Summer Internship Project Report On Studying and analyzing consumer in the fast changing dth environment Submitted in partial

fulfillment of PGDM 2012-14

Submitted by

Anil Kumar Singh Roll No: FA-12006

Company Guide Mr. Vikash khattry (Cluster Sales Manager, East Zone, Dish TV India Ltd) Faculty Guide DR. Deepti Pathak (Associate Professor)

1st may 30th June 2013

Acknowledgement
I would like to express my sincere gratitude to Dish TV India Ltd. for providing me an Opportunity for this learning experience. I would like to express my deep gratitude to Mr. Vikash Khattry, East Zone Cluster Sales Manager, who has been a great support and a source of inspiration throughout my internship period. Without his guidance and continuous support the project could not have been completed successfully.

This project would have been impossible without the support and cooperation of the Mr. Amit Sah, Junior Sales Manager. Dish TV India Ltd. I am grateful to him for not only guiding me through this project on a day to day basis, but also providing me unflinching support and endless resources while I tried to get a foothold in my corporate experience.
It is indeed a moment of immense gratification for me to express my deepest gratitude to Dr. J. K. Goyal, Director of Jagan Institute of Management Studies and Prof. (Dr.) Madan Mohan, Dean of Jagan Institute of Management Studies & Ms. Deepti Pathak, Associate Professor, for

Providing me with an opportunity to carry out this project study and help me Create this report on studying and analyzing consumer behavior in the fast Changing DTH environment
I would also like to acknowledge the support of JIMS for providing the valuable resources and my professors who have taught me. Last but not the least; I would like to thanks my batch mates for providing a helping hand as well as continuous encouragement and motivation throughout the project.

Anil Kumar Singh PGDM: FA-12006 Jagan Institute of Management Studies, Rohini

DECLARATION

I hereby declare that the Summer Training Project entitled studying and analyzing consumer behavior in the fast changing DTH environment under the guidance of Dr. Deepti Pathak is submitted by me to Dish TV India Ltd., for Post Graduate Diploma in Management 2012-2014 is general and consist of original work.

Anil Kumar Singh PGDM: FA-12006 Jagan Institute of Management Studies, Rohini

Table of Contents
S. No . Executive Summary Introduction Overview of the Industry Categorization of players in the industry Brief Profile of players in the Industry Growth of the Industry Recent Scenario of Indian DTH Industry Chap I Digital Switchover Product Lines Products description Introduction to the Organization Topic Page NO . 7 8 8 9 10 - 15 15 - 16 17 18 19 - 23 24 - 25 26 - 29 30 31 - 32 33 34 - 35 36 37 - 39 40 - 41 42 - 49

Economic condition of company Marketing Strategies & competition in industry SWOT Analysis Business Strategies Financial Results Share Market Position Advantages of DISHTV

Chap II

Review of Literature

50 - 53

Research Methods and Procedures Chap III Purpose of the Study Research Design Participants Data Collection Sampling Design Instruments Used 57 - 64 65 66 67 68 - 69 70 71 - 74 54 54 55 55 56 56

Data Analysis Chap IV Findings Limitations Recommendations Conclusion Chap V Bibliography Questionnaire

EXECUTIVE SUMMARY
The two month internship project with Dish TV Pvt. Ltd. gave me a platform to research and analyse the various problems that could be encountered while handling sales, branding & promotion etc. It also gave me an outlook on the buying behavior and perception of customers towards Dish TV.

Dish TV India Pvt. Ltd. also helped me by providing me the opportunity to learn the skills of sales in the field of Direct to Home (DTH). I learnt to handle sales and also how to implement new marketing strategies to attract customers to buy the companys products. We were divided in teams of three. Every sales team were allotted particular areas and were given certain targets. Targets are defined as under:-

PRIMARY OBJECTIVE: Primary objective was initiating sales of Dish TV sets to prospective customers.
SECONDARY OBJECTIVE: Secondary objective was to visit corporate offices and persuade them to allow us to conduct corporate activities on their premises (Setting up of Canopy, Promotional Stalls, Explaining to employees the various offers available to corporate employees only).

TERTIARY OBJECTIVE: Tertiary objective was to collect data and information of prospective and interested customers.

In the first stage of training, I attempted to understand the various sales channels. Also, my main motive was to implement strategies that could convince prospective customers to buy Dish TV sets.

In the second stage of my training, I visited corporate offices explaining to respective managers, about the various offers that were tailor made for corporate employees. Also, I tried persuading them to allow us to conduct corporate activities on their premises, helping me to promote the brand and also achieve sales through special discounts and offers.

INTRODUCTION

Overview of the Industry:

The history of Indian television dates back to the launch of dordarshan, Indias national TV network in 1959. The transmission was in black & white. The 9
th

Asian games which were held in 1982 in the countrys capital New Delhi heralded the mark of color TV broadcasting in India. In 1991, Indian economy was liberalized from the License Raj and major initiatives like inviting foreign direct investments, deregulation of domestic business emerged. This lead 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 lead to revolution. Every city in the India had a complex web of co-axial cables running through the streets with a new breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in charge of distribution. The film industry was shocked by this sudden growth and there were even organized protests for calling off the Cable TV industry. There were simply too many cable operators in the country and the channels had a difficult time in getting its returns as the existing system was a non-addressable and the operators could simply give a reduced number of subscribers to amass profit. This lead to the emergency of a new breed of firms called as Multi System Operators (MSO) who had heavy financial muscles to make capital investments. The MSO industry became highly monopolistic which warrants government participation to ensure competition. Later on, the United Front Government had issued a ban on use of ku band transmission. After a change of government, the ban got lifted finally in 2001 and TRAI issued the guidelines for operating DTH. Countrys first private DTH license was awarded to Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product DD-Direct+. DTH Digital TV system receives signals directly from satellite through the dish, decodes it with the Set-Top Box and then sends stunningly clear picture 8

And sound to TV which is the business under taken by some companies by observing the rate of growth and scope for business & opportunity in the Indian market which has 120 million viewers of TV.

List of players in the industry

Doordarshan (DD-Direct +) of Prasar Bharati comprising of 33 FTA channels and 12 All India Radio Channels. Dish TV of ZEE group. Tata Sky joined venture between Tata and Rupert Murdochs Sky TV. Sun direct of Sun Network. BIG TV of Reliance Anil Dhirubhai Ambani group. Airtel digital TV of Bharati telemedia Videocon d2h of Videocon industries

Categorization of Players in the Industry:

Government owned player: DD Direct+.

Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon d2h

Brief Profile Of Players In The Industry: Dish TV

Dish TV is the first using MPEG-2 digital private DTH satellite television provider in India, compression technology, transmitting using NSS

Satellite at 95.0. Dish TV's managing director and Head of Business is Jawahar Goel who is also the promoter of Essel Group and is also the President of Indian Broadcasting Foundation and Mr. Subhash Chandra is the Chairman of Dish TV. Dish TV is a division of Zee Network Enterprise (Essel Group Venture). EGV has national and global presence with business interests in media programming, broadcasting & distribution, speciality packaging and entertainment. Zee Network incorporated dish TV to modernize TV viewing. By digitalizing Indian entertainment, this enterprise brought best television viewing technology to the living room. It not only transmits high quality programmes through satellite; but also gives a complete control of selecting channels and paying DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Enterprises. Dish TV is on the same satellite where DD Direct+ is. Dish TV started its service in Pakistan with the collaboration of Budget Communication. Dish TV was only DTH operator in India to carry the two Turner channels, Turner Classic Movies and Boomerang. Both the channels were removed from the platform due to unknown reasons in March 2009. Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17 December, 2002 by European-based satellite provider, New Skies. Dish TV hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the satellite was to increase the channel offering as NSS 6 offered more transponder capacity.

DD DIRECT+
Doordarshan is the public television broadcaster of India and a division of Prasar Bharati, a public service broadcaster nominated by the Government 10

Of India. It is one of the largest broadcasting organizations in the world in terms of the infrastructure of studios and transmitters. DD Direct+ is a free Direct to Home (DTH) service that provides satellite television and audio programming to households and businesses in the Indian subcontinent. Owned by parent company Doordarshan, DD Direct Plus was launched on December 16, 2004. Now chairman of DD plus+ is Shri Arun Bhatnagar and CEO is B S Lalli under the ministry of information and broadcasting.

TATA SKY
Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital compression technology, transmitting using INSAT 4A at 83.0. Tata sky is incorporated in 2004; Tata Sky is a JV between the TATA Group and STAR. Harit Nagpal, is present CEO of Tata Sky Ltd. The TATA Group is one of India's largest and most respected business conglomerates. It comprises 93 operating companies in seven business sectors and diversified group: information systems and communications, engineering, materials, services, energy, consumer products and chemicals. The TATA Group has operations in more than 40 countries across six continents and its companies export products and services to 140 nations. The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Tata Sky the reputation of more than 20 years experience of satellite broadcasting.

SUN DIRECT
Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital compression technology, transmitting using INSAT 4B at 93.5E. It is the country's first MPEG 4 technology DTH service provider. Sun Direct is a DTH service in India headquartered in Chennai, Tamil Naidu. Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all over the country. On December Sun Direct was launched in Mumbai and announced its pan India launch. By 2009 it became leading DTH provider with 3 million subscribers. This makes it 4th largest DTH service provider of India. In April 2009 Sun Direct officially launched its High-Definition service in India.

SUN DIRECT
Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital compression technology, transmitting using INSAT 4B at 93.5E. It is the country's first MPEG 4 technology DTH service provider. Sun Direct is a DTH service in India headquartered in Chennai, Tamil Naidu. Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all over the country. On December Sun Direct was launched in Mumbai and announced its pan India launch. By 2009 it became leading DTH provider with 3 million subscribers. This makes it 4th largest DTH service provider of India. In April 2009 Sun Direct officially launched its High-Definition service in India.

BIG TV
Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai, using MPEG-4 digital compression technology, transmitting using MEASAT-3 91.5east. It is the 5th DTH service launched in India. Reliance BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the Indian business tycoon and owned by his son Anil Ambani. BIG TV started operations from 19 August 2008 with the slogan "TV ho To BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to 200 channels and many interactive ones, 32 cinema halls (i.e. Pay per View Cinema Channels) as well as many Radio channels. It is the first Pan-India DTH provider that uses MPEG-4 for broadcasting. Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing the consumer with quality and enriched home entertainment service at value-driven pricing Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns in India. When it came to pricing packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months of free subscription. They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH player.

AIRTEL DIGITAL TV
Bharti Airtel Limited is the flagship company of Bharti Enterprises and is Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles reforms. Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It CEO is Sunil Bharti Mittal. It

Uses MPEG-4 digital compression with DVB-S2 technology, transmitting using INSAT 4CR 74E .Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign 'Come Home to the Magic. Since then it has launched 2 other campaigns: Stars come home (March 2009) and DTH Picture Clarity (August 2009) has increased its channel base to 183+ channels. Airtel digital TV is now amongst the fastest growing DTH brands in the country and is available across 5000+ towns in India. It has also been ranked as the best DTH service by Living Digital magazine.

VIDEOCON D2H
Videocon d2h is a DTH satellite television provider in India based in Mumbai, using MPEG-4 with DVB S2 digital compression technology Videocon d2h launched May 1, 2009. It came with a very good strategy for selling both of its electronic products like TVs DVDs along with the new set top box. This is offering direct to TV without any set top box also. Only the antenna is enough, it also came with DVD which is connected directly to the TV or antenna is connected to DVD which gives a best quality of output.

GROWTH OF THE INDUSTRY Rate of Growth:

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 Indian Direct-To-Home (DTH) market is expected to see its annual revenue grow over three times to more than $ 5 billion by 2020, as mandatory cable TV digitization would help the DTH players expand their subscriber base, a study has said. DTH industry revenues will reach $ 3.9 billion by 2017 and $ 5.3 billion by 2020. Revenue growth will be largely driven by increasing subscriber volumes, Hong Kong-based research firm Media Partners Asia has said in a new report on the Indian DTH market. The Indian DTH industry is estimated to have clocked revenue of about $ 1.5 billion in 2012. The active DTH subscriber base is estimated to grow from 32.4 million in 2012 to 63.8 million by 2017 and 76.6 million by 2020. As of end-2012, the cumulative DTH active subscriber base stood at 32.4 million subscribers versus 28.7 million subscribers in 2011, MPA said. As per the report, Dish TV continued to lead with a market share of 27 per cent in terms of gross additions, while Videocon d2h led in terms of incremental adds in 2012.Tata Sky and Airtel Digital TV have 19 per cent and 18 per cent market share, respectively. These four players together accounted for 88 per cent of total gross additions in 2012.

Market Share of DTH Players (in %) Dish TV Tata Sky Airtel Others 27% 19 % 18% 36%

15

Pattern of Growth:
The big game is all about shaping up grandiose plans, to master the winning rules, so as 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. The pattern of growth is very difficult to determine because a business cycle generally constitutes affairs over a long term period. This industry is having a very short period for making or observing a business cycle. The analysis that can be made is that though the business cycle is short and unpredictable, it has still managed to register growth when all other industries are still reeling from the recent economic downturn. The industry is growing at 20% every annum.

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RECENT SCENARIO OF INDIAN DTH INDUSTRY Recent developments: - For Q1 FY13, Airtel reported 7.4 million Airtel DTH subscribers. - For Q1 FY13, Dish TV reported 13.4 million subscribers. - For Q1 FY13, RCOMs Reliance Digital TV reported 4.4 million subscribers. - Dish TV maintained the top position among DTH providers. Reliance digital TV was among the ones with the least subscriber base with just 4.4 million subscribers, while Tata Sky is said to have 9.2 million subscribers, Airtel digital TV with 7.4 million subscribers, Videocon d2h with 6.1 million subscribers, and Sun Direct TV with 7.6 million subscribers. - It should be noted that Sun Direct had crossed 7 million subscribers back in 2011 and has added only 6 lacs subscribers by June 2012.

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DIGITAL SWITCHOVER The Ministry of Information and Broadcasting issued a notification on 11 November 2011, setting 31 March 2015 as the deadline for complete shift from analog to digital systems. In December 2011, Parliament passed The Cable Television Networks (Regulation) Amendment Act to digitize the cable television sector by 2014. Digitization, on cable and terrestrial, will be carried out in four phases, in a 3-year transition starting from 31 October 2012, and finishing on 31 March 2015. The four metros of Delhi, Mumbai, Kolkata and Chennai have to shift to digital addressability by 31 October 2012. The second phase will include 38 cities in 15 states, such as Patna, Chandigarh, Pune and Bangalore by 31 March 2013. All urban areas are expected to digitize by 30 November 2014 and the remaining areas by 31 March 2015.
Phase (planned date)

City/Region

Date of switchover

Delhi

31 October 2012

Kolkata Phase I (31 October 2012) Mumbai

15 January 2013

31 October 2012

Chennai

Not completed

Phase II (31 March 2013)

38 cities in 15 states

31 March 2013

Phase III (30 September 2014)

All remaining urban areas

Phase IV (31 December 2014)

Rest of India

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Product Lines

DISHTV Provides Three Types Of Offerings:

SD: Standard definition, costs to customer Rs 1950(new connection)

SD+:Standard definition plus, costs to customer Rs 2450(new connection)

HD: High definition, costs to customer Rs 3000(new connection)

There Are Three Types Of Channel Packs In SD Connections:

19

1. Super Gold Pack(Rs 220 Per Month): 252 Channels & Free Services 2. Super World Pack(Rs 280 Per Month): 265 Channels & Free Services 3. Super Platinum Pack(Rs 320 Per Month): 284 Channels & Free Services There are some special regional packs like South Indian pack, in which all regional channels are provided. After Sun direct, Dish Tv is the 2 South India.
nd

most preferred service provider in

One can also select special channel packs as per their need by paying only the price of the respective channels:(A-LA-CARTE)

Multi connection in SD:If a person wants multi SD connections at the same location, then he can avail a discount of Rs 250 at new activation and also discount on recharges of subsequent connections. Rental of Rs 180 is payable on subsequent connections, instead of Rs 220. Hence, savings of Rs 40 can be availed.

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HD: HIGH DEFINITION In HD There Are 3 Types Of Monthly Plans For Customer: 1. Royale Pack(Rs599 Per Month): 345 Channels (Including 39 HD Channels & Services) 2. Premiere Pack(Rs 499 Per Month): 325 Channels (Including 28 HD Channels & Services) 3. World Pack(Rs 399 Per Month): 305 Channels (Including 27 HD Channels & Services)

DishTv provides maximum HD channels, which is maximum amongst all its

competitors. Channel list is as :

21

Multi connection in HD:If a person wants multi HD connections at the same location, then he can avail a discount of Rs 500 at new activation and also discount on recharges of subsequent connections. Rental of Rs 250 is payable on subsequent connections, instead of Rs 400. Hence, savings of Rs 150 can be availed.

VARIOUS OFFERS

Exchange Dish Tv SD Box for Dish truHD+ and Enjoy Rs 600 cashback under:

Dish Tv also provides the facility of recharge from home:

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Dish Tv also provides great offers on Annual and Semi-Annual Recharge(HD):

Dish Tv also provides great offers on Annual and Semi-Annual Recharge(SD):

When any retailer became the dealer of DISHTV then the company will provide him the marketing materials like:Posters Display Board Broachers & Catalogues Canopy
Dummy boxes

Dummy antenna 23

PRODUCT DESCRIPTION

Range of products Set-Top-Box. Head-Antenna. Cable DVD Remote

SET-TOP-BOX:

The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.

Head-antenna: Antenna which receives signals directly from satellites,

Cable: Cable connects antenna to the set up box

DVD: 24

One of the recent entrants into DTH industry is Videocon. This came with set top box with DVD.

Access Card: The access card is another important thing in the set top box setup. Where the access card will receive the signals directly from satellite trough head top antenna.

Remote: A compactable remote for both SET UP BOX and TV is used in operating both TV and Set top box.

Complimentary Goods: LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theatres, sound box, plastic and paper which are used for recharge cards.

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INTRODUCTION TO THE ORGANIZATION

Dish TV India Limited is ranked # 437 and #5 in the list of media companies in the Fortune India 500 roster of Indias largest corporations in 2011. It uses MPEG-2 digital compression technology, transmitting using NSS-6 Satellite at 95.0. Dish TV's managing director and Head of Business is Jawahar Goel who is also the promoter of Essel Group and is also the President of Indian Broadcasting Foundation. Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17 December 2002 by European-based satellite provider, New Skies. Dish TV hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the satellite was to increase the channel offering as NSS 6 offered more transponder capacity. However, Dish TV booked additional transponders on the new Asia Sat 5 satellite for starting its MPEG-4 based HD services. Dish TV is currently using 4 transponders on Asia sat 5.

BOARD OF DIRECTORS

SUBHASH CHANDRA
(CHAIRMAN)

Subhash Chandra, 60, is the Non-Executive Chairman of the Board and promoter of Essel Group of Companies. His industry leading businesses include television networks and film entertainment, cable systems, satellite communications, theme parks, flexible packaging, family entertainment centers and online gaming. Mr. Chandra has been the recipient of numerous honorary degrees, industry awards and civic honours, including being named 'Global Indian Entertainment Personality of the Year' by FICCI for 2004, 'Business Standard's Businessman of the Year' in 1999, 'Entrepreneur of the Year' by Ernst & Young in 1999 and 'Enterprise CEO of the Year' by International Brand Summit. The Confederation of Indian Industry (CII)

chose Mr. Chandra as the Chairman of the CII Media Committee for two successi

years. Mr. Chandra has made his mark as an influential philanthropist in India. He set up TALEEM (Transnational Alternate Learning for Emancipation and Empowerment through Multimedia), an organisation which seeks to provide access to quality education and to promote research in various disciplines relating to health & family life, social & cultural anthropology, communication and media. He is also the trustee for the Global Vippassana Foundation, a trust set up for helping people in spiritual upliftment. He was onetime rice exporter-turned media baron and Chairman of Essel Group, that launched India's satellite television revolution. The Zee chairman dropped out after standard 12. His pioneering channel Zee TV competes with, among others, Sony Entertainment Television and STAR Plus.

Subhash Chandra launched Zee Telefilms Limited in October 1992 as a content supplier for Zee TV - India's first Hindi satellite channel. Before the launch of Zee TV viewers in India were under the firm grip of Doordarshan, the state-controlled terrestrial network. It was Subhash Chandra's vision that helped give birth to the satellite TV industry in India and inspired others to follow suit. After the launch of Zee TV, he commenced Siticable operations in 1995 and also started a joint venture with News Corp. In 1995, he launched two new channels, Zee News and Zee Cinema. In 2000, Zee TV became the first cable company in India to launch Internet over Cable services. In 2003, Zee TV became the first service provider in India to launch Direct to Home (DTH) services. In a short span of time Zee TV has become a big media and has give tough competition to international media moghuls such as Rupert Murdoch. Dish TV had about 12 million customers as of March 2012. Dish TV is presently Asia's lagest and going to be world's largest very soon.

2. Bhagwan Dass Narang Bhagwan Dass Narang, 66, is an Independent Non-Executive Member of the Board. Mr. Narang holds 3,000 equity shares in the Company.

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3. Ashok Kurien Ashok Kurien, 61, is a Non-Executive member of the Board. Apart from the Company, Mr. Kurien holds directorship in Zee Entertainment Enterprises Ltd. Mr. Kurien holds 1,174,150 equity shares, comprising of 0.11% of paid up capital of the Company.

4. Arun Duggal Arun Duggal, 64, is an Independent Non-Executive member of the Board. Mr. Duggal does not hold any shares in the Company.

5. Eric Louis Zinterhofer Eric Louis Zinterhofer, 40, is an Independent Non-Executive member of the Board. Mr. Zinterhofer does not hold any shares in the Company.

6. Lakshmi Chand Lakshmi Chand, 66, is an Independent Non-Executive Director on the Board of the Company. Mr. Lakshmi Chand does not hold any shares in the Company.

7. Mintoo Bhandari Mintoo Bhandari, 45, is a Non Executive Nominee Director of Apollo India Private Equity II (Mauritius) Limited on the Board of the Company with effect from October 27, 2010. Mr. Bhandari does not hold any shares in the Company.

UNDERTAKINGS OF ESSEL GROUP:

Media
Zee Entertainment Enterprises Zee News

DNA (newspaper) Technology Dish TV Wire & Wireless India Zee Turner Limited Intrex Trade Exchange Ltd

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Cyquator Technologies Limited

Digital Media Convergence Limited CornerShop Entertainment

Shirpur Gold Refinery Entertainment E-City Ventures ETC Networks

Pan India Network Infravest Pvt Ltd - The online gaming company Playwin is a part of this group Essel Sports - Essesl Sports has started the Indian Cricket League (ICL) and is also the owner of Mumbai Football Club Suncity Projects
Asian Sky Shop

Bioscope Entertainment Pvt Ltd - The multiplex chain Fun Cinemas is E-City a part of this group Packaging
Essel Propack Infrastructure

Education Learn Limited - A number of Learning projects has been launched by this Zee group. They include KIDZEE & Mount Litera World preschools
Mount Litera Zee & Mount Litera World Schools Zee Institute of Media Arts (ZIMA)

Essel Infraprojects Limited (EIL) - This group has started the amusement parks Essel World and Water Kingdom

Zee Institute of Creative Art (ZICA) Charity Ekal Vidyalaya Global Vipassana Foundation

Transnational Alternate Learning for Emancipation and Empowerment thorough Multimedia (TALEEM) Research Foundation

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ECONOMIC CONDITION OF COMPANY:Dish TV India posts Rs 43.62 cr in loss for Q4(2013)

Dish TV reported an operating revenue of Rs 555.4 crore for the quarter, down from Rs 557.8 crore in the previous quarter, but up 7.6% from Rs 516.44 crore in the same quarter last year. The net loss declined to Rs 43.6 crore for the quarter, down from Rs 49 crore loss in the same quarter last year. Its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the quarter stood at Rs 120 crore, up 6.5% YoY. The EBITDA margin for the quarter was at 21.6%. For the financial year ending March 31, 2013 (FY13), Dish TV reported an operating revenue of Rs 2,166.8 crore, up from Rs 1,957.9 crore in the FY12. The net loss declined to Rs 66 crore in FY13, down from Rs 133.1 crore in FY12, while the EBITDA for the fiscal was at Rs 575.9 crore, up 16.8% from Rs 496 crore in FY12. The EBITDA margin for the fiscal was at 26.7%. Indias largest Direct to Home television services operator, Dish Tv has added 0.2 million subscribers for the quarter ending March 31, 2013, taking its total net subscribers to 10.7 million subscribers. This is the companys lowest subscriber addition in the past 23 quarters.

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FINANCIAL RESULTS:
Balance Sheet of Dish Tv (in Rs. Cr) Mar '12 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 106.36 106.36 0.00 0.00 -200.18 0.00 -93.82 1,089.35 125.00 1,214.35 1,120.53 Mar '12 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)
Source : Dion Global Solutions Limited

Mar '11 12 mths

Mar '10 12 mths

Mar '09 12 mths

Mar '08 12 mths

106.30 106.30 0.00 0.00 -43.56 0.00 62.74 1,076.27 0.00 1,076.27 1,139.01 Mar '11 12 mths

106.21 106.21 0.00 0.00 294.07 0.00 400.28 362.78 555.02 917.80 1,318.08 Mar '10 12 mths

68.73 68.73 0.00 0.00 -692.80 0.00 -624.07 269.62 861.52 1,131.14 507.07 Mar '09 12 mths

42.82 42.82 0.00 0.00 -495.50 0.00 -452.68 68.39 458.24 526.63 73.95 Mar '08 12 mths

2,926.66 1,506.31 1,420.35 388.43 150.00 6.88 28.61 161.92 197.41 247.62 230.16 675.19 0.00 1,013.58 499.86 1,513.44 -838.25 0.00 1,120.53 258.54 -0.88

2,352.05 988.33 1,363.72 458.03 200.15 4.44 21.54 98.87 124.85 318.76 221.31 664.92 0.00 1,247.12 300.69 1,547.81 -882.89 0.00 1,139.01 430.13 0.59

1,697.69 682.64 1,015.05 225.07 250.56 2.78 33.85 301.23 337.86 804.55 240.99 1,383.40 0.00 1,550.39 5.61 1,556.00 -172.60 0.00 1,318.08 56.04 3.76

1,312.28 431.63 880.65 238.09 94.45 3.09 50.66 24.80 78.55 775.96 29.24 883.75 0.00 1,584.34 5.53 1,589.87 -706.12 0.00 507.07 155.15 -6.59

848.04 216.41 631.63 137.98 94.45 4.71 38.44 11.53 54.68 284.42 8.42 347.52 0.00 1,134.08 3.53 1,137.61 -790.09 0.00 73.97 47.05 -10.57

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Standalone Quarterly Results

--------------- in Rs. Cr. ------------ Source : Dion Global Solutions Limited

Mar '13 Net Sales/Income from operations Other Operating Income Total Income From Operations EXPENDITURE Consumption of Raw Materials Purchase of Traded Goods Increase/Decrease in Stocks Power & Fuel Employees Cost Depreciation Excise Duty Admin. And Selling Expenses R & D Expenses Provisions And Contingencies Exp. Capitalised Other Expenses P/L Before Other Inc. , Int., Excpt. Items & Tax Other Income P/L Before Int., Excpt. Items & Tax Interest P/L Before Exceptional Items & Tax Exceptional Items P/L Before Tax Tax P/L After Tax from Ordinary Activities Prior Year Adjustments Extra Ordinary Items Net Profit/(Loss) For the Period Equity Share Capital Reserves Excluding Revaluation Reserves Equity Dividend Rate (%) EPS Before Extra Ordinary Basic EPS Diluted EPS EPS After Extra Ordinary Basic EPS Diluted EPS Public Share Holding No Of Shares (Crores) Share Holding (%) Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of shares (Crores) - Per. of shares (as a % of the total sh. of prom. and promoter group) - Per. of shares (as a % of the total Share Cap. of the company) b) Non-encumbered - Number of shares (Crores) - Per. of shares (as a % of the total sh. of prom. and promoter group) - Per. of shares (as a % of the total Share Cap. of the company) 554.57 0.83 555.40 -3.29 -1.08 -20.94 145.00 -74.24 ---337.97 -24.96 15.69 -9.27 34.35 -43.62 --43.62 --43.62 ---43.62 106.48 ---0.41 -0.41 -0.41 -0.41 38.81 36.44

Mar '12 524.55 0.17 524.72 -2.46 -1.03 -19.13 167.83 -----359.94 -23.61 9.41 -14.20 34.82 -49.02 --49.02 --49.02 ---49.02 106.36 ---0.46 -0.46 -0.46 -0.46 37.52 35.20

39.03 57.67 36.65

23.06 33.45 21.66

28.65 42.33 26.90

45.87 66.55 43.09

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SHARE MARKET POSITION On 13th June, 2013, Value of each share of Dish TV in BSE was Rs.63.00 and in NSE was Rs. 63.05.

Dish TVs yearlong movement of Share in BSE.

Dish TVs yearlong movement of Share in NSE.

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ADVANTAGES OF DISH TV:Digital Picture Quality:

The exceptional digital and Direct to Home transmission ensures you watch all your favourite programmes in true DVD quality Stereophonic Sound:

The Direct to Home satellite transmission treats you with a true theatre experience by providing awesome Stereophonic sound

Geographic Mobility:

No matter which part of the country you are in or moving to, Dish Tv with its all India coverage ensures direct signals wherever you are.

Uninterrupted Viewing:

With Dish Tv at your home, as long as your equipment is connected to a power source you can enjoy uninterrupted transmission of your favourite programmes.

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Capacity up to 400 DTH Channels:

Dish Tv can offer you up to 400 entertaining channels. And that's not all, every month more channels will be added to provide complete entertainment to your family.

Dyna Boost:

Dish Tv is using the NSS6 satellite at 95.0E designed specifically for DTH operations. It is equipped with Automatic Level Control (ALC) feature that enables the satellite to maintain constant satellite EIRP even in case of uplink signal degradation due to weather conditions such as rain, fog or clouds

Instaflip:

Dish Tv's Instaflip technology helps you change channels quickly and conveniently. Our efficient processors make it possible for you to browse through all 300+ channels and services in less than 2 seconds. So, get set browsing all the channels on DISHTV with fast scrolling, intuitive navigation and quick flip surfing.

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Marketing
Market segmentation, marketing strategies, marketing practices and marketing concepts specific to the industry.

Indian TV channels broadcast 15.7-mn advertisement every year, which totals to 362mn seconds of TV advertisement every year. India currently has over 400 channels. TV viewer ship has declined by 5% since 2001. TV broadcasters are expected to hike their advertisement rates this year by 16-18%. Market segmentation in DTH industry mainly concentrates on women who dont like missing their daily soaps. It also provides a platform to learn English, which is a very special feature of DTH. DTH also concentrates on children also by providing them games, dictionary, some discovery videos specially inbuilt, maths, science and social knowledge. It also focuses on old people by updating videos of various holy and religious places. DTH uses different marketing strategies for promotion and sales of its product. It gives advertisements with their brand ambassadors which attracts customers, door to door selling, on the phone selling, discount and offer sales, packages, etc Marketing practices are a continuous process as the competition keeps increasing among the players in the industry. Each player is investing large sums of money in promoting their brands. Many players are making advertisement with movie actors and actress as brand ambassadors for their products because DTH is mainly considered with entertainment. Some companies like Tata sky are having Aamir Khan as their brand ambassador and Airtel is having stars like Kareena Kapoor, A.R.Rehman, saif ali khan, etc. Dish TV is also having Super Star Shahrukh Khan as their brand ambassador. Sun direct also uses southern actress for their brand promotion. Marketing practices are the decisions taken by the manufacturing company to increase sales, expand themselves into many areas etc. Successful marketing practices bring sales up, while unsuccessful marketing practices have no impact on sales or negatively impact sales. Marketing concepts specific to the industry primarily target a niche segment, who buy TV sets from electronic retail chains.

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Strategies And Competition In The Industry

Competitors Every company has its own goal, every company wants to achieve and fulfil its goals, many companies like the big players in the industry wants to grab most of the market share. Some of the companies want to achieve 10million customer base by 2010 they are Dish TV, Tata sky, Sun direct, BIG TV etc. The industrys objective is to achieve 60million customers buy 2012 i.e., nearly 50% of the present existing customers.

Strategies used in the industry Technology transfer is one of strategy used in the industry and it is existence for a long time. In recent decades, concerted effort has been made to exploit the existing technology to a larger extent by transfer of technology, to generate greater economic impetus. It provides opportunity to generate larger returns on the investments made in R&D. Its importance lies in its ability to stimulate and strengthen the innovation process. Porters generic strategies model Generic strategies were used initially in the early 1980s, and seem to be even more popular today. They outline the three main strategic options open to organization that wish to achieve a sustainable competitive advantage.

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The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus 1. Cost leadership In the case of media products, means they should be offered at a price lower than their competitors but with as good benefits, or, the unique benefits the media products offer can over-offset the premium. 2. Differentiation Differentiation in DTH refers to when a organization provides unique benefits to the users through product innovation. This is to increase the probability of the media users to choose the product. A media organization with a target user loyalty can concentrate more on how to fully meet the target users needs rather than on product cost saving. 3. Focus Focus strategy is also known as a 'niche' strategy. The clutter of ads has now spilled out on the number of channel availability due to which people are spoilt for choice. Thus Niche channels are the only way to maintain viewer loyalty. TATA Photon plus is more niche oriented.

The DTH Industry in India continued to grow from strength to strength with widespread awareness and product penetration aided by the entry of three new players. The annualized marketing spends of about Rs.550 crores collectively by all players of the category, led to swift expansion of numbers with the subscribers near doubling, over the previous year. The aggregate subscriber base in the category touched around 11 million out of the total universe of cable and satellite households of 78 million. Despite an overall slowdown in the economy that impacted most industries, the DTH category remained almost unfazed with consistent growth rate being experienced, throughout the year.

The industry is expected to add up another ten million new subscribers during the current financial year due to aggressive marketing efforts of all players, which will be further boosted by forthcoming sporting events like a busy cricket calendar and the commonwealth games.

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Key challenges for the industry, in the near future will be to seek a moderation in the multiple taxation regime including reduction of License Fee & abolition of Entertainment Tax, faster roll out of CAS to the next layer of towns, coping with a high subscriber acquisition cost, building content capacity under a dearth of availability of fresh transponder space, dealing with emerging category competition from Digital Cable and IPTV etc.

Dish Tv added in the last year, two million new subscribers into its fold, as against one million in the previous year, representing a 100% growth despite heightened competition from three new players. The key focus areas included revenue enhancement, augmentation of content, roll out of new services and cost containment. The same trend of run rate of subscriber aggregation is expected to continue in the current financial year too, thus building the user base exponentially, over the year gone by.

Going forward, the emphasis for Dish Tv will be on building diversified content, preparation for the convergence of digital services, continually leading the curve with product innovations and services, improvised collection mechanisms aiding faster and higher recharges and producing customer delight for its subscribers at all touch points.

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SWOT ANALYSIS
STRENGTHS

Dish Tv was the first entrant in the DTH category and has thus become synonymous with the satellite TV broadcasting business in India. Leveraging its lineage with the Zee group, Dish Tv has built a commendable brand and relevant product that answers the consumer needs for quality entertainment. Some of the inherent strengths stem from a strong presence all across the geography of India, consumer friendly and pocket friendly multi-tiered and customizable regional packages, abundant transponder capacity to support its widest content basket, a very strong and diversified content offering addressing consumers with diverse needs of genres and languages, an extremely cost conscious structure and a superior technology for the entire gamut of services. The technological edge and differentiation with respect to other brands stands exemplified through its unique offerings of mobile dish with presence in aircrafts (Kingfisher), navy war ships, mobile vans and selected railway saloons.

WEAKNESS

The subscriber acquisition cost is still very high. However, compared to the current industry benchmarks, it stands at the lowest by far. The cost towards acquiring consumers is under constant scrutiny in an endeavour to bring it down. In a market trend of consumers down- sliding on the packaging tiers, due to more value being packaged at the lowest packs, Dish Tv has exhibited a growth in ARPU. However, ARPU continues to be an area of concern with the constant endeavour to monitor, upgrade and enhance the revenues.

OPPORTUNITIES

Indias 127 million television owning households, which define the potential depth for the DTH category will act as a low hanging fruit for adoption. The further roll out of CAS by the new Government, into more towns will impact the growth rate of the DTH category and trigger consumers to make a decision between digital cable and DTH, thereby aiding faster expansion of the digital entertainment world. Enrichment 40

of Value Added Services(VAS) basket with gaming and a host of active services, some going pay, will continue to be opportunity areas for revenue enhancement. An eventful sporting calendar with the ensuing Commonwealth games and a series of Cricketing tournaments will act as a catalyst for this category too. The recent stabilization and a revived hope for bouncing back of the economy as early as the second half of this year will facilitate faster adoption of the category. Emergence and growth of traffic at the organized retail chains like Big bazaar, Next, The mobile store, Reliance digital etc. will also add more visibility leading to better acceptance of the product.

THREATS

DTH is currently a five player market. Price cuts and reduced margins, spurred by severe competition, can pose a threat to revenue enhancement. Improved quality of services by digital cable and IPTV players are potential threats. Churn management and retention costs can negatively impact bottom-lines unless constant attention and strategy is deployed to manage and control the subscribers base.

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BUSINESS STRATEGIES

Though there has been a paradigm shift in the perception and awareness of the DTH industry in the last two years, the challenge is to maintain, grow and create a dynamic atmosphere for greater customer satisfaction and adoption of this category. The theme for the current year will be more value for money to the customers, enhanced value for the stakeholders of the Company, achieving EBITA breakeven and consolidating the number one status in the category - in terms of revenue, number of subscribers and quality of service.

THE PRIMARY FOCUS WOULD BE ON THE FOLLOWING:

Revenue Enhancement: Creation and on-going management of multiple price points, greater emphasis on up selling and cross selling of new packages through trade incentivisation and consumer promotional schemes, revenue build up using al-a-carte packs, wider offerings on Movie on Demand, increased emphasis on bandwidth revenues, adoption and usage of pay gaming and inter-active services, will be some of the key revenue drivers. Tapping of high end customers for higher ARPU in the longer run, will be initiated through our tie-ups with key chain stores, direct corporate sales, better farming of MDU (multi dwelling unit) buildings etc.

Cost Containment:

Cost Rationalization will continue to be one of the main focus areas to derive better efficiency from the available resources and optimize productivity and output to derive better value for money. Various initiatives have already resulted in huge savings on account of sales & distribution cost, collection cost, various administrative cost, marketing cost etc. An optimal utilization of below the line budgets along with efficient planning of above the line budgets, has given great returns, with dishtv enjoying the best advertising to sales ratio in the category. Employee cost is contained through better manpower planning and a robust appraisal system for reward and retention.

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Evolution of better understanding and long term relationship with the Pay channel Broadcasters will lead to lower content cost and enrich our content offering across various schemes. Branding: With the evolution of competition, it has become imperative to maintain a differentiated positioning and own a distinctive brand identity. Shah Rukh Khan, the No. 1 actor of Bollywood who has already added a lot of scale and stature to the brand, will continue as the brand ambassador for the next year too. The marketing strategy will be led by thematic campaigns, that set the brand for a distinct consumer connect, and increase brand salience across top of the line namely television, print, internet, out of home and radio. These will be supported by tactical moves that drive consumer value proposition and product advantage at the shop level. Greater emphasis will be placed on adoption of value added services, al-a-carte packs and various ARPU enhancement schemes.

Customer Service: Enrichment of subscriber services and experience across all touch points is an underlying mantra that drives all efforts by the dishtv team. A pool of 100+ dish care centers, service franchisees, dish shoppees etc. collectively act to improvise service touch points and address the customers requirements, in the market place. Regular training is imparted to our service personnel and other service partners on a continuous basis and various steps are taken to monitor their performance and reward them accordingly. During the year, a new call center with state of the art facilities was made fully functional to serve customers better by ensuring least waiting time and quick online resolution of their problems. This will continue to be our focus area and act as one of the key differentiators with respect to competition.

Risk Management and Internal Control: The Company is having a Risk Management policy to identify, analyse, mitigate and control various risks associated with the business environment. Some of the processes are as follows:

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Risk Identification: The Risk Manager is on a continuous look out for various risks affecting the business particularly related to market dynamics, business laws, systems and processes, internal control mechanisms, governance and technology.
These risks are studied in terms of their relevance and impact on the business. Once risks are identified, they are further discussed and analysed for proper mitigation.

Continuous Monitoring and Assurance: All key risks once identified are monitored and evaluated to minimize their impact and eradicate any unpredictable consequences. The effectiveness of the monitoring system is also evaluated from time to time. We are importing most of our equipments and are exposed to foreign exchange fluctuations. We have partially hedged our forex borrowing and waiting for an opportune moment to hedge the balance forex exposure. We dont keep our position open for forex transactions.
We have also borrowed money from the banking systems and are exposed to the interest rate fluctuations which can impact our cash flow. It is continuously monitored to derive the optimum interest costs and avoid volatility over a period of time.

Talent Management: The Companys talent Identification process is aimed at identifying employees who have the aptitude, capabilities and qualities necessary to undertake work, involving greater responsibility and skill levels, than their current one. Another aspect of talent identification is to create a Talent pool by identifying individuals with leadership qualities and nurturing them as future leaders. A proactive and an effective succession management is in place, to nurture the talent pool. Individual development plans have been drawn detailing the career steps of the individual.

Cautionary Statement: Statements in this report describing the companys objectives, expectations or predictions may be forward looking within the meaning of the applicable laws and regulations. The actual results may differ materially from those expressed in this statement.

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PORTERS FIVE FORCE MODEL

The five forces which one must consider to analyze any industry are the rivalry between the firms within the industry being analyzed, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the threat of new entrants (also known as barriers to entry). They are also shown in the diagram below. Initially propounded by Harvard Business School Professor Michael Porter, the Five Forces framework has been accepted as a strategic framework which one can apply to analyze any industry.

Threat of substitutes DTH gives stiff competition from the terrestrial, cable & IPTV. As per the industry estimates, there are 130 million TV homes of which 71 million are served by cable and around 6 million served by DTH with the remaining taken by terrestrial transmission. As IPTV is a new entrant there is not much data on its subscriber base.

Bargaining power of suppliers DTH industry relies on three major suppliers. Customer premise equipment (CPE) Comparing of the satellite Dish, Set Top Box with the necessary Access Card, the Ku band transponders are obtaining satellites and content. With India set to overtake 45

Japan as Asias largest DTH by next year, the bargaining power of India DTH operators with CPE suppliers have been steadily increasing.

Bargaining power of buyers With enough operations to choose both from the point 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.

Rivalry among existing firms With 3 operational players and 4 players in the queue, inter firm rivalry is quite high. The competition from state owned DD-Direct to private players in negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not change any monthly subscription charges. Between Dish TV is Tata Sky there is an intense rivalry exhibited by price war and discount schemes offered to new connections. Being the first mover, dish TV had price advantage in both the STB offers superiors DVD quality Video to its advanced STB. While Dish TV is planning to spend Rs. 850crs over the next 3 years, the rival TataSky is willing to spend Rr.2000crs over the medium term. The companies have also set ambitious targets with Dish TV aiming to reach 5 million subscribers in the next 18 to 20 months while Tata sky aiming to reach 8million subscribers in the next 18 to 20 months while Tata sky aiming for 8 million subscribers by 2012.

Threat of new entrants With already 7 players space in the DTH space, threat of new entrants is low. There is already enough competition which will discourage new firms to enter this business. While getting a licensee is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the required transponder. There is a definite, first mover advantage.

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Analysis of the Industry using Porters value chain model:

Porters value chain analysis is considered with the value analysis of the several functions of the DTH industry, it makes to understand the importance of this model to develop and add on value to the present features of the industry and its functioning. Value analysis says that an effective logistics should be undertaken to commencement of the business in cost effective way. The more the cost effective, the more value is added to the process. It is noting but proper or optimal use of the resources present and using the technology available. This value addition should not only be in logistics, but it should be carried in all areas of management, production, distribution and etc. Thus, DTH industry can increase its value addition to the customers and the features and of industry.

Concept of growth share matrix (BCG model)

The BCG GROWTH SHARE MATRIX is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name growth share.

Under the BCG GROWTH-SHARE MATRIX, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth. 47

While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. In the DTH industry when the market share is obtained then it is automatically treated as the market leader, and also it needs maximum market share to extent, when the market is not in incremental state then the growth rate of the industry will retain. Again this industry follows all the variables in the all areas till the both will come into normal level. In a bid to differentiate in a highly cluttered DTH market, Dish TV has repositioned itself as a player that meets the requirements of consumers obsessed with their entertainment. As a step to move forward in the ever-evolving market dynamics where the name of the game for any brand is to continue to reinvent itself, Dish TV aims to target a younger audience through its new approach. In its latest strategy, Dish TV has shed its two-year-old tagline Ghar Aayi Zindagi and replaced it with Dish Sawar hai. It has also launched a new campaign designed by McCann Erickson, its longstanding agency.
The DTH player that has a current subscriber base of 11 million has embarked on this repositioning after undergoing a research on the television viewing habits of audiences wherein TV is considered as a sit back medium as opposed to a computer.

People lean as they work on a computer while they sit back when they watch television. Talking to BestMediaInfo.com about the new brand avatar and the insight behind it, Anjali Nanda, Vice-President Marketing, Dish TV, said, What we realised is that people interact with television differently. There is a set of audiences for whom TV is just a source of education. But most of India still depends upon TV as a source of entertainment and a lot of them are passionately involved in it. And they will go to any length to ensure that nothing comes between them and their TV.

Remember the commercial where Shah Rukh Khan sits on a terrace in a couch, asking the world why arent they replacing their cable connection with Dish TV? Its gone now. Dish has dumped its wish karo tagline and will instead get Khan to plug it as a sabse zyaada provider.

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Explains Salil Kapoor, COO, Dish TV: Two years back, when we launched the wish karo campaign, we were competing with cable operators and the poor quality of delivered content. Now, with rising competition among DTH players, there was a need to re-establish our brand as the largest content provider.

Dish TV, a part of the Essel group, ranks first among the DTH pack in customers. To stay there, it has readied a Rs 100 crore marketing budget for the year and this Rs 6 crore ad campaign will run across TV, print, outdoor and radio. Kapoor says it will target the five million customers, ensuring that they stay; they will also be informed about new packages through SMSes, phone calls and emails. Videocon is the latest to enter the DTH market and has talked of a Rs 1,000 crore investment. Dish has slightly cut its prices. The existing subscribers will get some extra channels at no added cost until their subscription renewal, said Kapoor. With a claim to offer 240 channels, more than any other DTH operator, it is hoping this will draw consumers. It has, as mentioned, around five million of the 12 million consumers (excluding DD Direct). Tata Sky has about 3.4 mn, Sun Direct over 2.3 mn, Big TV about 1.2 mn and Airtel Digital about 0.3 mn subscribers

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REVIEW OF LITERATURE
The history of Indian television dates back to the launch of Doordarshan, Indias national TV network in 1959. In 1982, all of Doordarshan's regional stations were networked using INSAT 1A and a national feed called National Programme was introduced. Later that year, Delhi played host to Asian Games which were covered by the channel. To increase the channels reach, the government launched a program to set up low and high power transmitters that would pick-up the satellite distributed signals and re-transmit them to surrounding areas. By 1983, television signals were available to 28% of the Indian population. Fuelled by the success of the channel's commercialization and increased revenue from advertising, the channel's reach and popularity continued to grow and in 1990, the channel reached more than 90% of the Indian population. In 1991, Indian economy was liberalized and inviting foreign direct investments, deregulation of domestic business emerged. This lead 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 lead to revolution.

Every city in the India had a complex web of co-axial cables running through the streets with a new breed of entrepreneurs called as Local Cable Operators (LCO) taking in charge of distribution. The film industry was shocked by this sudden growth and there were even organized protests for calling off the Cable TV industry.

There were simply too many cable operators in the country and the channels had a difficult time in getting its returns as the existing system was a non-addressable and the operators could simply give a reduced number of subscribers to amass profit. This lead to the emergency of a new breed of firms called as Multi System Operators (MSO) who had heavy financial muscles to make capital investments. . The MSO industry became highly monopolistic which warrants government participation to ensure competition.

Later on, the United Front Government had issued a ban on use of ku-band transmission. After a change of government, the ban got lifted finally in 50

2001 and TRAI issued the guidelines for operating DTH. Countrys first private DTH license was awarded to Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product DD-Direct+.DTH Digital TV system receives signals directly from satellite through the dish, decodes it with the Set-Top Box and then sends stunningly clear picture and sound to TV which is the business under taken by some companies by observing the rate of growth and scope for business & opportunity in the Indian market which has 120 million viewers of TV. With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense of growth prevailing everywhere. The average Indians disposable income and purchasing has risen to never before levels. The Indian entertainment and media industry is not far behind. It is currently estimated at a worth of Rs.450 billion with a CAGR of 18% over the next 5 years. Terms which were alien to Indians like capital DTH, digital cables, IPTV are suddenly finding presence in the countrys journals.

In 2007, TRAI proposed a new initiative by name Head end-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 Headed in the satellite. The LCOs can receive this digitalized bundle and deliver to the individual homes. With HITS, country wide implementation of CAS becomes instantaneous and cost-effective. This benefits both the broadcasters and the customers by ensuring addressability, better quality of service and increased number of channels. Another emerging trend is the IPTV which is yet to be regulated and one can expect lot of action in this sector. According to a report on Direct to home (DTH) service, it predicts that India would overtake Japan as Asias largest DTH by 2010 and be the

Asias leading cable market by 2010 and the most profitable pay-TV market by 2015.

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Government Polices TRAI Rules The Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007, were issued on 31 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 addressthese 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:
st

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.

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 52

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 there moved channel with one of the same genre and language. TRAI: The DTH operators have been mandated to proportionately reduce the subscription charges for a package from which any channel is removed for first six months of enrolment or during the period of validity of a prepaid subscription package, whichever is longer or to replace the channel with a channel of same genre and language.

4. The option of choosing the package with reduced charges or the package with replaced channel has been given to the subscriber.

5. In case a removed channel needs to be replaced, the replacement option will be in the hands of the DTH operator. TRAI: Option to select the channel of the same genre and language in a subscription package to replace a channel which has become unavailable on the DTH platform, has been given to the DTH operator.

6. Your DTH operator needs to give a prior notice of fifteen days to you before changing the composition of any subscription package.

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. 53

RESEARCH METHODS AND PROCEDURES A research methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study.

PURPOSE OF THE STUDY To understand penetration of DTH operators in Kolkata and Howrah (West Bengal). To examine the buying behaviour of consumers regarding DTH services. To study the influence of various factors on the purchase of DTH services. To find out the market share of the various DTH operators. To determine the opportunities and threats prevalent in the Indian DTH industry.

RESEARCH 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.

The appropriate research design formulated is detailed below:-

DESCRIPTIVE RESEARCH: It is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic.

The research methodology for the present study has been adopted to reflect these realities and help reach the logical conclusion in an objective and scientific manner. 54

The present study contemplated a descriptive research. A sufficient thought has been given in framing the questionnaire and deciding the types of data to be collected and the procedure to be used.

RESEARCH QUESTIONS

PARTICIPANTS The respondents are consumers of various DTH and local cable services. The survey was carried out in the state of West Bengal (Kolkata and Howrah), with the sample size of 153 people. 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.

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 method was used. For the primary source of data, we have filled questionnaires from various consumers, who own and were using different brands of DTH services or local cable services. Survey method is the best suited approach for gathering data.

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, and surveys conducted by known research agencies etc.

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SAMPLING DESIGN A sample design is a definite plan for obtaining in sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting the items for the sample. The sampling design chosen is non-probability convenience sampling, because of the convenient accessibility and proximity to the researcher.

In this study, the universe under study was Kolkata and Howrah as it covers major portion of our target audience, the sample frame consists of the population using simple random sampling technique. In this research, the sampling unit constitutes people who own and are using DTH or local cable services. No statistical technique was applied for sample size selection. For the survey, a sample size of 153 was selected.

INSTRUMENTS USED The instrument which has been used for the collection of data is the questionnaire. Questionnaire is a Performa containing sequence of questions to collect information from the respondent. Thus, questionnaire consists of number of questions printed or typed in a definite order on a form or set of forms.

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DATA ANALYSIS AND FINDINGS

1. What type of audio visual media you are using for your entertainment purpose?

Interpretation 60.67% of respondents are using local cable services as compared to 39.33% of respondents, who are using DTH services. 2. How many tv sets do you have?

Interpretation-50% of respondents have two tv sets at their homes as compared to 46.67% of respondents who have one tv set at their house. Only, 3.33% of respondents have three tv sets at their homes.

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3. What kind of DTH service you are using?

Interpretation-76% of respondents are using normal set top boxes. 12% of them are using standard with recorder set top boxes while the remaining are using high definition set top boxes.

4. What kind of DTH service you are using?

Interpretation-60.67% of respondents are using local cable services. 15.33% of respondents are using Tata Sky with Dish Tv coming next with 11.33%. Videocon has also around 10% and Airtel has 2.67%.

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5. On an average how many hours do you watch tv in a day?

Interpretation-57.33% of respondents watch tv for more than 3 hours a days, whereas 40% of respondents watch tv between 1 to 3 hours.

6. Which one is your favourite genre of channel?

Interpretation-38.67% of respondents watch sports channels mostly, with entertainment channels viewed by 21.33% of respondents.Movie channels are viewed by 21.33% of respondents whereas the remaining are interested in lifestyle and science and history channels.

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7. How much do you spend on your dth/cable connection (for 1 connection)?

Interpretation-More than 40% of respondents spend between Rs 200-Rs 300 for a single connection. Close to 35% of respondents spend between Rs 100-200 for a single connection, whereas the rest spend more than Rs 300 for a single connection.

8. How long you have been using your present DTH/Cable operator?

Interpretation- Nearly, 44% of respondents have been using their present connection for 1 to 2 years, whereas 40.67% of respondents have been using their connection for more than 4 years (mostly cable users). Around 15% of respondents are new users and have had their connection for a year or less than that.

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9. What was the reason for using particular DTH Service?

Interpretation- As we can see, Price was the most important factor for respondents when it came to using a particular DTH service. Brand name and Quality of the product also played an important role in their buying decision.

10. Does brand name and advertisement affect your purchase?

Interpretation- Nearly, 79% of respondents are affected by brand name and advertisements in their buying decisions whereas the remaining remain unaffected by brand name and advertisements. 61

11. Rate the statements.

Interpretation- As we can see, after sale service is a very important factor that affects consumer buying behaviour. Also, quality and advertisements are very strong factors that influence consumer buying behaviour. We have also noticed that a large number of respondents feel cable services are more suitable to their needs than DTH services.

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12. Rate the following services on the basis of your satisfaction?

Interpretation- Respondents are highly satisfied with the picture quality and packages of services. Also, they are pretty happy with the recharge rates, new schemes and customer care.

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13. If you were to change your service, what would be the most pressing reason for switching the connection?

Interpretation- Nearly 40% of respondents are likely to change their subscriber because of poor customer service. Around 30% will change their subscriber due to better services provided by competitors.

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FINDINGS During this project we found that: 1. Local Cable Operators are the main competitor of Dish TV in the surveyed region. 2. Common people are somehow satisfied with Cable Service because they provide services at a lower cost than DTH services. 3. More number of Channels at lower cost is one of the strongest USP of Cable Operators. 4. After recent digitalization, people who had already purchased Set Top Box with Rs.700-Rs.1200 from local cable operators are finding it difficult to again invest more than Rs. 2000 to avail DTH Service. 5. During monsoons and thunderstorms, cable services are interrupted in many areas. 6. People somehow have the perception that After Sale service of Dish TV is very poor as compared to others; and this is a very contagious rumour. 7. In some cases, we have found that local retailers have misled or gave improper information to lure customers to purchase Dish TV. 8. A lot of people were interested to purchase Dish TV if they could pay the initial cost in 3-4 instalments. 9. TATA Sky is rapidly gaining brand awareness among people in Kolkata and Howrah. 10. Some people informed that there is ease of payment in local cable services, this being the reason for not switching over to DTH services. 11. Recommendation of existing customers has been found to have an effect on the buying intentions of new customers. 12. Price and Value Added Services were the most important factors for Customers while selecting DTH Service. 13. There is more need of Brand Recognition and Brand Awareness for Dish TV, at least to Lower Income Strata. 14. Maximum people wanted to go for base pack of Rs.220 pm but absence of Sports Channels discouraged them.

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. LIMITATIONS 1. The sampling plan was based on non-probability method and no scientific methods were adopted. 2. The study concerns itself with consumer buying behaviour, which is a complex activity. This is a psychological process and is so spontaneous that accurate results can be hard to obtain. 3. The sample size is not sufficient to represent the whole population. 4. Due to time constraints, the survey has been done on the basis of convenience. 5. The survey was only conducted in areas of Howrah and Kolkata, which is not representative of the entire population. 6. Some of the respondents were not interactive and were difficult to deal with and did not give proper feedback. 7. Dealers were reluctant to furnish exact data of sales or their commissions.

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RECOMMENDATIONS 1. Recommendations given by existing satisfied customers to prospective customers will ensure goodwill and will increase sales. Thus, better services will ensure spread of positive word by existing customers. 2. Dish TV should increase its presence in electronic as well as print media. 3. Improved After-Sale service to existing customers will ensure reduction of spread of negative rumours regarding Dish TV. 4. As many cable operators cannot provide good service during monsoons, this can be a good opportunity to convert some unsatisfied customers to Dish TV. 5. Dish TV may think about providing the Set Top Box with EMI facility, as we have observed great interest among people regarding this. 6. Dish TV may think of introducing India Cricket Pack as a-la-carte, as many people found it hard to pay Rs. 280 pm, while they were getting the same channels from competitors at a lesser price. 7. Informing existing Dish TV Subscribers about Rewards they can get (may be in form of recharge of certain amount of their balance), if they can bring in new customers to purchase Dish TV. 8. Increasing the frequency of visits by the Sales Team to interior regions or Slum Regions is a great way to increase Brand Awareness as well as sales. 9. Frequent changes in price and offers is proving no good for Dish TV as it is in way frustrates the customers with changes in offers without being informed about it. So Dish TV needs to watch out for this and should pre inform the customers about the offers and changes well in advance. This in a way, I feel would create more brand loyalty and preference. 10. Arrange proper training for customer care executives as Dish TV lacks proper after sale service.

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CONCLUSION For a DTH provider like DISH TV, which is a market leader PAN India, promotional activities are very important to boost sales and also to come in direct contact with its customers. The DTH industry has a lot of scope for more growth by launching different kinds of new and interesting schemes and these services are the key factors to compete with their competitors.

Branding and Advertising are the two very critical factors for the success of any brand in DTH industry. Strong distribution channels are the backbone of DTH industry and managing sales and distribution channels effectively is very important to grow and take lead in the market.

While dealing with retailers, understanding their psychology and demography is very important. Monitoring Field Sales Executives is also very important for any company to grow in this industry because they are the people who represent a company in the market. Innovations and First mover advantage always pays in this industry. Companies should always be looking forward to come up with new and innovative packages in order to capture the market.

With the on-going Digitalization Procedure, customer behaviour and mentality are also changing. People, who were satisfied with low quality of Picture/Sound provided by the analog service, are now getting a taste of better quality provided by Digital Service.

Moreover, earlier there were fewer options due to monopoly of Cable Operators. But with emergence of Dish TV, TATA Sky, Airtel etc customers have got more optiona and better bargaining power.

However, Cable Services are still deeply rooted, especially because of their easy availability in every locality. The scenario is however bound to change as soon as digitalization procedure is completed in the state. People will go for DTH services due to better quality, service and other extra features (like Games, Movies on Demand etc.). Recent Digitalization Procedure has opened a huge scope of opportunity for 68

Dish TV. 30% of the respondents have already decided to migrate to DTH while 47% of them have not decided yet, but showed clear signs of their willingness. If the 77% can be aggressively captured by Dish TV, it will be a huge boost for the company. Dish TV being the oldest player of India in this sector as well as the market leader has the capability to capture the huge market, currently being dominated by the unorganized Cable Sector. Therefore, with improvement of the economic scenario of India as well as the successful completion of the 4th Phase of Digitalization, it can be hoped that the companys future is going to be bright, and is going to remain the Market Leader in the DTH Sector.

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BIBLIOGRAPHY

BOOKS REFERRED: Phillip Kotler, Indian edition 2010 Market Research- Naresh Malhotra

WEBSITES:

http://www.dishtv.in/ http://www.business-standard.com www.google.com www.marketingteacher.com http://www.zdnet.com/in/digitization-a-win-win-for-india-govt-ecosystem7000009931/ http://www.circuitstoday.com/direct-to-home-dth-technology-%E2%80%93working http://www.scatmag.com/technical/techarticle-jan05.pdf http://wiki.answers.com/Q/How_does_cable_television_work

http://www.mediamughals.com/News/1/1/Article/11306/Kolkata_fails_to_me et_the_digitisation_deadline_for_the_3rd_time.htm http://articles.timesofindia.indiatimes.com/2012-1218/kolkata/35889308_1_digitization-msos-centre

http://articles.timesofindia.indiatimes.com/2013-0108/kolkata/36215692_1_digitization-mamata-government-swapan-chowdhury http://www.thinkdigit.com/TVs/Cable-TV-digitisation-deadline-for-Kolkataextended_12905.html http://www.indiawest.com/news/8454-bengal-ignores-dec-27-deadlinefor-digitization.html

http://businesstoday.intoday.in/index.php?option=com_content&task=view&is sueid=89&id=15742&Itemid=1&sectionid=25

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Questionnaire 1. What type of audio visual media you are using for your entertainment purpose? a. Cable Tv b. DTH Services c. IP-Tv 2. a. b. c. d. 3. a. b. c. d. e. f. 4. a. b. c. d. 5. a. b. c. d. 6. a. b. c. d. e. f. How many TV sets you have? 1 2 3 More than 3 If DTH, Which DTH Service you are using presently? Dish TV Tata Sky Reliance Big TV Airtel digital TV Videocon d2h Sun Direct What kind of dth service you are using? Normal/Standard Standard with recorder High definition High definition with recorder On an average how many hours do you watch TV in a day? Less than an Hour 1-2 hours 2-3 hours More than 3 hours Which one is your favourite genre of channel? Entertainment Sports Movies Lifestyle Science and history Devotional

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7. How much per month do you spend on your dth/cable connection (for 1 connection)? a. Less than 100 b. 100-200 c. 200-300 d. 300-400 e. More than 500 8. How long you have been using your present DTH operator? a. Less than .5 year b. .5 1 year c. 1- 2 year d. More than 2 years 9. What was the Reason for using particular DTH Services? For each statement listed, we would like to know whether you personally agree or disagree with this statement. 1 being strongly agreed and 5 being strongly disagree. 10. Does Brand name and advertisement affect your purchase? a. Yes b. No 11. Rate the following services on the basis of your satisfaction? Services Excellent Very Good Average good Picture Quality Recharge rates New schemes Customer care Packages VAS Price of dth

poor

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12. In this section, we have listed a number of statements about interests and opinions. For each statement listed, we would like to know whether you personally agree or disagree with this statement. 1 being strongly agreed and 5 being strongly disagree. a. I am very careful about what I buy 1 b. I would rather decide myself what to buy instead of asking the retailer c. In my opinion all dth services are same d. Quality of product (dth) is more important than price e. After sale service is important f. factor in product selection g. Advertisement I see of dth h. influence my purchase decision f. I find local cable service more g. suitable instead of dth services h. I think dth services are providing i. quality services 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 1 3 2 4 3 5 4 5 2 1 3 2 4 3 5 4 5

13. Are you aware of the major differences of quality and price between dth and cable operators? a. I am aware b. I am not aware c. It doesnt matter as far I can watch TV 14. If you were to change your DTH service, what would be the most pressing reason for switching the dth connection? a. Lack of new schemes b. Others are more economical c. Customer service is poor d. Other provide better services e. Product couldnt meet the expectation

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Personal information-

NameMobile no.Email ID-

15. Gender? a. Male b. Female 16. What is the highest level of education you have attained? a. 10+2 b. Graduation c. Post-Graduation d. Doctorate 17. Which of the following best describes your occupation? a. Student b. Public Sector Employee c. Private Sector Employee d. Home maker e. Self employed 18. What is your household annual income (Will be kept confidential, only for research purpose)? a. Less than 2 lakh b. 2- 3 Lakhs c. 3-4 Lakhs d. 4-5 Lakhs e. Above 5 lakhs

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