1. ITRODLCTIO rlc !ndian markcr. !

ndian small scrccn programming

1.11clcvisionin!ndia srarrcd oll in rlc carly 1980s. Ar rlar rimc rlcrc was
1clcvision in !ndia is a lugc indusrry and las rlousands only onc narional clanncl oordarslan, wlicl was
ol programs in all rlc srarcs ol !ndia. 1lc small scrccn govcrnmcnr owncd. 1lc Famayana and Malallarara
las produccd numcrous cclclrirics ol rlcir own kind (lorl lcing !indu myrlological srorics lascd on
somc cvcn arraining narional lamc. 1\ soaps arc rcligious scriprurcs ol rlc samc namcs) wcrc rlc lirsr
cxrrcmcly popular wirl louscwivcs as wcll as working major rclcvision scrics produccd. 1lis scrial norclcd up
womcn. Approximarcly lall ol all !ndian lousclolds rlc world rccord in vicwcrslip numlcrs lor a singlc
own a rclcvision. As ol 2010, a roral numlcr ol 515 program. By rlc larc 1980s morc and morc pcoplc
clanncls arc availallc in rlc counrry our ol wlicl 150 srarrcd ro own rclcvision scrs. 1lougl rlcrc was a
arc pay clanncls. singlc clanncl, rclcvision programming lad rcaclcd
1crrcsrrial rclcvision in !ndia srarrcd wirl rlc sarurarion. !cncc rlc govcrnmcnr opcncd up anorlcr
cxpcrimcnral rclccasr srarring in clli on 15 Scprcmlcr clanncl wlicl lad parr narional programming and parr
1959 wirl a small rransmirrcr and a makcslilr srudio. rcgional. 1lis clanncl was known as 2 larcr
1lc rcgular daily rransmission srarrcd in 1965 as a parr Mcrro. Borl clanncls wcrc lroadcasr rcrrcsrrially.
ol All !ndia Fadio. 1lc rclcvision scrvicc was cxrcndcd 1lc ccnrral govcrnmcnr launclcd a scrics ol
ro Bomlay (now Mumlai) and Amrirsar in 1972. 1ill cconomic and social rclorms in 1991 undcr Primc
1975, only scvcn !ndian cirics lad a rclcvision scrvicc Minisrcr Narasimla Fao. \ndcr rlc ncw policics rlc
and oordarslan rcmaincd rlc solc providcr ol govcrnmcnr allowcd privarc and lorcign lroadcasrcrs
rclcvision in !ndia. 1clcvision scrviccs wcrc scpararcd ro cngagc in limircd opcrarions in !ndia. orcign
lromradio in 1976. Narional rclccasrs wcrc inrroduccd clanncls likc CNN, Srar 1\ and domcsric clanncls
in 1982. !n rlc samc ycar, colour 1\ was inrroduccd in sucl as Zcc 1\ and Sun 1\ srarrcd sarcllirc lroadcasrs.
ITERATIOAL JOLRAL OF MARKETIG,
FIACIAL SERVICES & MAAGEMET RESEARCH
\ol.1 No. S, Marcl 2012, !SSN 2277 S622
Onlinc Availablc at indianrcscarchjournals.com
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
DHEERAJ GIRHOTRA
!, !N!, cparrmcnr ol MBA, Clandigarl
ABSTRACT
1lc rclcvision popularion ol !ndia is approx.1S5 million and 80% ol rlis popularion lavc acccss
ro callc and sarcllirc. As pcr rlc srarisrics, 1! las a 20% markcr slarc wirl morc rlan 22 million 1!
sulscrilcrs. 1lc sulscrilcr lasc lor 1! las grown vcry rapidly in pasr 5 ycars. !r can lc cvidcnr lromrlc
lacr rlar isl 1\ was rlc only playcr in 2005 and now rlcrc arc ovcr 10 1! scrvicc providcrs rlar lavc
commcnccd rlcir opcrarions in 1! indusrry. 1lc slorrcomings ol callc opcrarors lad lcd ro rlc crcarion
ol immcnsc opporrunirics lor 1! rlar scrvcd as a lcrrcr alrcrnarivc ro ligl-cnd callc ncrworks. Somc ol
rlc major playcrs rlar lavc idcnrilicd rlc markcr porcnrial and srarrcd rlcir 1! scrviccs includc 1ara Sky
(joinr vcnrurc ol 1ara & Srar 1\), igiral 1\ (Blarri 1clcmcdia), isl 1\ (Zcc group), Fcliancc igiral
1\ (Anil lirullai Amlani Group) andS\N irccr (Sun1\).
38
Srarring wirl +1 scrs in 1962 and onc clanncl, ly 1991 and nglisl languagc clanncls llourislcd all ovcr
1\ in !ndia covcrcd morc rlan 70 million lomcs !ndia. By 2001 !B and !isrory Clanncl wcrc rlc
giving a vicwing popularion ol morc rlan +00 million orlcr inrcrnarional clanncls ro cnrcr !ndia. By 200S,
individuals rlrougl morc rlan 100 clanncls. !n 1992, orlcr inrcrnarional clanncls sucl as Nickclodcon,
rlc !ndian govcrnmcnr srarrcd a scrics ol cconomic Carroon Ncrwork, \!1, isncy and 1oon isncy
rclorms including rlc lilcralizarion ol rlc lroadcasring camc inro loray. Srarring 200S, rlcrc las lccn an
indusrry, opcning ir up ro callc rclcvision. 1lis lcd ro an cxplosion ol ncws clanncls in various languagcs; rlc
cxplosion in rlc !ndian callc 1\ indusrry and saw rlc mosr norallc among rlcm arc N1\, CNN !BN and
cnrry ol many lorcign playcrs likc Fupcrr Murdocl's Aaj 1ak.
Srar 1\ Ncrwork, M1\, and orlcrs. ollowing rlc
1.2DTH inIndia lilcralizarion ol rlc lroadcasring indusrry, rlc !ong
1! srands lor irccr-1o-!omc, ir's a sysrcm rlar Iong-lascd Srar 1\ Ncrwork inrroduccd livc major
allows you ro lavc a pcrsonal disl anrcnna low callc rclcvision clanncls inro rlc !ndian lroadcasring spacc
opcrarors do, cxccpr ir's mucl smallcr in sizc, rlis rlar lad so lar lccn monopoliscd ly rlc !ndian
anrcnna can lc lixcd on your rcrracc and rcccivcs govcrnmcnr-owncd oordarslan. M1\, S1AF Plus,
rransmissions dirccrly lroma sarcllirc, lcncc ir is callcd Srar Movics, BBC, Primc Sporrs and S1AF Clincsc
as a dirccr ro lomc scrvicc. irccr ro lomc is dillcrcnr Clanncl. Soon alrcr, !ndia saw rlc launcl ol Zcc 1\,
in rlc way ol sizc ol rlc anrcnna rcquirc is mucl smallcr, rlc lirsr privarcly-owncd !ndian clanncl ro lroadcasr
rlc ciry will lavc lcss wircs lrom onc luilding ro ovcr callc. A lcwycars larcr CNN, iscovcry Clanncl,
anorlcr and you lavc rlc llcxililiry ol moving our Narional Gcograplic Clanncl madc rlcir loray inro
wirlour scarcling lor ncw callc opcrarors. You do nor !ndia. arcr, Srar 1\ Ncrwork cxpandcd irs louqucr
lavc rodcal wirl rlc local callc opcraror! wirl rlc inrroducrion ol S1AF World !ndia, S1AF
Sporrs, SPN, Clanncl \ andS1AF Gold.
Wirl rlc launcl ol rlc 1amil-languagc Sun 1\
(!ndia) in 1992, Sourl !ndia saw rlc lirrl ol irs lirsr
privarc rclcvision clanncl. Wirl a ncrwork comprising
morc rlan 20 clanncls in various Sourl !ndian
languagcs, Sun 1\ ncrwork rcccnrly launclcd a 1!
scrvicc and irs clanncls arc now availallc in scvcral
counrrics oursidc !ndia. ollowing Sun 1\, scvcral
rclcvision clanncls sprung up in rlc sourl. Among
rlcsc arc rlc 1amil-languagc clanncl 1lc Faj
1clcvision Ncrwork and rlc Malayalam-languagc
Pic.1 Thc working of DTH
ncrwok Asiancr Communicarions imircd, lorl
1! scrviccs wcrc lirsr proposcd in !ndia in 1996, lur
launclcd in 199+. 1lrouglour rlc 90s, along wirl a
did nor gcr rlc approval lccausc rlcrc wcrc conccrns
mulrirudc ol !indi languagc clanncls, scvcral rcgional
DHEERAJ GIRHOTRA
39
ovcr narional sccuriry and a culrural invasion. !n 1997, monrlly sulscriprion lcc srarring ar Fs 150, ir is an
rlc govcrnmcnr cvcn imposcd a lan wlcn rlc Fupcrr allordallc scrvicc lor rlc mass consumcr. Wirl lall a
Murdocl-owncd !ndian Sky Broadcasring (!SkyB) was dozcn playcrs compcring, ir is pcncrraring rlc rcmorcsr
alour ro launcl irs 1! scrviccs in !ndia. inally in placcs wlcrc ncirlcr pullic rclcvision nor callc
2000, 1! was allowcd. 1lc ncw policy rcquircs all ncrwork las pcncrrarcd. As a conscqucncc ol rock-
opcrarors ro scr up carrl srarions in !ndia wirlin 12 lorrom pricing ro arrracr cusromcrs, rlc 1! scrvicc
monrls ol gcrring a liccnsc. 1! liccnscs in !ndia will providcrs arc sullcring losscs. 1lc indusrry is cxpccrcd
cosr S2.1+ million and will lc valid lor 10 ycars. 1lc ro rurn prolirallc ar rlc ncr-prolir lcvcls only ly rlc lasr
companics ollcring 1! scrvicc will lavc ro lavc an quarrcr ol 2011-12.
!ndian clicl and lorcign cquiry las lccn cappcd ar +9 According ro \I-lascd rcscarcl and lorccasring
pcr ccnr. 1lcrc is no limir on rlc numlcr ol companics agcncy !nlorma 1clccoms & Mcdia, wlicl dclivcrs
rlar canapply lor rlc 1! liccnsc. srrarcgic insiglr on rlc display indusrry lascd on glolal
markcr dara and primary rcscarcl, morc rlan +01-
2. IDLSTRY PERFORMACE million digiral 1\ lomcs arc cxpccrcd ro lc addcd
!omc ro 1.18 lillion pcoplc, !ndia las olrcn lccn lcrwccn rlc cnd ol 2010 and rlc cnd ol 2015, wirl
lalclcd as an cconomic miraclc. irrlc wondcr, rlc Clina conrriluring a massivc 1S6 million, lollowcd ly
carnings ol an avcragc !ndian las morc rlan doullcd in !ndia wirl +7 million. 1lc loomin 1\ salcs is lccding
rlc lasr livc ycars, and rlc counrry is rankcd as rlc rlc dcmand lor ligl-cnd Cand rclcvision scrs
lourrl-lasrcsr growing cconomy in rlc world. 1lc ly consumcrs looking lor qualiry 1\ vicwing. !ndusrry
gross domcsric producr (GP) lor rlc rlird quarrcr ol olscrvcrs say rlar rlcrc arc alour 1S ro1+ million
2010 slows an annual growrl rarc ol 8.2 pcr ccnr, and lousclolds luying C and 1\s cvcry ycar in
is sliglrly lowcr rlan rlc 8.9 pcr ccnr pacc ol rlc !ndia. Approximarcly 700,000 C1\s wcrc slippcd
prcvious quarrcr. Wirl morc rlan lall ol rlc popularion ly lrands in !ndia during rlc monrl ol crolcr alonc
undcr rlc agc ol 25, rlc young pcoplc arc driving lasr ycar. As rclcvision luycrs in !ndia gravirarc ro
consumprion and producriviry across !ndia and will purclasing morc ol llar pancl displays, dirccr-ro-lomc
conrinuc ro do so lor rlc ncxr S0 ro +0 ycars. !ndccd, (1!) sarcllirc rclcvision las cmcrgcd as rlc cloicc
!ndia's cconomic growrl las lccn rcllccrcd in rlc mcdium lor digiral and ligl-dclinirion (!)-qualiry
counrry's insariallc appcrirc lor vidco conrcnr. 1lc vidco ovcr orlcr mcdia clanncls likc digiral callc
sulscrilcrs ro 1! conrcnr srands ar S0 million roday ncrworks or !P1\, ollcring a lroadcr cnrcrrainmcnr
and, according ro indusrry cxpcrrs ar CASBAA !ndia cxpcricncc ro sulscrilcrs. n ollcr arc cnrcrrainmcnr,
Sarcllirc, will doullc ly rlc cnd ol 201S. As ir is, S1AF ncws and lors morc oprions sucl as scarcling lor jol
!ndia's srarisrics slowcd 1! cmcrging as rlc kcy vacancics on 1\, looking lor prospccrivc marriagc
growrl drivcr lor ovcrall pay-1\ indusrry growrl ar an parrncrs and cloosing rravcl packagcs across !ndia rlar
imprcssivc 7+ pcr ccnr as comparcd ro 15 pcr ccnr lor 1! vicwcrs living in cvcn rcmorc nooks & corncrs ol
digiral callc and11pcr ccnr lor analog callc. rlc counrry can cloosc lrom. Prolilcrarion ol rclcvision
Wirl an uplronr cosr ol around Fs 1,500 and clanncls, vicwcrs incrcasing scnsiriviry ro qualiry
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
+0
rransmission & programming ol rlcir cloicc and a promorcd1! rcvolurioninrlc counrry.
growing dcmand lor valuc-addcd scrviccs, lavc lurrlcr
1lc !ndian markcr las a lugc opporruniry dcspirc
laving scvcn 1! playcrs, including govcrnmcnr-
owncd irccr. 1lc roral numlcr ol lousclolds in
!ndia is csrimarcd around 2S2 million, ol rlcm only
1+1 million lavc 1\ scrs. l rlc roral numlcr ol rlc
lousclolds, 116 million lavc callc and sarcllirc
connccrions ol wlicl 1! uscrs counr lor jusr S1
million. 1lc ligurcs conlirm rlar rlcrc is a lugc
unrappcd opporruniry lor 1!. 1lc 1! playcrs
lavc lccn quick ro gral rlc opporruniry wirl lorl !n 200S, wlcn rlc lirsr movcr and rlc counrry's largcsr
lands. !n lacr, rlc pasr rlrcc ycars lavc sccn rlc 1! 1! playcr, clli-lascd islrv wirl ovcr rcn-million
sccror clock plcnomcnal growrl cvcr sincc rlc sulscrilcrs on loard, launclcd rlc counrry's lirsr 1!
carcgory was lirsr inrroduccd in !ndia. romonc scrvicc scrvicc, nor many pcoplc kncw alour rlc rcclnology
providcr and a lirrlc ovcr lall-a-million sulscrilcrs ar and irs advanragcs. 1lc cnrry ol orlcr playcrs sucl as
rlc cnd ol rlc linancial ycar 2005-06, ro six scrvicc 1ara Sky, Sun irccr, Big 1\, Airrcl and \idcocon in
providcrs and S0-million plus sulscrilcrs now, rlc rlc lollowing ycars las addcd rracrion ro rlc markcr.
1! indusrry las comc a long way in an analoguc !ndusrry olscrvcrs say rlc 1! markcr is on irs way ro
callc-dominarcdmarkcr. grow cvcn lasrcr in rlc monrls alcad. 1lc indusrry
wirncsscd rolusr growrl in {anuary-cccmlcr 2010,
DHEERAJ GIRHOTRA
+1
wirl sulscrilcr lasc growing 50% ro ncarly S0 million Markcrs 2010,' MPA las said rlar !ndia's 1!
lrom 20 million ar rlc cnd ol 2009. islrv claims ro sulscrilcr lasc would incrcasc ro +5 million ly 201+
lavc acquircd 1.+ million sulscrilcrs in rlc lirsr lall ol and 58 million ly 2020. 1lc lcc in rlc lonncr ol all
Y11 and cxpccrs ro add anorlcr 1.8 million in rlc 1! playcrs, lor rlc momcnr, is ligl-dclinirion
sccond-lall. A rcscarcl rcporr ly dclwciss, an scrviccs. According ro indusrry csrimarcs, morc rlan
indusrry rracking analysr lirm, poinrs ro low lowcr 10% ol rlc 50-million 1! sulscrilcrs ly 201+ will
priccs lor 1! insrallarion and packagcs is laving a lc on ligl dclinirion 1!. or rlc momcnr, lowcvcr,
posirivc impacr on consumcr psyclc. 76% ol 1! ! scrviccs carcr ro a niclc scgmcnr and arc
sulscrilcrs arc lrom small rowns and rural arcas, rlc consrraincd ly rlc lack ol conrcnr. nly around lall-a-
rcporr says. 1lc pricc poinrs lor pay-pcr-vicw lormar dozcn clanncls ollcr programming in ligl dclinirion.
on 1! clanncls las also comc down lromFs.75-100 1lcy includc Sun 1\, iscovcry !, Narional
in 2009 ro Fs.25-75 in 2010. Wirl lalling SACs, Gcograplic !, Colors, Zcc 1\ !, Zcc Cincma
dcclining conrcnr cosr lor scrvicc providcrs and dccpcr ! and rwo rcgional movic clanncls in 1amil and
pcncrrarion inro rlc rural markcrs, !ndia's 1! 1clugu. or ligl-dclinirion scrviccs ro pick up
indusrry is projccrcd ro ovcrrakc rlc \S 1! markcr, sulsranrially, clanncls will lavc ro ollcr a mucl largcr
currcnrly rlc liggcsr wirl S+ million sulscrilcrs, ly louqucr ol programming in rlis lormar. ncc rlar
rlc cnd ol linancial ycar 2011-12. !ong Iong-lascd lappcns, opcrarors could scc a signilicanr risc in
rcscarcl lirm Mcdia Parrncrs Asia's (MPA) lindings avcragc rcvcnuc pcr uscr. or islrv wlicl cndcd up
slowrlar !ndia is poiscd ro lccomc rlc world's largcsr wirl a loss ol Fs.++2.80 million in rlc quarrcr cndcd
1! sarcllirc pay 1\ markcr wirl S6 million cccmlcr 2010, !scrviccs ollcr rlc lcsr lcr lor rlc
sulscrilcrs ly 2012, ovcrraking rlc \S. urrlcrmorc, company roswiminrollack andlccomc prolirallc.
in irs rcporr rirlcd 'Asia Pacilic Pay-1\ and Broadland
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
+2
1o cncouragc adoprion ol ! scrviccs ly ncw and scrviccs ar a lcavily sulsidiscd uplronr pricc ranging
cxisring cusromcrs, 1! providcrs arc slowcring lcrwccn Fs.2,599 and Fs.2,990. 1o sign up cacl ncw
ollcrs - lrom providing advcrriscmcnr-lrcc covcragc ol cusromcr, a 1! company spcnds an csrimarcd
crickcr marclcs rlrougl ! lccd ro lowcring cnrry Fs.S,000 lur las ro makc up lor rlar and orlcr cosrs
pricc and ollcring sporrs clanncls lor lrcc. !nrroduccd wirl an avcragc rcvcnuc ol Fs.150 a monrl lromcacl
lirsr during rlc !A World Cup lasr ycar, !-cnallcd lomc. All rlc samc, losscs asidc, rlc lugc markcr
clanncls lavc lccomc popular amongsr sulscrilcrs lor porcnrial ollcrs a posirivc ourlook and rosy long-rcrm
rlcir lcrrcr picrurc and sound clariry. 1o arrracr morc picrurc lor rlc indusrry.
cusromcrs, islrv las incrcascd rlc numlcr ol ! 1lc dirccr-ro-lomc (1!) 1\ indusrry las lccn
clanncls lrom lour ro S0. !r las also lowcrcd irs cnrry wirncssing rrcmcndous growrl sincc rlc pasr lcwycars.
pricc lromFs.2,990 ro Fs.2,SS0 and ollcring covcragc 1lis growrl las lccn supporrcd ly lugc invcsrmcnrs
oprions ol popular sporrs cvcnrs ro swccrcn rlc ollcr. ly rlc cxisring as wcll as ncwplaycrs. 1lc 1! markcr
rlcr 1! scrvicc providcrs sucl as 1ara Sky, Airrcl acquircd around S0 Million sulscrilcrs ly rlc cnd ol
igiral 1\ and Fcliancc igiral 1\ lavc also gonc 2010, an incrcasc ol approximarcly 50% ovcr 2009.
alcad ro acquirc riglrs lor !covcragc ol lig sporring 1lc cnrry ol ncwplaycrs in rlc !ndian 1! indusrry is
cvcnrs. Mosr arc ollcring !covcragc ar an cxrra cosr inrcnsilying compcririon. uc ro rlis inrcnsilicd
ol around Fs.150 ovcr rlc packagc cosr. ikc islrv, compcririon, insrallarion priccs arc dcclining and
Airrcl 1! roo cxpccrs an incrcasing numlcr ol sulscrilcrs now lavc a widc rangc ol oprions. 1lc
sulscrilcrs ro opr lor rlc !lormar. 1lc company is rcason lor rlis ligl growrl in 1! sulscrilcr lasc can
cxpccring a 15% incrcasc in sulscrilcr lasc during rlis lc arrrilurcd ro rlc lacr rlar qualiry ol scrvicc dclivcrcd
crickcr scason. Fcliancc igiral 1\, wlicl launclcd irs ly 1! is supcrior comparcd ro callc or any orlcr
!lormar in clruary also cxpccrs a rising salcs grapl mcdium. As 1! 1\ indusrry is currcnrly in rlc plasc
and +0% growrl in sulscriprion ovcr rlc comlincd ol growrl, ir is cxpccrcd ro arrracr a largc numlcr ol
salcs ol cccmlcr and {anuary. Bur dcspirc rlc rolusr sulscrilcrs inncar lururc.
sulscriprion numlcrs 1! opcrarors rcporr cvcry
3. IDLSTRY AALYSIS- 5 FORCES monrl and rcgardlcss ol ncw ollcrings, consranr
MODEL OF MICHAEL PORTER innovarion and producr dillcrcnriarion ar rlc
Porrcr's 5 lorccs modcl is onc ol rlc mosr rccognizcd packaging, scrvicing and disrrilurion cnd ly 1!
lramcwork lor rlc analysis ol lusincss srrarcgy. Porrcr, providcrs, rlc indusrry is awasl in a sca ol rcd. Analysrs
rlc guru ol modcrn day lusincss srrarcgy, uscd rcckon rlar rlc indusrry is mircd in losscs ol almosr
rlcorcrical lramcworks dcrivcd lrom !ndusrrial Fs.50 lillion. 1lis poor pcrlormancc is a conscqucncc
rganizarion (!) cconomics ro dcrivc livc lorccs ol rock-lorrom pricing ro arrracr cusromcrs. 1!
wlicl dcrcrminc rlc compcririvc inrcnsiry and scrvicc, wlicl lcgan sclling ar Fs.+,000 lor a scr-rop
rlcrclorc arrracrivcncss ol a markcr. 1lis rlcorcrical lox, including insrallarion, is now availallc lor
lramcwork, lascd on 5 lorccs, dcscrilcs rlc arrrilurcs Fs.1,600-1,700. 1lc launcl ol ! scrviccs rriggcrcd
ol an arrracrivc indusrry and rlus suggcsrs wlcn anorlcr round ol pricc war wirl 1! playcrs sclling
DHEERAJ GIRHOTRA
+3
opporrunirics will lc grcarcr, and rlrcars lcss, inrlcsc ol wirlin rlc indusrry. 1lcrc arc scvcn companics giving
indusrrics. 1! (irccr 1o !omc) scrviccs in !ndia now. 1lc
Arrracrivcncss in rlis conrcxr rclcrs ro rlc ovcrall 1! companics in !ndia arc Zcc 1\'s "isl 1\",
indusrry proliraliliry and also rcllccrs upon rlc lollowcd ly oordarslan's " irccr Plus" "1ara
proliraliliry ol rlc lirm undcr analysis. An Sky" (wncd By rwo companics. 1ara. An !ndian
"unarrracrivc" indusrry is onc wlcrc rlc comlinarion ol company and Sky. 1lc company undcr S1AF 1\)
lorccs acrs ro drivc down ovcrall proliraliliry. A vcry "Sun irccr" undcr rlc Clcnnai lascd Sun1\ , Anil
unarrracrivc indusrry would lc onc approacling "purc lirullai Amalani's Fcliancc "Big 1\", Barari's
compcririon", lrom rlc pcrspccrivc ol purc indusrrial Airrcl igiral 1\ and linally \idcocon's "d2l" 1!.
cconomics rlcory. 1lis modcl compriscs ol an analysis oordarslan dirccr plus considcrcd as rlc worlds
dcpcndcnr on + cnrirics cxrcrnal ro rlc lirmand rlc lilrl onc and only lrcc 1! scrvicc .!r is undcr rlc conrrol
lorcc. rlc !ndusrry srrucrurc. 1lcsc lorccs arc dclincd ol !ndian govcrnmcnr. 1lcrc arc lilry ninc clanncls
as lollows. availallc in " irccr Plus" scrvicc. 1wcnry rlrcc ol
rlcm arc clanncls ol oordarslan irscll. isl 1\ las
gor rlc markcr slarc ol ovcr S2% and is rlc markcr
lcadcr in rlc 1! markcr. isl 1\ las lccomc rlc
Asia's lirsr company ro lavc 1 crorc sulscrilcrs lor irs
1! scrviccs. isl rv arraincd rlis lcadcrslip posirion
wirl an unparallclcd ovcr 1 million sulscrilcr
addirions in lcss rlan rlrcc monrls, laving rcaclcd rlc
momcnrous 9 million sulscrilcrs mark in Novcmlcr
2010. 1! in !ndia srarrcd wirl rlc inrroducrion ol
callc rv wlicl is oll lcar now, 68 million lousclolds
markcr ol pay callc rv in 2008 las rurncd inro 28
A graplical rcprcscnrarionol Porrcr's ivc orccs millions in ycar 2010 and 1! (dirccr ro lomc)
S o u r c c l r r p . } } c n . wi k i p c d i a . o r g } wi k i } scrvicc las grown wirl +0% ol CAGF pcr ycar, 1!
Compcririvc_Srrarcgy " 1lc rlrcar ol rlc cnrry ol sulscrilcrs markcd ar 10 millions in srarring ol 2008
ncwcompcrirors las rcaclcd ro S0 millions in 2011. isl 1\, 1ara Sky,
1lc inrcnsiry ol compcririvc rivalry Sun irccr, Fcliancc digiral 1\, Airrcl igiral 1\, and
1lc rlrcar ol sulsrirurc producrs or scrviccs \idcocon 2! arc rlc only promincnr 1! playcrs in
1lc largaining powcr ol cusromcrs rlc !ndian drl markcr. arlicr only rlc rara sky and disl
1lc largaining powcr ol supplicrs, (Busincss rv wcrc prcscnr in rlc 1! markcr lur alrcr rlc cnrry
undas,2011) ol ncw drl playcrs compcririon las lccomc quirc
inrcnsc as cvcryonc is liglring lor rlc markcr spacc and
3.1 Industry Rivalry samc scr ol consumcrs. 1! scrviccs in !ndia is
!ndusrry rivalry dcnorcs rlc inrcnsiry ol compcririon growing ycar ly ycar wirl CAGF ol 15%. 1lc 1!
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
++
markcr las acquircd around S0 Million sulscrilcrs ly ro6.+crorc ly 2015, and8.Scrorc ly 2020.
rlc cnd ol 2010, an incrcasc ol approximarcly 50% ovcr
2009. uc ro rlc inrcnsilicd compcririon, insrallarion
priccs arc dcclining and sulscrilcrs now lavc a widc
rangc ol oprions. 1lc rcason lor rlis ligl growrl in
1! sulscrilcr lasc can lc arrrilurcd ro rlc lacr rlar
qualiry ol scrvicc dclivcrcd ly 1! is supcrior
comparcd ro callc or any orlcr mcdium. As 1! 1\
indusrry is currcnrly in rlc plasc ol growrl, ir is
cxpccrcd ro arrracr a largc numlcr ol sulscrilcrs in ncar
1lc \S is cxpccrcd ro lc rlc sccond largcsr 1!
lururc. As pcr a rcscarcl rcporr "!ndian 1! Markcr
markcr wirl S.5 crorc acrivc sulscrilcrs. 1lc
orccasr ro 2012" rlc numlcr ol 1! sulscrilcrs is
clallcngcs laid our ly Mcdia Parrncrs lor !ndian 1!
projccrcd ro grow ar a CAGF ol around 2S% during
playcrs arc rranspondcr capaciry, ligl clurn, sulscrilcr
2011-201+, rcacling 69 Million. 1lc rcporr conrains
acquisirioncosrs and limircd pricing powcr.
comprclcnsivc inlormarion alour 1! scrvicc
providcrs in !ndia, wirl a locus on in-dcprl analysis ol
3.1.1 Compctitor Analysis A dctailcd analysis of
rlcir srrcngrls and wcakncsscs. !r also cxplains rlc
somc of thc major playcrs is donc bclow:
rcason duc ro wlicl, all rlc incumlcnr playcrs lavc
DISH
lccn invcsring lugc amounrs in rlc promorion and
isl 1v is a division ol Zcc Ncrwork nrcrprisc (sscl
markcring ol 1! scrviccs in rlc counrry. "!ndian
Group \cnrurc). G\ las narional and glolal prcscncc
1! Markcr orccasr ro 2012" 1lc rcporr liglliglrs
wirl lusincss inrcrcsrs in mcdia programming,
ccrrain kcy markcring srrarcgics along wirl rlc currcnr
lroadcasring & disrrilurion, spccialiry packaging and
indusrry rrcnds. 1lcsc markcring srrarcgics could scrvc
cnrcrrainmcnr. Zcc Ncrwork incorporarcd dislrv ro
as a lcnclmark lor rlc anriciparcd lururc growrl ol rlc
modcrnizc 1\ vicwing. dislrv is !ndia's lirsr dirccr ro
!ndian 1! markcr. Aparr lrom rlis, rlc rcporr will
lomc (1!) cnrcrrainmcnr scrvicc. By digiralizing
also lclp clicnrs ro rccognizc}idcnrily rlc lacrors rlar
!ndian cnrcrrainmcnr, rlis cnrcrprisc lrouglr lcsr
will drivc rlc counrry's 1! markcr in rlc coming
rclcvision vicwing rcclnology ro rlc living room. !r nor
ycars. 1lc rcporr also srudics rlc !ndian consumcr
only rransmirs ligl qualiry programmcs rlrougl
lclavior and clalorarcs various lacrors rlar will cnallc
sarcllirc; lur also givcs a complcrc conrrol ol sclccring
pcoplc ro swircl inro 1! in rlc ncar lururc. 1lc
clanncls and paying lor rlcm. isl 1\ las rcporrcd an
numlcr ol acrivc dirccr-ro-lomc sulscrilcrs in !ndia
incomc ol Fs 1+S+.68 crorc salcs and scrviccs, up lrom
will roucl +.2 crorc, making ir rlc largcsr 1! markcr
Fs 108+.1S crorc rlc prcvious liscal, and lull ycar
in rlc world ly 2012, according ro Mcdia Parrncrs
rcvcnucs ol Fs. 152+.6 crorc, up lrom Fs 11S0.S2
Asia's (MPA) annual rcscarcl rcporr Asia Pacilic Pay-1\
crorc. osscs lor rlc company dcclincd ro Fs. 189.7
and Broadland Markcrs 2011.MPA csrimarcs rlc 1!
crorc, lrom Fs 262.1 crorc. B!1A lor rlc ycar was
sulscrilcr lasc in !ndia ro growlrom2.S crorc in 2010
DHEERAJ GIRHOTRA
+S
Fs S26.8 crorc, wirl an B!1A margin ol 21.+%. or posirion. CF!S! lclicvcs rlar rlc incrcasc in rlc
rlc quarrcr, isl1\ rcporrcd srandalonc rcvcnucs ol numlcr ol sulscrilcrs will lclp 1ara Sky aclicvc lrcak-
Fs +51.7 crorc, up +1.+% lromlasr liscal. 1lc B!1A cvcn ovcr rlc mcdium rcrm; unril rlcn, 1ara Sky will
lor rlc quarrcr srood ar Fs 108.9 crorc, up 9S% conrinuc ro rcccivc lunding supporr lrom irs
incrcasc ovcr rlc corrcsponding quarrcr lasr liscal. 1lc slarcloldcrs, including majoriry owncr, 1ara Sons rd
ncr loss lor rlc quarrcr was Fs S7 crorc, down lromFs (1ara Sons, rarcd 'AAA}AAA}Srallc}P1+' ly
60.6 crorc rcporrcd lor rlc corrcsponding quarrcr lasr CF!S!). 1ara Sky rcccivcd a roral cquiry ol Fs.6.2
ycar. oss lor rlc company las lccn dcclining quarrcr lillion in 2009-10 in 2010-11 lrom irs slarcloldcrs,
onquarrcr. rlcrcly lclping 1ara Sky lund irs casl losscs wlilc
mainraining lowcr rlan cxpccrcd dclr lcvcl. 1ara Sons
TATASKY las also providcd lcrrcr ol comlorr lor 1ara Sky's long-
!ncorporarcd in 200+, 1ara Sky is a {\ lcrwccn rlc rcrmdclr.
1A1A Group and S1AF. 1ara Sky 1! cndcavours ro
ollcr !ndian vicwcrs a world-class rclcvision vicwing VIDEOCO D2h
cxpcricncc rlrougl irs sarcllirc rclcvision scrvicc. 1lc \idcocon d2l lad alour S million sulscrilcrs as ol
1A1A Group is onc ol !ndia's largcsr and mosr April 2011. \idcocon d2l, rlc 1! armol \idcocon
rcspccrcd lusincss conglomcrarcs. !r compriscs group is rlc lasrcsr growing 1! scrvicc providcr in
divcrsilicd lusincsscs in sccrors sucl as marcrials, !ndia. \idcocon d2l launclcs rlc !ndia's lirsr cvcr !
cnginccring, scrviccs, cncrgy, inlormarion sysrcms & - \F wirl Slor irs cusromcrs ro warcl conrcnr wirl
communicarions, consumcr producrs and clcmicals. S cxpcricncc. Cusromcrs nor only can warcl ir lur
1lc Group and irs cnrcrpriscs lavc lccn srcadlasr and cxpcricncc rlc ncw world, a lalulous S rclcvision or
disrincrivc in rlcir adlcrcncc ro lusincss crlics and rlc S lccd lrom your lroadcasrcr won'r lc sullicicnr,
rlcir commirmcnr ro corporarc social rcsponsililiry. \idcocon d2l will lridgc rlc gap as a connccror ro
1lis is a lcgacy rlar las carncd rlc Group rlc rrusr ol lroadcasrcr and rlc 1\ cusromcrs. \idcocon d2l
many millions ol srakcloldcrs in mcasurc lcw lusincss scviccs, roday unvcilcd irs ncw rangc ol sarcllirc Cs,
louscs anywlcrc in rlc world can marcl. S1AF is a a rcvolurionary lrcakrlrougl rlar cnallcs rlc C ro
lcading mcdia and cnrcrrainmcnr company in Asia. rcccivc signals dirccrly lrom rlc sarcllirc, wirlour rlc
S1AF's parcnr company, Ncws Corporarion, owns an usc ol any scr rop lox (S1B), giving consumcrs
!nrcrnarional group ol 1! lusincsscs rlar includc lrccdom lrom wircs, addirional conrraprions and
BSkyBin \I, Sky !ralia in !raly and oxrcl in Ausrralia. mulriplc rcmorcs. 1lc in-luilr S1B ollcrs pcrlccr
CF!S! las upgradcd irs rarings on rlc lank lacilirics picrurc qualiry ly cnsuring no signal loss. Availallc in
ol 1ara Sky rd (1ara Sky) ro 'A}Srallc}P1' lrom 'A- 16 modcls lrom 19-incl ro +2-incl scrccn sizc, rlc
}Srallc}P2+'. 1lc upgradc rcllccrs a sizcallc incrcasc in \idcocon d2l C rangc is compcririvcly priccd
1ara Sky's numlcr ol sulscrilcrs in 2009-10 (rclcrs ro lcrwccn Fs 12,990 ro Fs 59,990. 1lc consumcrs arc
rlc pcriod lrom April, 1 ro Marcl, S1) and 2010-11, cligillc lor complimcnrary sulscriprion ol S-12
wlicl lclpcd rlc company ro mainrain irs markcr monrls ollcring 260 clanncls across scvcral gcnrcs likc
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
+6
music, movics, cnrcrrainmcnr, cducarion and lors managc conrcnr and rcvcnucs in rlc sarcllirc
morc. 1lc sarcllirc Cs arc acsrlcrically dcsigncd and lroadcasring vcnrurc.Sun irccr sclccrcd raclc lascd
ollcr ligl dclinirion vicw and sound. A \SB porr is on irs convcrgcnr mulri-scrvicc capalilirics and provcn
also providcd wirl rlc C. Spccial rcclnology las rcal-rimc scalaliliry allowing ir ro consolidarc lilling
lccn uscd rlar lclps rcducc rcllccrion and rclracrion ol opcrarions, cnallc powcrlul ncw scrvicc ollcrings and
amlicnr liglr. improvc visililiry inro cusromcr inlormarion across
scrviccs.
RELIACE DIGITAL TV
DD+ Fcliancc igiral 1\ is a 1! sarcllirc rclcvision
Wirl rlc lasr dcvclopmcnrs raking placc in Sarcllirc providcr in !ndia lascd in Navi Mumlai, using MPG-
Broadcasring, ir is lur narural rlar oordarslan las + digiral comprcssion rcclnology, rransmirring using
also comc up wirl an alrcrnarivc ro gcr rlc rcquircd MASA1-S 91.5 asr. !r is rlc 5rl 1! scrvicc
rcacl wirl an alrcrnarc rcclnology oprion "Iu-land launclcd in !ndia. Fcliancc B!G1\ limircd is a parr ol
lroadcasring" wlicl is cnvisagcd lor rlc covcragc ol Fcliancc Communicarions rd., a sulsidiary ol
rcmaining popularion. 1lis is a mucl clcapcr and Fcliancc Anil lirullai Amlani Group loundcd ly
cconomical oprion as comparcd ro rlc covcragc rlc arc lirullai Amlani, rlc !ndian lusincss
rlrougl 1crrcsrrial rransmirrcrs. rycoon and owncd ly lis son Anil Amlani. B!G 1\
Iu-land rransmission will providc covcragc in all srarrcd opcrarions lrom 19 Augusr 2008 wirl rlc
uncovcrcd arcas including rcmorc, lordcr, rrilal, lilly slogan "1\ lo 1ol B!G!o" ("!l you lavc a 1\, makc ir
and inacccssillc arcas in onc go wirlin a slorr rimc. B!G").
Wirl rlis covcragc, rlc narional lroadcasrcr proposcs
AIRTEL DIGITAL TV ro mccr irs olligarion ol covcring rlc wlolc narion and
Airrcl igiral 1\ is rlc lrand namc lor Blarri Airrcl's irs pcoplc nor only wirl narional clanncls, lur also
1! scrvicc in !ndia. !r uscs MPG-+ digiral makc availallc popular oordarslan and somc orlcr
comprcssion wirl \B-S2 rcclnology, rransmirring lrcc-ro-air clanncls on irs plarlorm. !n ordcr ro mccr irs
using !NSA1 +CF 7+ and SS 7 108.2. Airrcl olligarions, ir las also lccn dccidcd rlar 10,000 rcccivc
digiral 1\ scrvicc was launclcd on 8 crolcr 2008. sysrcms (isl and Scr 1op Box) would lc providcd lrcc
Airrcl igiral 1\ las a roral sulscrilcr lasc ol 5.66 ol cosr ar pullic insrirurions likc Anganwadis, Sclools,
millionly S1Marcl 2011. S\N 1\ Pullic !calrl Ccnrrcs, Panclayars, Yourl Cluls,
Sun irccr is !ndia's youngcsr and mosr cxciring Coopcrarivc Socicrics crc. inrlc uncovcrcd arcas.
srarc ol rlc arr 1! Company.Sun irccr uscs rlc
3.1.2. Industry Growth larcsr MPG-+ lascd rcclnology ro incrcasc lroadcasr
According ro a rcscarcl rcporr "!ndian 1! Markcr capaciry. Sun irccr conlirms ro providc ncxr-
orccasr ro 2012", dirccr-ro-lomc (1!) indusrry in gcncrarion scrviccs in lasr-growing and cmcrging
!ndia las lccn wirncssing rrcmcndous growrl lor rlc markcrs quickly and cllicicnrly. Sun irccr will lc
pasr lcwycars. Sucl a srupcndous growrl is mainly duc supporrcd ly !rdcro's condirional acccss solurion ro
DHEERAJ GIRHOTRA
+7
ro rlc conrinuous drop in scrup and scrvicc cosrs ol swircl ro1! inncar lururc. S.2 1lrcar ol nrry
1!. urrlcr, dcclinc in rlc priccs ol Scr-1op Box 1lrcar ol cnrry is dcrcrmincd ly rlc cnrry larricrs,
(S1B) las madc 1! a viallc oprion lor rlc !ndian wlicl acr ro prcvcnr ncw lirms lrom cnrcring rlc
uscrs. !r is anriciparcd rlar, rlc 1! markcr will posr indusrry. A lowcr cnrry larricr makcs ir dilliculr lor rlc
28% CAGF growrl during 2011-201+, rlus cxisring produccrs ro rcmain prolirallc lor long rimc.
posirioning !ndia as onc ol rlc mosr lavorallc Wlcn prolirs incrcasc, addirional lirms will cnrcr rlc
dcsrinarions lor indusrry invcsrmcnrs. 1lc rcporr markcr ro rakc advanragc ol rlc ligl prolir lcvcls and
ourlincs rlar, rlc !ndian 1! indusrry lolds dynamic ovcr rimc drivc down prolirs ol all lirms in rlc indusrry.
lururc prospccrs wirl ncw rcclnologics and lusincss Wlcn prolirs dccrcasc, somc lirms will cxir rlc markcr,
opporrunirics cmcrging ar a rapid pacc. 1lus, ir is rlus rcsroring rlc markcr cquililrium.
suggcsrcd rlar, ro rcmain compcririvc in rlc markcr,
3.2.1 Acccss to DistributionChanncls playcrs rcquirc ollcring rlc larcsr louqucr ol scrviccs
A srrong disrrilurion ncrwork is alsolurcly csscnrial ro along wirl rlc llcxililiry and conrcnr rlar consumcrs
compcrc in rlis indusrry. Nor only docs ir guaranrcc a wanr. 1lc rcscarcl las idcnrilicd rlar, !igl clinirion
counrry widc rcacl lor a company's producrs lur is also (!) conrcnr is an cmcrging markcr scgmcnr, wlicl is
ncccssary lor providing good alrcr salcs scrvicc. 1lc currcnrly ar irs carly growrl sragc. 1lc alllucnr middlc
markcr lcadcr isl 1\ las a vasr disrrilurion ncrwork class consumcrs lavc widcly acccprcd rlc markcr
ol alour 1+00 disrrilurors & 55,000 dcalcrs rlar spans ollcrings and lclpcd playcrs ro maximizc rlcir rcvcnuc
around 6600 rowns across rlc counrry. isl 1\ las a rcsulrs. Addirionally, various 1! companics arc
2+ 7 call ccnrrc wirl 1600 scars, ro arrcnd calls in 11 coming up wirl morc numlcr ol clanncls lor rlcir
dillcrcnr languagcs. !n addirion ro rlc dcdicarcd call sulscri lcrs. Bcsi dcs, r lc rcporr conr ai ns
ccnrrc ncrwork in placc, 1ara Sky las nominarcd nodal comprclcnsivc inlormarion alour 1! scrvicc
olliccrs lor rcdrcssal ol gricvanccs ol rlosc sulscrilcrs providcrs in !ndia, wirl a locus on in-dcprl analysis ol
wlo arc nor sarislicd wirl rlc rcdrcssal ar rlc call ccnrrc rlcir srrcngrls and wcakncsscs. !r also cxplains rlc
lcvcl. Sucl sulscrilcrs can conracr rlc nodal olliccrs rcason wly all rlc incumlcnr playcrs lavc lccn
ciring rlc dockcr numlcr issucd ly rlc call ccnrrc. invcsring lcavily in rlc promorion and markcring ol
\idcocon d2l las scr up cusromcr call ccnrrcs in Punc, 1! scrviccs in rlc counrry. "!ndian 1! Markcr
clradun, Noida and Bangalorc ro carcr ro cusromcr orccasr ro 2012" liglliglrs ccrrain kcy markcring
nccds inrcndillcrcnr languagcs. srrarcgics along wirl rlc currcnr indusrry rrcnds. 1lcsc
markcring srrarcgics could scrvc as a lcnclmark lor rlc
3.2.2 BrandSalicncc anriciparcd lururc growrl ol rlc !ndian 1! markcr.
Wirl lirrlc producr dillcrcnriarion and pariry producrs, Bcsi dcs, r lc rcporr wi l l lcl p cl i cnr s i n
ir is impcrarivc rlar disrincr imagcs arc crcarcd in rlc rccognizing}idcnrilying lacrors rlar will drivc rlc
minds ol consumcrs rlrougl posirioning and lrand counrry's 1! markcr in rlc coming ycars. 1lc rcporr
luilding. Companics lavc lccn allc ro do so ly rcgular also ourlincs !ndian consumcrs' lclavioral parrcrn and
advcrriscmcnrs rlrougl a numlcr ol mcdiums ol clalorarcs various lacrors rlar will cnallc pcoplc ro
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
+8
communicarion. A numlcr ol companics lavc lccn S. Mulriplc scr purclascrs
1. First timc buycrs: 1lis consrirurcs rlc pcoplc allc ro makc a mark on consumcrs' mind ly rcgular
wlo arc luying rlc 1! connccrion lor rlc lirsr rimc, advcrriscmcnrs on 1\ and orlcr mcdiums ol
rlcsc arc rlc pcoplc wlo arc laving rlc callc advcrrising and cusromcrs do rcmcmlcr rlosc
connccrion ar rlcir lomcs lrom rlcir local callc advcrriscmcnrs. ikc 1A1A Sky, Fcliancc digiral or
opcraror. 1lc rcason lor rlcsc pcoplc ol cloosing rlc \idcocon 2! lavc lccn allc ro crcarc a lrand
1! connccrion ar rlcir lomcs miglr lc rlc idcnriry lor rlcmsclvcs. Morcovcr cusromcrs arc going
lollowing- ro rcmcmlcr rlosc lrands wlicl providc rlcm cxrra
Pcoplc arc nor lappy wirl rlc scrviccs ol local callc applicarions or lcarurcs. As lar as rlc priccs arc
opcraror. conccrncd all 1! ollcrings arc placcd on rlc samc
Pcoplc wanr morc llcxililiry alour rlc clanncls pricc plarlorm.
rlcy wanr rowarcl.
3.3.3 Thrcat of Substitutcs Pcoplc wanr ro slow oll ro rlcir pccr group ly
!n Porrcr's modcl, sulsrirurc producrs rclcr ro producrs laving 1! connccrion.
in orlcr indusrrics. As lar as rlc sulsrirurion is
2. Thc Lpgradcrs conccrncd rlc 1! ollcring is clcarly sulsrirurcd ly
1lis scgmcnr ol luycrs las upgradcd lrom a normal rlc local callc ollcring availallc in cvcry ciry and rown.
1! connccrion ro rlc !igl clinirion or ! 1lc local callc las srill rlc advanragc ovcr rlc 1! as
connccrion lccausc rlcy wanr ro gcr rlc lcrrcr qualiry rlc invcsrmcnr on rlc lardwarc wlicl is ro lc insrallcd
ol picrurc. A numlcr ol pcoplc arc rlcrc wlo wanr lclorc rlc rcccprion ol rlc clanncl could srarr is quirc
somc morc luncrions in rlcir 1! likc rccording , lor ligl so majoriry ol pcoplc srill opr lor rlc local callc
rlis purposc 1! companics lavc comc our wirl rlc opcraror. Anorlcr sulsrirurc lor rlc 1! is inrcrncr
Scr 1op Box wirl in luilr igiral \idco Fccordcr wlcrc a numlcr ol clanncls arc availallc rlrougl lrcc
wlicl las gor an inrcrnal lard disk wlicl savcs rlc rv livc 1\ lur rlar is nor as popular lccausc rlc cosr ol
program lor larcr vicwing. 1lc consumcr in rlis acccssing rlc inrcrncr in !ndia !s srill vcry ligl and
scgmcnr usually gocs lor acrivc inlormarion scarcl. maximum pcoplc srill don'r lavc rlc acccss ro rlc
1lis scgmcnr normally luilds irs producr knowlcdgc inrcrncr connccrions and inrcrncr connccrions arc quirc
lrom advcrrising and orlcr producr communicarion crraric innarurc.
wlicl is gcncrally availallc rlrougl a numlcr ol
3.4 Buycr Powcr sourccs likc advcrrising inrv, magazincs or inrcrncr.
1lc powcr ol luycrs is rlc impacr rlar consumcrs can
lavc on a producing indusrry. Buycr powcr inllucnccs 3. Multiplc Sct Purchascrs
rlc priccs rlar a lirmcan clargc. 1lc 1! markcr can 1lis scgmcnr rcprcscnrs rlosc pcoplc rlar arc
lc lroadly scgmcnrcd inrolollowing carcgorics- purclasing morc rlan onc scr and arc looking lor
1. irsr rimc luycrs spccilic nccd gaps ro lill. 1lc lamily dcmograplics ol
2. 1lc \pgradcrs rlis scgmcnr arc mosrly joinr lamilics and lull ncsrs. 1lc
DHEERAJ GIRHOTRA
+9
principal rcason lclind mosr ol rlc purclascs is an orliring sarcllircs and conrcnr. Wirl !ndia scr ro
incrcasing lamily sizc and dcsirc ro own a pcrsonal 1\ ovcrrakc {apan as Asia's largcsr 1! ly ncxr lcw ycar,
scr. vcn rlc 1! companics ollcr ccrrain discounrs largaining powcr ol !ndian 1! opcrarors wirl CP
on rlc sulscriprion priccs on mulriplc connccrions in supplicrs lavc lccn srcadily incrcasing. Wirl !ndia scr
onc lomc. ro ovcrrakc {apan as Asia's largcsr 1! ly ncxr lcw
ycar, largaining powcr ol !ndian 1! opcrarors wirl
3.4.1 Buycr Conccntration CPsupplicrs lavc lccnsrcadily incrcasing.
1lc indusrry is akin ro consumcr durallcs wlosc cnd
uscrs arc lragmcnrcd. !cncc luycrs do nor lavc any 4. IDLSTRY AALYSIS-GOVERMET
ADREGLLATORY ITERVETIOS spccilic inllucncc onproduccrs.
1lc Govcrnmcnr ol !ndia rlrougl 1FA! las imposcd
3.4.2 Buycr Switching Cost a numlcr ol rcgularions on rlc working ol rlc 1!
1lc cosr incurrcd ly consumcr in swircling lrom onc playcrs in !ndia. 1lc lollowing condirions musr lc mcr
rclcvision lrand ro anorlcr is pracrically zcro. Brand lclorc a company could srarr irs lusincss in 1!
loyalry is low. !cncc rlc companics cannor rcsr on rlcir sccror in!ndia.
laurcls and lavc ro lc on rlcir rcnrcrlooks ro rcrain rlc Applicanr Company ro lc an !ndian Company
cusromcrs. rcgisrcrcd undcr !ndianCompany's Acr, 1956.
1oral lorcign cquiry lolding including
3.4.3 Pricc Scnsitivity !}NF!}CB}!! in rlc applicanr company nor
Markcr is liglly pricc conscious and promoriondrivcn. rocxcccd+9%.
Wirl rlc onslauglr ol pricc cur srarrcd ly rlc 1A1A Wirlin rlc lorcign cquiry, rlc ! componcnr nor
Sky wirl rlcir promorion ol all inclusivc 999 ollcr lcw rocxcccd20%.
rimc lack, in wlicl rlc company madc availallc rlc 1lc quanrum rcprcscnrcd ly rlar proporrion ol
1! lor jusr ninc lundrcd and ninry ninc rupccs all rlc paid up cquiry slarc capiral ro rlc roral issucd
rlc orlcr playcrs ol rlc 1! markcr arc also moving cquiry capiral ol rlc !ndian promorcr Company,
on rlc samc linc and rlcy arc giving rlc 1! lcld or conrrollcd ly rlc lorcign invcsrors rlrougl
connccrions lor rlc samc rarc or cvcnlcss rlanrlar. !}NF!}CBinvcsrmcnrs, slall lormparr ol rlc
alovc said ! limir ol 20%.
3.5 Supplicr Powcr 1lc applicanr company musr lavc !ndian
Supplicr's largaining powcr inllucnccs rlc cosr and Ma na gc mc nr Conr r ol wi r l ma j or i r y
qualiry ol inpur marcrial. !iglcr supplicr powcr raiscs rcprcscnrarivcs on rlc loard as wcll as rlc Clicl
rlc inpur cosr, rlcrcly rcducing rlc indusrry xccurivc ol rlc company lcing a rcsidcnr !ndian.
proliraliliry. 1! indusrry rclics on rlrcc major Broadcasring companics and}or callc ncrwork
supplics. Cusromcr prcmisc cquipmcnr (CP) companics slall nor lc cligillc ro collccrivcly own
comprising ol rlc Sarcllirc isl, Scr 1op Box wirl morc rlan 20% ol rlc roral cquiry ol applicanr
ncccssary Acccss Card, rlc Iu land rranspondcrs in rlc company ar any rimc during rlc liccnsc pcriod.
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
S0
Cap on Cablc Companyf Broadcastcr Similarly, rlc applicanr company nor ro lavc morc
Invcstmcnt rlan 20% cquiry slarc in a lroadcasring and}or
1lc currcnr rcgularions rcsrricr rlc cap on callc ncrwork company.
Broadcasring}Callc company invcsrmcnr in rlc 1lc iccnscc slall lc rcquircd ro sulmir rlc cquiry
1! vcnrurc ro 20% and also prcvcnr rlc 1! disrrilurion ol rlc Company in rlc prcscrilcd
l i r m r o lol d mor c r la n 20% i n a Pcrlorma (1allc ! and !! ol Anncxurc ro orm-A)
Broadcasring}Callc company. As onc can scc, oncc wirlin onc monrl ol srarr ol cvcry linancial
1! opcrarors arc allc ro ovcrcomc rlis ycar.
4.1 Challcngcs faccdby thc Industry clallcngc ly spinning ol ncw companics. Bur
Policy andRcgulation rcmoving rlis rulc would rcducc rlc lurcaucracy
Bcing a nasccnr indusrry, rlcrc arc lors ol rccrling involvcd and also rcducc rlc conrcnr cosr lor an
issucs wirl rlc currcnr policy lramcwork and rlc opcraror duc ro rlc syncrgics crcarcd lcrwccn lim
way ir is rcgularcd in rcaliry. Somc ol rlc norallc andrlc lroadcasrcr.
Thc Rulc of " Must Carry" clallcngcs laccdarc as lclow.
Lack of Exclusivc Contcnt 1! pcraror is olligcd ro carry all rlc clanncls
!n rlc glolal 1! markcr, compcririon is mosrly providcd ly cvcry lroadcasrcr on a non-
on providing niclc conrcnr. !n !ndia 1FA! docs discriminarory lasis. !owcvcr, wirl rlc capaciry
nor allow lroadcasrcr ro ollcr conrcnr cxclusivcly consrrainrs in placc, rlis is nor lcasillc. So in cascs,
ro a spccilic playcr. !cncc conrcnr dillcrcnriarion wlcrc rlc opcraror is willing ro lroadcasr only rlc
as \SP is nor possillc currcnrly in rlc !ndian popular clanncls, rlc lroadcasrcrs cirlcr dcny
sccnario. 1FA! las clcarly indicarcd rlar giving rlc cnrirc louqucr or clargc priccs lor rlc
cxclusiviry can lc providcd only wlcn 1! complcrc louqucr.
Intcropcrability issucs. markcr marurcs and rlcrc is pcrlccr compcririon in
1FA! mandarcs an opcn arclirccrurc lor S1B's ro rlc markcr placc. Bur 1! opcrarors arc lccling
cnsurc rcclnical inrcropcraliliry lur in rcaliry rlis rlar wirlour conrcnr dillcrcnriarion, rlc
is nor lcing implcmcnrcd. compcririon can only lc on pricc wlicl may cvcn
cannilalizc rlc indusrry.
Cap onForcignInvcstmcnt 5. DRIVERS ADCHALLEGES FACEDBY
THE IDIA DTH IDLSTRY 1lc r or a l l or c i gn c qui r y i nc l udi ng
Thc Drivcrs !}NF!}CB}!! cannor cxcccd +9% and
1lc growing middlc-class and rising disposallc wirlin rlar ! componcnr cannor cxcccd 20%.
incomc !ncrcasing rclcvision pcncrrarion and salc 1lis would rcducc rlc inrcrcsr ol lorcign invcsrors
ol Cmonirors as rlcy cannor gcr a conrrolling srakc in rlc
Pricc war and dillcrcnr packagc oprions arrracring company in spirc ol a lcavy invcsrmcnr. n rlc
consumcrs conrrary, up ro 7+% ol lorcign cquiry, wirl no limir
1! advanragc ovcr rradirional callc pcrarors on!, is allowcdinrlc Callc indusrry.
DHEERAJ GIRHOTRA
S1
1lc Clallcngcs companics-in-india.lrml 2011
Gcrring a slarc ol rlc callc drivcn markcr and !ndia will lc glolal 1! markcr ly 2012. Mcdia
lacing rlc ncwagc !P1\ Parrncrs lrrp.}}www.rlclindulusincsslinc.com}
1rappcdin1FA!'s conrcnr guidclincs rodays-papcr}rp-markcrs}arriclc201S+S0.ccc acccsscd
cmand supply gap lor rranspondcrs on15junc 2011
C r i s i l r a i s c s 1 a r a S k y r a r i n g s
. COCLLSIO lrrp.}}www.mcdiarcscarclasia.com}vicw2.plprypc~
1lc 1! indusrry is gaining populariry vcry lasr and prcss&id~1S5716rljunc 2011
rlc consumcr is also rcady ro adopr rlis rcclnology ! n d i a n 1 ! M a r k c r s s c r r o z o o m
wlicl is lclping rlc companics ro gain markcr slarc lrrp.}}drcamdrl.com}orum}1lrcad-!ndian-1!-
lur rlis rling is ro lc cqually kcpr in mind rlar rlc Markcr-Scr-ro-Zoom22ndjunc 2011
consumcrs is casily swaycd away ly rlc cosrs. 1lc locus 1! !ndusrry in !ndia- ururc Prospccrs
slould lc on providing valuc lor moncy ro rlc lrrp.}}www.ndpullislcr.in}asr_!ssuc}A}12_cono
consumcr wirl morc lrands in rlc cconomy scgmcnr. mics.pdl F Srinivasan
1lc growrl in disposallc incomcs and rlc sulscqucnr
dcmand lor rlc mulriplc scrs ol 1! in a singlc lomc
arc ccrrain variallcs wlicl arc cxpccrcd ro susrain rlc
growrl momcnrumol rlc 1! indusrry in !ndia. 1lc
! conrcnr also nccd ro lc incrcascd so rlar pcoplc
couldlc lookcd rorlc 1! scrviccs.
REFERECES
1clcvision in !ndia
lrrp.}}cn.wikipcdia.org}wiki}1clcvision_in_!ndia
acccsscd on {unc S , 2011.
I!1.1lc 1! !ndusrry in !ndia lrrp.}}www.lusincss-
srandard. com}i ndi a}ncws}ki rdrl-i ndusrry-i n-
india}+15661} !ndian 1! Markcr orccasr ro 2012
lrrp.}}www.rncos.com}Fcporr}!M198.lrm
S u n n y S i d c u p l o r 1 ! i r m s
l r r p . } } www. l u s i n c s s a n d c c o n o my. o r g }
S10S2011}sroryd.aspsid~60S5&pagcno~2 Miclacl
Porrcr' s ivc orccs Modcl lrrp.}}lusincss-
lundas.com}2011}miclacl-porrcrs-5-lorccs-modcl}
1 ! c o m p a n i c s i n ! n d i a
lrrp.}}clannclsindia.llogspor.com} 2011}02}drl-
IDIA DTH IDLSTRY: A STRATEGIC AALYSIS
S2