cccccccc

cccccccccccccccccc
 c
  c

c
ccccccccccccccccccccccccccccccccc
c
cc
cccccccccccccccccccccc
 c
c
c
c
c
c
c
c
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc
cccccccccc
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc

c
c
¬c
 
c
c
cc
¬c
 
c
c c
c 
c cc
c cc
c c c
c M c c
c c c c
¬cc
c
¬c
 cc
cc
c
¬c
cc  
cc 
c
¬cccc
c
¬c

c
 c
¬c
 
c
c c 
c
c  
c
c
c c
¬cMM

c
c
c
c
c
c
c
cc
 
c
c
c c
c

ccc
c
In earlier days there was only one TV channel in India the ³Doordarshan´,cc

Channel doordarshan was owned and operated by government of India. In thosec

era every home which had a TV set used to have its own antenna to capture

the signals. The 9th Asian games which were held in 1982 in the country¶s 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 in flux 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.

The Cable Television Ordinance Law was paased in January 1995. This

enabled cable operators to feed channels and later on private companies were

allowed to air their own channels and this led to the explosive growth in number

of TV channels and number of cable operators.

The growth of TV channels & cable operators created a big industry and

market opportunities.

Untill few years back there were as many as 1,00,000 cable operators across
India. However the services provided by cable operators were poor.The strikes,

increase in tariff plan, selective broadcast and poor services were major cause

of dissatisfaction among the customers. This has created an opportunity for

DTH, which serves an immediate threat to the high-end cable networks. Some

of the key player in the industry are DishTV by Zee group, TataSky joint venture

of Tata & Star TV, Big TV by Anil Dhirubhai Ambani Group, Digital TV by Bharati

Telemedia, SUN Direct from the promoters of Sun TV.

There is an immense opportunity for DTH in the Indian market. The

opportunity in India almost 10 times that in developed countries like the US and

Europe. For every channel there is a scope for broadcasting it in at least ten

different languages. So every channel multiplied by ten, that is the kind of

scope for DTH in the country.

cccccccccccccccccc
ccccccccccccccc 
 
c
c c
cc
c

c cc

Dish TV is the first private DTH satellite television provider in India, using MPEG-2 digital 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 dishtv 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.

c
cc

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. Tata Sky DTH endeavors to offer Indian viewers a world-class television
viewing experience through its satellite television service. Vikram Kaushik 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 Group and its enterprises have been steadfast and distinctive in its adherence to business ethics and
their commitment to corporate social responsibility. This is a legacy that has earned the Group the trust of
many millions of stakeholders in measure few business houses anywhere in the world can match. 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. SKY is well known for the innovative products
and services launched by BSky, such as DTH broadcasting in 1989, digital satellite broadcasting in 1998,
interactive television services in 1999 and the SKY+ personal video recorder in 2001. Tata Sky joins an
international group of DTH businesses that includes platforms as far apart as the UK and Italy in Europe,
and Mexico and Brazil in Latin America. Tata Sky Ltd is the First Indian DTH provider to be awarded
the ISO 27001:2005 accreditation, the ultimate benchmark for information security. The assessment for
the certification was conducted by Intertek Systems Certification, the management systems registration
business unit of Intertek Group plc and is accredited by several internationally-recognized accreditation
bodies worldwide.

In October 2008, Tata Sky announced launching of DVR service p
 which allowed 45 hours of
recording in a MPEG-4 compatible Set Top Box. The remote is provided with playback control keys and
is being sold with special offers for existing subscribers. Tata Sky was selected as a SUPER BRAND for
the year 2009-2010 by an independent and voluntary council of experts known as Super brands Council.
It is the only Indian DTH to have won this distinction.

c
c c

Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital compression technology,
transmitting using INSAT 4B at 93.5°E. It is the country's first MPEG 4 technology DTH service
provider. Sun Direct is a DTH service in India headquartered in Chennai, Tamil Nadu. Sun Direct TV
was registered in February 16, 2005. However, the failed launch of INSAT 4C resulted in a lack of
transponders, delaying the launch. The service was finally launched on December 2007 after availability
of transponders from INSAT 4CR. 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 uses the latest MPEG-4 based technology to increase broadcast capacity.

Sun Direct provide next-generation services in fast-growing and emerging markets quickly and
efficiently. Sun Direct selected Oracle based on its convergent multi-service capabilities and proven real-
time scalability allowing it to consolidate billing operations, enables powerful new service offerings and
improves visibility into customer information across services.

c
M c c

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 91.5°east. 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 Tho 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. The company plans to increase the number of channels in the near future to 400 and begin High
Definition (HD) broadcast. It is the first Pan-India DTH provider that uses MPEG-4 for broadcasting.
There are also plans to introduce services like i-Stock, i-News and other such interactive services in the
future.

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 launch in
August was probably the biggest roll-out in home entertainment ever and deployed the most advanced
MPEG4 technology that enabled them to deliver best quality digital audio-video to the consumer. It also
got prepared for the future when Hi-Definition TV will be launched in India because only MPEG4
technology can support HD TV and not MPEG2 which is used by the earlier entrants in the DTH
industry.

Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns in India. This was
literally unheard of in the DTH industry. They had effectively out-stripped the competition here. 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.
c c c

Bharti Airtel Limited is the flagship company of Bharti Enterprises and is India¶s largest
integrated and the first private telecom services provider with a footprint in all the 23 telecom
circles. As India's leading telecommunications company, the Airtel brand has played the role of a
major catalyst in India's reforms, contributing to its economic resurgence. Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom sector
in the country with its world class products and services.

Airtel Digital TV is a DTH (Direct to Home) service from M 
 Airtel. It uses MPEG-4 digital
compression with DVB-S2 technology, transmitting using INSAT 4CR 74°E

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: µStars come home¶ (March 2009) and µDTH 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 ³Living Digital´ magazine.

Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a bright future in Indian
market as the people are getting more attracted towards DTH because of its quality and affordability.

c
c
c
 
p p
  
p 

Key success Weight Dish Score Tata Score Sun Score Big Score Airtel Score
factors TV sky TV TV TV

Market 0.21 4.00 0.84 3.00 0.63 2.00 0.42 2.00 0.42 1.00 0.21
share

Financial 0.17 3.00 0.51 4.00 0.68 3.00 0.51 2.00 0.34 2.00 0.34
resources

Brand 0.11 4.00 0.44 3.00 0.33 3.00 0.33 2.00 0.22 2.00 0.22
reputation

Distribution 0.07 4.00 0.28 3.00 0.21 2.00 0.14 2.00 0.14 2.00 0.14
capacity

Advertising 0.11 4.00 0.44 4.00 0.44 2.00 0.22 3.00 0.33 3.00 0.33
capabilities

Pricing 0.09 4.00 0.36 3.00 0.27 3.00 0.27 2.00 0.18 3.00 0.27

Quality of 0.10 3.00 0.30 4.00 0.40 3.00 0.30 3.00 0.30 3.00 0.30
customer
services

Technology 0.14 3.00 0.42 4.00 0.56 3.00 0.42 3.00 0.42 3.00 0.42

Total 1.00 3.59 3.52 2.45 2.35 2.23


Ô
cc 

ÔÔc
Ôc
 c cc

¬c

  

Market Share Decides Which Company Has Good Positions In

Industry and It Is Very Much Needed While Evaluating Any Company. Market share depicts the
correct position of the industry. It gives out the percentage of the share contributed in the market
by the industry.

Thus this industry carries Weights to This Factor.

¬c     :

Financial Resources Help To Develop Any Company

Which Is Very Much Needed In This Industry. We Can See That Mostly All The
Companies Has the Good Background. More resources lead to the faster growth of the industry.
Thus industry carries Weights to This Factor.

¬c M  




It Is Always A Good Factor For Any Company. As In This
Industry All Companies Have Their Own Brand Image. Good brand name builds a good place in
the market. Like all other key success factors this is also of great importance.
Thus industry carries Weights to this factor
.
¬c 

  


As This Is Service Industry and Customers Purchase Not Frequently This Service But Almost
Every Month They Have To Do Recharge. So, Company Has To Provide It In Good Quantity.
Facility of sitting at home and getting recharge being done is provided to customers Thus 
 
 to this factor are given.

¬c  
  
 

As This Is Emerging Industry and There Is Very

Huge Untapped Market in Various Segments. So, Company Has To Spend
Much Budget behind Advertising. Thus industry carries Weights To This Factor.

¬c 

Pricing is one of the factor which results in the profits of the industry. Right ratio of the prices set
of the product along with the cost incurred in acquiring services is very necessary. Once
customer satisfied with the prices results in the growth of industry.
Prices should be set in such a manner so that the industry also not suffers any type of losses and
customers are also attracted. Dth industry is said to be the expensive company, prices should be
brought down. This key success factor carries 0.09 weights




As The Industry¶s Attractiveness of DTH Service Industry Is Very Good. And Dish
TV Is the Leader of This Industry Followed By TATA Sky, Sun Direct TV, Reliance
Big TV, and then Airtel Digital TV
The Competition Between All This Companies Is Very Hard. DISH TV and DIST TV have a
tough competition with each other.
Sun TV, Airtel & Reliance Compete With Each Other. Dish TV Is Ahead Of All These
Companies.


c
c c
 c
c
c 
c

 !p


¬c
p!

Dish tv has good hold on the market share of the industry. 32% of the market is taped by Dish
TV. Dish tv was the first private player to enter the DTH industry. Dish TV has are a strong
presence all across the geography of India with consumer and pocket friendly gamut of services. Dish
TV has main advantage as 70% of DTH users are in rural and small towns. These rural and semi-
urban towns are expected to contribute bulk of sales in the industry.

¬c M pp 

As it is a business unit of the Zee group, Dish TV has built itself as a commendable brand in
The market. Dish TV Is Leader Of The Industry. It Comes With Most Successful Slogan
G  "  #Through Brand Ambassador Shahrukh Khan
This Provide Them Most Successful To Grab Subscriber Base. They Are
Also Come With New 360 Dergee Approach In Marketing With Slogan
³$ %´ To Compete With Tata Sky And Big TV.

¬c   $

Pricing strategy of dish tv is to be appreciated.with the wide range of channels, good picture and
sound quality it is cheaper comparatively. This is also one force helpful in acquiring highest
market share.

¬c  p


Its unique offerings of mobile dish with presence in all Kingfisher Airlines, navy war ships,
mobile vans and selected railway stations in India shows the technological edge and
differentiation it having with respect to other brands, stands exemplified. But
the subscriber acquisition cost is still very high. Confusing channel packaging for beginner users.

¬c p!  $&

Dish TV Is A Satellite Provider In India, Using MPEG-2 Digital Compression

Technology, Transmitting Using NSS Satellite At 95.0. Wereas others firms are using better
technology.
cc
c

¬c
p!

Tata sky is holding largest share in the dth market after DISH tv. It is giving very
close competition to the leader of the market.

¬c M pp 

Leveraging on brand TATA and High brand recall. Tata Sky was selected as a SUPER BRAND
for the year 2009-2010 by an independent and voluntary council of experts known as Super
brands Council. It is the only Indian DTH to have won this distinction.

¬c   $

Pricing of TATA SKY is comparatively higher than the other emerging firms. But still it is
acceptable due to the superior sound and picture quality.

¬c p!  $&

TATA sky updated itself with the changing technology. Tata sky launched TATA SKY + in the
year 2006 to cope up with the changing technology and to provide better services to customers.

¬c  p

 
p 

Leads in introducing new packages & Services
Customer queries are sought out at the earliest
Rural penetration through ITC E-Choupal and Godrej Aadhar
Interactive channels and program guides
Innovative Product offering Tata Sky Plus
Ô Ôc cÔc
c
c
Opportunities Weight Tata Score Dish Score Airtel Score
sky TV digital
TV

Huge 0.20 3.00 0.60 3.00 0.60 3.00 0.60

untapped
market
Government 0.15 2.00 0.30 2.00 0.30 2.00 0.30
in favor of
industry
New 0.05 3.00 0.15 2.00 0.10 2.00 0.10
supplements
Technology 0.15 3.00 0.45 2.00 0.30 4.00 0.60

Threats

Substitutes 0.15 2.00 0.30 1.00 0.15 2.00 0.30

Low 0.10 1.00 0.10 2.00 0.20 2.00 0.20

switching
cost
I.T 0.10 3.00 0.30 3.00 0.30 3.00 0.30
Development
Lack of 0.10 2.00 0.20 3.00 0.30 2.00 0.20
possibility of
growth
Total 1.00 2.40 2.25 2.60
Ô
ccÔÔc
 cc
c



Ôc

c
¬c !  
 

:

Industry observers, like dish tv believes that the dth market grow
exponentially to touch 37 million subscribers by 2010.
Dth is the emerging industry in india and there is huge market to provide
the dth service in india.
Around 2500-3000 new subscriber are being added everyday to private dth
operators, whereas only 200-300 are added to dd¶s free network.
Suggestions are being mooted for the simultaneous release of movies, both
in theaters as well as on dth.
There are several remote area in india where as dth services are more
suitable than cable connections.
So, there is opportunity to grab untapped market for dth companies.

¬c w$
  

 


Govt. Is Considering 74% FDI Capital In The DTH Sector And Taxation
Polices Need To Be Friendly And Encouraging.
The Growing Subscriber Base Will Definitely Bring Down The Prices Of Stbs
(Set Top Box) In The Long Run And Import Duty Free On Stbs (Set Top Box).
Government Reduces The License Fee, Which May Be Reduced From 10 Per
Cent Venues To 6 Per Cent Of The Gross Revenue Of The DTH Service Providers.

For, The Above Points We Can Say It Is Beneficial To New Entrance As Well
As Existing Companies.

¬c   


$With New Blue Race Technology Which Can Record A Programe At A
Time Of Broadcasting In CD /DVD. This Is Very Helpful To DTH Companies To
Provide Service To Customer. The DTH Service Providers Are Improving Their
Technology For Their Product And Also Improvement In Their Service To Provide
To The Customers.
.

¬c p     
 
   


Now p!Companies Are More Concentrating On Their Services And Schemes
Them. All The Players Are Always Ready To Innovative Their Services To Attract
The Customers Dish TV And TATA Sky Provide The A-LA-Carte Services Means
Special Channel That You Can Add As Per Your Choice. And Also MS Service
Provides That Called Multi Services. These Both Are Benefit To Customer To See
Their Favorite Programs. In Short Time Internet Will Also Available On The DTH
Service.

¬c

   


wThe Major Factors Which Contribute For The Imminent Growth Are ±
Economic And Low End Entry Fee, Free Offers, Value-Added Services,
Matrimonial Information, Educational Kits Etc.
wThe Players Can Easily Initiate And Develop Their Market If They Have
Required Capital Availability.

¬c 


 p 

Iw ndia has A Total Of Almost 90 Million Households Which Have Television.
Out Of These, Cable Television And DTH Services Are Accessed In About 45
Million (Half).
wIn The Next Few Years, It Is Set to Increase by another 10. This Will Then
Make The Indian Market The World¶s Biggest Cable Television Market.
wThe Changing Life Style and Choice May Positively Affect to This Industry.

§c 


DTH Industry Is At Growth Stage. Industry Has Huge Opportunity And Growth.
Government Is More Concentrating On This Industry. As They Reduced Import
Duty On STB And Also Reduced License Fee. Out Of Six Players, Two Companies
Have Own Cable Subscriber. This Could Be Benefit To Companies. As Companies
Are More Focusing On Advertising Activity, Awareness About DTH Services Is
Increasing In The Market. There Is Huge Untapped Market. Existing Companies

p 


¬c 




Internet Protocol Television (IPTV) Is An Upcoming Threat To DTH, But Still In
The Nascent Stage.
CAS, If Regulated And Implemented Properly, Could Pose A Threat To DTH
Players In Future.
IPTV And CAS Is Main Substitute Of DTH Industry. They Are Coming With New
Technology And When It Implemented Right Way Then They Become Threat
For DTH Industry.

¬c 
 


There Is Not More Difference Between Package Price Charge By DTH And Its
Substitute.
Service Provides By DTH And Its Substitute Is Almost Same. So One Can
Transfer From One To Another.
So, Here Switching Cost Is Low For The Customers About The DTH
Service.

¬c $  
' 



TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH
Service Industry. DTH Service Covered Under The Direct To Home
Broadcasting Services (Standards Of Quality Of Service And Redressal Of
Grievances) Regulations, 2007.
Government Has Imposed Strong Rules Like No Visiting Or Repair And
Maintenance Charges Against DTH Equipment During Warranty Period, The
DTH Operators Cannot Alter The Subscription Package During The First 6
Months, Or Till Validity Expiry, Of A Subscriber's Enrollment, Etc.

¬c p   


The Biggest Threat To The DTH Industry And Also To The Television Industry Is
From The Growth Of The Internet And Other IT Developments Which May Enable
Viewers To Enjoy Their Daily Sops, News Etc. Direct Through Internal


¬c  


$


At Present the Industry Is At Growth Stage, Numbers Of Peoples Are Still
Remaining To Be Covered By The DTH.

But After Covering the As Many Numbers of the People As It Can, There Is
No Scope for the Industry to Grow Further In the Same Market
Even It Would Be Difficult To Attract the Users from One Service Provider
To The Other Because Of the Lack of the Difference in the Core
Competency
.
§c 


DTH Substitutes Will Become Strong By Adopting New Technology Nearby Future.
And HITS (Head End In The Sky) New Technology Comes In To Market If It
Successful Than The It Is Harmful To DTH Industry. Competitors Are More
Conscious About Their Technological Development And Market Expansion By The
Innovation In Technology As Well As With The Innovative Products. The Climate
Plays Vital Role To Affect The Service. The Improvement In The Technology Affect
To The DTH Industry. Above These Factors Can Become Threat for DTH Industry
In Future.


 c !c "#!c$%&c%cc
"cc




c
ccc !c
c
c
p 

 
 


There Are Many Factors Affecting Bargaining Power Of Buyers. As
they Are Given Below:

¬c  p


("

For This Business Readily Availability Of Service To Target Segment Is Must. For
That Companies Have To Build Strong Distribution Network. Companies Like Airtel
Digital TV , TATA Sky Have Strong Distribution Network. Airtel Digital TV Has Only
1day Processing Time. And Tata Sky Has Only 2day Processing Time.43 For New
Companies Who Don¶t Have Strong Distribution Network Or Not Able To Meet
Order In Least Time, This Business Is Very Tough Task For Them. So, It Is High.
So, Threat From New Competitor Entry Is 

¬c  
)





For This Starting Of DTH Service, It Is Required To Create Awareness Regarding
Brand Name Among The People. For That It Required Strong Advertising Budget.
Now A Days, There Is Trend Of Using Brand Ambassador To Promote Brand. Tata
Sky Came Out With Aamir Khan, Dish TV Came Out With Shahrukh Khan , Airtel
Digital Came Out With Saif Ali Khan & Kareena Kapoor,Etc. To Create And
Maintain Strong Present In The Market It Requires Efficient And Skilled Sales
Force. It¶s Required Huge Investment And Expertise To Maintain It And It Is Not
For Everyone¶s Cup Of Tea.
So, Threat From New Competitor Entry Is
 
p

¬c  
) 

TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH
Service Industry. DTH Service Covered Under The Direct To Home Broadcasting
Services (Standards Of Quality Of Service And Redresses Of Grievances)
Regulations, 2007. Government Has Imposed Strong Rules Like No Visiting Or
Repair And Maintenance Charges Against DTH Equipment During Warranty
Period, The DTH Operators Cannot Alter The Subscription Package During The
First 6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment, Etc.
So, The Threat From New Entry Is
 
p

¬c  
 * 


There Is Low Capital Requirement In This Industry. It Is Just Rs.10 Cr Which Is
Non-Refundable. And Also Need To Investment In Technology. So, It¶s Not Easy
For Any Corporate House. And Also Need To Invest In Technology. It Is High.
So, The Threat From New Entry Is 

¬c 
 

In This Service Industry Low Cost Design Is An Important Factor. Dish TV Uses The
Multi Dwelling Unit (MDU). It Is Customized Solution For Connecting Multiple
Houses Within The Same Multi Storied Building With A Single/ Two Dish Antennae
To Receive DTH Services. In This Service, Common Dish Installed On The Terrace
Of The Multi Storied Building Powers TV Sets In Multiple Homes In The Building
Through A Cable, Which Runs Into Each Flat.44 Thus, Dish TV Has Lo Cost Design.
But, It¶s Not A Cup Of Tea For Each And Every Company To Implement Lo Cost
Design.
So, The Threat From New Entry Is
 
p

¬c 
$


Annual Compounded Growth Rate Of DTH Service Industry Is Around 30%, Which
Shows Demand Is Increases Rapidly. Rising Per Capita Income, Changing Life
Style, Etc. Have Driven Growth. So, Market Is Attractive For The New Players. So, The Threat
From New Entry Is ! 

¬c $  


Government Is Providing Good Facilities To DTH Service Industry. As Government
Reduced Import Duty To Zero Percent From 7.5% On Set Top Box. And Also
Reduced License Fee From 10% To 6% And The CVD (Counter Veiling Duty) Is
Reduced From 16% To 14%. This Shows Government Provides Friendly Policy To
DTH Service Providers. But, There Is Also Non-Refundable Fee Of Rs.10 Cr. At The
Time Of New Entry.
So, The Threat From New Entry Is
 
p! 

 

Access To Distribution Is High So Threats Of New Entrants Are Low. Advertising &
Marketing Activity Is Also High So Threats Of New Entrants Are Low. Regulations
& Norms Are Strict So Threats Of New Entrants Are Low. There Is Low Capital
Requirement So Threats Of New Entrants Are High. In Respect Of The Low Cost
Design Threats Of New Entrants Is Moderate To Low. There Is Low Level Of
Switching Cost So Threats Of New Entrants Are High. The Buyer Demand Is
Growing Rapidly So Threats Of New Entrants Are High. And Government Policy Is
Somewhat Friendly So Threats Of New Entrants Are Moderate To High.
The Overall p 

 
 
Is,
 
p
 c"c#$#c
c

  




p 


In This Industry Mainly Four Type Of Substitute Available And They Are Closely
Related To Dth Industry. Four Substitutes Are: IPTV, Cable Terrestrial, Television
And CAS.

Iw PTV Provide Services Have Been Very Attractive Levels With The
Subscription Charges Depending On City And Provide Set Up Box Free
With Refundable Security Deposits. And They Provide Unique Features.
IPTV Is Expected To Take Some Time To Catch Up S Infrastructure To
Cover Wider Scale.

wAs We Know Cable TV Have Huge Market. 73 Million Households Have

Cable Connection.

w oordharshan Is WorldµS Largest Broadcast With Over 1400 Terrestrial

D
Television Transmitters. And The Reach Provided By This Route Is
Phenomenal With Provided Coving 88% Geographic Area Of India.

Iw ntroduction Of CAS By The Government In Specified Are Since 2007 And

This Also Put Push Towards Digitization Of Cable. If Regulated And
Implemented Properly Could Pose A Threat To DTH Player In Future.

wNew Technology Accepted By TRAI Is Headend In The Sky (HITS). DTH

Have End User Of Consumer, The HITS End User Is A Cable Operator. So, Threats From
Substitutes Are
 
p! 

¬c 


 p




Package Price Of Services Is Not More Different From Substitute To Substitute. So
Buyer Can Easily Switch From One To Another. They Charge Low Price So That
Customer Do Not Incur Big Cost. They Can Transfer To Substitute

IPTV Provide Subscription Charges Between Rs. 100 To Rs. 200 Per Month. And
DTH Services Have Lowest Price Rs. 90. (Starting Price) And Cable Provide
Services Starts With Rs. 250. So We Can Say Here No Huge Difference.
So Threat From Substitute Is ! $!

¬c   







! p+The New Technology Is Being Looked At Positive By TRAI.HITS Has The End
Number Of Cable Operator Who Delivers The Signals To The End No. Of
Consumers.

w  p  Is Also Coming Soon In The Market. DOOR

DHARSHAN Launched Its Mobile TV Pilot With Handset Major Nokia And
Samsung On DVB-H Platform.

w%c cc'cMc%c%()c%c (c%*cc)"c

cc"c
$cM*%()c(c c+ ,cc$$%cc *%(c c
,c
c
Here Threats From Substitutes Products Are
 
p! Because
Technology Used By Substitute.

¬c p 






 
Threat From Substitute Is Moderate To High Because Substitutes Have Power On
Market And Also New Technology Is Positively Taken By Government. There Is No
Huge Difference In Price. So, Cost Of Switching Cost Is Low. Because Of It Threat
Is High. And Availability Of Substitute Is Moderate To High In Market. So, Threat Is
Also Moderate To High.
The Overall Threat Of Substitutes Is
 
p!!


























M&  &c
'c"c#((c
c
c
DTH Industry Relies On Three Major Suppliers:

[ c Customer Premise Equipment (CPE)

c Comprising Of The Satellite Dish

 c Set-Top-Box With The Necessary Access Card.

¬c 



The Ku-Band Transponders Are In The Orbiting Satellites And Content Are Few
Larger Suppliers. With India Set To Overtake Japan As Asia¶s Largest DTH Market.
But Government Launches INSAT 4A, India¶s Most Powerful Communication
Satellite. It Will Provide Direct-To-Home (DTH) Telecasts From Early 2006.
The Ku Band Transponder Is Generally Provided By Astrix, The Commercial Wing
Of ISRO Either Through Its Own Satellites Or By Leasing Transponders From
Suppliers. With Only Two Domestic Satellite Launches Between 2007 And 2010
An D Increasing DTH Players, Astrix Is In A Better Position To Use DTH. Also The
Crash Of INSAT 4C And NSS-8 Has Worsened The Situation Of DTH Players. As
There Is Not Much Of Regulation Particularly In Terms Of Channel Pricing,
Acquiring Content From The Broadcasters Is Also Difficult. DTH Vendors Are At
The Mercy Of The Broadcasters.45
Indian DTH Service Provider Can Take Initiative Of Indian Satellite For Large Area
Coverage From India As Well As Take Home Base Secure Service Satellite.

¬c 
(pM,

As Per A STB Equipment Provider Is Concern Indian Govt. Give An Advantage Of
Customs Duty On Set-Top Box Was Reduced To NIL In The Budget 2006,
Whereas, Inputs Attract Customs Duty Of 5/12.5%.
Most DTH Players Import Their Set-Top Boxes (STB) And Sell Their Products At A
Discounted Price To Consumers In A Bid To Grab Larger Volumes. A MPEG2 STB
Could Cost A Company Between $32-50 And Its Consumer Acquisition Cost Is
Around Rs 2,600-5,000 Per STB For The DTH Players. Similarly, MPEG4 STB Could
Cost A Firm Between $50-62 Taking The Subscriber Acquisition Cost For A DTH
Player Up To Rs 5,600 Per Set Top Box. So As A Service Provider Company Can
Import STB Like Tatasky Import Sky Broadcastings STB From USA For Low Cost
And High Quality Service?46
Here The Production Of DTH Instruments, Cables And Other Materials Is Very
Costly For The DTH Service Provider Companies So They Have To Be Dependent
On The Suppliers Of This Equipment. And Because Of This Reason Their
Bargaining Power Is High.

There Are Some Points Which Are Affecting Bargaining Power Of Supplier:

¬c M   




Industry Players Can Get Qualitative Raw Material At Affordable Price. So, They
Can Think To Do Backward Integration In Terms Of Set Top Box, Etc. And Also All
The Corporate House Can Do This.
So, Bargaining Power Of Supplier Is 

¬c  
 


The Decision Of Switch From One Supplier To Another Supplier Is Very Critical To
Any Manufacturer. Because At That Time They Have To Check The Cost Of
Switching From One Supplier To Another. But In This Industry It Is Very Low.
There Are Many Players Who Provide Dish And Set Top Box In The World.
So, Bargaining Power Of Supplier Is 

¬c   




Supplier Of Raw Material Providers Can¶t Easily Entered In This Industry. Because
There Is Need Of Huge Investment Required While Starting The Business In This
Industry. So, Bargaining Power Of Supplier Is
 
p.

 

Bargaining Power Of Supplier Is Low Because There Is A Possibility Of Backward
Integration. Inter Firm Rivalry Is High Because Market Share Of The Players Have
Not More Differences. Supplier Switching Cost Is Low So Bargaining Power Of
Supplier Is Also Low. And The Determinants On Supply Power Are Not So Much.
So, Bargaining Power Of Supplier Is Moderate To Low.
The Overall Bargaining Power Of Suppliers Is .














M   
M 

There Are Many Factors Affecting Bargaining Power Of Buyers. As They Are Given
Below:

¬c M 
 



The Cost Of Service In DTH Service Industry Is Not That Much High What
Consumer Cannot Afford To Change. So In This Industry Consumer Can Easily
Divert From One Brand To Another. There Are Several Reasons To Change The
Brand Like Price Level, Quality Of Set Top Box, Etc. In That Case Service Provider
Can¶t Take Any Strong Action To Make Consumer Brand Loyal Each & Every
Players Are Provide DTH Service At Near To Same Price. That¶s Why Consumer
Can Easily Change The Brands. Due To 
 
From One Brand To Another, The
Bargaining Power Of Buyer Is
 
p! .

¬c M    

Customers Are Becoming Literate And Take Interest To Get Aware About Different
Brands And Their Services Which Are Available In The Market. In DTH Service
Industry There Are No More Players But They Provide Many Different Services.
Mostly People Are Aware About Brands And Services, That¶s Why They Can Easily
Find Out Which Product Is Good In Price, Quality Of Services, Etc. In This Industry
Mostly Each & Every Service Providers Are Concentrating On High Advertising To
Increase Awareness Of Their Brands And Services.
Due To !    


 
M   , The

Bargaining Power Of Buyer Is
 
p! .

¬c   







In Recent Time We Can Easily Find Substitute Product In This Industry. Substitute
Products Are Cable TV & IP TV. Customer Can Easily Get Both Of These Products
With Minimum Charges.
Due To    





, The
Bargaining Power Of Buyer Is ! .

¬c M -   * 


DTH Service Is Such Kind Of Products That Consumers Cannot Purchase It
Frequently. But, Consumer Has To Do Recharge Monthly. They Have To Buy
Monthly Or Yearly Packages. Because Of These Reasons, Purchase Frequency Is
High.
Due To This, Bargaining Power Of Buyer Is
 
p! .

¬c 
   


In DTH Service Industry, Service Provider Every Time Launch Different Services
Via Different Types Of Recharges. Consumers Can Easily Get Recharge And
Monthly As Per Their Need.
,  Reliance Big TV Provides 10 Different Types Of Monthly Pack.
Due To This, Bargaining Power Of Buyer Is
 
p! 
ccccccccccccccccccccccccccccccccccccccccccccc#cc
c
The Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of
Grievances) Regulations, 2007, were issued on 31st August, 2007. These regulations were issued
to lay down the standards of quality of direct to home services and to protect the interests of
direct to home subscribers. At the time of issue of these regulations, only two direct to home
operators apart from Doordarshan were providing direct to home services in the country. Since
then, three new direct to home operators have started commercial operations. With the evolution
of the direct to home segment and the increase in the number of direct to home subscribers, new
issues relating to quality of direct to home service have arisen. In order to address these issues
the Authority has decided to amend the Direct to Home Broadcasting Services (Standards of
Quality of Service and Redressal of Grievances) Regulations, 2007. 
  
 
 


 

! M  
  .
 
/ 

  
   
$   0 
+
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 Premises Equipment during the period of
warranty for such DTH Consumer Premises Equipment acquired on outright purchase basis.

2. The DTH operators cannot alter the subscription package during the first 6 months, or till
validity expiry, of a subscriber's enrollment. TRAI: The DTH operators have been prohibited
from changing the composition of their subscription packages during first six months of
enrolment to the subscription package or during the period of validity of a prepaid subscription
package, whichever is longer.

3. In case a channel is removed from a subscription package in the first 6 months of enrollment,
the DTH operator must reduce the price proportionately, or replace the removed channel with
one of the same genre and language. TRAI: The DTH operators have been mandated to
proportionately reduce the subscription charges for a package from which any channel is
removed for first six months of enrolment or during the period of validity of a prepaid
subscription package, whichever is longer or to replace the channel with a channel of same genre
and language.

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

5. In case a removed channel needs to be replaced, the replacement option will be in the hands of
the DTH operator.
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.

$  

  

1. 
    There Will Be No Restrictions On The Number Of
DTH Service Provider To Issue The License, The License Issued By Any New
Service Provider Who Fulfils The Terms And Conditions Which Are
Regulated By TRAI (Telecom Regularity Authority Of India).
a. TRAI Also Regulated The Security And Technical Clearances Service
Provide To The DTH Service Holders By The Appropriate Authorities
Of The Government.

2.


  Wireless Planning And Coordination Wing Of Ministry
Of Communication, The Rules And Regulation Of The Government The
License Provide To The DTH Service Provider Which Is Valid Up To 10 Years
From The Date Of Issue Of Wireless Operational License.

3. p!    
: The Ministry¶s Move To Reduce The License

Fee For DTH Players From 10% Of Gross Revenue To 6% May Soon Bear
Fruition. Secretary Singh Said The Ministry May Be Able To Announce This
Soon. This Process Has Been On For Nearly A Year. Due To The Multiplicity
Of Agencies²Telecom Regulator TRAI, I&B Ministry And The Finance
Ministry Are Involved In This Decision²The File Seems To Have Been
Moving Back And Forth For Nearly An Entire Year. One DTH Industry Source,
Who Has Followed The Policy Change Closely, Told Us That The First Time
Around, The Finance Ministry Had Some Reservations About The Change
After I&B Ministry And TRAI Had Approved The Change. So The Ministry Had
To Make Some Amendments And Get TRAI Recommendation Once Again
And The File Has Gone Back Again To The Finance Ministry. Singh¶s
Reiteration Of The Decision May Be An Indication That The Ministry Is
Expecting The Finance Ministry¶s Nod Soon.

4.  p p  
Either Party Has A Right To Terminate This

Agreement On Immediate Written Notice To The Other In The Event Of:

5. Material Breach Of This Agreement By The Other Party Which Has Not Been
Cured Within Thirty (30) Days Of Being Required In Writing To Do So; The
Bankruptcy, Insolvency Or Appointment Of Receiver Over The Assets Of
The Other Party;

6. The DTH License Or Any Other Material License Necessary For DTH Co. To
Operate Its DTH Service Being Revoked At Anytime Other Than Due To The
Fault Of DTH Co.

7. GBN Shall Have The Right To Terminate This Agreement On Written Notice
To DTH Co. If DTH Co. Breaches Any Of The Anti Piracy Requirements And
Fails To Cure Such Breach Within Two (2) Days Of Being Required In Writing
To Do So, Or GBN Discontinues CNN-IBN With Respect To All Distributors In
The Territory And Provides DTH Co. With At Least Ninety (90) Days Prior
Written Notice.
a. DTH Co. Shall Have The Right To Terminate This Agreement On
Written Notice To GBN If DTH Co. Discontinues Its DTH Business And
Provides At Least Ninety (90) Days Prior Written Notice.

8. Termination Of This Agreement Shall Not Affect Any Continuing Obligations

Of Each Of The Parties, Including Any Rights And Obligations Relating To
Indemnification And Audit.

p   

p 



  
  
pp  
p! 
M  
  .
 
/ 

     

$   0 
+

1. No Visiting Or Repair And Maintenance Charges Of DTH Equipment During
Warranty Period. TRAI: The DTH Operators Have Been Prohibited From
Charging Any Fee Towards Visiting Charges Or Repair And Maintenance
Charges Of DTH Consumer Premises Equipment During The Period Of
Warranty For Such DTH Consumer Premises Equipment Acquired On
Outright Purchase Basis.

2. The DTH Operators Cannot Alter The Subscription Package During The First
6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment. TRAI: The
DTH Operators Have Been Prohibited From Changing The Composition Of
Their Subscription Packages During First Six Months Of Enrolment To The
Subscription Package Or During The Period Of Validity Of A Prepaid
Subscription Package, Whichever Is Longer.

3. In Case A Channel Is Removed From A Subscription Package In The First 6

Months Of Enrollment, The DTH Operator Must Reduce The Price
Proportionately, Or Replace The Removed Channel With One Of The Same
Genre And Language. TRAI: The DTH Operators Have Been Mandated To
Proportionately Reduce The Subscription Charges For A Package From
Which Any Channel Is Removed For First Six Months Of Enrolment Or
During The Period Of Validity Of A Prepaid Subscription Package, Whichever
Is Longer Or To Replace The Channel With A Channel Of Same Genre And
Language.

4. The Option Of Choosing The Package With Reduced Charges Or The

Package With Replaced Channel Has Been Given To The Subscriber.

5. In Case A Removed Channel Needs To Be Replaced, The Replacement

Option Will Be In The Hands Of The DTH Operator. 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

8. 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.
a. The Above Rules Are Compulsory For DTH Operators To Adhere To.
i. The Licensing Norms Of This Industry Is Not So Much Strict.
Because Of This Norms Provide Easy Entry And Exit To DTH
Players. But, The Service Norms Are Somewhat Strict.
Companies Have To Give Good Services To Their Customers
Especially To Set Top Box. They Don¶t Take Any Repairing
Chargers During Warranty Periods. DTH Providers Also Can¶t
Change The Composition Of Subscription Of Customer¶s
Schemes Till The Expiry Date Of Their Enrolment.

  
  



The Ministry Of Information And Broadcasting (I&B) Reiterated That It Is Working
Towards Raising The FDI Cap In The Media Distribution Platforms Like Direct-To-
Home (DTH) To 74% From The Current 49%. ³We Are Considering The Case Of
Raising The FDI Ceiling In DTH To 74%´- Said By Uday Verma, Additional
Secretary, At The IDNS Conference.
By The FDI (Foreign Direct Investment), The Quality Of Domestic Institutional
Environment Has Been Improved. An Effective Education And Training System
Upgrades The Skill Level Of The Workforce And Improves The Socio-Political
Climate In The Country. FDI Includes Infrastructure Availability, Quality Of The
Banking System, Market Size, Repatriation Of Profits, Characteristics Of Trade
And Competition Policy Consistency And Predictability. Ministry Of Information &
Broadcasting Has Requested The Authority To Give Its Recommendations On
Foreign Investment Limits For Various Segments Of Broadcasting Sector. This
Consultation Paper Raises Issues Relating To Foreign Investment Limits For
Broadcasting Sector. The Telecom Regulatory Authority Of India (TRAI) Solicits
The Views Of All The Stakeholders On The Issues Raised In The Consultation
Paper.

$  




The Era Of Coalition Politics Had Arrived, And It May Be Some Time Before A
Single Party Government Comes Into Power. The Regionalization Of Indian Politics
Has Also Led To State-Level Innovation And Greater Competition Between The
State Governments To Attract Foreign Capital.
There Is Change In The Political Party And Their Rules For The Particular Company
And Its Service Provides Style. Instability In Rules And Regulation By The
Government As A Ruling Party, As Evidenced In The Pattern Of Shifting Alliances
And Collapsing Governments That Has Marked Recent Policies.
ccccccccccccccccccccccccccccccccccccccccccc )c Ôc
The sixth force in the Dth Industry or the complimentor to the DTH industry are the television
channels . without the support of the broadcasting channels it is impossible to survive for the
DTH industry. Viewing the channels is broadly all about what the services of DTH are.

Broad casting rights of the channels or particular shows are provided by the government. Dth
industry had to depend on the broadcaster for the broadcasting of the channels.

Largest number of television channels is displayed by DISH TV. All the competitors of the DTH
firms are trying to get the broadcasting rights to view more and more channels.

Television sets are the other complimentary good for DTH industry. Now the TV sets are coming
with advanced technology. For example Plasma TV, LCD TV etc.
Consumer electronics and TV manufacturers association (CETMA)
Television sales clocked 21 per cent growth in last year year with 4.6 lakh set sales against 3.8
lakh in year before. The growth in sales of TV sets would definitely lead to higher sales of DTH.

c
ccccccccccccccccccccccccccccccccccccccccccc  c
c
¬c%ÔÔc
Ô Ô
c
c
Among all the DTH firms dish tv is highest rated as it is the oldest player in the
market and acquires highest market share. factors like advertisement , brand
reputation , pricing , technology etc are also responsible to make dish tv no 1 n
grab the market.


TATA SKY is giving tough competition to the dish tv. To maintain no 1 position dish tv should
update itself technologically.

AIRTEL DIGITAL TV ranks last due to many reasons, Late entrant ± Most of the market has
already been captured by other players. The prices are high.cc
c
From the OT Analysis, the Opportunity for the Players to Enter As Well As To
Envelop the Market Because the Market Is Untapped and the Policies From The
Government Are Much More Liberal for the DTH Service Providers Provide To The Customers.
So, It Is the Win-Win Situation for Both the Parties Like, DTH Service Providers and Customers.
There Are Also Some Threats for the DTH Service Providers by the Improvements in the
Technology, Climate Condition, Substitutes Also Affect To the Rivals of the Industry Because
the cable operator covered the market.
c

c
ccccccccccccccccccccc
ccccccccccccccccccccccccccccccccccccMM%
)c

¬c www.financialexpress.com
¬c www.bigtv.co.in
¬c www.tatasky.com
¬c www.indiabroadband.com
¬c www.sundirect.in
¬c www.indiatelevision.com
¬c www.moneycontrol.com
¬c www.docstoc.com
¬c www.dishtv.in