Submitted by: R.Shiva Shankar (1226112243)



Big TV by Anil Dhirubhai Ambani Group. There are some other companies who are contemplating to start their own DTH like Videocon.000 cable operators across India. Until few years back there were as many as 1. From this study we know the perception of the households towards various DTH TV players. Some of the key players in the industry are Dish TV by Zee group. In those eras every home which had a TV set used to have its own antenna to capture the signals.SUMMARY: The study is mainly all about the customer perception and comparison between DTH TV & Cable TV services and analysis various factors which influenced people to switch over from cable TV to DTH TV. and SUN Direct from the promoters of Sun TV. increase in tariff plan. The strikes. All of this information helps players to carry DTH industry in a good position and helps to analyze future strategy. was owned and operated by government of India. Digital TV by Bharti Tele media. So we analyze the factors which influenced people more to switch over and the study also said about the substitutes/ threats of DTH services such as IPTV. cable TV so that they use it in company‟s strategy to make them prepare for that competitive market. DTH opened an option for Indian Consumers to opt for the satellite service to obtain television channels direct to their homes without any intermediaries. This has created an opportunity for DTH. Tata Sky joint venture of Tata & Star TV. The Cable Television Ordinance Law was passed in January 1995. which serves an immediate threat to the high-end cable networks. From this study people also take advantage to choose the suitable TV network providers by analyzing the market environment. Online TV so that company make new strategy in future to face the new competition. 00. 3 . However the services provided by cable operators were poor. INTRODUCTION: In earlier days there was only one TV channel in India the “Doordarshan”. It also provided several value added services to enhance their television watching experience. selective broadcast and poor services were major cause of dissatisfaction among the customers. The Indian market was till now dominated by the presence of local cable TV operators and had complete monopoly over it. Various DTH players also use new technology to give more facility to the customers to avoid extra competition in the market. The market share of various TV network suppliers helps them to analyze their business so that they capture the opportunities & also the market share of various DTH players give them information to placed them in the market situation. This enabled the growth of TV channels & cable operators created a big industry and market opportunities.

For every channel there is a scope for broadcasting it in at least ten different languages. the payments will be made directly by the subscriber to the satellite company offering the service. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate. video conferencing and e-mail. As a general rule of thumb 100 data is more enough to analyze. The opportunity in India almost 10 times that in developed countries like the US and Europe. DTH can also reach the remotest of areas since it does away with the intermediate step of a cable operator and the wires (cables) that come from the cable operator to your house. OBJECTIVES:   To examine on those factors that influence consumers to choose various DTH service providers. So. however in the present study the total sample size is the target population of the survey constitutes the population in GITAM College. In DTH. DTH offers better quality picture than cable TV. DTH offers stereophonic sound effects. In DTH signals directly come from the satellite to your DTH dish. Internet access. This is because cable TV in India is analog. I took the Vizag area to collect the primary data from households. 4 . Apart from enhanced picture quality. every channel multiplied by ten that is the kind of scope for DTH in the country. DATA: Here mainly primary data collected from the college students and my hostel mates by filling up the questionnaire. Despite digital transmission and reception. METHODOLOGY: SAMPLE & POPULATION: The sample size is which is sufficient to do the analysis more effectively. DTH has also allows for interactive TV services such as movie-on-demand. the cable transmission is still analog.There is an immense opportunity for DTH in the Indian market. To determine whether there exists any relation between various 1) DTH Players & Customer Satisfaction 2) Customer Satisfaction & Channel Package.

But they did not pass approval because there were concerns over national security and a cultural invasion. so that people easily filled the questionnaire according to their perception. TRAI 5 . DTH is defined as the reception of satellite programmes with a personal dish in an individual home. There is no limit on the number of companies that can apply for the DTH license. So here open ended question is more effective as the target population is households.QUESTINNAIRE: The questionnaire is well designed and close ended type. Finally in 2000. Only cable operators can receive satellite programmes and they then distribute them to individual homes. Customer satisfaction and channel package. INDIAN DTH SATELLITE TV SERVICES: DTH stands for Direct-To-Home television. DTH was allowed. The new policy requires all operators to set up earth stations in India within 12 months of getting a license. SOFTWARE: SPSS & EXCEL used here to analyze the primary data. People always flexible to give their answer objectively. DTH services were first proposed in India in 1996. In 1997. DTH licenses in India will cost $2. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. SPSS is very useful here to effectively analyze the data and get effective result which is reliable enough as sample size is sufficient to analyze. On the DTH front.14 million and will be valid for 10 years. Chi Square test to analyze whether there exists any relation between various DTH players and Customer satisfaction. the government even imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH services in India. TOOLS & TECHNIQUES: Factor analysis also to analyze the various influencing factors of DTH TV services which influenced people to choose DTH services.

Tata Sky. now has around 3. In the early 2008. Reliance ADAG. a brand consultant. With the average Indian getting younger. Zee‟s Dish TV.4 million connections and the forecast for 2012 is that it will further increase 6 . set top boxes with superior quality of videos. has not scraped even five per cent of the pie. In 2007. discount schemes. “Since Dish TV. CURRENT SCENERIO OF DTH SATELLITE TV SERVICES: In the current context of the global financial meltdown. The “big game” is all about shaping up grandiose plans to master the winning rules to garner as much portion of the Indian DTH pie as possible by a handful of players. ambitious targets for improving the subscription base. Sun Direct and Bharti Telemedia formed an umbrella body – DTH Operators Association of India (DOAI). popular bouquet of channels. A neat 20 per cent annual growth is being witnessed in the DTH sector in India with over 16 million households having digital payTV. improving content. etc as a desperate means to entice the Indian viewer. Since the DTH space denotes “big value”. procurement of transponders. Country’s first DTH license was awarded to Dish TV in 2003 which started operations in 2004. and hence more likely to spend on nonessentials. five major players. TRAI proposed a new initiative by name “Headed-In-The-Sky (HITS)” model as an alternative to the existing cable distribution. there will be a single HITS operator who will prepare the bundle of channels and beam it to the Headed in the satellite. Tata Sky. the entertainment industry has the potential to grow explosively in the future. According to Harsh Bijoor. Instead of the MSOs providing the bundle. there is plenty left for other players to eat”. the biggest market player on the Indian soil. a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group (20:80). inter-firm rivalries have thrown up price wars. Dish TV is the largest DTH provider with a subscriber base of around 5 million. the Direct to Home (DTH) industry in India is in the throes of multifarious challenges and opportunities. Now the industry is ready to enter a second stage of growth powered by the twin engines of technology (availability of quality infrastructure and the accelerated penetration of digital connectivity) and an enabling regulatory environment. akin to the space occupied by television and telephony.issued the guidelines for operating DTH.

2009). Tax burdens on DTH are another area of complaint for operators. May 1.3 million subscribers (Source: Business Standard. mostly in the remote corners of the country not connected by terrestrial or cable television. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). the 80:20 JV between the Maran family and the Astro Group of Malaysia. DD Direct Plus has a subscriber base of about 3-4 million subscribers. Firms within an oligopoly produce branded products and there are also barriers to entry.2 million and Airtel Digital TV about eight million. Key characteristics of “Oligopoly” are following: 1) Few larger supplier dominates the market 2) Interdependence between firms 3) Each firm produces branded products 4) Significant entry barriers into the market in the long run which allows firms to make supernormal profits 5) Each oligopolist is aware of the actions of the others. An oligopoly is a market dominated by a few large suppliers. Sun Direct. over 2. Apart from this. According to sources. 7 . The word Oligopoly is derived from the Greek for few (entities with the right to) sell. Big TV about 1. there are entertainment taxes that differ from state to state. The degree of market concentration is very high. Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for services imposed by the Central government. STRUCTURE OF THE DTH INDUSTRY: The structure of the DTH industry in India can be categorized as an “Oligopoly”.3 million. DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A. which in turn would mean more channels for viewing.

who want to join this high lucrative industry. Airtel Digital TV. There are some other players like Videocon. Covering the remaining 12% area required substantial capital 8 . As per the industry estimates. The reach provided by this route is phenomenal with Doordarshan covering 88% of India‟s geographical area. Big TV. As of now Dish TV. there are 130 million TV homes of which 85 million are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission. DTH faces stiff competition from the terrestrial. cable and IPTV.Analysis of the Indian DTH industry: Indian DTH industry is still at nascent stage. Sun Direct are in the industry. In the year 2003 DD Direct+ was launched since DD Direct+ is non commercial and free DTH service hence we would focus our discussion on private players in the industry. Tata Sky. Terrestrial Television: Doordarshan is the world‟s largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. Since there are only 3 major players and the market concentration is very high Indian DTH industry is oligopolistic.

nearly all the channels are available without the need of any separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on the place. However. Audio (Telephone) and Data (Broadband Internet) services. Cable TV: Cable TV currently operates in 2 modes viz. 9 . On the other hand. IPTV encourages a two-way request response model where the consumer chooses the programs he wants to view. IPTV has a potential to become a huge success. In regular mediums. in offering digital terrestrial TV. The transmission could be received using a low cost Yagi antenna. Right now those medium is totally unregulated and cable companies are urging the TRAI to issue a consultation paper process to include IPTV under the aegis of Cable TV act. The transmission was done originally in Analog mode but beginning from 2002. Delhi. It is often presented as a bouquet of Video (IPTV). IPTV takes the interactivity to a newer level. Mumbai and Kolkata. all the channels are pushed to the consumer regardless of his preference. As seen from the above diagram Cable TV enjoys the maximum share as compared to other medium. it poses a serious threat to the growth of DTH industry. Doordarshan has partnered with BBC resources – the consulting wing of BBC. through CAS covering cities like Chennai. and through non-addressable system in the rest of the country. in areas where non-addressable system is used. the subscriber has to buy Set Top Box (STB) to see the pay channels. Due to phenomenal reach of Cable which does not outweigh the benefits. Internet Protocol Television (IPTV): IPTV is a service where television signals are digitally sent over the telecommunications line. IPTV is a considerable threat to DTH in urban and semi urban areas where broadband has made its mark. With widespread adoption of broadband in the country and the growing techno savvy population. due to lack of attractive content it does not seem to be a formidable threat for DTH. In case of CAS controlled areas.

com Apart from this website TV channels are also streaming live videos of their programs. Also the crash of INSAT 4C and NSS-8 has worsened the situation of DTH players. Online TV: The World Wide Web is changing lot of things. Astrix is in a better position to use DTH as its cash cow for the next 5 to 10 years. Bargaining power of buyers: With enough options to choose both from the pont of alternate mediums like Cable. 2. acquiring content from the broadcasters is also difficult.tvdekho. With only two domestic satellite launches between 2007 and 2010 an d increasing DTH players. There are already websites like: www. the way data & information are stored. Online TV though is a niche industry as of now but with increased penetration of broadband www. the bargaining power of Indian DTH operators with CPE supplies have increased. 3. it can pose significant challenge to DTH industry. Bargaining power of suppliers: DTH industry relies on three major supplies: Customer Premise Equipment (CPE) comprising of the satellite dish.indiatvonline. As there is not much of regulation particularly in terms of channel pricing. However. IPTV and Terrestrial broadcast and from the point of increasing DTH operators.1. Set Top Box with the necessary Access card. Web 2. the commercial wing of ISRO either through its own satellites or by leasing transponders from suppliers. With India overtaking Japan as Asia‟s largest DTH. DTH vendors are at the mercy of the broadcasters. the availability of transponders is increasingly becoming difficult. and shared has changed dramatically. the consumer is at his will 10 . The Ku band transponder is generally provided by Astrix.0 offers users to watch TV programs online. the Ku band transponders in the orbiting satellites and content.

the barriers to entry are high when it comes to pricing of CPE and getting the required transponders. Other than price wars and intense competition in increasing customer base. However. Dish TV. decide. Inter firm rivalry: With 6 operational players. Dish TV has price advantage in both the STB as well as procuring the transponders. the inter firm rivalry is quite high. There is already enough competition which will discourage new firms to enter this business. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new connections. While getting a license is relatively easy. DD-Direct does not charge any monthly subscription fee which poses a threat to the private players. Star and Sun respectively. Tata Sky claims its STB having superior DVD quality video. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity. there is also a competition at acquiring the content. On the other hand. 4. Threat of new entrants: With already 6 players in the DTH space. Being the first mover. Tata Sky and Sun Direct are part of big groups that also have popular bouquet of channels like Zee. The channels indirectly refuse content for DTH operators by charging exorbitantly or mandating that all the channels of their bouquet to be transmitted when the vendor is already capacity constraint. threat of new entrants is relatively low. 11 . The competition from state owned DD-Direct to private players is negligible from the content point of view as the number of channels offered by DD-Direct is very limited.

230 1.295 11.693 Cumulative % 22.369 93.514 1.740) and Bartlett‟s Test of Sphericity (Chi-Square. 12 .613 .908 1.708 . .246.516 .182 82.DATA ANALYSIS FACTOR ANALYSIS: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.705 . There were three factors extracted using the method of Principle Component Analysis and Rotation Method of Varimax with Kaiser Normalization.0) indicates that Factor analysis done with the 10 service related variables are effective.354 .099 75.155 3.098 68.536 2.435 59.140 47.305 & significance.322 19.236 88.232 1.900 .098 Extraction Method: Principal Component Analysis.084 7.166 .940 Cumulative % 35.663 9. Chi-Square Df Sig.001 7.000 Rotation Sums of Squared Loadings Total 2.000 The result of KMO (0.140 12.524 97.084 17. Following table show the value of eigenvalues of various variables.060 100. with criteria of Eigen values greater than 1.405 59. Total Variance Explained Compo nent 1 2 3 4 5 6 7 8 9 10 Total 3.133 5.294 Initial Eigenvalues % of Variance 35.305 45 .740 246.769 % of Variance 22.322 41. Bartlett's Test of Sphericity Approx.053 6.

681 13 .835 .766 .644 .665 .545 .SCREE PLOT: COMPONENT MATRIX: Rotated Component Matrix a Component 1 PictureQuality ChannelPackaging ServiceDisturbtion ExtraService QuickService OnlinePayment Facilities CelbrityEndorsement DirectConntact ElecricityDisturbance .766 .572 .827 2 3 .745 .

00 Mean 4.00 5. consumers are agreeing with most of the related variables being present in a positive manner among the service provider.00 1.00 5.ANALYSIS OF MEAN.70754 .6200 3.00 1.0800 3.7900 4. Maximum customers agree to accept that these variables are the most influencing factors to switch over from cable TV to DTH TV.00 1.00 5.00 5.00 1.9700 3. 14 . No disturbance & no both ways electricity disturbance has also high mean variable these also a good influencer.00 5.8000 3.95346 1.88398 1.00 1.00 5.6000 3.00960 .00 5.00 5.00 1.05883 1.0100 3.00 1.0800 Std.00 1.00 5. online payment & celebrity endorsement has no such type affect on buying behavior of customers. Deviation .e.07947 It is clear from table that the mean of the most of the variables is more or less over 3.3800 4.00 Maximum 5. Whereas extra service.04447 .2800 3. i.00800 1.89983 .91872 1. SD & VARIENCE: Descriptive Statistics N PictureQuality ChannelPackaging ServiceDisturbtion ExtraService QuickService OnlinePayment Facilities CelbrityEndorsement DirectConntact ElecricityDisturbance Valid N (listwise) 100 100 100 100 100 100 100 100 100 100 100 Minimum 2.00 1. Higher means of variable picture quality indicates that according to the user‟s picture quality is the main influencing attribute towards consumer buying behavior.

594 is less than the table value 15. The table value at degrees of freedom 8 and at 5% level of significance is 15.507. we accept the hypothesis.Test of Hypothesis: 1) For DTH Service Providers & Network Satisfaction Chi-Square Tests Asymp. Sig. there is no significant relationship between the „DTH Service Providers‟ and „Network Satisfaction‟.111 11. So. Hence. 15 .068 .928 2.507. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 14.537 100 Hypothesis: There is no significant relationship between the „DTH Service Providers‟ and „Network Satisfaction‟ According to the output.594 at degrees of freedom 8 and at 5% level of significance.594 a Df 8 8 1 sided) . the calculated chi-square value is 14.154 . Result: The calculated value 14.

Sig. the calculated chi-square value is 6. Result: The calculated value 6. we accept the hypothesis.002 at degrees of freedom 4 and at 5% level of significance. there is no significant relationship between the „Network Satisfaction‟ and „Channel Package‟.488.15.2) For Network Satisfaction & Channel Package Chi-Square Tests Asymp. Hypothesis: There is no significant relationship between the „Network Satisfaction‟ and „Channel Package‟ According to the output.002 is less than the table value 9.198 . The minimum expected count is .199 .707 6. 16 . The table value at degrees of freedom 4 and at 5% level of significance is 9. Hence. 4 cells (44. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 6.002 a Df 4 4 1 sided) .019 . So.141 100 a.4%) have expected count less than 5.488. .

Also cross tabulation between Customer Satisfaction & Channel Package there exists no relation between these two factors. There is high association between network provider and satisfaction of the services they get from network provider. I found out 3 factors which mainly have an impact on consumer buying behavior or influence customer to switch over from cable TV to DTH TV or buy first TV network service. There is also high association between switch over and various influencing factors. In factor analysis. They are growing now. Extra Service. 17 . I also found out the market position of various alternatives of DTH TV players.CONCLUSION: On the basis of the data collected and the tests conducted I have arrived at the following conclusions: Cross tabulation between DTH service provider and overall satisfaction showed that there were lots of dissatisfied customers of DTH services. The most important factor came out is to be picture quality and no disturbance of services. Online Payment. Channel Package & Quick Service are more affective here.

a) Strongly Agree b) Some What Agree c) Some What Disagree d) Disagree 7) Please rate how satisfied you are with your current DTH service. then which service provider are you using? a) DISH TV d) Videocon D2H b) TATA SKY e) Reliance Big TV c) AIRTEL Digital TV f) Others 3) Are you satisfied with your present service provider? a) Yes b) No 4) If Yes.Name: ______________________________ Telephone No: _______________________ Address:____________________________ ______________________________________________________________________________ 1) Which type of connection are you using? a) Cable TV b) DTH Connection c) IPTV 2) If DTH. Factors Price Channel Package Picture Quality Ease of Purchase Ease of Payment Quality of Service 18 Excellent Very Good Average Not Satisfactory . a) Reasonable Price b) Extra services c) Affordable Tariffs d) Better Quality e) Good Reputation f) Low Disturbance 5) Are you planning to change your present service provider? a) Yes b) No 6) Is DTH services are better than local cable TV services. State the reason for your satisfaction.

000 c) Above 30.000 19 .Helpline Quick Response to Complaints 8) To which age group do you belong? a) Between 20 – 30 b) Between 30 – 40 c) Between 40 – 50 d) Above 50 9) What is your salary package per month? a) Below 15.000 b) Between 15 to 30.

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