A

MARKETING MANAGEMENT REPORT

ON
In partial fulfillment of subject
Marketing management
In M.B.A sem-2

Submitted To:-
Submitted By:-
Prof.Vipul patel
Azrudin Solanki(102)
Faculty-M.B.A
Bharat Rajput (82)
Piyush Patel (71)
Rajesh Patel (75)
AT
V.M.Patel institute of management, Kherva
Ganpat Vidhyanagar

Dish Networks in India

Comparison of Dish TV, Tata Sky, Digital TV, Big TV and DD DTH
Written by Mr. Channel on November 15, 2008.
Hey there visitors, SaveOnDish.com’s moderator and top contributor Mr. Roh_Style
has posted a comprehensive comparison of all the existing DTH services in the m
arket today. We at SaveOnDish hope that this official SaveOnDish comparison of D
TH services will help you decide which DTH service to go for.
Thi
s review contains the advantages and disadvantages of each of the DTH services,
point by point, and enables you to minutely observe the good and bad so that you
may see through everything before actually taking the decision of buying a DTH
system. So here goes!:
DD DIRECT PLUS :
Advantages :
(1) DD Direct Plus is India’s first and only DTH service that offers its service
s absolutely free of cost. No monthly subscriptons to be paid when you are with
DD Direct Plus.
Advantages :
(1) DD Direct Plus is India’s first and only DTH service that offers its service
s absolutely free of cost. No monthly subscriptons to be paid when you are with
DD Direct Plus.
Air) chs. (3) Apart from all DD chs, DD Direct Plus offers several popular priva
te FTA (Free-To-
(4) As a bonus, DD Direct Plus also offers additional chs, from Dish TV’s satell
ite which is FTA from time to time.
Disadvantages :
(1) DD Direct Plus does not offer any EPG.
Too many DTH players? (Analysis)
Written by Mr. Channel on November 3, 2008.
This question has been lifted several times on the forum, and amongst all of the
DTH consumer’s minds as of late. With the huge launches of Reliance Big TV and
Airtel Digital TV, as well as Sun DTH going national, people have started to won
der, whether there are just too many DTH players for the market to handle now? S
o I thought of writing up an analysis on the same. Lets get a feel of the market
first.
There are roughly around 70-80 Lakh DTH subscribers in India as of now, bear in
mind this is just my own estimate though. Now this market will most likely go up
over 3 Crore subscribers by 2012. Which means that the DTH market is only going
to grow from here on. There is no saturation in hindsight and amongst the foray
of new features, new providers, new untapped markets being opened up as well as
new standards being set in the industry. DTH is here to stay.
The thing with the Indian market is, that there is just too much of a market in
here. Lots of room for more players as well, I can even go so far as to say that
even if 10 more players get themselves in at this point, they would have enough
market to carry on nicely. Even now, Dish TV, Tata Sky, Big TV, Airtel Digital
TV, Sun DTH etc. are operating quite well.
But what does this mean for you, the consumer? Nothing but benefits! Cut throat
competition amongst DTH companies means nothing but good for the average consume
r. With TRAI pushing for making STBs interoperable amongst providers, in the com
ing years it would be as easy switching between providers as it would be switchi
ng a sim card from your phone, which would result in a lot more conscious effort
s by all DTH companies in providing the best product, the best services and the
best deals on their packages, So if more companies step in, it means even more c
ompetition, even more ideas, more innovations and more for you!
Therefore, the healthy growth of the DTH market is totally positive, the compani
es are getting in because of the huge untapped markets, a lot of room for expans
ion and profits! For the consumers, it’s win-win all along.

TATA - STAR DTH venture signs lease agreement with ISRO Company name chang
ed to Tata Sky ltd

Mumbai, November 14, 2005: Today, the TATA STAR DTH venture crossed two
major milestones in its preparation to launch direct-to-home (DTH) services in
the country. Formerly called Space TV, the company has been re-c
hristened Tata Sky Ltd. This world-class DTH service will be marketed
under the brand name Tata Sky. The company also announced that it
has signed an agreement with the Indian Space Research Organization (IS
RO) to lease all 12 ku-band transponders on the INSAT 4A satellite.
These transponders will be used by Tata Sky to provide its DTH ser
vices to viewers all across India.
Commenting on this occasion, Mr. K. R. Sridhara Murthi, Executive Director, Antr
ix Corporation, the marketing and export arm of the Department of Space and ISRO
said, "We are very happy to partner with Tata Sky in their endeavour to
bring about a revolution in television-viewing to India. The INSAT
4A satellite has been developed keeping the local requirements in mind and will
enable Tata Sky to provide superior coverage all across India."
Vikram Kaushik, CEO, Tata Sky Ltd., said, "Tata Sky is proud to use an Indian sa
tellite to deliver its service to all television viewers in India."
"We are excited that our DTH service will be beamed from ISRO s INSAT4A, the mos
t advanced and high-powered ku-band communication satellite in the region. This
will enable Tata Sky to offer superior picture and sound quality with a wider ra
nge of channels, giving us a competitive edge in the market," Vikram Kaushik add
ed.
The transponders leased on INSAT 4A will allow Tata Sky to transmit around 160 c
hannels in digital quality to every Indian home, however remote it may be.
The TATA-STAR DTH service is set to become India s largest digital television
platform, offering consumers a wide array of programming choices with interacti
ve features and superior picture and sound quality.
About ISRO
ISRO (Indian Space Research Organization) was launched in 1969 and it has set up
established space systems like the INSAT for telecommunication, television broa
dcasting and meteorological services, and the Indian Remote Sensing Satellites (
IRS) for resources monitoring and management. The prime objective of ISRO has
been to develop space technology and its application to various national tasks.
ISRO has also developed the satellite launch vehicles PSLV and GSLV to pl
ace these satellites in the required orbits.
About Tata Sky Ltd.
Tata Sky Ltd. is a TATA - STAR joint venture, established in 2004, committed to
build a state-of-the-art Digital infrastructure for Pay-Television in
India. Tata Sky plans to introduce a nationwide Direct-to-Home (DTH) service th
at would allow it to reach every Indian home, however remote it may be. The serv
ice plans to offer its subscribers the best of cable channels, new innovative pr
ogramming and interactive services.

Tata Sky Ltd

This is the limited version of the Tata Sky Ltd company profile: Join LinkedIn
or Sign In to see more information.
Tata Sky Limited provides satellite television broadcasting services in India. T
he company offers programming and interactive services. It provides various chan
nels, such as entertainment, sports, movies, music, news, and documentaries. Tat
a Sky Limited was incorporated in 2004 as Space TV Limited and changed its name
to Tata Sky Limited in 2005. The company is based in Mumbai, India. Tata Sky Lim
ited is a subsidiary of Tata Sons Limited.
| More Tata Sky Ltd research »
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Terms & Conditions

These Terms and Conditions shall apply to Your use of the Website located at www
.tatasky.com ("the Tata Sky Site").
By using the Tata Sky Site You agree to be bound by the terms and conditions
set out below. If You do not wish to be bound by these terms and c
onditions, You should not use the Tata Sky Site.
We may change these Terms and Conditions from time to time and so You should
check these regularly. Your use of the Tata Sky Site will be deemed an acceptanc
e of the terms existing at that time
1. Definitions
"You" means You, the User of the Tata Sky Site and "Your" shall be interpreted a
ccordingly. "We/Us" means Tata Sky Ltd., of Bombay Dyeing AO Building, 3rd
Floor, Pandurang Budhkar Marg, Worli, Mumbai 400 025 India and "Our" shall
be interpreted accordingly. "Tata Sky Site" shall have the meaning as set out a
bove. "User Information" means the personal details, which may be provided
by You to Us via the Tata Sky Site. "Users" means the Users of the Ta
ta Sky Site collectively and/or individually as the context admits. "Website
" means a site on the World Wide Web.
2. Trademarks and Copyright
TM Tata Sons Limited. and SKY TM British Sky Broadcasting Group plc. Used
under license by Tata Sky Ltd.
Active & Showcase TM & © 2005 Tata Sky Ltd.
Dig card, Dig link & Dig comp TM Tata Sky Ltd.
Spikey™, Bizzy™, Jimbo™, Hee Haw™ and TM & © 2005 Tata Sky Ltd.
3. Intellectual Property
3.1 All copyright, trademarks and all other intellectual property rights in all
material or content supplied as part of the Tata Sky Site shall remain at
all times vested in Us or Our licensors. You are permitted to use this ma
terial or content only as expressly authorised in writing by Us or Our licensors
. You will not, and You will not assist or facilitate any third party to, copy,
reproduce, transmit, distribute, frame, commercially exploit or create derivativ
e works of such material or content.
3.2 If You become aware of any such distribution or commercial exploitation,
You agree to notify Us immediately.
3.3 You acknowledge that by posting materials on the Tata Sky Site You grant to
Us and Our licensors and assigns an irrevocable, perpetual, royalty
free, worldwide license to use the materials both within the Tata Sky Site and i
n any other manner. The license extends to copying, distributing, broadcast
ing, and otherwise transmitting, and adapting and editing the materials.
4. Privacy
4.1 You may be asked to input information about Yourself on different pages of t
he Tata Sky Site. We will not use the information You provide to Us for any p
urpose that is not set out in Our Privacy Policy, other than as stated at e
ach location where such information is requested.

Tata Sky ropes in Aamir Khan as its brand ambassador

New Delhi, July 10:: Direct-to-Home operator Tata Sky has roped in Bollywood act
or Aamir Khan as its brand ambassador.
Aamir Khan would feature in all Tata Sky brand and product communication, includ
ing advertisements in TV, print and radio, the DTH operator said in a statement
today.
Interestingly, TataSky’s main rival Dish TV has Shah Rukh Khan as its brand amba
ssador.
Speaking on Aamir’s association with the group, Tata Sky CEO and Managing Direct
or Vikram Kaushik said that the Bollowood star perfectly fits with the brand.
“As our brand ambassador, he will be instrumental in communicating the benefits
of Tata Sky to consumers across the country,” Kaushik said. Tata Sky is the seco
nd largest DTH service provider, with a subscriber base of two million.
Channel Packages
Tata Sky presents you with a variety of channel packages. Subscribe to the Annua
l Mega Pack or decide on one of the Base packages and then choose any or all the
Add-On packages you want. Now, pay only for what you want to watch. Movies on S
howcase can be ordered with the Annual Mega Pack or any of the Tata Sky Base pac
kages.
Prices of packages listed below are inclusive of all taxes.
Annual Mega Pack
(Rs 5,000 per annum: 170 channels* + 12 Showcase movies)
The Annual Mega Pack offers all the channels and services on Tata Sky (except th
e Topper composite channel) & 12 Showcase movies, just for a price of Rs 5,000 f
or an entire year! The advantages of subscribing to the Annual Mega Pack
include:
Freedom from monthly recharges for an entire year
No hassles in managing different Add-On packages or a la carte channels
Price protection for a whole year
The channels available on the Annual Mega Pack include the channels available on
South Jumbo Pack + Education Gold Pack + Lifestyle Gold Pack + Sports Gold Pack
+ Sports Platinum Pack + All a la carte channels except Topper + 12 Showcase mo
vies

Base packages
Super Hit Pack ( Rs 125 per month : 60 channels* )
Aakaash (Bangla)
Aastha DD Bharati DD Gyan Darshan DD News DD Punjabi
DD Rajyasabha DD Sports DD Urdu DD1 DD10 Sahyadri (Marathi) DD11 Guj
arati
DD12 Kashmiri DD13 North East DD6 Oriya DD7 Bangla
Disney Channel
ETV Bangla
ETV Bihar
ETV Gujarati
ETV Marathi
ETV Oriya
ETV Rajasthan
ETV Urdu
ETV Uttar Pradesh / Uttarakhand
FTV
Hungama TV
India TV Loksabha TV
Set Max
MH1 Mi Marathi
NDTV India
NE Television Nepal One
News 24
PTC News PTC Punjabi
SAB
Sanskar
Sony Entertainment TV
STAR Ananda
STAR Gold
STAR Majha
STAR News
STAR One
STAR Plus
STAR Utsav
STAR Jalsa STAR Pravah 9XM Mahua OTV
News Live
IBN 7
Actve Games
Actve Astrology
Actve Doordarshan
Actve Matrimony
Actve Mall

South Starter Pack ( Rs 125 per month : 75 channels* )

DD1 DD Punjabi DD Gujarati DD Chandana DD Marathi DD Bangl
a
DD Malayalam DD NE DD Oriya DD Kashir DD Urdu DD Bharti
DD Podhigai
MH1
Kairali
ETV Telugu
ETV Kannada
ETV Marathi
ETV Bangla
ETV Oriya
ETV Gujarati
ETV Urdu
ETV2
ETV Rajasthan
ETV Uttar Pradesh / Uttarakhand
ETV Bihar
Maa TV
Asianet
STAR Ananda
Jaya TV
Aakaash Bangla
STAR Vijay
Asianet News
TV9 DD News
STAR Majha
PTC News Lok Sabha TV Rajya Sabha TV TV-9 Kannada DD Sports
NE Television
Gyan Darshan Kalaignar TV Mi Marathi SUN TV SUN Music SUN News
KTV Chutti TV Teja TV Gemini TV Gemini Music Gemini N
ews
Udaya TV Udaya II Udaya Varthegalu Udaya Movies Surya TV
Kiran TV
Nepal One TV5
FTV
Amrita TV PTC Punjabi STAR Jalsa
Asianet Suvarna STAR Pravah Raj TV Isai Aruvi
Actve Games
Actve Astrology
Actve Doordarshan
Actve Matrimony
Actve Mall

Family Pack ( Rs 215 per month : 100 channels* )

STAR Plus
STAR One
Sony
SAB
Zee TV
Set Max
Sahara One
Discovery Channel
History Channel
National Geographic
STAR Gold
MTV

Channel [V]
Zee Business
Zee Marathi
Zee Bangla
Zee Punjabi
Zee Gujarati
Aastha
Sanskar
STAR Utsav
Filmy
Zee Cinema
STAR News
Awaaz
Zee News
Aaj Tak
NDTV India
India TV
Cartoon Network
Disney Channel
Jetix
Hungama TV
Pogo
Nick DD1
DD Punjabi DD Gujarati DD Chandana DD Marathi DD Bangla
DD Malayalam
DD NE DD Oriya DD Kashir DD Urdu DD Bharti DD Podhigai
MH1
Kairali
ETV Telugu
ETV Kannada
ETV Marathi
ETV Bangla
ETV Oriya
ETV Gujarati
ETV Urdu
ETV2
ETV Rajasthan
ETV Uttar Pradesh / Uttarakhand
ETV Bihar
Maa TV
Asianet
STAR Ananda
Jaya TV
Aakaash Bangla
STAR Vijay
Asianet News
TV9
STAR Majha DD News
News 24
PTC News TV-9 Kannada DD Sports
NE Television TV5 Mi Marathi
Lok Sabha TV Rajya Sabha TV Kalaignar TV Gyan Darshan
Nepal One
FTV
Amrita TV PTC Punjabi STAR Jalsa STAR Pravah 9XM Mahua
OTV
News Live ETV MP IBN 7
Actve Games
Actve STAR News
Actve Astrology
Actve Doordarshan
Actve Matrimony
Actve Mall
Super Saver Pack ( Rs 275 per month : 123 channels* )

Family Pack
+
AXN
STAR World
Zee Trendz
Zee Cafe
Discovery Travel & Living
VH1
Animal Planet
Zee Studio
PIX
STAR Movies
HBO
NDTV 24x7
CNN IBN
Times Now
NDTV Profit
CNBC TV 18
CNN
Headlines Today
Animax
Metro Nation NDTV
BBC World Raj TV Isai Aruvi

South Value Pack ( Rs 260 per month : 109 channels* )

South Starter Pack

+

STAR World
AXN
Discovery Travel & Living
Discovery Channel
History Channel
Animal Planet
National Geographic
MTV
Channel [V]
VH1
Zee Trendz
Zee Cafe
STAR Movies
PIX
Zee Studio
HBO
NDTV 24x7
NDTV Profit
CNN
CNN IBN
CNBC TV 18
Times Now
Headlines Today
STAR News
Animax
Disney Channel
Nick
Pogo
Jetix
Cartoon Network
News 24
Metro Nation NDTV
BBC World
Actve STAR News

South Jumbo Pack ( Rs 310 per month : 139 channels* )

South Value Pack

+

STAR Plus
STAR One
Sony
SAB
Zee TV
Set Max
Sahara One
Zee Business
Zee Marathi
Zee Punjabi
Zee Gujarati
Zee Bangla
STAR Utsav
STAR Gold
Zee Cinema
Filmy
NDTV India
Awaaz
Aaj Tak
Zee News
India TV
Hungama TV
Aastha
Sanskar
9XM Mahua OTV
News Live ETV MP IBN 7

Add-On packages**
Education Gold Pack ( Rs 30 per month or Rs 300 per annum: 5 channels* )

Cbeebies
Actve Wizkids
Actve Learning
Actve Stories
Actve Topper
Lifestyle Gold Pack ( Rs 45 per month or Rs 450 per annum: 14 channels* )

NDTV Good Times

Bindass
9X
Zoom
NDTV Imagine
UTV Movies
World Movies
NewsX
BBC Entertainment
UTVi
Colors Sri Venkateswara Bhakti Channel
Actve Cooking
Actve Darshan
Sports Gold Pack ( Rs 40 per month: 2 channels )

Neo Cricket
Neo Sports
Sports Platinum Pack ( Rs 65 per month: 3 channels )

ESPN
STAR Cricket
STAR Sports
ESPN & STAR Sports Pack ( Rs 40 per month: 2 channels )

ESPN
STAR Sports
Sports Bonanza Pack ( Rs 1,350 per annum: 6 channels )
ESPN
STAR Sports
STAR Cricket
Neo Sports
Neo Cricket
Ten Sports
À La Carte Channels***

Ten Sports
( Rs 20 per month )
STAR Cricket
( Rs 25 per month )
Topper
( Rs 1010 per annum )
Zee Telugu
( Rs. 10 per month )
Zee Kannada
( Rs. 10 per month )
** Subscription to one of the Base packages is a must to avail of any Add-On pac
kages
*** You can choose to add any of the above channels.
So go ahead and make your life jingalala!
Tata Sky Ltd. reserves the right to add or drop a channel/ package/ service from
any package and/or change the package rates.
The images used are the IPRs of the respective channels. The depiction is illust
rative only and subject to change.
* Includes interactive services.

Tata Sky s MD & CEO Vikram Kaushik: Target is 1 million subscribers in first ye
ar

According to Vikram Kaushik, Managing Director and CEO of Tata Sky Ltd,
his company intends “to revolutionize Indian pay-TV viewing by offering superior
digital quality picture and sound.” Last summer, when Tata Sky launched, it joi
ned together the Tata Group, India’s most trusted operator, and Star TV, India’s
leading entertainment company.
Vikram Kaushik has more than 30 years experience in consumer sales and marketing
. He worked for some of India’s largest international companies, and has partici
pated in their operations in Asia, Europe and the US.
Kaushik has set impressive goals for himself: “We want to have one million subsc
ribers at the end of our first year of operation,” he says. He recently spoke to
World Vision about his company and the Indian digital pay-TV market.
World Vision: Would you give me some background about Tata Sky, particularly how
and when you got started?
Vikram Kaushik: Tata Sky is a joint venture between Tata and Star. After a “soft
” launch in June 2006, our commercial launch was on August 8.
World Vision: Presumably the potential of the Indian market is based on its size
. Obviously you can’t corner the entire market. Where do you see Tata Sky’s nich
e both now and in the future?
Kaushik: There are an estimated 115 million terrestrial television households in
India in addition to another 68 million cable and satellite homes. This means w
e are a low margin/high volume market.
Having joined one of India’s most trusted broadcasters with one of the leading e
ntertainment groups, we started in a leading position and plan to stay on top.
"Our target is 1 million subscribers at the end of the first year, with
continued growth yielding more than 10 million subscribers within 10 years."
World Vision: Who is your target audience?
Kaushik: By offering a wide variety of news and entertainment options in differe
nt languages, we really try to reach out to every television home in India. We r
each out to the entire country irrespective of topography. This includes both ur
ban and rural areas.
World Vision: Please describe your platform.
"Tata Sky offers over 100 channels covering the entire spectrum of enter
tainment from movies and sports to general entertainment, lifestyle and travel.
We also have six interactive services that have been adapted to the Indian marke
t."
World Vision: Do your interactive offerings include more than news and games?
Kaushik: Absolutely. Taking news first, we offer Active Star News which is a new
-age interactive service that really puts the viewer in control. Viewers can cho
ose from four screens that give them current news, headlines, top stories and fe
atures. They can also scroll down to get weather forecasts in 35 cities and a st
ock ticker.
We have a second news offering, Active Khabar, which features four Hindi news ch
annels on a single screen. This service is also available in English.
World Vision: What about games and other interactive applications?
Kaushik: We’re actually very proud of our games because many platforms only offe
r games for children, but the Tata Sky platform features games for viewers of al
l ages. Also, all of our games can be played with our regular remote. Viewers do
n’t have to invest in additional hardware.
For sport fans, we feature Active Sports which adds exclusive features to enhanc
e cricket matches. Viewers have a choice of commentators, they can view game hig
hlights on demand, and they can access player statistics – all with the push of
a button.
We also offer Active Wiz kids, the world’s first educational games for children
between the ages of three and six, and Showcase, a pay-per-view interactive movi
es service offering the best from Hollywood and Bollywod.
World Vision: Who are your competitors and how do they measure up to Tata Sky?
Kaushik: There are currently two other players in our market: DD Direct which is
government-owned and broadcasts only free-to-air channels, and Dish TV. But Tat
a Sky’s state-of-the-art infrastructure, as well as our brands, customer service
and interactive offerings have put us ahead of the competition.
"Basically, Tata Sky offers more channels and services, better subscribe
r control that includes an intuitive EPG and parental locking, Indian and intern
ational channels, and a subsidized STB."
We also offer convenience. First, we have exclusive features like pay-per-view.
But we also have customer service 24/7 that plays a part in our success. This in
cludes direct installation by about 3,000 service engineers who are trained by T
ata Sky as well as customer service associates who are trained to answer queries
in 11 languages.
In addition to all of these features, we benefit from the [attractiveness] of bo
th the Tata and Sky brands.
World Vision: In addition to size, what makes the Indian pay-TV market different
from other markets?
Kaushik: First, the high penetration of cable throughout the country. In additio
n there is the general lack of addressability and the lack of exclusive content
– which we are now developing.
World Vision: What future directions do you see for Tata Sky?
"While continuously improving our offerings and customer service, we wan
t to introduce new interactive applications as well as DVRs (digital video recor
ders)."

What is CAS? What is DTH?

•

Watching television will no longer be the same again. Bad transmission q

uality, blackouts, disconnection of channels, high cable bills -- all t
hese could soon be history.
With Conditional Access System slated to take off in Mumbai, Delhi and Kolkata f
rom , television viewers will have a good bouquet of channel
s to opt for. What s more, channels yo
u would like to watch.
What is CAS?
CAS stands for conditional access system, which is a digital mode of transmittin
g TV channels trough a set-top box (STB). The transmissi
on signals are encrypted and viewers need to buy a set-t
op box to receive and decrypt the signal. The STB is required to watch
only pay channels, not free-to-air channels, like Doordarshan.
The CAS Bill and what it means
In the new system, Indian broadcasting companies will decide which channels woul
d be non-pay (free-to-air) and which would be pay .
The viewer will now be able to select the p
ay channels he wishes to watch and pay for only these. Each broadcasting channel
will determine the rates for buying the channel.
Currently, there is no segregation and subscribers pay a blanket rate for the en
tire service. There will soon be two levels of segregation
. The first will be a broad differential according to lower, middl
e and upper classes of society across cable households.
The second differential will be amongst pay channels, like premium channels, whi
ch will include focused news, entertainment, s
ports, music channels and niche channels like nature, health a
nd fashion.
When was it first proposed in India?
The idea of CAS was mooted in 2001, which was followed by a furor over charge hi
kes by channels and subsequently cable operator
s. It was decided that it would be first introduced in th
e four metros. It has been in place in Chennai since September 2003.
According to estimates, only 25 per cent of the people have subscribed the new t
echnology The rest watch only free-to-air channels. T
he inhibiting factor is the cost of the STB.
What is a set-top box? How much does it cost?
The set-top box is the device that enables a subscriber view pay channels. This
instrument decodes signals from the cable operator
for viewing a pay channel. It can also monitor the numbe
r and duration of channels viewed by the subscriber.
Analog STBs cost between Rs 3,000-3,500, while digital STBs cost 5,500 to 7,000.
The Telecom Regulatory Authority of India (which also regulates India s cable te
levision regime) has asked cable TV service providers in CA
S areas to offer digital set-top boxes on a monthly rental scheme
of Rs 30 and a refundable security deposit of Rs 999.
Subscribers will also have another option of not paying any security deposit but
the monthly rental will be higher at Rs 45 per STB.
For analogue boxes, the rent will be Rs 23 per month per STB. Multi-system opera
tors, like Hath way, now plan to give out STBs to their sub
scribers at a nominal rental of Rs 1 per day. If you change
your address, you may have to go in for a new MSO who covers your new location.
Will CAS be cheaper than cable TV?
Yes, according to a TRAI order, if one opts for all the existing channels then t
he payout will be less. For example, the Star bouquet at presen
t comes for Rs 67 for eight channels. Under CAS, if one avails
all the eight channels then the pay bill will be Rs 40 plus a 12.2 per cent serv
ice tax. The new tariff order will reduce the cable bills in Delhi,
Kolkata and Mumbai.
What will be the pricing of channels under CAS?
Broadcast regulator TRAI has fixed a ceiling of Rs 5 per pay channel per month u
nder the CAS regime, much to the disappointment of broadcasters.
TRAI has fixed Rs 77 cap on pricing of free-to-air channels. It has also laid ou
t easy norms for procurement of set-top boxes, which enable a subs
criber to access pay channels in a CAS regime.
Under CAS, a subscriber can access to around 22 pay channels apart from the free
-to-air
bouquet within the Rs 200 package monthly. However, broadcasters and multi-syste
m operators can offer a bouquet of channels, and discounts. One mo
nth s notice to subscribers before conversion of a free-t
o-air channel to pay channel or vice versa is needed.
Advantages of CAS
For viewers: Under, CAS viewers can watch only what they would like to watch, th
an what the cable operator has on offer. Subscribers save money they
now spend on unnecessary channels. They will get better tr
ansmission (because of the use of optic fiber instead of metal cables). The cabl
e operators will no longer have any control over the pricing of
channels.
For broadcasters: It benefits broadcasters as they always had to grapple with th
e issue of cable operators not declaring the actual number of subsc
ribers, and hence suffering losses. With CAS , they can find ou
t the exact number of subscribers with a cable operator.
For cable TV operators: They need to pay a part of the subscription fees to the
broadcasters only for the actual number of end users who opt for
the channel. This allows operators to price their channels acco
rding to their popularity.
For advertisers: It gives a far more accurate indicator of programme popularity
with only the actual subscribers of each channel being account
ed for.
So why has there been opposition to CAS?
Consumer activists were essentially opposed to the high cost of the STB. If more
people subsc- ribe to CAS nationwide, the prices would come dow
n. There were also apprehensions about fees being charged for the
bouquet of channels instead of individual channels. The latest ruling from
the Telecom Regulatory Authority of India has struck down bouquet-w
ise pricing.
In simple terms, a person who wants to want only watch Star News, for example, w
ill no longer have to buy the Star bouquet, comprising, Star Mo
vies, Star World, Star One etc.
Activists are also seeking a limit on the duration of advertising on air. Cable
operators are oppo- sed to CAS because they become redundan
t and even if that didn t happen, they can no longer understate th
e real number of subscribers and cheat the government of entertainment tax.
Service providers are opposed because they have to set up new digital machinery
for CAS and may even have to share the price of the STBs, to ave
rt competition from direct-to-home transmit -
ssion.
What are the alternate options now?
The alternatives are DTH, a broadband transmission, which is more expensive. The
latest TRAI , which limits the fee per channel per cable con
nection to Rs 5 (exclusive of taxes) is the consu- mers bes
t bet.
What is DTH?
DTH stands for Direct-To-Home television. DTH is defined as the reception of sat
ellite program- mes with a personal dish in an individual home.
DTH services were first proposed in India in 1996. But they did not pass approva
l because there were concerns over national security and a cultural i
nvasion. In 1997, the government even imposed a ban when the Rupert Mu
rdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH
services in India.
Finally in 2000, DTH was allowed. The new policy requires all operators to set u
p earth stations in India within 12 months of getting a licen
se.
DTH licenses in India will cost $2.14 million and will be valid for 10 years. Th
e company’s offe - ring DTH service will have to have an India
n chief and foreign equity has been capped at 49 per- cent. There i
s no limit on the number of companies that can apply for the DTH license.
Who are the DTH operators in India?
Zee group promoted Dish TV was the first to start DTH operations in India. The l
atest entrant in India is Tata-Sky is a joint venture between the
Tata group and News corporation s Star TV.
What is the DTH pricing?
Tata-Sky offers 58-channels to consumers at an introductory offer of Rs 200 per
month. You will have to pay Rs 3,999 for hardware (set-top box and
installation), and a monthly charge of Rs 200.
Zee group s Dish TV offers its hardware and installation at Rs 3,000 (excluding
taxes) and three months free subscription. This Dish TV package of 75
channels costs Rs 180 per month.
DTH providers justify the prices as it offers high quality transmission which ma
kes TV viewing a pleasant experience. Dish TV also offers other package
s.
The second DTH operator is government-owned DD-Direct Plus. This comes at a one-
time cost of Rs 2,000-2,500.
What are the concerns over DTH?
In the absence of regulation, DTH operators may hike their fees arbitrarily. The
y may force cons- umers to pay for bouquets of channels, instead of
individual channels. Also there could be illegal redistribution of DTH feed thro
ugh multiple distribution units, amounting to evasion of tax.

DTH versus CAS

DTH does not compete with CAS. Cable TV and DTH are two methods of delivery of t
elevision content. CAS is integral to both the systems in delivering
pay channels.
Cable TV is through cable networks and DTH is wireless, reaching direct to the c
onsumer through a small dish and a set-top box. Although the go
vernment has ensured that free-to-air channels on cable are
delivered to the consumer without a set-top box, DTH signals cannot be received
without the set-top box.
Besides, the monthly subscription cost for DTH and CAS on cable will vary. While
you can opt for a number of channels in CAS, under DTH you
have a limited choice depending on the pack- age you opt for. T
he quality of the broadcast will be of high quality with big players in the fray
.
DTH versus cable TV
In DTH, TV channels would be transmitted from the satellite to a small dish ante
nna mounted on the window or rooftop of the subscriber s ho
me. So the broadcaster directly connects to the user.
DTH can also reach the remotest of areas since it does away with the intermediat
e step of a cable operator and the wires (cables)
that come from the cable operator to your house.
DTH offers better quality picture than cable TV. This is because cable TV in Ind
ia is analog. Despite digital transmission and re
ception, the cable transmission is still analog. DTH offers
sound effects.
Apart from enhanced picture quality, DTH has also allows for interactive TV serv
ices such as movie-on-demand, Internet acces
s, video conferencing and e-mail. DTH will not be able to be
an alternative to cable if the initial investment is more than t
hat for cable. DTH requires initial investment for bot
h a dish antenna and a TV-top box.
Will Star channels be available on Dish TV and Zee channels on Tata-Sky?
Dish TV offers Star channels. But Tata Sky is yet to offer Zee channels. On July
14, 2006, the Telecom Disputes Settlement and
Appellate Tribunal asked Star TV to allow Dish to broadcast
all Star channels. The telecom tribunal also asked Star TV to ma
ke available all its channels for not more than
Rs 27 per subscriber on the Dish TV platform.
Star had earlier demanded Rs 67 per subscriber for some of its channels. But the
pricing issue is yet to be sorted out. Tata S
ky includes all the channels from the Star, Sony Discovery One
Alliance bouquets as well as ESPN Star Sports and two channe
ls of NDTV.
Any other concerns?
Consumer activists are fighting for choice of channel selection, bargaining powe
r an

CAS vs. DTH: the consumer dilemma

New Delhi, Dec 29: Come Jan 1, the average TV watcher in many parts of Delhi, Mu
mbai and Kolkata will be in a quandary.
The consumer, who has adopted a wait and watch status
until now, will have to choose between conditional access system (CAS)
over cable, DTH, or just the free-
to-air channels. For, CAS must be implemented by that date in parts of Delhi,
Mumbai, Kolkata and Chennai as notified by the government
.
As far as pricing goes, there are two structures fixed by the Telecom Regulatory
Authority of India (TRAI) for CAS.
One scheme offers a refundable deposit of Rs 999 per box with a
monthly rental of Rs 30. If the box is returned, the refund will
be made after deducting Rs 12.50 per mont
h of box-use. The second scheme includes a refundable deposit of Rs 250 per
box with a monthly rental of Rs 45. In this, Rs
3 per month of box-use is deducted from the
refund on return.
Whether the consumer gets the STB or not, he will have to pay for Rs 77 a month
for 30 free- to-air channels he will get from th
e cable operator. Those with the box can view pay-chann -
els for Rs 5 each.
Over and above this, cable-operator (CAS provider) may offer their own schemes a
nd bouq - uets.
Wire and Wireless India Ltd (WWIL), formerly SitiCable Network Limited, has laun
ched a CAS offering with special package
s which have two options. In the first option, the consumer
pays Rs1800 plus taxes in advance and gets the STB on an ownership
basis, 25 pay channels for one year at a disc
ounted a la carte rate of Rs 600 plus taxes and minimum 60 Free-To-Air
(FTA) channels. In the second option, the consumer pays R
s 600 in advance for minimum 25 FTA channels
and the TRAI applicable STB rental scheme.
This is lower than the DTH offerings, which has two national players (TATA Sky a
nd Dish TV) at present and a third (Reliance Blue Ma
gic) slated to join the bandwagon soon.
TATA Sky sells its DTH STB for Rs 2,999 and charges Rs 1,000 for installation. I
ts monthly fee is Rs 300 for all its channels.
It has recently launched its Free Television Viewing for 6 months promotion fo
r the CAS market where it gives six months free
subscription to all consumers subscribing to its service
between Dec 28, 2006 and Jan10, 2007.
PORTER’S FIVE FORCE MODEL FOR TATA SKY
1. THREAT OF NEW ENTRANTS:-
• SUN DTH
• RELIANCE BIG TV
• AIRTEL DIGITAL TV
2. THREAT OF SUBSTITUTE PRODUCT:-
• Cable service providers
• CAS (Conditional Access System )
3. BARGAINING POWER OF SUPPIERS:-
• Set Top Box Suppliers
• Dish suppliers
• Cable wire suppliers
4. BARGAINING POWER OF BUYERS:-
• Constant demand to reduce price
• Newer and newer extra facilities demand
• Improvement in video quality
5. RIVALRY AMONG COMPETITOR
• DISH TV
• TATA SKY