Acharya Institute of Management and Sciences

1

A PROJECT REPORT ON

“PENETRATION AND POPULARITY OF DTH SERVICES INMANAGEMENT & SCIENCES ACHARYA INSTITUTE OF BANGALORE (AIMS) CITY” BANGALORE
SUBMITTED TO
BY MRITYUNJOY BORA SAGAR DEB ROY ANSHUMAN PURKAYASTHA MANAS JYOTI DEKA VIKAS CHANDRA JAIN
BATCH: JULY 2009-2011

“PENETRATION AND POPULARITY OF DTH SERVICES IN BANGALORE CITY”

ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES 1ST CROSS, 1ST STAGE PEENYA, BANGALORE – 560058.
Acharya Institute of Management and Sciences

2

DECLARATION

We hereby declare that this project report is the record of authentic work carried out by us during the period from 6th April 2010 to 31st May 2010 and has not been submitted earlier to any university or institute for the award of any degree/diploma etc.

Name of the Student:

MRITYUNJOY BORA SAGAR DEB ROY ANSHUMAN PURKAYASTHA MANAS JYOTI DEKA VIKAS CHANDRA JAIN

Date:

Acharya Institute of Management and Sciences

3

ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES
Certificate
This is to certify that Mr. Mrityunjoy Bora, Mr. Sagar Deb Roy, Mr. Anshuman Purkayastha, Mr. Manas Jyoti Deka, & Mr. Vikas Chandra Jain of Acharya Institute of Management & Sciences has successfully completed the project work titled in partial fulfillment of requirement for the completion of PG course. This project report is the record of authentic work carried out by them during the period from 6th April to 31st May in which he has worked under my guidance.

Project Guide:

Aishwariya P. S.

Abhinn Baxi

Program Manager:

Ambali Srikumar Date:

Acharya Institute of Management and Sciences

4

Place: Bangalore

Acharya Institute of Management and Sciences

5

ACKNOWLEDGEMENT
In this project report we have made an honest and dedicated attempt to make the research material as authentic as it could. And we earnestly hope that it provides useful and workable information and knowledge to any person reading it. During this small time frame of two months in which the project reached its completion, there were a few people whom we would like to make a mention of and without whose help the project would have never seen the light of day. We also thank to our supportive and dedicated group of faculty member for their timely response through personal meeting, which immensely helped in giving the project the initial direction it needed. We would like give sincere gratitude to our Prof. Ms. Ambali Srikumar, Prof. Aishwariya P. S., Prof. Abhinn Baxi, for their encouragement, providing necessary information required to carry out the project and also giving their personal time to guide us whenever problem arose. We also like to thanks to those peoples who gave their time to help us to gather information and each and every person who some or other way are linked with this project work.

Name of the Student:
MRITYUNJOY BORA SAGAR DEB ROY ANSHUMAN PURKAYASTHA

Acharya Institute of Management and Sciences

6

MANAS JYOTI DEKA VIKAS CHANDRA JAIN

Acharya Institute of Management and Sciences

7

CONTENT

Chapter No. 1 2 3 4 5 6 7 8 9

Chapter Name
EXECUTIVE SUMMARY INTRODUCTION COMPANY PROFILE REVIEW OF LITERATURE RESEARCH METHODOLOGY DATA ANALYSIS CONCLUSION FINDINGS BIBLOGRAPHY

Page No. 6–8 9 – 22 23 – 43 44 – 56 57 – 66 67 – 98 99 – 108 109 – 111 112 – 113

Acharya Institute of Management and Sciences

8

EXECUTIVE SUMMARY
Research purpose

In the current context of the global financial meltdown, the Direct to Home (DTH) industry in India is in the throes of multifarious challenges and opportunities. 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. Since the DTH space denotes ‘big value’, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets for improving 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 the DTH sector in India with over 8.5 million households 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 Bharti Telemedia formed an umbrella body – DTH Operators Association of India (DOAI).

Acharya Institute of Management and Sciences

9

The Cable and Satellite Broadcasting Association of India in its ‘2008 Pay TV Piracy Survey’ have predicted that the Grey TV market of around USD 1.1billion will gradually be taken over by the legal DTH industry. Marcel Fenez, chairman CASBAA, said, “Despite the global sinking of economies, the Asia Pacific market is healthy and the decline in growth will not derail the industry. With 1.7 million digital cable subscriptions, the digital pay-tv market is finally taking off and this degree of penetration represents a tipping point for our industry in Asia.” Starting with a million strong subscriber bases in August 2006, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group, now has more than 2.7 million connections and the forecast for 2012 is that it will further increase to 8 million. The Indian DTH growth scenario bodes well for the advertising industry as well with over ` 30-40 crores being 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 Khan endorses for the Dish TV. MD and CEO of Tata Sky, Vikram Kaushik, recently confirmed in an interview that the company estimates were standing at ` 40 billion for its final funding requirement as ‘competitive entries’, ‘explosive growth in volume’ and customer acquisition have jacked up the costs. Tata sky recently launched the NDS – developed XTV personal video recorder (PVR) that enables the customers to watch a particular TV show while recording another. It is being hailed a major introduction in the Indian DTH market. Within a few days of its launch 2500 PVRs, priced at ` 8999 were sold as claimed by the Tata Sky MD, Kaushik.

Acharya Institute of Management and Sciences

10

This places Tata Sky among the top 19 ‘pay-tv operators’ around the world with NDS solutions being a unique 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 on NDS for its conditional access. N Arjun, executive director Bharti Telemedia, expressed enthusiasm about the company’s expansion plans by disclosing that his company looked forward to providing the best of home entertainment services via Airtel digital TV in terms of latest technology and exciting content. “Since DTH is the future of home entertainment, with the support of our technology partner NDS, we will render superior, state-of-the-art services 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 30 per cent premium and supposedly mopped up over a million subscribers within a short time span. Tata Sky, though placed at a launch-premium of ` 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 should incentives the DTH industry as its market has reportedly surpassed the Japanese one in the last five years. The Indian DTH industry players look forward to a seven times multiplication of its market, about 40 million subscribers by 2015, from a total of 165 million pay TV households.

Acharya Institute of Management and Sciences

11

INTRODUCTION
What is DTH?

DTH stands for Direct-To-Home, it’s a system that allows you to have a personal dish antenna how cable operators do, except it’s much smaller in size, the antenna can be seen on the top left corner of the blog This antenna can be fixed on your terrace and receives transmissions directly from a satellite; hence it is called as a direct to home service.

Introduction of DTH in Indian Market

In earlier days there was only one TV channel in India the “Doordarshan”, Channel Doordarshan was owned and operated by government of India. In this era, every home which had a TV set used to have its own antenna to capture the signals. The Cable Television Ordinance Law was passed in January 1995. This enabled cable operators to feed channels and later on private companies were allowed to air their own channels and this led to the explosive growth in number of TV channels and number of cable operators. The growth of TV channels & cable operators created a big industry and market opportunities. There were as many as 1, 00,000 cable operators across India until few years back. However the services provided by cable operators were poor.

Acharya Institute of Management and Sciences

12

The strikes, increase in tariff plan, selective broadcast and poor services were major cause of dissatisfaction among the customers. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks India has about 130 million TV homes of which, Cable & Satellite (C&S) services are present in 97 million (74%) of the home. The DTH market in India comprises 11% of the total market with almost 15 million homes. Also India about 70% of Indian lives in rural and Semi-Urban areas in which cable network is not available. Also most of people living in rural area can't afford to pay ` 200-400 towards the cable fess monthly even if it is made available. While with the technology advances Private Companies (Dish TV) tries to introduce the concept of DTH-Direct to Home which can be made available in everywhere in country it remain mostly in Urban areas due to lack of interest and unawareness about the rural market as potential revenue source. With launch of India's First Free DTH Service - DD Direct Plus by Doordarshan on 16 December 2004 open up new dimension in this world of TV Viewing by Rural mass. This opens up the real future market of India for Brands. Response from rural and also poor and middle class urban was quite good with 6 million subscribers while Dish TV struggle for more than 15 years to reach 1 million. The DTH industry growth lagged to 10.3% in 2008 from 16.7% a year earlier. But Industry players agree that the digitization drive is expanding by 35-40% annually. However, industry estimates DTH to touch 35-40 million subscribers by 2012, and that’s the number that every DTH brand has set its sights on.

How DTH works?
Acharya Institute of Management and Sciences

13

Early satellite TV viewers were explorers of sorts. They used their expensive S-Band, then C-Band dishes to discover unique programming that wasn’t necessarily intended for mass audiences. The dish and receiving equipment gave viewers the tools to pick up foreign stations, live feeds between different broadcast stations and a lot of other stuff transmitted using satellites. Some satellite owners still seek out this sort of programming on their own, but today, most satellite TV customers in developed television markets get their programming through a direct broadcast satellite (DBS) provider, such as DISH TV or the Doordarshan DTH platform. The provider selects programs and broadcasts them to subscribers as a set package. Basically, the provider’s goal is to bring dozens or even hundreds of channels to the customers’ television in a form that approximates the competition from Cable TV. Unlike earlier programming, the provider’s broadcast is completely digital, which means it has high picture and stereo sound quality. Early satellite television was broadcast in C-band - radio in the 3.4gigahertz (GHz) to 7-GHz frequency range. Digital broadcast satellite transmits programming in the Ku frequency range (10 GHz to 14 GHz). There are five major components involved in a direct to home (DTH) satellite system: the programming source, the broadcast center, the satellite, the satellite dish and the receiver.

Acharya Institute of Management and Sciences

14

THE BROADCAST CENTER

The broadcast center converts all of this programming into a highquality, uncompressed digital stream. At this point, the stream contains a vast quantity of data — about 270 megabits per second (Mbps) for each channel. In order to transmit the signal from there, the broadcast center has to compress it. Otherwise, it would be too big for the satellite to handle. The providers use the MPEG-4 compressed video format — the same format used to store movies on DVDs. With MPEG-4 compression, the provider can reduce the 270-Mbps stream to about 3 or 7 Mbps (depending on the type of programming). This is the crucial step that has made DTH service a success. With digital compression, a typical satellite can transmit about 200 channels. Without digital compression, it can transmit about 30 channels.

Acharya Institute of Management and Sciences

15

At the broadcast center, the high-quality digital stream of video goes through an MPEG-4 encoder, which converts the programming to MPEG-4 video of the correct size and format for the satellite receiver in households.

ENCRYPTION & TRANSMISION

After the video is compressed, the provider needs to encrypt it in order to keep people from accessing it for free. Encryption scrambles the digital data in such a way that it can only be decrypted (converted back into usable data) if the receiver has the correct decoding satellite receiver with decryption algorithm and security keys Once the signal is compressed and encrypted, the broadcast center beams it directly to one of its satellites. The satellite picks up the signal, amplifies it and beams it back to Earth, where viewers can pick it up.

THE DISH

A satellite dish is just a special kind of antenna designed to focus on a specific broadcast source. The standard dish consists of a parabolic (bowlshaped) surface and a central feed horn. To transmit a signal, a controller sends it through the horn, and the dish focuses the signal into a relatively narrow beam. Satellite & Cable TV The dish on the receiving end can’t transmit information; it can only receive it. The receiving dish works in the exact opposite way of the transmitter. When a beam hits the curved dish, the parabola shape reflects the radio signal inward onto a particular point, just like a concave mirror focuses light onto a particular point.

Acharya Institute of Management and Sciences

16

The curved dish focuses incoming radio waves onto the feed horn. In this case, the point is the dish’s feed horn, which passes the signal onto the receiving equipment. In an ideal setup, there aren’t any major obstacles between the satellite and the dish, so the dish receives a clear signal. In some systems, the dish needs to pick up signals from two or more satellites at the same time. The satellites may be close enough together that a regular dish with a single horn can pick up signals from both. This compromises quality somewhat, because the dish isn’t aimed directly at one or more of the satellites. A new dish design uses two or more horns to pick up different satellite signals. As the beams from different satellites hit the curved dish, they reflect at different angles so that one beam hits one of the horns and another beam hits a different horn. The central element in the feed horn is the low noise block down converter, or LNB. The LNB amplifies the signal bouncing off the dish and filters out the noise (signals not carrying programming). The LNB passes the amplified, filtered signal to the satellite receiver inside the viewer’s house.

THE RECEIVER

The end component in the entire satellite TV system is the receiver. The receiver has four essential jobs: It de-scrambles the encrypted signal. In order to unlock the signal, the receiver needs the proper decoder chip for that programming package. The provider can communicate with the chip, via the satellite signal, to make

Acharya Institute of Management and Sciences

17

necessary adjustments to its decoding programs. The provider may occasionally send signals that disrupt illegal de-scramblers, as an electronic counter measure (ECM) against illegal users. It takes the digital MPEG-4 signal and converts it into an analog format that a standard television can recognize. Since the receiver spits out only one channel at a time, you can’t tape one program and watch another. You also can’t watch two different programs on two TVs hooked up to the same receiver. In order to do these things, which are standard on conventional cable, you need to buy an additional receiver. Some receivers have a number of other features as well. They pick up a programming schedule signal from the provider and present this information in an onscreen programming guide. Many receivers have parental lock-out options, and some have built-in Digital Video Recorders (DVRs), which let you pause live television or record it on a hard drive. While digital broadcast satellite service is still lacking some of the basic features of conventional cable (the ability to easily split signals between different TVs and VCRs, for example), its high-quality picture, varied programming selection and extended service areas make it a good alternative for some. With the rise of digital cable, which also has improved picture quality and extended channel selection, the TV war is really heating up.

Acharya Institute of Management and Sciences

18

Why DTH is in so much demand?

This service is in so much demand because customer wants independence from the wired cable transmission because any fault in the cable or in the system at the central place all the transmission and the quality reduces and also any change in the system by the cable operator then all the settings of the channels are disturbed and also the customer has to watch that many channels which the operator transmits. To get rid of all of this DTH services became very popular because of the wide choice it gives to the customer and also since the transmission is digital and since it is wireless it is very easy for a customer to install the connection where ever they move. Irrespective of the location the customer can watch the channels because of the technology the service provider uses. They use satellites to transmit the signals to the customer which is why they are so clear and accurate.

Acharya Institute of Management and Sciences

19

Since now a days as technology increased and everyone wants quality, sound and picture quality in their TV sets because the TV sets are designed so and if a person installs a cable connection then they cannot enjoy the clarity of the picture and DTH removes all this and give the customer the satisfaction.

 The customer can use the same account (connection) at any place in India.  The customer has the freedom to choose the number of channels desired for any number of days required.  The services can be stopped or resumed by just calling their customer care or just by sending an SMS from their registered mobile number.  The connections can be transferred to any other person over phone.  The services are very prompt.  User has the privilege to change the package at any time.  The services are available within minutes after installation.  The clarity of the picture is perfect and of high quality.  Now a days recharging is very easy by using a scratch card and feeding it through the remote or by sending an SMS or recharging online using Credit/Debit Card.
 Packages or services or Add – ons can be changed any time

24X7.  Multiple sets can be connected using the same connection just like a TV showroom does.

Acharya Institute of Management and Sciences

20

Industrial Profile

Indian DTH space is a rapidly rising industry. Since the time, it first arrived in India, more and more new players are joining the bandwagon. Because of arrival of new entrants, this industry has become very competitive which ultimately results in customers having more benefits and options of latest technology. DTH stands for Direct-To-Home television. DTH helps in keeping broadcasters in direct touch with consumers thus, eliminating the need of local cable operators. DTH technology works through direct reception of satellite programmers with a personal dish. The latest technology of DTH network includes satellites, multiplexers, broadcasting center, modulators, encoders and DTH receivers. Technologically speaking, the process starts with DTH service provider leasing Ku-band transponders from the satellite. Thereafter, encoder gets into the process of converting video, audio, and data signals into the digital format. Once encoding is done, multiplexer mixes these signals. Users have to install a small dish antenna and set-top boxes which decode those mixed signals and lastly users get to view numerous TV channels. Primarily, DTH is an encrypted transmission received directly from the satellite by the consumer at his place with the help of dish antenna. The history of DTH services in India dates back to 1996. But, the proposal couldn’t get through policy hurdles because of concern over national security. It was finally allowed in July 2006. As of now, number of total customers stand at 14 million whereas total cable TV households

Acharya Institute of Management and Sciences

21

number is 75 million. That reflects the huge potential of this industry in the long run. Major Indian DTH players are; Dish TV which is also the largest private DTH player. DD direct, Tata Sky, Sun Direct, Big TV etc. are other major players. New entrants are Airtel Digital TV and Videocon. All players use MPEG-4 technology. MPEG-4 technology is more efficient in broadcasting superb quality video and more channels as well.

DTH system service offerings include the following:

 Subscription TV: The DTH provider’s offer channels on a tiered

subscription basis—that is, most customers subscribe to a basic package of channels and one or more packages of premium channels, such as the HBO multiplex. Typically, the basic packages include access to an on-screen electronic program guide and a number of audio-only music channels. Specialty television subscriptions such as international channels are available. Subscriptions are also offered for series of events, such as all available games from a professional sports league.
 Pay per view (PPV): PPV services give customers the option to pick a

specific program or series of programs and pay for the selected content as a one-time transaction. The DTH systems provide extensive PPV offerings including theatrical Films, concerts, and sports events such as prize fights. In certain cases, the PPV concept has been extended to selling viewing rights for movie for an entire day rather than for a single showing.
 Local

channel

broadcasts:

To

provide

a

seamless,

high-quality

experience, the satellite DTH services offer subscription packages of the local channels.

Acharya Institute of Management and Sciences

22

 Digital Video Recorders (DVRs): DVRs have proven to be an excellent

ancillary application for satellite services. The aggressive marketing of new receiver types to “early adopters” gave the service providers a majority of all DVR households The DVR application benefits from two basic satellite DTH service attributes, the availability of electronic program guide (EPG) information and of all-digital broadcasts. For a given program, as indicated in the EPG, the digital content can be directly recorded to a hard disk drive without the need to perform A/D conversion.
 High Definition (HD): When DTH or Direct to Home services came into

India, the whole country gave a very positive welcome as it brought as high quality television viewing experience. Customers are able to do away with poor quality TV reception and grainy reception of the signals. Now taking this to the next level is the HD DTH services (DTH HD Services). All the top DTH service providers are moving to HD DTH services.

DTH leaders in India like Sun DTH, Big TV, Airtel DTH and Tata sky have launched HD or High Definition services to provide highest quality TV viewing experience. However, customers should be prepared to shell out more money to enjoy this HD experience. Even if they are willing to spend more money to enjoy high definition TV, at present not all the channels available in India are HD channels (HD Channels on DTH). Only very few channels can be viewed in HD. This makes many people hesitate to invest money in HD set top boxes. Existing customers will have to upgrade their set top box to HD enabled set top box. Also they have to have a HD TV because not all televisions are capable of producing HD quality pictures.

Acharya Institute of Management and Sciences

23

It is hoped that soon the number of HD channels will increase in India within a short time. The cost of the HD channels is also likely to come down with the increasing competition in this industry. When DTH entered the Indian market, the cost of this service was prohibitive and only the rich and elite could afford it. But today that is not the case anymore as the price of DTH subscriptions has come down dramatically. The same is expected to happen with HD DTH services. Sun Direct DTH is the first company to launch HDTV services in India. With this new service they are now targeting the upper class audience and upper middle class audience. They targeted middle class and lower class audience with their DTH services. So they priced it very low to capture the market. Now their target group is different, they are not likely to keep their prices too competitive. As of now customers will have to shell out up to ` 100 per HD channel (1080p HD channels) which is too high even for the upper class audience that are used to paying just ` 200 for all the channels they watch.
 Interactive:

The simplest interactive television services are not

associated with any particular video services: for example, an electronic program guide, or screens displaying personalized and localized information, including weather, news, financial information, lottery results, and so on. More complex interactive services are integrated with program video and as a result require more complex implementations. On-screen mosaics of multiple live channels applications are examples of these applications. Special “middleware” receiver software is responsible for interpreting the received data and displaying the associated application. Due to the great complexity and the need for careful management of receiver resources, the technologies deployed to date by satellite DTH operators have used proprietary middleware implementations. Considerable work has been

Acharya Institute of Management and Sciences

24

done to create standards for interactive services, and the ATSC “ACAP” standard and the Open Cable “OCAP” standard are noteworthy examples. As the services and technologies mature, these standards are likely to play significant role in future digital DTH system implementations.
 Home Networking: DTH providers’ newest services feature satellite

receivers with integrated home networking features, including support for connecting to a terrestrial broad-band path such as DSL. Networked receivers enable digital television to be recorded on one receiver and played on another. The linkage to the Internet permits remote DVR scheduling over the Internet and applications such as the transfer of electronic photos from cell phones to the family’s home network.
 Special markets: Although satellite DTH may be symbolized by the

small roof-mounted antenna on a single-family home, the services provide programming for various special markets.

CHALLENGES FACED BY THE INDUSTRY

 Policy and Regulation: Being a nascent industry, there are lots of

teething issues with the current policy framework and it is regulated in reality. Some of the challenges faced are given below
 Lack of exclusive content: In the global DTH market, competition is

mostly on proving niche content. In India, TRAI does not allow a broadcaster to offer content exclusively to a specific player. Hence content differentiation as a USP is not possible currently in the Indian scenario. TRAI has clearly indicated that exclusively can be provided only when DTH market matures and there is perfect competition in the market place. But DTH operators are feeling that without content

Acharya Institute of Management and Sciences

25

differentiation, the competition can only be on price which may even cannibalize the industry.
 The rule of “Must Carry”: DTH is obliged to carry all the channels

provided by every broadcaster on a non- discriminatory basis. However with the capacity constraint in place, this is not feasible. So in cases, where the operator is willing to broadcast only the popular channel, the broadcaster either deny giving the entire bouquet or charge price for the complete bouquet. Operator like Dish TV who have more transponder and operator who have a cable company backing like Sun Direct are supporting the “Must Carry” clause whereas transponderscarce new entrant like Bharti Airtel are against this clause.
 Cap on Foreign Investment: As per the current policy, the total foreign

equity including FDI/NRI/OCB/FII cannot exceed 49% and within that FDI component cannot exceed 20 %. This would reduce the interest of foreign investor as they cannot get a controlling stake in the company in spite of a heavy investment. On the contrary, up to 74% of foreign equity, with no limit on FDI, is allowed in the Cable industry. With DTH being a capital intensive industry, these limitation hurt the expansion plans of the cash constrained operator.
 Cap on Cable Company/Broadcasting Investment: In order to ensure a

fair

competition,

the

current

regulation

restrict

the

cap

on in a

Broadcasting/Cable company investment in the DTH venture to 20% and also prevent the DTH firm to hold more than 20% Broadcasting/Cable company. As one can see, the DTH operators are able to overcome this challenge by spinning of new. But removing this rule would reduce the bureaucracy involved and also reduce the content cost for an operator due to the synergies created between him and the Broadcaster.
 Interoperability issues: TRAI mandates an open architecture for STBs to

ensure technical interoperability but in reality this is not being

Acharya Institute of Management and Sciences

26

implemented. However, with the increasing consumer awareness, the dilution of this rule would soon be corrected. In addition, in the recent consultation paper, TRAI also wants to try out the commercial interoperability (the ability to return a purchase STB or leave a STB) route. Although this is good from the consumer point of view, DTH operator cannot build a switching cost for the end user.
 Non-availability of transponders: A Ku transponder can be used for 12

to 20 channels depending on the compression (MPEG 2 or MPEG 4) technology used in the satellite. A DTH operator will at least need 5 transponder to compete in the market. Right now, ISRO has INSAT 4A and INSAT 4B in the orbit with 12 Ku transponder each. The next is INSAT 4CR [September 2007], which opens up another 12 Ku transponder. INSAT 4G will be launched in 2009-10 with a capacity of 18 Ku transponder. Also with the launch of INSAT 4G, ISRO would have used up the entire spectrum that was allotted to it by WARC, ITU Even with 54 transponder by 2010 with 7 operators the demand-supply gap is huge with each operator getting approximately 150 channels. Also if any of these launches fall like INSAT 4C it may spoil plans of DTH operator. Current regulation stipulates a DTH operator to use only Indian satellite or in case of foreign satellite, they have to be approved and leased by ISRO.

Acharya Institute of Management and Sciences

27

COMPANY PROFILE
TATA Sky

Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital compression technology, transmitting using INSAT 4A. It is a joint venture between the Tata Group, that owns 85% and STAR Group that owns a 15% stake. Tata Sky was incorporated in 2004 but was launched only in 2006. It currently offers close to 205 channels (as on February 2010) and some interactive ones. The company uses the Sky brand owned by British Sky Broadcasting. In October 2008, Tata Sky announced launching of DVR service Tata Sky+ which allowed 130 hours of recording in a MPEG-4 compatible Set Top Box. The remote is provided with playback control keys and is being sold with special offers for existing subscribers.

Acharya Institute of Management and Sciences

28

In 2008, Singapore-based Temasek Holdings picked up 10% stake in Tata Sky from the Tata Group. This has diluted Tata's stake in the venture to 75%.

TATA Sky

+

Tata Sky+ is a premium set-top box-cum-Personal Video Recorder that allows recording up to 130 hours of live TV, recording one program while watching another, pause, fast-forward and rewind a live telecast and review a TV program.

In March 2009, Tata Sky became the first Indian direct-to-home (DTH) service provider to be awarded the ISO 27001:2005 accreditation, the benchmark for information security. ISO 27001:2005 is an international standard that provides specifications and guidance for the establishment and proper maintenance of an Information Security Management System (ISMS). The assessment for the certification was conducted by Intertek Systems Certification, the management systems registration business unit of Intertek
Acharya Institute of Management and Sciences

29

Group. This certification confirms that every transaction carried out through Tata Sky’s IT systems is highly secure.

TATA SKY FEATURES

 Uniform volume level across all channels  Stable set-top-box with less bugs or issues  Customer service is satisfactory and after-sales support is good  Joint venture with International DTH Brand, Sky, famous for its exquisite technology
 Exclusive access to some authentic international channels like BBC

entertainment etc.

TATA SKY CHANNEL PACKAGES

Package Name

No. of channel s 185 67 102 127 76 99 110 143

Annual price
` ` ` ` ` ` ` `

Semi – Annual price
` 3,000 ` 800 ` 1100 ` 1550 `. 625 ` 1000 ` 1300 ` 1760

Monthly price _ 160 200 275 125 200 260 310
30

Annual Mega Pack Super Hit Pack Super Value Pack Super Saver Pack South Starter Pack South Value Pack South Saver Pack South Jumbo Pack

5,500 1600 2200 3025 1250 2000 2600 3410

` ` ` ` ` ` `

Acharya Institute of Management and Sciences

TATA SKY OPTIONAL PACKAGES

Package Name Cosmo Pack Fun Learning Pack Lifestyle Pack Lifestyle Gold Bronze

No. of channels 9 4 15 4 2 3 2 6 2 2

Annual price ` 450 `. 300
` 450 ` 150

Monthly price ` 45 ` 30
` 45 ` 15 ` 40 ` 65 ` 40

Pack Sports Gold Pack Sports Platinum Pack ESPN & Star

_ _ _
` 1350 ` 200

Sports Pack Sports Bonanza Pack Marathi Pack HD Gold Pack

_
` 20 ` 30

_

ACTIVE SERVICE PROVIDED BY TATA SKY

 ACTIVE ENGLISH: Active English service will help housewives improve

their English conversational skills, vocabulary and pronunciation from

Acharya Institute of Management and Sciences

31

the comfort of their homes, at a time most convenient to them. With Active English, they can learn how to converse confidently in English in day to day situations like PTA meetings, malls, banks etc. and many more. The medium of instruction for this service is Hindi. Lessons learnt through the week can be revised on weekends. The content for this service is provided by British Council.

 ACTIVE MALL: Active Mall is an interactive service with which you can

buy electronic appliances, household goods and even mobile ringtones and wallpapers at the press of a button. You can shop from the comfort of your home at a time most convenient to you and also avail of attractive prices on all products.

 ACTIVE WIZKIDS: Designed specifically for preschoolers, Active Wiz

kids is a television based service that aims to continue a child’s learning process at home through a host of fun learning games, rhymes and art & craft activities.

 ACTIVE LEARNING: A quiz based educational service covering Math’s,

GK and Science for children in the age group of 7-11 years. The content for this service is provided by 24x7guru.com

 ACTIVE STORIES: A television based story book that children can read

and listen to at their own pace. The service features new stories in English and Hindi every day from the likes of Panchatantra, Jataka tales and Hitopadesh.

Acharya Institute of Management and Sciences

32

 MULTIPLE LANGUAGE FEATURES IN ACTIVE STORIES: Viewer can listen

to their favorite stories in six languages - English, Hindi, Tamil, Telugu, Bengali and Marathi.

 ACTIVE COOKING: On Active Cooking one can get their favorite recipe

at the press of a button. The service features four new and easy-tocook recipes daily, from master chefs across the country along with handy kitchen tips.

 ACTIVEGAMES: Active Games is a range of interactive games for all

ages. These games can be played on television with the help of the Tata Sky remote. The games are refreshed periodically.

 ACTIVE STAR NEWS: Active STAR News is a new-age interactive service

which puts in control of how and when one wants to watch the news. The service presents you with four screens on a single window, enabling you to go directly to Headlines, Top Stories or Features.

 ACTIVE DARSHAN: Get 24x7 darshan of the following temples on TV:

Shirdi

Sai

Baba,

Mumbai’s

SiddhiVinayak,

ISKCON

and

Kashi

Vishwanath. This new service is brought to you in partnership with STAR News.

 SHOWCASE: Watch the latest blockbusters from the comfort of home

on Tata Sky’s pay-per-view service, Showcase. All movies come with
Acharya Institute of Management and Sciences

33

just a single ad-break and in original print. The movies can be ordered once and enjoyed multiple times through the day.

RECHARGE OPTION
ONLINE RECHARGE
 To recharge and then make payment using:

Credit Cards: All MasterCard, Visa, American Express and Diners Cards accepted. Debit Cards: Debit cards of all leading banks are accepted. Net banking: Simply select your bank from the list of banks available

RECHARGE USING THE TATA SKY HEPLINE The Tata Sky helpline is another convenient way to recharge using credit card. Call the helpline, select the ‘Recharge’ option and use ‘Pay by Credit Card’ option. CHEQUE PAYMENT One can now make Tata Sky payments by cheque. PAY THROUGH LOCAL DEALER Most Tata Sky dealers recharge account either by Recharge Vouchers or make payments through a simple pin less and paperless transaction. RECHARGE USING MOBILE

Acharya Institute of Management and Sciences

34

Atom mobile application: The atom application for mobile phone is used to recharge Tata Sky account AUTO DEBIT The Auto Debit facility is yet another convenient payment option. With this facility, subscriber is ensured uninterrupted viewing of Tata Sky.

Acharya Institute of Management and Sciences

35

Reliance BIG TV

Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai, using MPEG-4 digital compression technology, transmitting using MEASAT-3. It is the 5th DTH service launched in India. Reliance BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the Indian business tycoon and owned by his son Anil Ambani. BIG TV started operations from 19 August 2008 with the slogan "TV ho Toh BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to 240 channels and many interactive ones, 32 cinema halls (i.e. Pay per View Cinema Channels) as well as many Radio channels. The company plans to increase the number of channels in the near future to 400 and begin High Definition (HD) broadcast. It is the first Pan-India DTH provider that uses MPEG-4 for broadcasting. There are also plans to introduce services like iStock, i-News and other such interactive services in the future. Reliance BIG TV's launch in August was probably the biggest roll-out in home entertainment ever. They deployed the most advanced MPEG4
Acharya Institute of Management and Sciences

36

technology that enabled them to deliver best quality digital audio-video to the consumer. That apart, it also got prepared for the future when HiDefinition TV will be launched in India because only MPEG4 technology can support HD TV and not MPEG2 which is used by the earlier entrants in the DTH industry. The MPEG4 technology also gave them advantage of broadcasting at least 50% more channels compared to the competitors. The superior compression technology of MPEG4 helps them to broadcast up to 35 to 40 channels per transponder and with 12 transponders in hand gave them the unique edge of being able to broadcast over 400 channels. They are currently utilizing only 8 of their transponders to broadcast over 200 channels. They are offering Channels in various packages like Value Pack, Bronze Pack, Silver Pack, Gold Pack, Diamond Pack and Platinum Pack and Reliance BIG TV announces 3 New Packages w.e.f from 16th Feb 2010 which are New Value Pack, Bronze Plus Pack and Silver Plus Pack. Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns in India. This was literally unheard of in the DTH industry. They had effectively out-stripped the competition here. When it came to pricing – packaging, their introductory offer stood at ` 1,490/- with 3 to 6 months of free subscription. They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH player. Not just that, while other players made subscribers pay for each movie, Reliance BIG TV introduced the unique concept of Subscriber-Video-On-Demand (SVOD) under which the subscriber paid a monthly subscription of ` 50/- to get a 24 x 7 access to the 21 PPV channels showing Hindi and Regional Films. Also the first to introduce dedicated PPV channels for Marathi, Gujarati and Bhojpuri films.

Reliance BIG TV FEATURES

Acharya Institute of Management and Sciences

37

 First DTH with MPEG-4 technology hence can carry more number of

channels  Awesome picture and audio quality  Lots of channels in base pack hence more cost effective  Can watch 12 channels at a time on single screen  Much better performance even if it rains

RELIANCE BIG TV CHANNEL PACKAGE

Package Name Value Pack Bronze Pack Bronze Plus Pack Silver Pack Silver Plus Pack Gold Pack Diamond Pack Platinum Pack

No. of Channels Non – South South 101 117 120 127 131 139 153 157 106 122 125 132 136 144 158 162

Package Price
[Taxes extra]

` ` ` ` ` ` ` `

115 135 150 180 200 225 270 315

VALUE ADDED SERVICE

The HD will feature a host of hi-tech features including 200 hour recording facility, time based recording mode of up to 14 days, and a universal remote to control TV-DVD-Set Top Box (STB).

Acharya Institute of Management and Sciences

38

The company will initially roll out the HD DVR STB across top 100 Indian cities and towns supported by its distribution network and retail points. Reliance Big TV has launched this unique application in association with Reliance Money. Reliance Money has created a unique iStock zone on Reliance BIG TV’s DTH platform. This zone will not only provide information about Indian and international indices, currencies, commodity, stock and market news; but also provide Reliance Big TV customers with value added services including a unique personal portfolio management tracker. Reliance BIG TV’s subscriber base uses its various interactive features such as iGames, iCooking, iNews, iAstro and iSports. Though currently offered as a “free of cost service”, as part of its long term strategy, Reliance BIG TV may decide to monetize its interactive applications through targeted revenue modules. Reliance BIG TV sees big appeal for iStock application from cities and smaller towns alike especially amongst the trading community who has invested in markets and would like to keep a close watch on their stocks. Reliance BIG TV’s interactive applications offer a world of exclusive interactive features at the touch of a button on the Reliance BIG TV remote. iStock is the latest in a bouquet of growing interactive applications under its interactive services which include sporting action on iSports, games application iGames, daily astro feature iAstro, recipe-rich iCooking and iNews with the latest news updates.

RECHARGE OPTION
OXIGEN

Acharya Institute of Management and Sciences

39

Reliance BIG TV has entered into a strategic partnership with “Oxigen”, a premium recharge service provider to enable its customers to enjoy uninterrupted television viewing. Customer can recharge by Oxigen’s easy recharge option. ONLINE RECHARGE Customer can recharge their monthly subscriptions by logging in www.bigtv.co.in, click on the `Recharge’ and follow the simple instructions on their computer screen. All they need to do is enter their Smart Card Number and click on the submit button to proceed.

RECHARGE VOUCHER In addition, Reliance BIG TV customers can also recharge by a simple Recharge Voucher (RCV). These vouchers are available at Reliance World & Reliance Mobile Stores and with various dealers. MOBILE AND ONLINE CARD PAYMENT Apart from Oxigen, Reliance BIG TV’s portfolio of easy recharge options include, Online Payment using Credit/Debit Cards or Internet Banking, Interactive Voice Response (IVR), Mobile Mode Payment (SMS) or just calling the toll free number 1800-200-9002.

Acharya Institute of Management and Sciences

40

Dish TV

Dish TV is a DTH satellite television provider in India, using MPEG-2 digital compression technology, transmitting using NSS Satellite. 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. DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Zee Entertainment 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 programs. 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
Acharya Institute of Management and Sciences

41

transponder capacity. The main provider for this service is now Dish Networks. Dish TV is available across the country and adjacent countries like Nepal, Bhutan, Sri Lanka, Gulf Countries, Bangladesh & Pakistan.

VALUE ADDED SERVICE

Dish TV has tied up with employment service provider monster.com and matrimonial website Shaadi.com and yatra.com for providing value added services to its customers Dish TV is planning to launch conditional access modules (CAM) which will allow consumers owning set-top-box of other operators to switch to Dish TV’s feed of television channels, a person from a broadcast company with knowledge of the development said. CAM is a small gadget than can be inserted in the set-top-box and enables the consumers to shift from one DTH service provider to another without buying a new set top box. DTH players currently subsidize the set-top-box to get on board a new subscriber hoping to make money over a longer period through monthly fees. DISH TV also facilitates recording of two programs simultaneously. With the help of DVRs, it is possible to record two programs while you watch the third on TV. So the biggest bonanza comes when one’s favorite show gets recorded quickly on a secured basis while there is not a point of scope to miss watching the third one. The satellite TV is equipped with integrated DVR systems, two TV outputs and dual tuners to facilitate such a fantastic action. These devices enable endless hours of digitally enriched video recording.

Acharya Institute of Management and Sciences

42

Another specified feature is that it can be viewed on smart phones. The latest technology has made it possible for anyone to watch it on one’s smart phones which are categorized as iPods and I-Phones. It helps to view TV even while we are travelling.

DISH TV CHANNEL PACKAGES

Package Name

No. of channels Rest of South India 160+ 169+ 188+ 195+ 214+ 214+ 146+ 150+ 171+ 178+ 200+ 200+

Package price

Silver Silver Saver Gold Gold Saver Platinum Child

` ` ` ` ` `

125 150 210 270 325 170

RECHARGE OPTON
ONLINE RECHARGE Subscriber can recharge by logging into the web site www.dishtv.in. Recharge now under the Login section on the homepage. Follow only three easy steps to make the recharge. Enter Viewing Card or Mobile Number. Select Credit/Debit Card or Net Banking or ITZ Card as payment option.

OTHER OPTION  Check/Drop Box

Acharya Institute of Management and Sciences

43

 Easy Bill  DD/Pay Order  Money Order  Mobile Recharge  Recharge it now  Net Banking  Credit Card on IVR  Credit Card Standing Instruction  Credit Card online  Prepaid Card

Acharya Institute of Management and Sciences

44

Airtel digital TV

Airtel Digital TV is the brand name for Bharti Airtel's DTH (Direct to Home) service in India. It uses MPEG-4 digital compression with DVB-S2 technology, transmitting using INSAT 4CR. Airtel digital TV service was launched on 8 October, 2008. Airtel digital TV’s standard definition broadcasts are in MPEG-4 with Interactive Service (itv) and 7-day EPG (electronic program guide). Interactive Service (itv) of Airtel digital TV includes an add-on service which allows a user to shop, book movie tickets etc. A universal remote is included in the package which can, over IR frequencies control both the TV and the DTH box. Like other DTH service providers it also provides a Video on demand interactive service which includes a catalogue of movies in Hindi, English and other regional languages which can be ordered on demand.

FEATURES OF Airtel Digital TV

Acharya Institute of Management and Sciences

45

Generally most Direct-To-Home setup box don’t work in bad weathers like rainy times but Airtel’s set top box is 20% bigger than other providers to make sure the service is not interrupted and the subscribers can continue enjoying their TV shows. You can watch onscreen account details, book cinema tickets, browse & travel holiday packages, make tele-shopping, get city based information guides and also get the stock updates using widgets along with Worldspace radio content, which makes Airtel Digital TV superior than other providers because they offer seriously extra features which others don’t offer.

OTHER FEUTURES

 Universal remote – that works for both Set Top Box and TV  Highest Set Top Box memory – meaning more interactive applications  World space Radio – integrated satellite radio for music fans  Interactive applications – iMatinee (Book cinema tickets), iTravel (book

travel packages), iShop (Shop on TV), iCity (Get city information)
 High quality games – refreshed every 6 weeks  Audio gain control – ensures uniform audio levels across all channels  On screen account meter – keep track of monthly expenses  Last viewed channel – restored after power disruption/switch off  Low battery indicator – Time to recharge

VALUE ADDED SERVICE

Airtel digital TV, the DTH service from Bharti Airtel, has launched a set top box which enables TV recording through a mobile phone from anywhere.

Acharya Institute of Management and Sciences

46

The Airtel digital TV recorder connects the mobile to the TV. Customers need to send an SMS from a registered mobile number which is linked to an Airtel digital TV account. They can then download the mobile recording application. Using their customer ID and password they can log in and record shows using any mobile Java and GPRS enabled handset.

Shop on Airtel DTH via iShop

Subscribers will be able to place orders through iShop's call center without stepping out of their homes. India Times Shopping has launched the shopping facility on Airtel's DTH interactive services platform under the brand name 'iShop.' iShop will function as a real-time 24-hour shopping channel on television. With iShop, subscribers will be able to purchase electronic items, mobile phones, apparels and accessories, books and magazines, gifts and flowers, and health and beauty products. This facility will allow users various payment options like cash on delivery, cheque, and credit card.

Internet facility

 Magic @ Home Value: 139 channels are provided for a rent of ` 999 per

month. Movies worth ` 150 for first three months are given. Broadband of speed 256 kbps is provided with unlimited data transfer and Airtel mail.
 Magic @ Home 384: 139 channels are provided for ` 1299 per month.

Movies worth ` 150 for first three months are given. Broadband of speed 384 kbps with unlimited data transfer can be utilized through this plan.
Acharya Institute of Management and Sciences

47

 Magic @ Home Turbo: 139 channels are provided for a rent of ` 1499

per month. Movies worth ` 150 for first three months are given. Broadband of speed 512 kbps in day, 1 mbps at night is provided with unlimited data transfer. Value added services like Airtel mail, PC Secure, Speed on Demand and unlimited gaming are also made available.
 Magic @ Home Freedom 1 mb: 139 channels are provided for a rent of ` 1899 per month. Movies worth ` 150 for first three months are

provided. Broadband of speed 1 mbps is provided with unlimited data transfer. Value added services like Airtel mail, PC Secure, Speed on Demand and unlimited gaming are also made available.

AIRTEL DIGITAL TV CHANNEL PACKAGE

Package Name

No. of channels Rest of India South 93 138 154 164

Package price[Monthly]
[Taxes extra]

Super Value Pack New Value Pack Economy Pack Mega Pack Ultra Pack

93 108 139 159 167

Rest of India ` 115 ` 145 ` 200 ` 275 ` 330

South
` 110

` 200 ` 275 ` 345

RECHARGE OPTION

 Recharge by IVR: Subscriber can simply call to the toll free number

1800 102 8080 or 020-40181400 (tolled) from any of Registered Telephone Numbers.

Acharya Institute of Management and Sciences

48

 Subscriber chooses account recharge from the Menu option. Select the denomination amount for payment / recharge and enter credit card details for to debit the amount toward the services subscription.
 Recharge on the web: Subscriber can recharge instantly from website.

To do this, first need to register on website www.airtel.in/digitaltv with Customer ID. Subscriber will be given a secured login ID and password.
 Customers have the following online payment options any of the

following banks to directly transfer amount from the bank account

➢ State Bank of India ➢ AXIS Bank ➢ State Bank of Indore

➢ Punjab National Bank ➢ ABN Amro
➢ IDBI ➢ IndusInd Bank

➢ HDFC ➢ Union Bank of India ➢ Kotak Mahindra Bank ➢ Bank of Baroda ➢ State Bank of Bikaner and Jaipur ➢ State Bank of Patiala
➢ Bank of India  Recharge through Airtel mobile: Airtel digital TV presents an easy and

secure way to recharge DTH account. Here subscriber can make recharge payments from Airtel mobile phone anytime, anywhere through the interactive mCheck application.

Acharya Institute of Management and Sciences

49

REVIEW OF LITERATURE

DTH Industry in India: Past, Present and Future

India has a total television population of close to 135 million, out of which 80% have access to cable and satellite (i.e. 108 million). The total DTH subscribers are close to 22 million. Thus the DTH has a market share of approximately 20%. The subscriber base for DTH in 2006 was meager 1 million. Now for an industry which is just 5 years old, it is a great achievement. Let’s have a look at how the DTH industry has grown in these 5 years. In 2005 Dish TV was the only player in the DTH industry and was registering subscriber growth mainly in the areas where cable TV was not available. The subscribers were not ready for the cost of set top box. In 2007 CAS mandate was introduced in selected metro cities, where users had to invest in a set top box. Though the initiative was not very successful, it gave a wider acceptance to the DTH and consumer became ready to pay for the set top box. Spotting the opportunity Sun Direct launched its services in 2007 with a drastically low onetime cost involved for DTH subscriber. Followed by this Reliance and Air-Tel and Videocon launched their services. The market became competitive. Every player came with innovative offerings. Dish TV offered Movie on Demand free worth the cost of set top box, Air-Tel and Big TV offered free subscription for first few months etc. All these things were

Acharya Institute of Management and Sciences

50

coupled with aggressive marketing campaigns. Tata Sky gained the maximum subscribers during this period. Today the market shares of various players are as follows
 Dish TV: 30%

 Sun Direct: 25%  Tata Sky: 22%
 BIG TV: 13%

 Airtel : 8%
 Videocon D2H : 2%

So where is the real growth happening for the DTH industry? Is it the urban areas or rural? Though DTH is comparatively expensive than cable service, the growth is coming from the rural area. If we see statistics the growth for the digital segment in rural areas were 34%, 49% and 64% in the past three years. (Source: - TAM Annual Universe Update –2010). The growth in the rural segment can be attributed to frequent power cuts in the rural areas. DTH platform gives the rural consumer access to their favorite programs, with the help of generator/ invertors, which is not possible with the cable service in most of the areas. Though DTH has certain advantages such as better picture/ sound quality, better customer service. It also has a disadvantage of price. The DTH player have to pay various taxes such as Adjusted gross receipts @ 10%, service tax @ 12.36%,VAT @ 12.5%,CST@3%,corporate tax, Excise duty@ 16%, Customs duty, CVD ,customs duty etc. Whereas the local cable operators easily get away with government taxes by underreporting the subscriber base. Thus gaining a clear cost advantage. The regulator should take a note for the same and provide regulations for the same.

Acharya Institute of Management and Sciences

51

At the same time in Indian market “One size fits all” strategy doesn’t work for long. So, the DTH players have to design packages suitable for rural consumers enable them to enjoy the digital content. The DTH industry is expected to grow at a CAGR of close to 24% .The future of DTH industry will largely depend on innovative marketing tactics adopted by the DTH players. The stage is all set for DTH industry. Let the real game begin.

What is a CUSTOMER?

In general terms, a customer is a person or organization that a marketer believes will benefit from the goods and services offered by the marketer’s organization. As this definition suggests, a customer is not necessarily someone who is currently purchasing from the marketer. In fact, customers may fall into one of three customer groups:
 Existing Customers: Consists of customers who have purchased or

otherwise used an organization’s goods or services, typically within a designated period of time. For some organizations the time frame may be short, for instance, a coffee shop may only consider someone to be an Existing Customer if they have purchased within the last three months. Other organizations may view someone as an Existing Customer even though they have not purchased in the last few years. Existing Customers are by far the most important of the three customer groups since they have a current relationship with a
Acharya Institute of Management and Sciences

52

company and, consequently, they give a company a reason to remain in contact with them. Additionally, Existing Customers also represent the best market for future sales, especially if they are satisfied with the relationship they presently have with the marketer
 Former Customers: This group consists of those who have formerly had

relations with the marketing organization typically through a previous purchase. However, the marketer no longer feels the customer is an Existing Customer either because they have not purchased from the marketer within a certain time frame or through other indications. The value of this group to a marketer will depend on whether the customer’s previous relationship was considered satisfactory to the customer or the marketer. For instance, a Former Customer who felt they were not treated well by the marketer will be more difficult to persuade to buy again compared to a Former Customer who liked the marketer but decided to buy from someone else who had a similar product that was priced lower.
 Potential Customers: The third category of customers includes those

who have yet to purchase but possess what the marketer believes are the requirements to eventually become Existing Customers. The requirements to become a customer include such issues as having a need for a product, possessing the financial means to buy, and having the authority to make a buying decision. Locating Potential Customers is an ongoing process for two reasons. First, Existing Customers may become Former Customers and, thus, must be replaced by new customers. Second, while we noted above that Existing Customers are the best source for future sales, it is new customers that are needed in order for a business to significantly expand. In order to realize stronger growth the company may seek to sell their products in other countries where Potential Customers may be quite high.

Acharya Institute of Management and Sciences

53

For most organizations understanding customers is the key to success while not understanding them is a recipe for failure. It is so important that the constant drive to satisfy customers is not only a concern for those responsible for carrying out marketing tasks; satisfying customers is a concern of everyone in the entire organization.

Who is The CUSTOMER?

Every person who enters the business is a potential customer. Even though they may not purchase something today, they may purchase something tomorrow. What a salesperson needs is a better way of determining who the customer really is. One way of doing this is by understanding the steps of the buying and selling process and then determining where the customer is in this process at the moment the salesperson greets him. “AIDA” the selling process, originally conceived as a guide for the creator of good advertising copy. AIDA is a memory device standing for:

 A -- Attention  I -- Interest  D -- Desire  A -- Action If an advertisement follows these principles, then first it secures the reader's attention, which arouses interest, creating a desire to take action to purchase the advertised product. Shoppers are at some point in this selling process when they enter the store. Salespeople who can recognize at which

Acharya Institute of Management and Sciences

54

step of the process the customer is when they meet him can accurately classify the customer and use the information to help make the sale. Consider the three basic types of customers and at what step they are in the selling process.  Customers who know what they want.  Customers who do not know exactly what they want but have a need.  Customers who do not know if they want or need anything.

Customer for DTH service

DTH is related to TV viewers so customer for DTH services are from all ages groups from children to working peoples (male/female) to old age peoples .Viewers like children uses DTH service to see cartoons movies coming in their favorite channels, young’s peoples like to watch sports, news movies etc. Old age people like to see religious and religious channel all are provided with best clarity sound feature by DTH. Also the value added service provided by DTH also is an added advantage for using DTH services. Usage of DTH is not limited to a particular age group and so the target customer for DTH services is huge.

What is SATISFACTION?

The degree to which customer expectations of a product or service are met or exceeded Corporate and individual customers may have widely differing reasons for purchasing a product or service and therefore any
Acharya Institute of Management and Sciences

55

measurement of satisfaction will need to be able to take into account such differences. The quality of after-sales service can also be a crucial factor in influencing any purchasing decision. More and more companies are striving, not just for customer satisfaction, but for customer delight, that extra bit of added value that may lead to increased customer loyalty. Any extra added value, however, will need to be carefully cost. Satisfaction is an overall psychological state that reflects the

evaluation of a relationship between the customer/consumer and a company-environment-product-service. Satisfaction involves of the following three psychological elements: cognitive (thinking/evaluation), affective (emotional/feeling), and behavioral.

EXPECTATIONS and CUSTOMER SATISFACTION

Expectations

are

beliefs

(likelihood

or

probability)

that

a

product/service (containing certain attributes, features or characteristics) will produce certain outcomes (benefits-values) given certain anticipated levels of performance based on previous affective, cognitive, and behavioral experiences. Expectations are often seen as related to satisfaction and can be measured as follows:

 IMPORTANCE: Value of the product/service fulfilling the expectation.  OVERALL AFFECT—SATISFACTION EXPECTATIONS: The liking/disliking

of the product/service.
 FULFILLMENT OF EXPECTATIONS: The expected level of performance

vs. the desired expectations. This is “Predictive Fulfillment” and is a

Acharya Institute of Management and Sciences

56

respondent specific index of the performance level necessary to satisfy.
 EXPECTED VALUE FROM USE: Satisfaction is often determined by the

frequency of use. If a product/service is not used as often as expected, the result may not be as satisfying as anticipated. For example a Harley Davidson that sits in the garage, an unused year subscription to the local fitness center/gym, or a little used season pass to a ski resort would produce more dissatisfaction with the decision to purchase than with the actual product/service.

Need of Organizations Focus on Customer Satisfaction

Businesses monitor customer satisfaction in order to determine how to increase their Customer base, customer loyalty, revenue, profits, market share and survival. Although greater profit is the primary driver, exemplary businesses focus on the customer and his/her experience with the organization. They work to make their customers happy and see customer satisfaction as the key to survival and profit. Customer satisfaction in turn hinges on the quality and effects of their experiences and the goods or services they receive.

SATISFACTION for DTH customers

DTH service provider tries to satisfy its customer by giving its best of best facilities to its user then that of the service given by the cable user. There are lots of incapability’s of cable to its user which the DTH try to fulfill like excellent service. Its good and new development in the world of TV

Acharya Institute of Management and Sciences

57

technology .It has mpeg 4 technology with recording feature. So one can record your favorite program and can watch it later.

Customer care

DTH provider gives 24X7 customer service to its user. Its toll free customer care numbers where you can solve your problem with one free call. If you want movie on demand or want to change your plan then you can do it with one single call.

Easy recharge options

There are various form of recharge option are available to its user. One can choice recharges coupons or online recharge or through mobile can recharge its monthly subscription. In villages availability of recharge coupons are very easy that’s why DTH user is increasing in rural areas also.

Different Channel Package

DTH provides it’s user a wide range package offer to choice. Customer only needs to pay what they wish to see. DTH provides package with discount rate to a premium rate to fit accordingly the paying ability of its user.

Value Added service

Acharya Institute of Management and Sciences

58

Value added services are a term that is used to refer to service options that are complimentary to but also ancillary to a core service offering. The term is utilized widely in a number of industries, most notably telecommunications, DTH. Value added services are often introduced to customers after the client has purchased the core service that these ancillary offerings center around. In some instances, a value added service is something extra that is provided to a customer at no additional charge. At other times, the ancillary service is offered to an existing customer as an added service that is available for a modest additional fee. The actual pricing structure for value added services will usually depend on whether the providers sees the services as amenities that are intended to create a stronger rapport with customers or as an additional revenue stream. Value added services provide advantages for both the customer and the service provider. Customers have the opportunity to receive something above and beyond their basic needs. Providers benefit from the increased rapport with the client that is likely to translate into a more consistent flow of revenue. These additional custom services often cost the provider little to nothing to provide, yet have the potential to enhance the growth and the reputation of the company significantly.

Value Added services provided by DTH

The DTH subscriber market in India has seen an accelerated growth and crossed approximately nine million subscribers. In a short span of time, the entry of multiple players has increased the competition. It became

Acharya Institute of Management and Sciences

59

important for DTH provider to give extra to its user to get a competitive edge over others. DTH players are now coming up with new value added service for its customer not to retain its existing customer but also to attract new customer. With improvement technology DTH player are able to come up with new added service which can be enjoyed by the customer. The various value added service provided by different players:
 Active English, Active Mall, Active Wizkids, Active Learning, Active

Cooking, Active Games, Active Star News, Showcase
 iStock, iGames, iCooking, iNews, iAstro and iSports, Live Recording up

to 200 hours
 Easy access Monster.com, Shaadi.com, yatra.com, conditional access

modules (CAM), facilitates recording of two programs simultaneously, can be viewed on smart phones like i-phone
 iShop, Internet Facility, Recording of live program for mobile

Customer Care service

Customer care can be defined as the ability of an organization to meet the customer wants and needs. Without the proper customer service business cannot shine and it would be faded away soon. Hence, business needs to provide an excellent customer support in order to withstand among the competitors. It is the ability of an organization to exceed the expectations of the customer constantly and consistently. To achieve this, one perspective towards the idea of customer service has to be changed. To exceed the expectations, one should know what the expectations are. To identify each and every aspect of the customer on your product or service.

Acharya Institute of Management and Sciences

60

Importance of customer care

According to the many business guru's and to many more successful companies, the key to success lies not only in having a good product, but also in being able to provide the customer with the level of service they desire. After all Sales are vital to business, so one should take care of its customer. Its help to maximize to increase the sale and also help to retain and attract customer. A poor customer service will cause to lose its existing customer on whom so many money is been spent and also gives bad impression and unable to gain new customer. Organization need a reliable flexible way of managing its customers and a way which can help to gain information on the service the business is delivering. Once these examples of good customer care are established one can ensure that entire organization follows it to be an excellent customer care system.

Support Service provided by DTH

Different DTH player provides support to its customer by providing toll free number so that any problem regarding the service can be informed to the company and requisite action can be taken to solve the problem. All DTH players provides its customer toll free no. to lodge their complains and problems.

What is DTH service?

The Direct-To-Home (DTH) service is a digital satellite service that provides television services direct to subscribers anywhere in the country.
Acharya Institute of Management and Sciences

61

Since it makes use of wireless technology, programs are sent to the subscriber's television direct from the satellite eliminating the need for cables and any cable infrastructure This is particularly valuable in remote and difficult to reach areas where cable and in many cases, terrestrial television services are poor or nonexistent. DTH services also provide the finest of picture and sound quality which is considered to be second to none worldwide. Now surround sound, home theaters, live concerts and daily television programming are all delivered to your home with the same quality as any modern movie theater.

How does DTH work?

A DTH network consists of a broadcasting center, satellites, encoders, multiplexers, modulators and DTH receivers. A DTH service provider has to lease Ku-band transponders from the satellite. The encoder converts the audio, video and data signals into the digital format and the multiplexer mixes these signals. At the user end, there will be a small dish antenna and set-top boxes to decode and view numerous channels. On the user's end, receiving dishes can be as small as 45 cm in diameter. DTH is an encrypted transmission that travels to the consumer directly through a satellite. DTH transmission is received directly by the consumer at his end through the small dish antenna. A set-top box, unlike the regular cable connection, decodes the encrypted transmission.

Acharya Institute of Management and Sciences

62

How does DTH really differ from cable TV?

The way DTH reaches a consumer's home is different from the way cable TV does. In DTH, TV channels would be transmitted from the satellite to a small dish antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster directly connects to the user. The middlemen like local cable operators are not there in the picture. 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 the house. As explained above, in DTH signals directly come from the satellite to DTH dish. In DTH one can choose what he likes and only pay for what he/she wants to watch. It is not an all or nothing proposition like most cable. Premium Channels, according to customer choice, selectable anytime by a simple call to the Customer Service Center. Advanced Viewing Control Features like the Electronic Program Guide (EPG) which provides the user with the current and next program on all channels, Parental Lock which safeguards its children’s viewing options, and Pre-booked Pay-Per-View and Impulse Pay-Per-View – Watch that boxing or golf match, horse racing or Olympic events you have been waiting to see – in the comfort of home.

Acharya Institute of Management and Sciences

63

RESEARCH METHODOLOGY
What is RESEARCH?

Research can be defined as the search for knowledge or any systematic investigation to establish facts. The primary purpose for applied research (as opposed to basic research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. Scientific research relies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us. It makes practical applications possible. Scientific research is funded by public authorities, by charitable organizations and by private groups, including many companies. Scientific research can be subdivided into different classifications according to their academic and application disciplines.

Research processes

Generally, research is understood to follow a certain structural process. Though step order may vary depending on the subject matter and researcher, the following steps are usually part of most formal research, both basic and applied:

Acharya Institute of Management and Sciences

64

 Formation of the topic  Hypothesis  Conceptual definitions  Operational definition  Gathering of data  Analysis of data  Test, revising of hypothesis  Conclusion, iteration if necessary A common misunderstanding is that by this method a hypothesis can be proven or tested. Generally a hypothesis is used to make predictions that can be tested by observing the outcome of an experiment. If the outcome is inconsistent with the hypothesis, then the hypothesis is rejected. However, if the outcome is consistent with the hypothesis, the experiment is said to support the hypothesis. This careful language is used because researchers recognize that alternative hypotheses may also be consistent with the observations. In this sense, a hypothesis can never be proven, but rather only supported by surviving rounds of scientific testing and, eventually, becoming widely thought of as true (or better, predictive), but this is not the same as it having been proven. A useful hypothesis allows prediction and within the accuracy of observation of the time, the prediction will be verified. As the accuracy of observation improves with time, the hypothesis may no longer provide an accurate prediction. In this case a new hypothesis will arise to challenge the old, and to the extent that the new hypothesis makes more accurate predictions than the old, the new will supplant it.

Research methods

Acharya Institute of Management and Sciences

65

The goal of the research process is to produce new knowledge, which takes three main forms (although, as previously discussed, the boundaries between them may be obscure):
 Exploratory research: which structures and identifies new problems  Constructive research: which develops solutions to a problem  Empirical research: which tests the feasibility of a solution using

empirical evidence

Research can also fall into two distinct types:  Primary research  Secondary research In social sciences and later in other disciplines, the following two research methods can be applied, depending on the properties of the subject matter and on the objective of the research:  Qualitative research  Quantitative research Research is often conducted using the hourglass model Structure of Research. The hourglass model starts with a broad spectrum for research, focusing in on the required information through the methodology of the project (like the neck of the hourglass), then expands the research in the form of discussion and results.

PRIMARY RESEARCH

Primary research (also called field research) involves the collection of data that does not already exist. This can be through numerous forms, including questionnaires and telephone interviews amongst others. This
Acharya Institute of Management and Sciences

66

information may be collected in things like questionnaires and interviews. The term is widely used in market research and competitive intelligence. May be very expensive because many people need to be confronted. By the time the research is complete it may be out of date. People may have to be employed or avoid their primary duties for the duration of the research. People may not reply if emails or letters are used.

DESCRIPTIVE REASEARCH

Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time.

 Statement of the problem  Identification of information needed to solve the problem  Identification of target population and determination of sampling procedure  Design of procedure for information collection  Collection of information  Analysis of information  Generalizations and/or predictions

Acharya Institute of Management and Sciences

67

Descriptive research designs include the following

 Simple descriptive  Comparative descriptive  Correlational

A simple descriptive research design is used when data are collected to describe persons, organizations, settings, or phenomena. For example, a researcher administers a survey to a random sample of teachers in the state in order to describe the characteristics of the state’s population of teachers.

With a comparative descriptive design, the researcher describes two or more groups of participants. For example, a researcher administers a questionnaire to three groups of teachers about their classroom practices. The researcher chooses the three schools because the schools vary in terms of the amount of professional development that they provide to teachers.

A correlational research design is used to describe the statistical association between two or more variables. For example, a researcher measures the student-teacher ratio in each classroom in a school district and measures the average student achievement on the state assessment in each of these same classrooms. Next the researcher uses statistical techniques to measure whether the student-teacher ratio and student achievement in the school district are connected numerically; for example, when the studentteacher ratio changes in value, so does student achievement. The researcher
Acharya Institute of Management and Sciences

68

can then use the student-teacher ratio to predict student achievement, a technique called regression analysis. When there is more than one predictor variable, the technique of multiple regression analysis produces a multiple correlation that is used for prediction.

Descriptive research can be either quantitative or qualitative. It can involve collections of quantitative information that can be tabulated along a continuum in numerical form, such as scores on a test or the number of times a person chooses to use a-certain feature of a multimedia program, or it can describe categories of information such as gender or patterns of interaction when using technology in a group situation. Descriptive research involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data collection. It often uses visual aids such as graphs and charts to aid the reader in understanding the data distribution. Because the human mind cannot extract the full import of a large mass of raw data, descriptive statistics are very important in reducing the data to manageable form. When in-depth, narrative descriptions of small numbers of cases are involved, the research uses description as a tool to organize data into patterns that emerge during analysis. Those patterns aid the mind in comprehending a qualitative study and its implications. Most quantitative research falls into two areas: studies that describe events and studies aimed at discovering inferences or causal relationships. Descriptive studies are aimed at finding out "what is" so observational and survey methods are frequently used to collect descriptive data. Studies of this type might describe the current state of multimedia usage in schools or patterns of activity resulting from group work at the computer.

Acharya Institute of Management and Sciences

69

Descriptive statistics utilize data collection and analysis techniques that yield reports concerning the measures of central tendency, variation, and correlation. The combination of its characteristic summary and correlational statistics, along with its focus on specific types of research questions, methods, and outcomes is what distinguishes descriptive research from other research types. Three main purposes of research are to describe, explain, and validate findings. Description emerges following creative exploration, and serves to organize the findings in order to fit them with explanations, and then test or validate those explanations.

The Nature of Descriptive Research

The

descriptive for

function

of

research and

is

heavily

dependent

on

instrumentation

measurement

observation.

Since

descriptive

research spans both quantitative and qualitative methodologies, it brings the ability to describe events in greater or less depth as needed, to focus on various elements of different to can yield research rich techniques, in that and to to engage ways. quantitative Descriptive statistics studies organize information data meaningful lead

important

recommendation.

Methods of Data collection for descriptive Research

The methods of collecting data for descriptive research can be employed singly or in various combinations, depending on the research questions at hand. Descriptive research often calls upon quasi-experimental

Acharya Institute of Management and Sciences

70

research design. Some of the common data collection methods applied to questions within the realm of descriptive research includes surveys, interviews, observations, and portfolios.

Methods of data collection are

 Survey Techniques: Structured questions to assess people’s beliefs,

attitudes, and self-reports of behavior. representative sample.

If the researcher wishes to

generalize the responses to a population, it is important to have a Surveys that rely on self-selection produce Surveys also provide information for non-generalizable results.

correlational research. One can correlate responses to some questions (often demographic questions) with responses to other questions (often attitudes or reports of behavior). Survey question must be clear and unambiguous. Even if the questions are unambiguous and nonleading, people may display a social desirability bias and give positive or socially acceptable and desirable answers. Survey methods include: (1) the interview or face-to-face method which is generally viewed as the best method for obtaining a high rate of responses but is also very costly; (2) phone surveys, which are less expensive but have a higher non-response rate; and (3) written or mail surveys, which are least expensive but have a very high non-response rate. messages can help increase the response rate.
 Questionnaires: A questionnaire is a tool to collect the data. It is very

Follow-up

helpful opinion.

to

study

behavior,

past

and

present.

Demographic

characteristic such as age, sex, income, occupation. Attitude and

Steps involve in developing a questionnaire
Acharya Institute of Management and Sciences

71

 Determine the Objectives: What is to be finding out should be

ascertained and following this the questionnaire should be to set. This is a very important step in whole process because if the objective is not properly defined then the data and result obtain won’t give any right suggestion or advice.
 Delimiting the Sample: The size of the sample should be determined

from whom the information is to be obtain. Very large sample or too small sample size will lead to error in result. Therefore sample size should be optimum so as to maximize the information.
 Constructing the Questionnaire: When people first attempt to build

questionnaires they quickly discover that questions that appear clear to them are often open to many different interpretations. It is a time consuming task and once again need to consider how to plan and analyze the possible responses. The format of the questionnaire must consider the most appropriate format: ➢ Open-Ended Questions allow the responder a variety of response options. The good part is that responders are free to say what they like. The bad part is that they take more time to answer and are tougher to analyze. ➢ Closed Questions direct responders to certain choices among provided options. Responders are asking to rank order choices, select a score on a scale, or respond to provided categories. The wording of the questions, and the length and appearance of the questionnaire requires careful consideration to maximize the returns.

 Conducting a Pilot Study: A pilot study is an essential first step.

Acharya Institute of Management and Sciences

72

 Cover Letters: Many questionnaires will not be returned. Some people

will discard them immediately upon receipt because they feel they don’t have time. Others will look at the length or the type of information requested and then ignores or discards. The cover letter include with the questionnaire creates a first impression and may sway whether or not get a return. A brief, grammatically well written letter outlining clearly why one is requesting assistance may keep the questionnaire out of the discard pile (at least for the time being!). Usually, the cover letter will include a requested date to receive the response.
 Sending the Questionnaire: Sending the questionnaire through mail

helps to reach a large number of respondents throughout the country. Some questions which cannot be answered immediately and needs some thinking on part of respondent, this method is the best way to get answer in proper way. It saves cost, personal and sensitive questions are well answered.
 Follow up: Response rates are typically much lower than expected.

Some types of questionnaires with certain samples might elicit much higher than average responses. A 50% response rate is often as good as it gets. To increase responses many researchers develop a system of follow-ups. These might begin with a postcard reminder, then be followed up with another questionnaire, and finally - if the response is vital - with a phone call. When response rates are extremely low (1020%), the value of the findings is highly questionable.
 Analyzing

the

Results

and

Preparing

the

Report:

Once

the

questionnaires have been returned with a satisfactory response rate, the data must be analyzed and reported. Most often descriptive statistics (means, medians, modes, %, demographic data etc.) will be used. Remember however, that methods of analysis will of course have been decided in the planning phase of the study. To a great extent, the

Acharya Institute of Management and Sciences

73

nature of the discussion section in r study will depend on the results obtain.

The Delphi Method

The Delphi method is a systematic, interactive forecasting method which relies on a panel of experts. The Delphi technique is another way of obtaining group input for ideas and problem-solving. Unlike the nominal group process, the Delphi does not require face-to-face participation. It uses a series of carefully designed questionnaires interspersed with information summaries and feedback from preceding responses. In a planning situation, the Delphi can be used to:  Develop a number of alternatives;  Assess the social and economic impacts of rapids community growth;  Explore underlying assumptions or background information leading to different judgments;  Seek out information on which agreement may later be generated;  Correlate informed judgments on a subject involving many disciplines;  Educate respondents on the diverse and interrelated elements of a topic. The Delphi begins with the initial development of a questionnaire focusing on the identified problem. An appropriate respondent group is selected, and then the questionnaire is mailed to them. Each participant answers the questionnaire independently and returns it. The initiators of the questionnaire summarize responses, and then develop a feedback summary and a second questionnaire for the same respondent group. After reviewing the feedback summary, respondents independently rate priority ideas included in the second questionnaire, then mail back the responses. The
Acharya Institute of Management and Sciences

74

process is repeated until investigators feel positions are firm and agreement on a topic is reached.

DATA ANALYSIS

TABLE I: People aware of DTH Services

Option Aware Not aware

Total response 134 366

Percentage 26.8 73.2

Interpretation: Many people still do not aware of DTH services. They do not know what DTH stands for or what the service is exactly providing to the customers. We found that many people recognized DTH only when it was mentioned as Tata Sky/Dish TV/Big TV. As shown above only 26.8% respondents are aware of the DTH service or what DTH stands for.

Acharya Institute of Management and Sciences

75

TABLE II: People using DTH service

Option DTH users Cable users

Total response 197 303

Percentage 39.4 60.6

Interpretation: The DTH penetration is 39.4% while Cable connection still captured as large as 60.6% of the market*. With this growing rate DTH can capture 50% of the market by 2012.

*Based on 500 random samples.

TABLE III: The DTH services and their users

Options Airtel Digital TV Dish TV Reliance Big TV Sun DTH Tata Sky Videocon D2H DD Direct

Total response 32 15 37 36 71 4 2

Percentage 16.2 7.6 18.8 18.3 36.0 2.0 1.0

Acharya Institute of Management and Sciences

76

Interpretation: Tata Sky is leading the market with 36%, followed by Reliance Big TV 18.8%, Sun DTH 18.3%, and Airtel Digital TV with 16.2%.

Acharya Institute of Management and Sciences

77

TABLE IV: Reason for choosing the service

Option Good picture & sound quality Poor cable service Flexible package offer Compatibility with TV sets

Total response 83 50 52 12

Percentage 42.1 25.4 26.4 6.1

Interpretation: Majority of people (42.1%) choose DTH services for the better picture and sound quality provided as compared to normal cable connection. Flexible channel packages of DTH service (26.4%) and poor cable service (25.4%) are also a major reason for opting DTH.

TABLE V: Source of awareness

Option Newspapers & magazines Advertisements on TV, Radio etc. Friends & family Internet

Total response 48 104 39 6

Percentage 24.4 52.8 19.8 3.0

Acharya Institute of Management and Sciences

78

Interpretation: The advertisements on TV, radio is the major source for promoting and creating awareness for DTH with 52.8% response, followed by advertisements on published media with 24.4% and friends & family reference with 19.8%.

TABLE VI: Users of the Value Added services

Option Yes No Rarely

Total response 43 115 39

Percentage 21.8 58.4 19.8

Interpretation: A large number of people, 58.4% are not using the value added services provided by the DTH companies. 19.8% people rarely uses the services. Only 21.8% are using the services currently.

TABLE VII: Packages using

Option South India packs Rest of India packs

Total response 156 41

Percentage 79.2 20.8
79

Acharya Institute of Management and Sciences

Interpretation: 79.2% people are using the South India Channels Packages and 20.8% go for the Rest of India Channel Packages.

TABLE VIII: Customers’ satisfaction with the packages

Option Yes No To some extent Can't say

Total response 114 30 48 5

Percentage 57.9 15.2 24.4 2.5

Interpretation: 57.9% people are satisfied with the number of channels they are getting with the subscribed packages, while 15.2% people are not satisfied and 24.4% are satisfied to a certain extent but want some additional channels.
Acharya Institute of Management and Sciences

80

TABLE IX: Customer Care rating

Option Excellent Good Average Poor

Total response 32 104 57 4

Percentage 16.2 52.8 28.9 2.0

Interpretation: More than half of people are satisfied with the Customer Care service of the DTH players. 52.8% rated it as good while 16.2% rated the services as excellent, i.e. a total of 69% are fully satisfied with the services.

Acharya Institute of Management and Sciences

81

TABLE X: DTH account recharging mode

Option Recharge coupons Online recharge Mobile recharge

Total response 124 70 3

Percentage 62.9 35.5 1.5

Interpretation: The main mode of recharge the DTH account is the recharge coupons with 62.9%. 35.5% people go for the online recharge option.

TABLE XI: Availability of recharge coupons

Option Excellent Good Average Poor

Total response 17 67 71 42

Percentage 8.6 34.0 36.0 21.3

Interpretation:

Acharya Institute of Management and Sciences

82

The availability of recharge coupons are not good in many localities and customers find it little inconvenient.

TABLE XII: Technologies desired

Option Internet with DTH Universal remote No set top box Recording

Total response 59 98 15 25

Percentage 29.9 49.7 7.6 12.7

Interpretation: Almost half of the people (49.7%) want a Universal Remote with their DTH connection. While 29.9% people want internet connection with their DTH connection and 12.7% want the recording feature with the DTH.

Acharya Institute of Management and Sciences

83

TABLE XIII: Overall rating for DTH

Option Excellent Good Average Poor

Total response 18 128 42 9

Percentage 9.1 65.0 21.3 4.6

Interpretation: Majority of customers are satisfied with the overall performance of the DTH players.

TABLE XIV: Reason for using cable

Option Total response Low monthly rental 129 Number of local channels 77 Frequent airing of local 48 movies No or very less installation charges 49

Percentage 42.6 25.4 15.8 16.2

Acharya Institute of Management and Sciences

84

Interpretation: 42.6% people subscribing the normal cable connection for low monthly rental. And 25.4% want to go for the number of local channels provided by the cable operator. While 15.8% are using cable for the airing of local movies and 16.2% are using it because of the free installation or in some cases a minimal charge.

Acharya Institute of Management and Sciences

85

TABLE XV: Satisfaction with the provided channels

Option Yes No To some extent Can’t say

Total response 139 66 85 13

Percentage 45.9 21.8 28.0 4.3

Interpretation: Most of the people (46.9%) are satisfied with the channels provided by the cable operator. While 28.0% want some extra channels and 21.8% are not satisfied at all.

Acharya Institute of Management and Sciences

86

TABLE XVI: Users of digital set top box with cable connection

Option Yes No

Total response 105 198

Percentage 34.7 65.3

Interpretation: 65.3% are not using any Digital Set Top Box with the cable connection and the remaining 34.7% are using it.

Acharya Institute of Management and Sciences

87

TABLE XVII: Satisfaction with customer care of cable operator

Option Excellent Good Average Poor

Total response 14 142 115 32

Percentage 4.6 46.9 37.9 10.6

Interpretation: 46.9% customers are satisfied with the customer care service of the cable operators, while 37.9% rated it as average and 10.6% thinks it is poor.

Acharya Institute of Management and Sciences

88

TABLE XVIII: Picture and sound quality of cable connection

Option Excellent Good Average Poor

Total response 16 151 107 29

Percentage 5.3 49.8 35.3 9.6

Interpretation: Half of the cable user thinks the picture and sound quality of the cable connection they are using are good.

TABLE XIX: Overall rating for cable connection

Option Excellent Good Average Poor

Total response 17 159 95 32

Percentage 5.6 52.5 31.4 10.6

Interpretation:

Acharya Institute of Management and Sciences

89

52.5% customers rated cable connection as good for overall rating and 31.4% thinks its average.

Area wise data presentation

R T NAGAR

Option DTH user Cable user

Total response 10 35

Percentage 22.2 77.8

Acharya Institute of Management and Sciences

90

VIDYARANA PURA

Option DTH user Cable user

Total response 28 14

Percentage 66.7 33.3

Acharya Institute of Management and Sciences

91

GIRINAGAR

Option DTH user Cable user

Total response 6 18

Percentage 25 75

Acharya Institute of Management and Sciences

92

MARATHALLI

Option DTH user Cable user

Total response 46 38

Percentage 54.8 45.2

Acharya Institute of Management and Sciences

93

BTM

Option DTH user Cable user

Total response 19 38

Percentage 33.3 66.7

Acharya Institute of Management and Sciences

94

JP NAGAR

Option DTH user Cable user

Total response 23 27

Percentage 46.0 54.0

Acharya Institute of Management and Sciences

95

JAYANAGAR

Option DTH user Cable user

Total response 16 36

Percentage 30.8 69.2

Acharya Institute of Management and Sciences

96

DOLLARS COLONY

Option DTH user Cable user

Total response 21 17

Percentage 55.3 44.7

Acharya Institute of Management and Sciences

97

NANDI DURGA ROAD

Option DTH user Cable user

Total response 10 6

Percentage 62.5 37.5

Acharya Institute of Management and Sciences

98

VIJAYNAGAR

Option DTH user Cable user

Total response 14 37

Percentage 27.5 72.5

Acharya Institute of Management and Sciences

99

CHIKKPET

Option DTH user Cable user

Total response 0 22

Percentage 0.0 100

Acharya Institute of Management and Sciences

100

MATHIERE

Option DTH user Cable user

Total response 4 7

Percentage 36.4 63.6

Acharya Institute of Management and Sciences

101

RAJAJINAGAR

Option DTH user Cable user

Total response 0 8

Percentage 0.0 100

Acharya Institute of Management and Sciences

102

CONCLUSION
The DTH service was introduced in Indian market in 2004. The initial players were DD direct and followed by Dish TV. Later many DTH service providers came into the market viz Tata Sky, Reliance Big TV, Airtel Digital TV, and Sun Direct. In 6 years it has significantly grasp the Indian home entertainment market. From the sample size of 500 we got a penetration of DTH 40% with approx. 6.6 % growing rate during the 6 years period in Bangalore city. With this rate the DTH Industry will be able capture 50% of the Indian Entertainment Market by 2012.

Factors affect choosing a DTH service

Many factors are taken into consideration before customers decide to take DTH.
 Installation: Initial charges for installing DTH is expensive as compare

to cable service which takes only a minimal charge as security against the service. Therefore many customers hesitate to go for DTH service.
 Mobility: Peoples staying in rented house finds it difficult during

shifting from one place to another to carry and re-install dish for continuing the service.
 Flexibility with the service: Very rigid with the service provided by the

DTH service providers. Any delay in paying rental charges may lead to discontinue of the service. But in cable service is quite flexible with its service.

Acharya Institute of Management and Sciences

103

 Handling two separate remote: User of DTH service had to handle to

separate remote for TV set and for set top box. It sometime makes problematic and irritating to handle two remote.
 User friendly: Some of features and technology are not clearly

understood by the user like setting reminder for programs for next day or week, value added service like on-line shopping, active services, many job portals.
 Some technology said but not delivered: Some of the companies

promise to provide advance technology for better viewing but are not delivered after taking connection.

Lack of awareness of DTH service

During our survey we found that the awareness of DTH as services was very limited to a few number of people. The people to whom we communicated tends to identify DTH only under the name of Tata Sky. It could be said that Tata Sky has positioned itself in the market in a way that peoples relates or figure out DTH as Tata Sky. Some people hesitate to take DTH service as initial expenditure have to made on setting up of DTH like the dish, set top box as compared to cable where everything get easily installed without extra charges. But DTH provides better service than cable since it gives digital picture quality and clear sound. Since cable provides analog picture quality to convert into digital needs separate set top box which itself cost around ` 1400, and makes it almost equivalent to the DTH installation. Now companies are coming up with new plan like installation and subscription free for 6 months to one year which makes the cost DTH almost similar to that of cable subscription annually.

Acharya Institute of Management and Sciences

104

DTH service provider gives its user pay for per view so customer can opt for those channels which he want to view with maximum number of channels as compared to cable where one has no choice else but to watch what is provided.

Marketing Strategies by different DTH Player

Different DTH player uses various marketing policies to attract new customer and retain its old customer. Coming up with new package facilities are very commonly used by the competitor to become the market leader. Pricing strategy is one of the most common competitive tools used by the companies to increase its market share.

Dish TV

Market leader Dish TV has dropped the cost of its TruHD box from ` 5,990, when launched, to ` 2,990 as a reaction towards the pricing strategy of Tata Sky. Dish TV’s package includes the price of the set-top box (STB), LNB, Dish antenna and remote. The company is also offering two months subscription of Platinum/South Platinum Pack and two months subscription of HD Pack. Customers will have to pay an extra amount of ` 200 for installation.
Acharya Institute of Management and Sciences

105

Direct-to-home (DTH) operators sense they can expand their up-end customers through their HD service offerings. Tata Sky had set the ball rolling with the launch of its High Definition (HD) service at a price of ` 2,599.

Tata Sky

Tata Sky has offered competitive pricing at entry-level subscription plan to increase in customer base. In search of newer audiences in smaller towns, DTH operator Tata Sky is introducing a new package worth ` 99, called Super Hit Pack. It consists of 53 channels. Tata Sky launched its high definition (HD) service at a price of ` 2,599.While other like Sun Direct HD service is currently priced at ` 9,990, Reliance Big is priced at ` 7,490 while Dish TV's HD service, recently launched, is being offered at ` 5,999. Tata Sky in Bangalore is now available with best offer. Tata Sky New Set Top Box with Installation at ` 1599 only. Save ` 1000 installation just for booking it this week. And if one books it now, they'll also get Free 2 Months subscription of south value or super value pack.
 Free Set Top: Set top Boxes can be given free while ensuring lock in by

providing base pack free for limited time duration, thus inducing update to next level.
 Lock in of 1 year: Ensure long term lock in(s) by providing incentives

for pre-payment of long term charges. Continue with current strategy of providing 2 months free on payment of 10 months services.
 Multiple Connections: Provide discounts for consumers buying second

Tata Sky Connection (up to 50% off)

Acharya Institute of Management and Sciences

106

 Encourage References: Provide

discounts on Monthly charges if

reference from existing consumer becomes a new customer.
 Regional Disparity: Provide free regional packs in local areas to ensure

switch from Cable TV to DTH service, i.e. provide free south Jumbo pack for customers in all Southern States.
 Community Dish: Provide Incentives in the form of Free Months

charges for first 3-6 months and reduce the Installation charges per flat.

Sun Direct

Sun Direct with a low monthly subscription of ` 75, excluding taxes. Sun Direct, to be launched by the end of the month, will offer 75 TV channels and 15 radio channels. Both the dish and set-top box would be free, but the company will collect one-time installation charges of ` 999. Sun Direct with new HD pack rate of ` 2940, with 2 months Metro pack + all HD channels and Services for 2 months.

Reliance Big TV

Reliance Big TV is launching the entry offer at ` 7990/- bundled with three months of Diamond Pack in the non-south market. In the southern market the entry offer is priced at ` 7,790/- bundled with five months of value pack with a full bouquet of sports channels. at an exceptional price of ` 5,990/-. For existing Reliance Big TV customers the company is offering an upgrade option from SD to HD DVR

Acharya Institute of Management and Sciences

107

Airtel Digital TV

Airtel digital TV [HD] will be available for New Customers at an attractive bundle price of ` 2840 inclusive of 75 Days subscription of the Economy Pack or 100 Days subscription of the South Super Value/South Super Sports Value Pack.

Videocon D2H

Videocon D2h DTH Price is ` 1,690/- Satellite Box. One month diamond pack free worth ` 275 free installation worth ` 300.

Also unique and quality features were been included each competitor to make its customer can enjoy quality viewing of home entertainment:

Tata Sky

+

 Pause Live TV: With Tata Sky

+

enables to live TV while watching TV,

press pause on Tata Sky+ remote to Pause Live TV. To resume, press the play button.
 Record Live TV: To record live TV programmers’, choose a program in

the Guide or search & scan banner to record, then press the record

Acharya Institute of Management and Sciences

108

button on your Tata Sky+ remote. It can record up to 130 hours of program.

Dish TV

Direct to Home services are upbeat in the market now; Dish TV is release its new scheme “DISHTV ON WHEELS’. Mobile Dish TV on wheels is all about watching TV on the go, especially when one is driving long distance or even commuting to office for long hours in this traffic. Mobile Dish TV offer more than 100 channels include music & cricket on its primary focus.

Reliance Big TV

Reliance uses MPEG4 tech for better picture quality now with 12 transponders in hand gave them the unique edge of being able to broadcast highest no. of channels i.e. over 400 channels.

Acharya Institute of Management and Sciences

109

 Recording: Reliance Big TV provides digital video recording up to 200

hours. Also provides functions like pause, rewind, fast forward – catch up with shows. Recorded content preview to get a snapshot of the programs before viewing. Set-top box with 160 GB hard drive gives superior performance.
 High Definition: The high definition feature of Reliance Big TV HD DVR

offers five times clearer & sharper image quality with two million pixel resolution and digital surround sound effect. The digital video recording capabilities offer features like pause, play and rewind Live TV, record Live TV to allow one to record a program while watching another channel.
 Universal Remote:- Reliance Big TV is also offering a 3-in-1 Universal

Remote to enable its subscribers to the advantage of using single remote to control three devices namely, the TV, Set-Top Box and any other music/ disc player system. Airtel Digital TV

 High Definition: Airtel digital TV launches its first Digital Dolby Plus

Sound experience as part of an HD offering for the Indian DTH market. Airtel digital TV HD offer viewer’s crystal clear resolution that is 5 times better than normal, through the combination of the latest MPEG 4 DVBS2 technology and High Definition signal processing using a powerful 256MB RAM processor. The Dolby Digital Plus feature provides for an enhanced surround sound experience.
 Recording through mobile: Airtel digital TV recorder', an enhanced set

top box (STB) with the capability to record television shows from mobile phones anywhere in the world. It give its customer the of option to search for any television show for two days on the mobile; has the facility to pause live television program for up to forty-five minutes; offers ease of search by giving choices such as program name, show
Acharya Institute of Management and Sciences

110

details

and/or

date/time

using

the

remote;

provides

program

information instantly, including description, length and rating on the mobile; and has the option to give fixed time based commands to record shows.

Sun Direct

 South Indian Channels: Sun Direct provides all south Indian channels

than any other player gives but it offer less Hindi channels.
 High Definition: Sun Direct test launched the first ever High Definition

(HD) service on DTH platform in India in April 2009. Sun Direct is partnering with Samsung India to promote High Definition content. The company will be giving consumers an experience of Full HD content by showcasing Samsung Full HD LCD TVs with Sun Direct at the Samsung Brand Shops and select multi brand outlets.

Videocon D2H

 No set top box: Videocon launch its DTH service without any set top

box. It’s a chip which is inserted or in built in Videocon TVs thereby no need of having set top box. This facility is available only in Videocon TV set.

Value added services are also being provided by some players apart of home entertainment so as that customer can use DTH services in other process such as:

Acharya Institute of Management and Sciences

111

Tata Sky

 ACTIVE ENGLISH  ACTIVE MALL  ACTIVE WIZKIDS  ACTIVE LEARNING  ACTIVE STORIES  ACTIVE COOKING  ACTIVE GAME  ACTIVE STAR NEWS

Reliance Big TV

 I-Stock  I-Games  I-Cooking  I-News  I-Astro  I-Sports  I-Interactive

Dish TV

 Shaadi.com: Dish TV tie up with Matrimonial Service ‘shaadi Active’ in

association with Shaadi.com. Through parents will be able to search for eligible bride / groom of their choice from amongst millions of profiles listed on Shaadi.com.

Acharya Institute of Management and Sciences

112

 Monster.com: Dish TV has tied up with job search portal Monster.com

to allow its consumers to browse through job opportunities. The service also promises to offer counseling to fresher.

Airtel Digital TV

 Internet services: It provides internet facility to the user along with DTH service under

different speed.
 I-Shop’s Customer can shop directly from home without stepping in any shopping center.

I-Shop will function as a real-time 24-hour shopping channel on television. Payment
can be made through credit card, cheque.

Acharya Institute of Management and Sciences

113

FINDINGS

Penetration

From our survey, we found 40% penetration of DTH through random sample size. It has been 6 years since DTH launched; we can find that growth of 6.6% in entertainment market.

Popularity

User of DTH was belonging to lower and middle class people while upper class people find DTH service an expensive service. Picture quality and channel variety with different packages attract to choose DTH service over cable service. But some people perceive DTH service is expensive because of its installation charges and no flexibility with service. Also family having children DTH service are more popular and demanded over single and retire people.

Suggestion

 Door to door: Promoting door to door about the DTH service will help

people to get in depth knowledge of the service. It will overcome the hesitation of people to find out the information the service. This may help to increase the no. of DTH user.

Acharya Institute of Management and Sciences

114

 Mall intercepts: Mall interception can also be done and also companies

can set up some display for the DTH services. This way companies can make the upper middle class aware about the services.
 Advertisement regarding price: Most of the time DTH player promote

its value added services, number of channels provided or features like picture quality, sound but if it promote the actual price of service including prices of set top box to installation charges will better knowledge about the service.
 Service flexibility: DTH should be flexible in its service to customer and

not disconnect the service if rental not paid on time, rather it should give credit period to its customer. If up to the credit period rental is not paid it can discontinue the service.
 Mobility: People living in rented house face the problem with DTH

when shift from one place to another. Going to new place have to re install it which involve extra charges. It will be better if the company provide free re installation and within a day after shifting.

Acharya Institute of Management and Sciences

115

Area wise observation

BTM Layout Vijaynagar Girinagar RMV Colony R.T.Nagar Rajajinagar Jayanagar Vidyaranyap ura Nandi Durga Road Mathikere JP Nagar Chikpet Marathalli

A B C D E F G H I J K L M

BIBLOGRAPHY

 A Project Report on “MARKET RESEARCH FOR VIDEOCON d2h+” by
Dheeraj Kumar Maurya [PUNE INSTITUE OF BUSINESS MANAGENT]  http://www.dishtv.in/  http://www.bigtv.co.in/home.html  http://www.airtel.in/digitaltv  http://www.tatasky.com/channel-packages.html  http://www.tataskyplus.com/  http://www.sundirect.in/  http://www.d2h.com/WSC/ppv.aspx? gclid=CISyuaLthKMCFcVR6wodmjICdg  http://b4tea.com/information/videocond2hcom-videocon-dth-dish-tvservice-packages-channel-list  http://www.financialexpress.com/news/power-cut-at-insat4b-hitsdth-services/644427/

Acharya Institute of Management and Sciences

116

 http://www.indiabroadband.net/tata-sky/21808-will-tata-sky-switchmpeg-4-a.html  http://www.indiadth.in/  http://en.wikipedia.org/wiki/Research  http://www.cse.iitb.ac.in/~uday/soft-copies/what-is-research.pdf  http://www.experiment-resources.com/what-is-research.html  http://medind.nic.in/jaq/t06/i6/jaqt06i6p479.pdf  http://books.google.co.in/books? id=x_kp__WmFzoC&printsec=frontcover&dq=research+methodology &source=bl&ots=mPscG06kY7&sig=Oo4C2dMh6C0eaeqOrfIyHYyKSQ Y&hl=en&ei=pDdLTMycPIS_rAeL0ZG5Dg&sa=X&oi=book_result&ct=r esult&resnum=1&ved=0CBwQ6AEwAA#v=onepage&q&f=false  http://www.americanheart.org/presenter.jhtml?identifier=218  http://wiki.answers.com/Q/Describe_different_types_of_research  http://www.disability.wa.gov.au/Research/Definitions/ResearchTypes .htm  http://hubpages.com/hub/Types-of-Research  http://en.wikipedia.org/wiki/Marketing_research  http://en.wikipedia.org/wiki/Descriptive_research  http://www.marketresearchworld.net/index.php? option=com_content&task=view&id=800&Itemid=64  http://sifybroadband.techwhack.com/811-sun-direct-dth  http://www.pluggd.in/best-dth-broadband-service-provider-in-indiausing-trimbill-297/  http://www.articlesbase.com/communication-articles/all-about-dthservices-sun-tv-dish-tv-reliance-doordarsan-and-airtel-dth1970784.html  http://indiandth.blog.co.in/  http://www.rediff.com/money/2004/mar/23spec.htm  http://images.google.com/

Acharya Institute of Management and Sciences

117

XX

XXX

Acharya Institute of Management and Sciences

118

Sign up to vote on this title
UsefulNot useful