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Need for the Study First of All I Would Like

Need for the Study First of All I Would Like

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Published by bhasker16

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Published by: bhasker16 on Dec 17, 2009
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Need for the study
First of all I would like to thank India Study Channel for choosing such a relevant topic for discussion or posting of resources.The full form of DTH is “Direct To Home”. Today there is a lot of competition going on between a lot of big companiesto highlight their DTH service as the best service in India. Some of the current DTH providers in India are RelianceBIG TV, Airtel Dish TV, Sun direct, Tata sky etc. A lot of competition is going between them to capture more andmore Indian market share which is one of the largest in the world.In my home I have Tata sky connection. But earlier I used to have simple cable connection provided by cable serviceproviders, Which is still more famous in many parts of India. So since I have used both the services I better abouttheir pros and cons than anybody who have only used one i.e. either the DTH service or the cable service. So I wouldlike to bring to your notice some of the pros and cons of both of them.First of all cable is still more famous in large parts of India like in villages or small towns, Where these DTH servicehas not become a trend yet. Some of their benefit is that they are cheaper as compared to the DTH service. Also theyprovide a wide range of channels which is not provided by the DTH service providers. For example, in my TATA skyconnection only star sports and ESPN are default sports channel. So if you have to watch a match on star cricket or ten sports you have to take their sports pack. Similar is the case with other service providers (I don’t know whichchannels they provide because I have TATA sky connection).So certainly cable service is cheaper than DTH service.Also in DTH service suppose yours validity is for 30 days from the date you made the payment then on the 31st dayor after some grace period they will cut your connection so you have to recharge as soon as your advance gets over.But in the cable service you can pay even pay afterwards if you have a good relation with the cable operator. There isno fixed time limit.But DTH service have some advantages too as compared to cable service. First of all there are many addedfunctionalities in the DTH service. For example in TATA sky there is TATA active service through which you canrecord a live match or any program of your choice and watch it whenever you want. So for example if you have to goto office and it’s a day night match in India, you will miss all the action if you have a simple cable connection, but if you have a DTH service(TATA sky connection) you can record it and watch it whenever you want. It is also helpful insituation like suppose two of the best program are coming on two channels at the same time but you can watch onlyone so what you can do is record the other at the same time and watch it in your free time.In DTH service there are also additional facilities wizkids, travelguru etc. where you can teach your kids generalknowledge or math or you can plan your travel. Also you can pay your monthly payments for the DTH service online.Also there is a facility like ‘”i” button in TATA sky which provides you with information about the current program andfuture programs also. So you can plan your day according to it (for example if you want to watch a particular moviewhich will be shown on some channel).One more advantage is there that you can take one DTH connection and can have multiple connections from it , if you have multiple TV at some extra cost. Also I feel that quality of the picture is better than that provided by cableconnection.So now I have given my experience of both of them as I have used both. Now its up to you to choose any one of themThank youDTH which is nothing but direct to home services is very new in Indian soil. It was introduced very late in the Indianmarket. Now it has come a long way from being a slow starter to a rapidly growing market. We can see that all major companies(reliance, airtel, Tata) are eying this growing market to some good money and also to help them self from
getting constant income year after year.Go are the days of cable TV. Now DTh services in India growing increasingly competitive (which in some case goodfor the consumer). DTH services in India is no longer just channels being aired , now you can access the world wideweb through the set top box. To add to the various lets of feature now Tatasky has introduced a new product in whichthe consumer and pause and play.Various DTH services in India are Tatasky, DishTV, BigTV, DigitalTV, SunDirect,Videocon D2H.
Present scenario
IN THE current context of the global financial meltdown, the Direct to Home (DTH) industry in India is in thethroes of multifarious challenges and opportunities.The ‘big game’ is all about shaping up grandiose plans to master the winning rules to garner as muchportion 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-firmrivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets forimproving 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.A neat 20 per cent annual growth is being witnessed in theDTH sector in Indiawith over 8.5 millionhouseholds having digital pay-TV.According to Harsh Bijoor, a brand consultant, “Since Dish TV, the biggest market player on the Indian soil,has not scraped even five per cent of the pie, there is plenty left for other players to eat.” In the early 2008, five major players, Zee’s Dish TV, Tata Sky, Reliance ADAG, Sun Direct and BhartiTelemedia formed an umbrella body – DTH Operators Association of India (DOAI).The Cable and Satellite Broadcasting Association of India in its ‘2008 Pay TV Piracy Survey’ have predictedthat the Grey TV market of around USD 1.1billion will gradually be taken over by the legalDTH industry. Marcel Fenez, chairman CASBAA, said, “Despite the global sinking of economies, the Asia Pacific market ishealthy and the decline in growth will not derail the industry. With 1.7 million digital cable subscriptions, thedigital pay-TV market is finally taking off and this degree of penetration represents a tipping point for ourindustry in Asia.” Starting with a million strong subscriber base in August 2006, Tata Sky, a DTH joint-venture Companybetween Star (owned by Rupert Murdoch) and the Tata Group, now has more than 2.7 million connectionsand the forecast for 2012 is that it will further increase to eight million.The Indian DTH growth scenario bodes well for the advertising industry as well with over Rs 30-40 croresbeing earmarked by these companies annually for advertising revenues.While Tata Sky has roped in Bollywood actors Amir Khan and Gul Panag for its promotion, Shahrukh Khanendorses for the Dish TV.MD and CEO of Tata Sky, Vikram Kaushik, recently confirmed in an interview that the company estimateswere standing at Rs 40 billion for its final funding requirement as ‘competitive entries’, ‘explosive growth involume’ and customer acquisition have jacked up the costs.Tata Sky recently launched the NDS-developed XTV personal video recorder (PVR) that enables thecustomers to watch a particular TV show while recording another. It is being hailed a ‘major introduction’ inthe Indian DTH market.
Within a few days of its launch 2, 500 PVRs, priced at Rs 8, 999, were sold as claimed by the Tata Sky MD,Kaushik.This places Tata Sky among the top 19 ‘pay-TV operators’ around the world with NDS solutions being aunique introduction to facilitate flexibility of PVR to their subscribers.A deal along similar lines was announced by Bharti Airtel, in the provision of DTH services, dependent onNDS for its conditional access.N Arjun, executive director Bharti Telemedia, expressed enthusiasm about the company’s expansion plansby disclosing that his company looked forward to providing the best of home entertainment services viaAirtel digital TV in terms of latest technology and exciting content. “Since DTH is the future of homeentertainment, with the support of our technology partner NDS, we will render superior, state-of-the-artservices to our DTH service customers”, he said.Sun Direct, which entered the DTH sector as a discounted brand in opposition to Tata Sky, notched at a 30per cent premium and supposedly mopped up over a million subscribers within a short time span.Tata Sky, though placed at a launch-premium of Rs 1,000, is open to segmentations.A demand of a tax holiday of five years from the government has been mooted by the DOAI that shouldincentivise theDTH industryas its market has reportedly surpassed the Japanese one in the last five years.The IndianDTH industryplayers look forward to a seven times multiplication of its market, about 40 millionsubscribers by 2015, from a total of 165 million pay TV households.
Since 1959, when Indian television was first launched and the state owned Doordarshan aired just twochannels in black and white as recently as 1991; the world of entertainment has made rapid and unusualstrides.The turning points were the 1982 Asian Games when colour television was introduced and the 1991liberalisation and deregulation that ushered in the era of foreign investments and foreign channels thategged the domestic players to jump into the foray.From large metros, satellite TV moved to smaller towns that spurred the sale of TV sets and brought aboutan upgradation from black and white television viewing to the colour one. With time, more and morechanges took place and finally the DTH services arrived.DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing thenumber of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would meanmore channels for viewing.Tax burdens on DTH are another area of complaint for operators.Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent forservices imposed by the Central government. Apart from this, there are entertainment taxes that differ fromstate to state.Cable TV operators also give a stiff level of competition to the DTH sector by suppressing their pricesartificially by way of under-declarations.This has pressurised the DTH operators to cut their profits to the extent of making them unviable. “At present, there are 80 million TV households in India, of which over seven million are DTH ones. Sincethe penetration is just under nine per cent, there is much room for a massive growth rate”, according to theBharti Airtel’s head of brand and media, Chandrashekhar Balakrishnan. “This is what the company is focusing on, to enhance its subscription base to 20 per cent,” he added.

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