Professional Documents
Culture Documents
Industry Analysis
Direct To Home Market in India
Submitted By
Mayuresh Sharma (Roll No.65)
Raveesh S (Roll No.79)
Sameer Gupta (Roll No.83)
Venkataramana G (Roll No.108)
Vikram Yadav (Roll No.110)
Manoj Jindal (Roll No.114)
TOPIC
Page No.
1.0
Introduction
2.0
3.0
4.0
Consumer Behavior
5.0
6.0
Market Segmentation
11
7.0
14
7.1 DD DIRECT
14
7.2 Dish TV
15
15
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7.5 BIG TV
17
17
18
Bibliography
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8.0
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Still, as DTH is still a relatively new category and most people are hesitant
to experiment with it. It is therefore imperative for companies such as Tata Sky,
Dish TV, and Reliance BIG TV to educate the consumers about the advantages of
the service and in turn create an urge to invest in it.
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2.0
Bargaining power of
Suppliers
Very high
Transponders - Very High
Content - Very High
CPE - Low
Bargaining power of
Buyers
High
Price Wars
Litigations
Lots of options
Price Sensitive Buyers
Threat of Substitutes
Very High
Cable TV High
IPTV High
Terrestrial - Low
The Five Competitive Forces as applied to Direct to Home industry are described
as follows:
2.1. Buyers: Bargaining power of buyers
With enough options to choose both from the point of alternate mediums
like Cable, IPTV and Terrestrial broadcast and from the point of increasing DTH
operators, the consumer is at his will to decide. Customers will continue to have
a high bargaining power until DTH platforms try to differentiate them as
superior players with better content and clarity.
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Market Share
With 7 operational players, the segment rivalry is quite high. 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.
However, DD-Direct does not charge any monthly subscription fee which poses
a threat to the private players. Between Dish TV and Tata Sky there is an intense
rivalry exhibited by price wars and discount schemes offered to new connections.
Being the first mover, Dish TV has price advantage in both the STB as well as
procuring the transponders. On the other hand, Tata Sky claims its STB having
superior DVD quality video. There is also a competition at acquiring the content.
3.0
The DTH market structure can be classified into three categories; Market leaders,
Market challengers and Market followers. There is intense competition as some
of the leading players have not only succumbed in the sales for acquiring new
customers but has started loosing existing ones to Tata Sky, Big TV and other
new entrants.
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Market Leader:
Dish TV Indias first DTH service provider launched in October 2003 is the
market leader with 6.4 million subscribers. Dish TV continues to be a market
leader with 32% market share in 7 player scenario on date, with sizeable
sales and distribution infrastructure of over 650 distributors and 45,000 dealers
across 6500 towns once again, the largest in the category. This reach into far
flung markets enables building of a diverse subscriber base across consumer
segments, which are supported by its rich content of regional channel
offerings.
Dishtv has maintained its leadership position through an improved market share
of all DTH subscribers. New offers, extensive marketing campaigns have
contributed to impressive subscriber acquisition and are committed to provide
the best value to our customers and investors by enhancing operational
efficiencies and by leveraging economies of scale.
Market challengers:
The gap between the leader and the challengers is decreasing because of the
increasing competition and promotion strategy followed by each player.
TATA Sky
In the enormous consumer market that is India, occasionally an opportunity
arises that can create incredible growth and profitprovided those who seek to
capture it can move quickly enough. TATA wanted to capitalize on this
opportunity as there was currently only one player in the DTH market. It was the
second Mover after Dish TV leveraging on brand TATA and high brand recall.
Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR. Tata
Sky endeavors to offer Indian viewers a world-class television viewing
experience through its satellite television service. The key business challenge in a
country like India is meeting customer demandswhich are very dynamic
under the regulatory purview of the country.
Sun DIRECT
Sun Direct is the fastest growing DTH service provider having garnered over 1.9
million subscribers since its launch in December 2007 and aims to become one of
the leading players in the DTH space. Sun Direct challenged the existing players
by involving them in the price war by acting as a discounted brand. It started
offering subscriptions at as low as Rs 99 to reach as much at the bottom of the
market. The biggest differentiator for the brand is the pricing point which is
lesser than the other brands.
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Market followers:
Reliance BIG TV/ Airtel Digital/Videocon d2h
The approach being followed is of Market Follower (as they are late entrant and their
primay objective is to attract max subscribers in shortest span of time.
4.0
5.0
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DTH industry uses different marketing strategies for promotion and sales
of its products. It gives advertisements with their brand ambassadors which
attract customers, door to door selling, on the phone selling, discount and offer
sales, packages, etc. Marketing practices is a continuous process as the
competition keeps increasing among the players in the industry. Each player is
investing lot of money in promoting there brands.
Many players are making advertisement with movie actor and actress as
brand ambassadors for their products because DTH is mainly considered with
entertainment. Some of the companies like Tata sky is having Super Star Aamir
khan as brand ambassador and Airtel is having many film stars like Kareena
Kapoor, A.R. Rahman, Saif Ali khan, etc. Dish TV is also having Super Star
Shahrukh khan as the brand ambassador. Sun direct also use southern actress for
their brand promotion.
Marketing practices are the decisions taken by the manufacturing
company to increase sales, expand themselves into many areas etc. Successful
marketing practices bring sale up, while unsuccessful marketing practices have
no impact on sale or negatively impact sale. Marketing concepts specific to the
industry is primarily targeted at a niche segment who buy the TV sets from the
electronic retail chains.
Product Innovation
The concept of innovation in DTH industry is INCREMENTAL innovation;
everything that is done is due to constant research of many marketing and
analysts to bring many innovations to the existing products in the DTH industry.
Incremental innovation is the apt innovation which is suitable and all the DTH
players are concentrating up on. This innovation makes the business to grow
continuously and brings advantages to the customers using the products and the
service.
There are many sources of innovation for this industry as mentioned in
the above, the technology and the people are the main sources for the innovation.
Customers opinions and their needs can be served by providing a service which
is matching to their needs and requirements.
Digital TV, the DTH service from Airtel, has announced Indias first skin
integration innovation on its EPG screen in partnership with Yahoo. Yahoo takes
forward its latest brand campaign YOU in this first of its kind partnership
where an online portal will use DTH as a medium to promote itself.
The Electronic Programming Guide screen on Airtel digital TV is now
completely integrated with Yahoo Indias homepage. Customers will find a
message Fill your home page with all the things that make YOU when they log
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onto to the EPG screen. A prompting Red Button will take them to a dedicated
landing page that elaborates the offerings on Yahoo Indias new home page.
The YOU campaign enables users to customize the home page as per
their liking and empowers them with the choice to integrate social applications
such as Facebook with their Yahoo homepage. This whole idea was conceived
by Network Play, right from design elements to execution and thanks to
Mindshare for buying into the idea and flawlessly helping people execute it.
Tata Teleservices Limited has announced a technological breakthrougha
first-of-its-kind innovation in India with the launch of TATA Photon TV, a new
application that allows Tata Photon Plus subscribers to watch live television
channels on their laptops while on the move, and on their personal computers at
home and in the office. The Photon TV service is exclusively available to Photon
Plus users. With its growing popularity, Photon Plus has caught the admiration
of millions of users across the country, with its high-speed data access
capabilities and the ease of mobility.
TATA Photon TV is a personal computer- and laptop-based videostreaming application, which allows Tata Photon Plus users to view live TV feed
from various sports, news, entertainment and regional channels, and to watch
recorded TV shows from the library (viz Coffee with Karan, Zoom, Pogo, etc),
movies, music and videos on demand.
Internet Browsing charges will be charged as per your Photon+ tariff plan
and it would be applicable while viewing Photon TV. These charges would be
over and above the subscription charges for the Photon TV. (Approximate data
usage is 1-2MB per Min).
Rate of innovation in this sector is growing at a faster rate in the recent
years where as it is not very impressive before this period. The reason for this is
the fair competition between the all players in this DTH industry. It led to the
development of new products in this sector which also led to the diversification
of products as there is abolition of entry of foreign industries into Indian
industries initially. It also made the industries in this sector to establish their own
R&D departments for successful product innovations like Airtel Live, Videocon
d2h.
6.0
Market segmentation
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targeting the children segment. Besides this value added services like Games
Active, Bhakti active services etc carters to needs of customers from various age
groups and gender.
INCOME:
Recognizing the vast differences in tastes and pocket sizes of different consumer
segments, content has been aggregated and classified into 4 different packages
namely MAXI, WELCOME, FREEDOM PLUS and FREEDOM packages .While
the Maxi and Welcome packs are price drivers and target high ARPU consumers,
the value pack offerings in Freedom and Freedom Plus packages are volume
drivers that inspire new subscribers to come on board through a low price point
and basic channel offering. The strategy is to gradually upgrade the low ARPU
subscriber too, through tailor made add on packs on a-la-carte like movies,
business, etc. basis for specific entertainment needs. Keeping income levels of
consumers in mind, operators apprise the consumer of its three tier pricing. It
gives a choice to the consumer to select from a three level flexi plan that bundle
three, six or 12 months of subscription along with the initial box.
USER STATUS:
Every product has its non users, ex-users, potential users, first time users and
regular users. In order to attract the non users and potential users time and again
competition has forced players to introduce innovative and exciting consumer
promotion offers into the market. Schemes like World Cup Free Offer, Free bhi
Zyaada bhi, Ab Sab Sikandar, and the landmark Set Top Box Free Offer, have not
only added to the pace of acquisitions but attracted specific consumer audiences
like sports lovers and kids into its fold.
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7.0
7.1 DD DIRECT
Doordarshan is the public television broadcaster of India and a division
of Prasar Bharati, a public service broadcaster nominated by the Government of
India. It is one of the largest broadcasting organizations in the world in terms of
the infrastructure of studios and transmitters. Recently, it has also started Digital
Terrestrial Transmitters. On September 15 2009, Doordarshan celebrated its 50th
anniversary. Doordarshan had a modest beginning with the experimental
telecast starting in Delhi on 15 September 1959 with a small transmitter and a
makeshift studio.
The regular daily transmission started in 1965 as a part of All India Radio.
The television service was extended to Bombay (now Mumbai) and Amritsar in
1972. Till 1975, seven Indian cities had television service and Doordarshan
remained the only television channel in India. Television services were separated
from radio in 1976. Each office of All India Radio and Doordarshan were placed
under the management of two separate Director Generals in New Delhi.
Finally Doordarshan as a National Broadcaster came into existence.
National telecasts were introduced in 1982. In the same year, color TV was
introduced in the Indian market with the live telecast of the Independence Day
speech by then Prime Minister Indira Gandhi on 15 August 1982, followed by the
1982 Asian Games being held in Delhi. Now more than 90 percent of the Indian
population can receive Doordarshan (DD National) programmes through a
network of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios
produce TV programs today.
DD Direct+ is a free Direct to Home (DTH) service that provides satellite
television and audio programming to households and businesses in the Indian
subcontinent. Owned by parent company Doordarshan, DD Direct Plus was
launched on December 16, 2004. Now chairman of DD plus+ is Shri Arun
Bhatnagar and CEO is B S Lalli under the ministry of information and
broadcasting.
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7.2 Dish TV
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, specialty 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.
7.3 Tata Sky
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
was 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
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Bibliography
1. http://www.tamindia.com/tamindia
2. http://www.dishtv.in/
3. http://www.ibef.org/ India Brand Equity foundation
4. http://www.financialexpress.com/news/big-tv-launch-to-intensify-dthbattle/351013/
5. http://www.indianexpress.com/news/dth-space-hots-up-tata-skylaunched/10184/
6. http://www.financialexpress.com/news/dth-subscribers-double-in-7mnths/379548/
7. Google
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