittin. usin. INSAT 2A at =1(EI( Tata s$" is in#orporate STAR( Tata S$" DTH en ea!ors to offer In ian !ie%ers a %or6 7#6ass te6e!ision !ie%in. e@perien#e t+rou.+ its sate66ite te6e!ision ser!i#e( :i$ram *aus+i$ is present CEO of Tata S$" Lt ( T+e TATA -roup is one of In iaFs 6ar.est an most respe#te &usiness #on.6omerates( It #omprises ;1 operatin. #ompanies in se!en &usiness se#tors an information s"stems an i!ersifie .roup' #ommuni#ations8 en.ineerin.8 materia6s8 ser!i#es8 ener."8

#onsumer pro u#ts an #+emi#a6s( T+e TATA -roup +as operations in more t+an 2E #ountries a#ross si@ #ontinents an its #ompanies e@port pro u#ts an ser!i#es to /2E nations( T+e -roup an its enterprises +a!e &een stea fast an istin#ti!e in its a +eren#e to &usiness et+i#s an t+eir #ommitment to #orporate so#ia6 responsi&i6it"( T+is is a 6e.a#" t+at +as earne t+e -roup t+e trust of man" mi66ions of sta$e+o6 ers in measure fe% &usiness +ouses an"%+ere in t+e %or6 #an mat#+( T+e S*Y &ran 8 o%ne &" t+e U*7 &ase Britis+ S$" Broa #astin. -roup8 &rin.s to Tata S$" t+e reputation of more t+an 0E "ears e@perien#e of sate66ite &roa #astin.( S*Y is %e66 $no%n for t+e inno!ati!e pro u#ts an ser!i#es 6aun#+e &" BS$"8 su#+ as DTH &roa #astin. in /;=;8 i.ita6 sate66ite &roa #astin. in /;;=8 intera#ti!e te6e!ision ser!i#es in /;;; an t+e S*YC persona6 !i eo re#or er in 0EE/( Tata S$" ?oins an internationa6 .roup of DTH &usinesses t+at in#6u es p6atforms as far apart as t+e U* an Ita6" in Europe8 an Me@i#o an Bra>i6 in Latin Ameri#a( Tata S$" Lt is t+e Dirst In ian DTH pro!i er to &e a%ar e t+e ISO 05EE/'0EE3 a##re itation8 t+e u6timate &en#+mar$ for information se#urit"( T+e assessment for t+e #ertifi#ation %as #on u#te &" Interte$ S"stems Certifi#ation8 t+e

mana.ement s"stems re.istration &usiness unit of Interte$ -roup p6# an is a##re ite &" se!era6 internationa66"7re#o.ni>e a##re itation &o ies %or6 %i e( In O#to&er 0EE=8 Tata S$" announ#e 6aun#+in. of D:R ser!i#e Tata Sky+ %+i#+ a66o%e 23 +ours of re#or in. in a M,E-72 #ompati&6e Set Top Bo@( T+e remote is pro!i e %it+ p6a"&a#$ #ontro6 $e"s an is &ein. so6 %it+ spe#ia6 offers for e@istin. su&s#ri&ers( Tata S$" %as se6e#te as a SU,ER BRAND for t+e "ear 0EE;70E/E &" an in epen ent an !o6untar" #oun#i6 of e@perts $no%n as Super &ran s Coun#i6( It is t+e on6" In ian DTH to +a!e %on t+is istin#tion( Sun Dire#t Sun Dire#t is a DTH sate66ite te6e!ision pro!i er in In ia8 usin. M,E-72 i.ita6

#ompression te#+no6o."8 transmittin. usin. INSAT 2B at ;1(3IE( It is t+e #ountr"Fs first M,E- 2 te#+no6o." DTH ser!i#e pro!i er( Sun Dire#t is a DTH ser!i#e in In ia +ea Guartere in C+ennai8 Tami6 Na u( Sun Dire#t T: %as re.istere in De&ruar" /48 0EE3( Ho%e!er8 t+e fai6e 6aun#+ of INSAT 2C resu6te in a 6a#$ of transpon ers8 on De#em&er 0EE5 after e6a"in. t+e 6aun#+( T+e ser!i#e %as fina66" 6aun#+e

a!ai6a&i6it" of transpon ers from INSAT 2CR( Be#ause of t+e 6o%est pri#in. of an" DTH in In ia Sun Dire#t sprea rapi 6" a66 o!er t+e #ountr"( On De#em&er Sun Dire#t %as 6aun#+e in Mum&ai an announ#e its pan In ia 6aun#+( B" 0EE; it &e#ame 6ea in. DTH pro!i er %it+ 1 mi66ion su&s#ri&ers( T+is ma$es it 2t+ 6ar.est DTH ser!i#e pro!i er of In ia( In Apri6 0EE; Sun Dire#t offi#ia66" 6aun#+e its Hi.+7Definition ser!i#e in In ia( Sun Dire#t uses t+e 6atest M,E-72 &ase te#+no6o." to in#rease &roa #ast #apa#it"( Sun Dire#t pro!i e ne@t7.eneration ser!i#es in fast7.ro%in. an emer.in. mar$ets Gui#$6" an effi#ient6"( Sun Dire#t se6e#te Ora#6e &ase on its #on!er.ent mu6ti7ser!i#e #apa&i6ities an pro!en rea67time s#a6a&i6it" a66o%in. it to #onso6i ate &i66in. operations8 ena&6es po%erfu6 ne% ser!i#e offerin.s an impro!es !isi&i6it" into #ustomer information a#ross ser!i#es( BI- T:

Re6ian#e BI- T: is a DTH sate66ite te6e!ision pro!i er in In ia &ase in Na!i Mum&ai8 usin. M,E-72 i.ita6 #ompression te#+no6o."8 transmittin. usin. MEASAT71 ;/(3Ieast( It is t+e 3t+ DTH ser!i#e 6aun#+e in In ia( Re6ian#e BI- T: 6imite is a part of Re6ian#e Communi#ations Lt (8 a su&si iar" of Re6ian#e Ani6 D+iru&+ai Am&ani -roup foun e &" t+e Late D+iru&+ai Am&ani8 t+e In ian &usiness t"#oon an o%ne &" +is son Ani6 Am&ani( BI- T: starte operations from /; Au.ust 0EE= %it+ t+e s6o.an JT: +o T+o BI- HoJ (JIf "ou +a!e a T:8 ma$e it BI-J)( It #urrent6" offers #6ose to 0EE #+anne6s an man" intera#ti!e ones8 10 #inema +a66s (i(e( ,a" ,er :ie% Cinema C+anne6s) as %e66 as man" Ra io #+anne6s( T+e #ompan" p6ans to in#rease t+e num&er of #+anne6s in t+e near future to 2EE an &e.in Hi.+ Definition (HD) &roa #ast( It is t+e first ,an7In ia DTH pro!i er t+at uses M,E-72 for &roa #astin.( T+ere are a6so p6ans to intro u#e ser!i#es 6i$e i7Sto#$8 i7Ne%s an ot+er su#+ intera#ti!e ser!i#es in t+e future( Re6ian#e BI- T: %as 6aun#+e on Au.ust /;8 0EE= %it+ t+e so6e aim of pro!i in. t+e #onsumer %it+ Gua6it" an enri#+e +ome entertainment ser!i#e at !a6ue7 ri!en pri#in.( Re6ian#e BI- T:Fs 6aun#+ in Au.ust %as pro&a&6" t+e &i..est ro667out in +ome entertainment e!er an ep6o"e t+e most a !an#e M,E-2 te#+no6o." t+at ena&6e in In ia &e#ause on6" M,E-2 t+em to e6i!er &est Gua6it" i.ita6 au io7!i eo to t+e #onsumer( It a6so .ot prepare for t+e future %+en Hi7Definition T: %i66 &e 6aun#+e t+e DTH in ustr"( Re6ian#e BI- T:Fs retai6er net%or$ is sprea a#ross /EE8EEE out6ets in 483EE to%ns in In ia( T+is %as 6itera66" un+ear of in t+e DTH in ustr"( T+e" +a effe#ti!e6" out7 strippe t+e #ompetition +ere( K+en it #ame to pri#in. B pa#$a.in.8 t+eir intro u#tor" offer stoo at Rs( /82;EL7 %it+ 1 to 4 mont+s of free su&s#ription( T+e" a6so intro u#e 10 ,a"7,er7:ie% Mo!ie C+anne6s8 t+e +i.+est &" an" DTH p6a"er( te#+no6o." #an support HD T: an not M,E-0 %+i#+ is use &" t+e ear6ier entrants in

Airte6 i.ita6 T: B+arti Airte6 Limite is t+e f6a.s+ip #ompan" of B+arti Enterprises an is In ia9s 6ar.est inte.rate an t+e first pri!ate te6e#om ser!i#es pro!i er %it+ a footprint in a66 t+e 01 te6e#om #ir#6es( As In iaFs 6ea in. te6e#ommuni#ations #ompan"8 t+e Airte6 &ran +as ;

p6a"e

t+e ro6e of a ma?or #ata6"st in In iaFs reforms8 #ontri&utin. to its e#onomi#

resur.en#e( Airte6 sin#e its in#eption +as &een at t+e forefront of te#+no6o." an +as steere t+e #ourse of t+e te6e#om se#tor in t+e #ountr" %it+ its %or6 #6ass pro u#ts an ser!i#es(

Airte6 Di.ita6 T: is a DTH (Dire#t to Home) ser!i#e from Bharti Airte6( It uses M,E-72 i.ita6 #ompression %it+ D:B7S0 te#+no6o."8 transmittin. usin. INSAT 2CR 52IE Airte6 i.ita6 6aun#+e on = O#to&er8 0EE= %it+ a 14E e.ree me.a #ampai.n FCome Home to t+e Ma.i#( Sin#e t+en it +as 6aun#+e 0 ot+er #ampai.ns' MStars #ome +ome9 (Mar#+ 0EE;) an MDTH ,i#ture C6arit" (Au.ust 0EE;) +as in#rease its #+anne6 &ase to /=1C #+anne6s( Airte6 i.ita6 T: is no% amon.st t+e fastest .ro%in. DTH &ran s in t+e #ountr" an is a!ai6a&6e a#ross 3EEEC to%ns in In ia( It +as a6so &een ran$e as t+e &est DTH ser!i#e &" NLi!in. Di.ita6O ma.a>ine( Airte6 #+ief Suni6 Mitta6 sai t+at Airte6 i.ita6 T: an ot+er DTH p6a"ers +a!e a &ri.+t future in In ian mar$et as t+e peop6e are .ettin. more attra#te to%ar s DTH &e#ause of its Gua6it" an affor a&i6it"( :i eo#on 0+ :i eo#on 0+ is a DTH sate66ite te6e!ision pro!i er in In ia &ase in Mum&ai8 usin. M,E-72 %it+ D:B S0 i.ita6 #ompression te#+no6o." :i eo#on Leasin. < In ustria6 Dinan#e Limite %as in#orporate on 2t+ Septem&er8 /;=4 as A +i.am Tra in. ,ri!ate Limite ( In terms of t+e ne#essar" reso6utions ,asse un er Se#( 0/ of t+e Companies A#t8 /;348 t+e name of t+e Compan" %as #+an.e to :i eo#on Leasin. < In ustria6 Dinan#e Limite on /2t+ De&ruar"8 /;;/( T+e Compan" re#ei!e a fres+ #ertifi#ate of in#orporation from t+e Re.istrar of Companies8 -u?arat at A+me a&a on /2t+De&ruar"8 /;;/( :i eo#on 0+ 6aun#+e Ma" /8 0EE;( it #ame %it+ a !er" .oo strate." for se66in. &ot+ of its e6e#troni# pro u#ts 6i$e T:9s D:D9s a6on. %it+ t+e ne% set top &o@( T+is is offerin. ire#t to T: %it+ out an" set top &o@ a6so( On6" t+e antenna is enou.+8 it a6so

/E

#ame %it+ D:D %+i#+ is #onne#te %+i#+ .i!es a &est Gua6it" of out put(

ire#t6" to t+e T: or antenna is #onne#te to D:D

C+apter70

-ro%t+ of t+e In ustr"

//

-ROKTH OD THE INDUSTRY Rate of -ro%t+ T+e DTH ser!i#e mar$et in In ia +as emer.e as one of t+e most 6u#rati!e mar$ets %+i#+ +a!e su##essfu66" resiste t+e impa#ts of t+e #urrent e#onomi# s6o% o%n( T+e s6o% o%n +as #ertain6" pro!e a &oon for t+e In ian DTH in ustr" as peop6e +a!e no% starte to #ut on t+eir entertainment e@pen iture an instea of !ie%in. mo!ies at t+eatres8 t+e" are preferrin. to sta" at +ome %it+ t+eir te6e!ision sets( ,attern of -ro%t+ T+e In ian Dire#t7To7Home (DTH) mar$et is e@pe#te to see its annua6 re!enue .ro% o!er t+ree times to more t+an P 3 &i66ion &" 0E0E8 as man ator" #a&6e T: i.iti>ation %ou6 +e6p t+e DTH p6a"ers e@pan t+eir su&s#ri&er &ase8 a stu " +as sai ( NDTH in ustr" re!enues %i66 rea#+ P 1(; &i66ion &" 0E/5 an P 3(1 &i66ion &" 0E0E( Re!enue .ro%t+ %i66 &e 6ar.e6" ri!en &" in#reasin. su&s#ri&er !o6umes8O Hon. *on.7 &ase resear#+ firm Me ia ,artners Asia +as sai in a ne% report on t+e In ian DTH mar$et( Me ia ,artners Asia (M,A)8 an in epen ent pro!i er of information ser!i#es fo#usin. on me ia8 #ommuni#ations an entertainment in ustries8 furt+er sai t+at t+e a#ti!e DTH su&s#ri&er &ase is estimate to .ro% from 10(2 mi66ion in 0E/0 to 41(= mi66ion &" 0E/5 an 54(4 mi66ion &" 0E0E( M,A8 +o%e!er8 a e t+at t+e In ian DTH mar$et fa#es se!era6 #ost #+a66en.es mo!in. for%ar (

/0

NKit+ #onf6i#tin. .ro%t+ fore#asts &et%een #ontent a..re.ators an DTH operators o!er t+e a#ti!e su&s#ri&er &ase8 most of t+e #ontent rene%a6s from no% on %i66 6i$e6" &e &ase on a #ost per su&s#ri&er (C,S) &asis8 rat+er t+an on a fi@e rate( NT+is %i66 re u#e t+e &enefits from operatin. 6e!era.e t+at t+e in ustr" pre!ious6" en?o"e ( Mar$etin. an staff e@penses %i66 remain +i.+ as t+e 6ar.er p+ases of DAS ( i.iti>ation of #a&6e si.na6s) ro667out .ets un er%a"8O it a e ( As per t+e report8 In ia9s DTH p6a"ers ma e a #o66e#ti!e effort in 0E/0 to impro!e t+e per7su&s#ri&er e#onomi#s of t+e in ustr"8 %it+ 6aun#+ of more DTH pa#$a.es an entr"7 6e!e6 pri#in.( NOperators +a!e a6so ta$en steps to $eep #+urn 6e!e6s un er #+e#$ &" re u#in. tra e mar.ins an t+e free !ie%in. perio for ne% su&s#ri&ers( Ho%e!er8 .ross su&s#ri&er a itions remaine re6ati!e6" %ea$ an .ro%t+ in t+e a#ti!e (pa"in.) su&s#ri&er &ase +as remaine s6u..is+8O it sai ( NT+e a#ti!e su&s#ri&er a itions in 0E/0 stoo at a mere 1(5 mi66ion( T+is is a6armin. as t+e .ap &et%een .ross an a#ti!e su&s#ri&er &ases +as %i ene su&stantia66"( NAs of en 70E/08 t+e #umu6ati!e DTH a#ti!e su&s#ri&er &ase stoo at 10(2 mi66ion su&s#ri&ers !ersus 0=(5 mi66ion su&s#ri&ers in 0E//8O M,A sai ( As per t+e report8 Dis+ T: #ontinue to 6ea %it+ a mar$et s+are of 05 per #ent in terms of .ross a itions8 %+i6e :i eo#on 0+ 6e in terms of in#rementa6 a s in 0E/0( Tata S$" an Airte6 Di.ita6 T: +a!e /; per #ent an /= per #ent mar$et s+are8 respe#ti!e6"( T+ese four p6a"ers to.et+er a##ounte a itions in 0E/0( SOURCE' %%%(t+e+in u&usiness6ine(#om -ro%t+ Determinants Deman #onstraints an SCAR are t+e fa#tors %+i#+ effe#ts t+e .ro%t+ of t+e in ustr"( -ro%t+ eterminant an +i.+ T: sa6es in#rease t+e #+an#e for more sa6es of set top &o@ %+i#+ %i66 effe#t t+e .ro%t+( K+en t+e fa#i6ities of t+e pro u#ts in#rease it a#ts as a .ro%t+ eterminant( for == per #ent of tota6 .ross

/1

T+e entertainment #+anne6s an t+e ne%s #+anne6s p6a"ers in#rease t+e .ro%t+ to opt t+e DTH( Some of t+e DTH p6a"ers are &rin.in. inno!ati!e p6ans 6i$e 6i!e s+oppin.8 &roa &an 8 an et# %i66 a#t as .ro%t+ eterminants(

C+apter71

Mar$etin.

/2

Mar$etin. Mar$et se.mentation8 mar$etin. strate.ies8 mar$etin. pra#ti#es an mar$etin. #on#epts spe#ifi# to t+e in ustr" In ian T: #+anne6 &roa #ast /3(57mn a !ertisement e!er" "ear8 %+i#+ tota6s to 1407mn se#on s of T: a !ertisement e!er" "ear( In ia #urrent6" +as o!er 2EE #+anne6s( T: !ie%er s+ip +as e#6ine &" 3Q sin#e 0EE/( T: &roa #asters are e@pe#te to .o +i$e in a !ertisement rate t+is "ear &" /47/=Q( Mar$et se.mentation in DTH in ustr" main6" #on#entrates on %omen %+o on9t 6i$e missin. t+eir ai6" soap an ne%s more e!er %omen are a&6e to 6earn En.6is+ spea$in. %+i#+ is a !er" spe#ia6 feature of DTH( DTH a6so #on#entrates on #+i6 ren a6so &" pro!i in. t+em .ames8 i#tionar"8 some is#o!er" !i eos spe#ia66" in&ui6t8 mat+s8 s#ien#e an so#ia6 $no%6e .e( It a6so fo#uses on o6 peop6e as it +as up ate !i eos of !arious +o6" an re6i.ious p6a#es( DTH uses ifferent mar$etin. strate.ies for promotion an sa6es of its pro u#t( It .i!es a !ertisements %it+ t+eir &ran am&assa ors %+i#+ attra#t #ustomers8 oor to oor se66in.8 on t+e p+one se66in.8 is#ount an offer sa6es8 pa#$a.es8 et# Mar$etin. pra#ti#es is a #ontinuous pro#ess as t+e #ompetition $eeps in#reasin. amon. t+e p6a"ers in t+e in ustr"( Ea#+ p6a"er is in!estin. 6ots of mone" in promotin. t+ere &ran s( Man" p6a"ers are ma$in. a !ertisement %it+ mo!ie a#tor an a#tress as &ran am&assa ors for t+eir pro u#ts &e#ause DTH is main6" #onsi ere %it+ entertainment( Some of t+e #ompanies 6i$e Tata s$" is +a!in. Super Star Amir $+an as &ran am&assa or an Airte6 is +a!in. man" fi6m stars 6i$e $areena $apoor8 A&+is+e$ Ba#++an8

/3

Saif A6i $+an8 et#( Dis+ T: is a6so +a!in. Super Star S+a+ru$+ $+an as t+e &ran am&assa or( Sun ire#t a6so uses sout+ern a#tress for t+eir &ran promotion( Mar$etin. pra#ti#es are t+e e#isions ta$en &" t+e manufa#turin. #ompan" to in#rease sa6es8 e@pan t+emse6!es into man" areas et#( Su##essfu6 mar$etin. pra#ti#es &rin. sa6e up8 %+i6e unsu##essfu6 mar$etin. pra#ti#es +a!e no impa#t on sa6e or ne.ati!e6" impa#t sa6e( Mar$etin. #on#epts spe#ifi# to t+e in ustr" is primari6" tar.ete at a ni#+e se.ment %+o &u" t+e T: sets from t+e e6e#troni# retai6 #+ains(

C+apter72

Inno!ation

/4

Inno!ation T"pes of inno!ation8 #on#epts of inno!ation re6e!ant to t+e in ustr"8 sour#e of inno!ation8 rate of inno!ation an e#onomies of s#a6e( T+e #on#ept of inno!ation in DTH in ustr" is INCREMENTAL inno!ationH e!er" t+in. t+at is one is ue to #onstant resear#+ of man" mar$etin. an ana6"sts to &rin. man" inno!ations to t+e e@istin. pro u#ts in t+e DTH in ustr"( In#rementa6 inno!ation is t+e apt inno!ation %+i#+ is suita&6e an a66 t+e DTH p6a"ers are #on#entratin. up on( T+is inno!ation ma$es t+e &usiness to .ro% #ontinuous6" an &rin.s a !anta.es to t+e #ustomers usin. t+e pro u#ts an t+e ser!i#e( T+ere are man" sour#es of inno!ation for t+is in ustr" as mentione in t+e a&o!e8 t+e te#+no6o." an t+e peop6e are t+e main sour#es for t+e inno!ation( Customer9s opinions an t+eir nee s #an &e ser!e &" pro!i in. a ser!i#e %+i#+ is mat#+in. to t+eir nee s an reGuirements( In t+is a"s e!er" #ompan" setups its o%n R<D in its o%n #ompan" %it+ !er" inte66i.ent peop6e for meetin. t+e e@pe#tation of t+e #ustomer( Tata Te6eser!i#es Limite +as announ#e a te#+no6o.i#a6 &rea$t+rou.+Ra first7of7its7 $in inno!ation in In ia %it+ t+e 6aun#+ of TATA ,+oton T:8 a ne% app6i#ation t+at a66o%s Tata ,+oton ,6us su&s#ri&ers to %at#+ 6i!e te6e!ision #+anne6s on t+eir 6aptops %+i6e on t+e mo!e8 an on t+eir persona6 #omputers at +ome an in t+e offi#e( T+e ,+oton T: ser!i#e is e@#6usi!e6" a!ai6a&6e to ,+oton ,6us users( NKit+ its .ro%in. popu6arit"8 ,+oton ,6us +as #au.+t t+e a miration of mi66ions of users a#ross t+e #ountr"8 %it+ its +i.+7spee ata a##ess #apa&i6ities an t+e ease of mo&i6it"( /5

TATA ,+oton T: is a persona6 #omputer7 an 6aptop7&ase !i eo7streamin. app6i#ation8 %+i#+ a66o%s Tata ,+oton ,6us users to !ie% 6i!e T: fee from !arious sports8 ne%s8 entertainment an re.iona6 #+anne6s8 an to %at#+ re#or e T: s+o%s from t+e 6i&rar" (!i>( Coffee %it+ *aran8 Aoom8 ,o.o8 et#)8 mo!ies8 musi# an !i eos on eman (

Internet Bro%sin. #+ar.es %i66 &e #+ar.e as per "our ,+otonC tariff p6an an it %ou6 &e app6i#a&6e %+i6e !ie%in. ,+oton T:( T+ese #+ar.es %ou6 &e o!er an a&o!e t+e su&s#ription #+ar.es for t+e ,+oton T:( (Appro@imate ata usa.e is /70MB per Min)( Kit+ t+e popu6arit" of smartp+ones in t+e #ountr" no% Tata s$" +as a6so 6aun#+e an app for !ie%in. T: on mo&i6e p+ones( Rate of inno!ation in t+is se#tor is .ro%in. at a faster rate in t+e re#ent "ears %+ere as it is not !er" impressi!e &efore t+is perio ( T+e reason for t+is is t+e fair #ompetition &et%een t+e a66 p6a"ers in t+is DTH in ustr"( It 6e to t+e e!e6opment of ne% pro u#ts in t+is se#tor %+i#+ a6so 6e to t+e i!ersifi#ation of pro u#ts as t+ere is a&o6ition of entr" of forei.n in ustries into In ian in ustries initia66"( It a6so ma e t+e in ustries in t+is se#tor to esta&6is+ t+eir o%n R<D epartments for su##essfu6 pro u#t inno!ations 6i$e Airte6 Li!e8 :e io#on 0+( T+e &ran 6o"a6t" for ea#+ an e!er" #ompan" is !er" +i.+8 so t+ere is no nee of 6ot of #osts to &e pore in mar$etin. an promotion of t+e ser!i#e an pro u#t( E!er" fun#tion t+at is performe &" t+e p6a"ers is a %e66 p6anne an e@e#ute proper6"( So in a66 t+e areas t+ose p6a"ers are usin. t+e e@pertise peop6e in t+e in ustr" an performin. operations in DTH in ustr" !er" e#onomi#a66"(

/=

C+apter73

Strate.ies an Competition in t+e In ustr"

/;

Strate.ies an #ompetition in t+e in ustr" Competitors8 Strate.ies use in t+e in ustr"8 ,orter9s .eneri# strate.ies mo e68 porter9s fi!e for#es mo e6 an ana6"sis usin. it8 e6ement of in ustr" stru#ture8 porter9s !a6ue #+ain mo e6 ana6"sis8 s%ot ana6"sis8 #on#ept of .eneri# !a6ue #+ain8 #on#ept of .ro%t+ s+are mar$et matri@8 #ompan" position ( Competitors E!er" #ompan" +as its o%n .oa68 e!er" #ompan" %ants to a#+ie!e an fu66 fi66 its .oa6s8 man" #ompanies 6i$e t+e &i. p6a"ers in t+e in ustr" %ants to .ra& most of t+e mar$et s+are Strate.ies use in t+e in ustr" Te#+no6o." transfer is one of strate." use in t+e in ustr" an it is e@isten#e for a 6on. time( In re#ent e#a es8 #on#erte effort +as &een ma e to e@p6oit t+e e@istin. te#+no6o." to a 6ar.er e@tent &" transfer of te#+no6o."8 to .enerate .reater e#onomi# impetus( It pro!i es opportunit" to .enerate 6ar.er returns on t+e in!estments ma e in R<D( Its importan#e 6ies in its a&i6it" to stimu6ate an stren.t+en t+e inno!ation pro#ess( ,orter9s .eneri# strate.ies mo e6 -eneri# strate.ies %ere use initia66" in t+e ear6" /;=Es8 an seem to &e e!en more popu6ar to a"( T+e" out6ine t+e t+ree main strate.i# options open to or.ani>ation t+at %is+ to a#+ie!e a sustaina&6e #ompetiti!e a !anta.e(

0E

T+e .eneri# strate.ies are' /( Cost 6ea ers+ip8 0( Differentiation8 an 1( Do#us /( Cost 6ea ers+ip In t+e #ase of me ia pro u#ts8 means t+e" s+ou6 &e offere at a pri#e 6o%er t+an t+eir #ompetitors9 &ut %it+ as .oo &enefits8 or8 t+e uniGue &enefits t+e me ia pro u#ts offer #an o!er7offset t+e premium( 0( Differentiation Differentiation in DTH refers to %+en an or.ani>ation pro!i es uniGue &enefits to t+e users t+rou.+ pro u#t inno!ation( T+is is to in#rease t+e pro&a&i6it" of t+e me ia users to #+oose t+e pro u#t( A me ia or.ani>ation %it+ a tar.et user 6o"a6t" #an #on#entrate more on +o% to fu66" meet t+e tar.et user9s nee s rat+er t+an on pro u#t #ost sa!in.( T+e ifferentiation #an &e a#+ie!e &" DTH #ompanies in fo66o%in. %a"s' a) &" pro!i in. #ustomi>e pa#$a.es as per t+e reGuirements of t+e users &) &" pro!i in. &etter pi#ture Gua6it" t+an its #ompetitors( 1( Do#us Do#us strate." is a6so $no%n as a Fni#+eF strate."( T+e #6utter of a s +as no% spi66e out on t+e num&er of #+anne6 a!ai6a&i6it" ue to %+i#+ peop6e are spoi6t for #+oi#e( T+us Ni#+e #+anne6s are t+e on6" %a" to maintain !ie%er 6o"a6t"( TATA ,+oton p6us is more ni#+e oriente (

0/

,orter9s fi!e for#e mo e6

T+e fi!e for#es %+i#+ one must #onsi er to ana6">e an" in ustr" are t+e ri!a6r" &et%een t+e firms %it+in t+e in ustr" &ein. ana6">e 8 t+e &ar.ainin. po%er of &u"ers8 t+e &ar.ainin. po%er of supp6iers8 t+e t+reat of su&stitute pro u#ts or ser!i#es8 an t+e t+reat of ne% entrants (a6so $no%n as &arriers to entr")( T+e" are a6so s+o%n in t+e ia.ram &e6o%( Initia66" propoun e &" Har!ar Business S#+oo6 ,rofessor Mi#+ae6 ,orter8 t+e Di!e Dor#es frame%or$ +as &een a##epte as a strate.i# frame%or$ %+i#+ one #an app6" to ana6">e an" in ustr"(

T+reat of su&stitutes DTH .i!es stiff #ompetition from t+e terrestria68 #a&6e < I,T:( As per t+e in ustr" estimates8 t+ere are /1E mi66ion T: +omes of %+i#+ 5/ mi66ion are ser!e &" #a&6e an aroun 4 mi66ion ser!e &" DTH %it+ t+e remainin. ta$en &" terrestria6 transmission( As I,T: is a ne% entrant t+ere is not mu#+ ata on its su&s#ri&er &ase( Bar.ainin. po%er of supp6iers DTH in ustr" re6ies on t+ree ma?or supp6iers( Customer premise eGuipment (C,E)

00

Comparin. of t+e sate66ite Dis+8 Set Top Bo@ %it+ t+e ne#essar" A##ess Car 8 t+e *u &an transpon ers are o&tainin. sate66ites an #ontent( Kit+ In ia set to o!erta$e )apan as Asia9s 6ar.est DTH &" ne@t "ear8 t+e &ar.ainin. po%er of In ia DTH operators %it+ C,E supp6iers +a!e &een stea i6" in#reasin.(

Bar.ainin. po%er of &u"ers Kit+ enou.+ operations to #+oose &ot+ from t+e point of a6ternate me iums 6i$e #a&6e8 I,T: an terrestria6 &roa #ast an from t+e point of in#reasin. DTH operators8 t+e #onsumer is at +is %i66 to e#i e( Customers %i66 #ontinue to +a!e a +i.+ &ar.ainin. po%er unti6 DTH p6atforms tr" to ifferentiate t+em as superior p6a"ers %it+ &etter #ontent an #6arit"( Ri!a6r" amon. e@istin. firms Kit+ 1 operationa6 p6a"ers an 2 p6a"ers in t+e Gueue8 inter firm ri!a6r" is Guite +i.+( T+e #ompetition from state o%ne DD7Dire#t to pri!ate p6a"ers is ne.6i.i&6e from t+e #ontent point of !ie% as t+e num&er of #+anne6s offere &" DD7Dire#t is !er" 6imite ( Ho%e!er8 DD7Dire#t oes not #+an.e an" mont+6" su&s#ription #+ar.es( Bet%een Dis+ T: an Tata S$" t+ere is an intense ri!a6r" e@+i&ite &" pri#e %ar an t+e STB offers superiors D:D Gua6it" :i eo to its a !an#e STB( K+i6e Dis+ T: is p6annin. to spen Rs( =3E#rs o!er t+e ne@t 1 "ears8 t+e ri!a6 TataS$" is %i66in. to spen Rr(0EEE#rs o!er t+e me ium term( T+reat of ne% entrants Kit+ a6rea " 5 p6a"er9s spa#e in t+e DTH spa#e8 t+reat of ne% entrants is 6o%( T+ere is a6rea " enou.+ #ompetition %+i#+ %i66 is#oura.e ne% firms to enter t+is &usiness( K+i6e .ettin. a 6i#ensee is re6ati!e6" eas"8 t+e &arriers to entr" are +i.+ %+en it #omes to pri#in. of C,E an .ettin. t+e reGuire transpon er( T+ere is a efinite8 first mo!er a !anta.e( is#ount s#+emes offere to ne% #onne#tions( Bein. t+e first mo!er8 is+ T: +a pri#e a !anta.e in &ot+

01

Ana6"sis of t+e In ustr" usin. ,orter9s !a6ue #+ain mo e6 ,orter9s !a6ue #+ain ana6"sis is #onsi ere %it+ t+e !a6ue ana6"sis of t+e se!era6 fun#tions of t+e DTH in ustr"8 it ma$es to un erstan t+e importan#e of t+is mo e6 to e!e6op an a on !a6ue to t+e present features of t+e in ustr" an it9s fun#tionin.( :a6ue ana6"sis sa"s t+at an effe#ti!e 6o.isti#s s+ou6 &e un erta$en to #ommen#ement of t+e &usiness in #ost effe#ti!e %a"( T+e most t+e #ost effe#ti!e8 t+e more !a6ue is a e to t+e pro#ess( It is notin. &ut proper or optima6 use of t+e resour#es present an usin. t+e te#+no6o."( T+is !a6ue a ition is not on6" in t+e 6o.isti#s8 it s+ou6 &e #arrie in a66 areas of t+e mana.ement8 pro u#tion8 istri&ution et#( T+us DTH in ustr" #an in#rease its !a6ue a ition to t+e #ustomers an t+e features of in ustr"(

02

CHA,TER 4

SKOT ANALYSIS

03

STRENGTH In#rease +i.+ efinition ser!i#es De#6inin. #ontent a#Guisition #ost Rura6 penetration -ro%in. num&er of p6a"er an #ompetiti!e a !anta.e( WEAKNESS Capita6 intensi!e in ustr" S$i66e 6a&or Sate66ite te#+no6o." Si.na6s :ie%er mi.ration( Un#ertaint" in !ie%ers+ip( OPPORTUNITY In#reasin. num&er of T: +ouse+o6 s Man ator" #a&6e T: i.iti>ation in some #ities In#reasin. isposa&6e in#ome THREAT De!e6opment of te#+no6o." ma" turn DTH ser!i#es o&so6ete Competition from ot+er T: istri&ution p6a"ers S6o% o%n in e#onomi# .ro%t+ Set top &o@ s+orta.e C6imate Ra io Cinema +a66s Ne% entrants

04

C+apter75

Business En!ironment

05

DTH LATEST MARKET SHARE

0=

DTH Comparison at a -6an#e

Rank

Total Custo !rs

Total "usto !r #ark!t Shar! $ Dis+ (0=Q) Tata (/;Q) T: S$"

A"ti%! Custo !rs

A"ti%! Custo !r #ark!t Shar! $ Dis+ T: (01Q) Airte6 DTH (/;Q) Tata S$" (/;Q) Sun Dire#t (/=Q) :i eo#on D0H (/2Q) Re6ian#e Di.ita6 T: (=Q)

$ o& A"ti%! Custo !rs

Gro'th Rat!

A%!ra(! R!%!nu! P!r Us!r Tata S$" Airte6 DTH

) *

Dis+ T: (/1(2mn) Tata S$" (;(0mn) Airte6 DTH (=(Emn) Sun Dire#t (5(4mn) :i eo#on D0H(4(/mn) Re6ian#e Di.ita6 T:(2(2mn)

Dis+ T: (4(;mn) Airte6 DTH (3(=mn) Tata S$" (3(5mn) Sun Dire#t (2(;mn) :i eo#on D0+ (2(0mn) Re6ian#e Di.ita6 T: (0(1mn)

Airte6 DTH (50(3Q) :i eo#on D0H (4;Q) Sun Dire#t (42(3Q) Tata (40Q) S$"

Airte6 DTH :i eo#on D0H Sun Dire#t

Airte6 DTH (/4Q) Sun Dire#t (/=Q) :i eo#on D0H (/1Q) Re6ian#e Di.ita6 T: (;Q)

:i eo#on D0H Dis+ T: Re6ian#e Di.ita6 T: Sun Dire#t

, -

Dis+ T: Tata S$"

Re6ian#e Di.ita6 T: (30Q) Dis+ T: (3/(3Q)

Re6ian#e Di.ita6 T:

-ro%t+ rate sin#e in#eption is #a6#u6ate in#eption) Sour#es' Dinan#ia6 E@press Business Stan ar M,A Ana6"sis Data T+e Hin u Business Line

&" (tota6 #ustomerLtime sin#e

0;

C+apter75

Criti#a6 Su##ess Da#tors

Criti#a6 su##ess fa#tors

1E

Content' T+e mo!ies8 ne%s #+anne6s8 sportin. e!ents8 an

t+at #onstitute an offer to #onsumers(

Lor .enera6 entertainment features

Re.u6ation' re.u6ation su#+ as man ator" #a&6e T: i.itisation %ou6 +e6p t+e DTH
p6a"ers e@pan t+eir su&s#ri&er &ase( T+e #ompan" t+at %ou6 &e a&6e to .ra& t+is opportunit" %i66 &e t+e mar$et 6ea er in #omin. a"s(

,ri#in. an #onsumerism' Tastes an preferen#e of T: #+anne6s !ar" from person to

person( So t+e pa#$a.es s+ou6 &e ma e in su#+ a %a" t+at no one +as to pa" for unne#essar" #+anne6s( T+is %i66 $eep t+e #ost 6o% an affor a&6e for most of t+e #ustomers( In t+is %a" t+e interest of #onsumers #an a6so &e ta$en #are off( E.( Some mont+6" pa#$s pro!i e &" Airte6 Di.ita6 T: Value Sports Upto 158 channels @ Rs.220 pm Economy Sports Plus Upto 191 channels @ Rs.300 pm

1/

e!a Upto 210 channels @ Rs.350 pm Ultra Upto 219 channels @ Rs."30 pm

A !ertisin. Strate."' Kit+ ea#+ passin. a"8 t+e num&er of DTH ser!i#e pro!i ers
+as .one up( Some offer a !ertisin. on t+e &ootin. s#reen 6i$e t+e one %+en "ou turn on "our DTH "ou are .reete &" t+e on.oin. a !ertisement( In a Tata S$"8 a !ertisements are aire on C+anne6 /EE8 t+e efau6t po%er7on #+anne6( Here a sin.6e &ran a !ertisement p6a"s for a parti#u6ar time s6ot an t+e num&ers of a !ertisements for t+e sai &ran are p6a"e in a 6oop unti6 t+e #+anne6 is #+an.e ( Du667f6e .e intera#ti!e a !ertisin. #+anne6s +a!e a6so &een 6aun#+e &" some(

Te#+no6o."' Te#+no6o." p6a"s a !er" important ro6e in t+e su##ess of an" #ompan"
pro!i in. DTH ser!i#e(
Compression Technology: Better Compression technology enables platforms to be more effective and carry more channels without compromising on quality. Rain: With monsoons in summer, it s important to choose a !T" operator that can withstand the rains while #eeping signal. Tata $#y reports ma%imum loss of signal, even with light showers, while the others tend to perform in the heaviest of showers. "! and &!: 'lmost every provider offers some level of high(definition services. Reliance !igital T) "! leads the race, offering *+, "!(li#e channels, though )ideocon offers the most real "! channels -.* channels/. Reliance s bo% has the ability to upgrade content to .,0, p -a higher resolution /, higher than competitors .,0, i functionality. Reliance, 'irtel, and )ideocon are the only ones with &! ready option.

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Appen i#es

Appen i#es

0E/ MEDIUM T: ,RESS RADIO CINEMA OUTDOOR INTERNET 0 2E(5 24(; 1(0 E(5 4(= /(5

GROWTH RATE O/ A01ERTISE#ENT RE1ENUE IN 0I//ERENT #E0IU#2

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Me ium T: ,ress Ra io Cinema Out oor Internet Tota6

Year of .ro%t+ in 0E/0(Q) 00 /= 2E 3E /2 23 0E

In ian T: #+anne6 &roa #ast /3(57mn a !ertisement e!er" "ear8 %+i#+ tota6s to 1407mn se#on s of T: a !ertisement e!er" "ear( In ia #urrent6" +as o!er 2EE #+anne6s(

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T: !ie%er s+ip +as e#6ine &" 3Q sin#e 0EE/( T: &roa #asters are e@pe#te to .o +i$e in a !ertisement rate t+is "ear &" /47/=Q(

Bi&6io.rap+"'
www.articles.timesofindia.indiatimes.com

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