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DTH Industry in India

DTH Industry in India

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Published by satyesh3
A case study of DTH market in India.
A case study of DTH market in India.

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Published by: satyesh3 on Aug 11, 2009
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Market Structure : Indian DTH Industry
Table Of Content
1.Introduction 3 2.DTH Industry in India 33.Structure of the Indian DTH industry 44.Substitute goods/products for the products of DTH Industry 65.Complement goods for the products of the firm 86.Changes in substitutes and complements over time 87.Entry Barriers in DTH industry 98.Recent entries in the industry 109.References 11Page 1 Satyesh Singh Rajput
 
Market Structure : Indian DTH IndustryIntroductionDirect To Home (DTH) is a distribution platform for multichannel TV programmes on Kuband (high frequency of 11.7 to 14.55 Gigahertz) by using a satellite system which transmsignals directly to subscriber premises The term predates DBS satellites and is often used in reference to services carriedby lower power satellites which required larger dishes.DTH Industry in IndiaIn earlier days there was only one TV channel in India the “Doordarshan”,Channel doordarshan was owned and operated by government of India. In thoseera every home which had a TV set used to have its own antenna to capturethe signals. The Cable Television Ordinance Law was paased in January 1995. Thisenabled cable operators to feed channels and later on private companies wereallowed to air their own channels and this led to the explosive growth in numberof TV channels and number of cable operators. The growth of TV channels & cable operators created a big industry andmarket opportunities.Untill few years back there were as many as 1,00,000 cable operators acrossIndia. However the services provided by cable operators were poor.The strikes,increase in tariff plan, selective broadcast and poor services were major causePage 2 Satyesh Singh Rajput
 
Following are the simplifiedsteps on how DTH works:1.Broadcoster Sends thesignals
2.
 The satellite receives thesignalsat Ku Band3.The Dish Antenna atsubscriber’shome receives the signals 
 
Market Structure : Indian DTH Industryof dissatisfaction among the customers. This has created an opportunity forDTH, which serves an immediate threat to the high-end cable networks. Someof the key player in the industry are DishTV by Zee group, TataSky joint ventureof Tata & Star TV, Big TV by Anil Dhirubhai Ambani Group, Digital TV by Bharati Telemedia, SUN Direct from the promoters of Sun TV.There are some othercompanies who are comtemplating to start their own DTH like Videocon. There is an immense opportunity for DTH in the Indian market. Theopportunity in India almost 10 times that in developed countries like the US andEurope. For every channel there is a scope for broadcasting it in at least tendifferent languages. So every channel multiplied by ten, that is the kind of scope for DTH in the country.Structure of the Indian DTH industry The structure of the DTH industry in India can be categorized as an
Oligopoly”
. The word
Oligopoly
is derived from the Greek for few (entities with the rightto) sell.An oligopoly is a market form in which a market or industry is dominated by asmall number of sellers (oligopolists).An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. Firms within an oligopoly produce brandedproducts and there are also barriers to entry.Key characteristics of “
Oligopoly”
are
 
following
:
Few larger supplier dominates the market
Interdependence between firms
Each firm produces branded products
Significant entry barriers into the market in the long run which allowsfirms to make supernormal profits
Each oligopolist is aware of the actions of the others.
Analysis of Indian DTH industry:
Page 3 Satyesh Singh Rajput

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