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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR) ISSN: 2319-4413 16

Volume 4, No. 6, June 2015

Overview of Indian DTH Service Industry


Divyang Tiwari, Assistant Professor, Faculty of Management, Shree H.N. Shukla College of Management Studies,
Rajkot

ABSTRACT The one risk is of that of theft. Though DTH has its pluses,
waiting for a year will ensure better deals, By postponing
Direct-to-home (DTH) service refers to distribution of the buy, customers could have on their rooftop a dish that
multi-channel TV programs in Ku band by using a satellite can eventually make them the master of choosing the
system for providing TV signals direct to subscribers' channels they want to pay and watch. Options now
premises.DTH provides subscribers the advantage of available in DTH do not place them in such a position.
geographical mobility meaning thereby that once a Main disadvantage of DTH is fading of the signal due to
customer purchases DTH hardware, he/she can continue rains. Heavy rains may result into outage for a few
to use the same unit anywhere in India. DTH is defined as minutes in the DTH signal.
the reception of satellite programmes with a personal dish
in an individual home. In customer point of view, the HISTORY OF DTH IN INDIA
reception of satellite programs with a personal dish in an
individual home. And an individual set top box DTH services were first proposed in India in 1996.But
empowering you to pick & choose you bundles of choice they did not pass approval because there were concerns
and pay for what you watch. DTH offers better quality over national security and a cultural invasion. In 1997, the
picture than cable TV and stereophonic sound effects. It government even imposed a ban when the Rupert
reaches even those places where cable is not available. Murdoch-Owned Indian SKY Broadcasting was about to
This service is also providing value-added services that launch its DTH services in India. Indian DTH space is a
include tale-text, dual audio for channels, parental rapidly rising industry.
control, electronic program guide and radio channels.
DTH has also allows for interactive TV services such as The green signal in November 2000 followed the
movie-on-demand, internet access, video conferencing and deliberations of a group of ministers, which was
E-mail. If you want to record your favorite programs you constituted on 31 January 2000. Headed by home minister
can get a free DVR (digital video recorder) receiver. Since LK Advani, the group included the then ministers from
the time, it first arrived in India, more and more new information and broadcasting (Arun Jaitley), information
players are joining the bandwagon. Because of arrival of technology (Pramod Mahajan), finance (Yashwant Sinha),
new entrants, this industry has become very competitive defense (George Fernandes), communications (Ram Vilas
which ultimately results in customers having more benefits Paswan) and law (Ram Jethmalani).
and options.
It came up with the following recommendations
Keywords: A DTH license should not be given exclusively to
CPE (Customer Premises Equipment), Set Top Box, Direct any agency, whether private or public, to avoid
To Home, Satellite, Value Chain monopoly in the sensitive areas of information and
programme distribution
INTRODUCTION Since DTH is an alternative to cable for distribution
of TV programmes, the vertical integration of these
Buying a DTH connection would involve a sizeable two services should be guarded against to avoid
investment initially. That is likely to be compensated by monopoly in distribution services.
lower monthly costs for receiving channels and access to Vertical integration and monopoly between DTH
services that are not offered by cable operators. To receive operators and TV channels should be avoided to
pay channels, customers also have the option of buying a ensure fair competition and a level playing field for
set-top box. This will offer you digital content and access all TV channels.
to a large number of channels. It is, however, only a close Programmes/channels distributed through a DTH
second to DTH. The latter is also not a location specific platform should be uplinked from India to ensure
facility and you can take the dish along if you shift that they comply with programming and advertising
residence. codes and allay concerns about "national security".

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR) ISSN: 2319-4413 17
Volume 4, No. 6, June 2015

The new policy requires all operators to set up earth satellite transmits programming in the Ku frequency range
stations in India within 12 months of getting a license. (12GHz to 14GHz).
This facility will increase the number of channels you
receive. More important, you will enjoy picture and audio (II) The Components
quality of a kind that your present cable connection or There are five major components involved in a direct to
antenna cannot provide. You can also play video games home satellite system: the programming source, the
and watch movies telecast exclusively by the DTH-service broadcast center, the satellite, the satellite dish and the
provider. Over time, the DTH console could also provide receiver. Satellite television broadcasts intended for home
you round the clock link to the internet, customized reception also referred to more broadly as direct-to-home
content and pay-per-view options, to name a few of the signals. In technical point of view: a digital satellite
range of services possible. service that provides television services direct to
subscribers anywhere in the country. Since it makes use of
Zee group promoted Dish TV was the first to start DTH wireless technology, programs are sent to the subscriber's
operations in India. Then Doordarshans APNA DTH television direct from the satellite, eliminating the need for
came in market but it is having limited channels. The cables and any cable infrastructure.
another entrant in India is TATA-SKY, which is a joint
venture between the TATA group and News Corporations
(III) Programming
Star TV. At this time many major players are fighting for
Programming sources are simply the channels that provide
covering larger market share in order to prolong their
programming for broadcast. That provider doesnt crate
existence in this lucrative Industry. Apart from Tata Sky,
original programming itself; it pays other companies for
Dish TV, Airtel Digital and Reliance BIG, southern
the right to broadcast their content via satellite. In this
heavyweight Sun TV has entered the fray with Direct,
way, the provider is kind of like a broker between you and
while Videocon has entered the market in June 2009.
the actual programming sources.
While Indian consumers were not completely satisfied
with their cable services, they felt the need to switch over
The broadcast center is the central hub of the system. At
to any other means of entertainment. It was therefore
the broad cast center, the television provider receives
imperative for companies such as Tata Sky, Dish TV, and
signals from various programming sources and beams a
Reliance BIG TV to educate the consumers about the
broadcast signals to satellites in geostationary orbit.
advantages of the service and in turn create an urge to
invest in it.

HOW DTH WORKS

(I) The Overall System


Early satellite TV viewers were explores of sorts. They
used their expensive dishes to discover unique
programming that wasnt 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, NASA activities 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 get their programming through a direct
broadcast satellite provider, such as Direct TV or the dish
network. The provider selects program and broadcast them The satellites receive the signals from the broadcast
to subscribers as a set packages. Basically, the providers station and rebroadcast them to the ground.
goal is to bring dozens or even hundreds of channels to The viewers dish picks up the signals from the
customers television in a form that approximates the satellite and passes it on to the receiver in the
competition, cable TV. Unlike earlier programming, the viewers house.
providers broadcast is completely digital, which means it The receivers processes the signal and passes it on
has much better picture and sound quality. Early satellite to a standard Television
television was broadcast in C-band radio- radio in the 3.4
gigahertz to 7 GHz frequency range. Digital broadcast

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR) ISSN: 2319-4413 18
Volume 4, No. 6, June 2015

ABOUT MAJOR COMPANIES IN THE 5. Reliance BIG TV Limited


INDUSTRY Reliance BIG TV Limited is a part of Reliance Anil
Dhirubhai Ambani Group. Reliance Communication in the
DTH space has the brand name Big TV. It has
1. Dish TV - Zee group aggressively priced packages as low as Rs. 1490 with an
Dish TV is a venture by the Essel Group and was launched offering of 64 channels and a three month free
in 2004. Dish TV is Indias first private player in DTH subscription in addition to 20 video-on-demand movie
industry with a presence in 19 states. It has a subscriber channels. Within a short span of time it garnered a
base of 7.07 million (March2015). subscriber base of nearly 2.8 million (Aug 2014)
(http://voicendata.ciol.com/content/service_provider/1090 (www.livemint.com/2014/06/21231941/Big-TV-to-go-on-
80102.asp).It has a bouquet of over 240 channels to a-content- acqu.html). Big TV currently offers 202
choose from. Dish TV has launched an entry-level channels. BIG TV focuses on VAS and claims to have a
subscription at Rs. 99 per month with the largest offering next generation user guide which is indexed.
of 110 channels.
6. Airtel DTH - Bharti Airtel Limited
2. TATA Sky The well known and much talked about player in the
Tata Sky was incorporated in 2004. It is a Joint venture market is Bharti- Airtel. A teaser campaign See you at
between Tata Group and UK-based British Sky home was followed up by a multi-starrer campaign with
Broadcasting Group. TATA is one of India's largest and celebrities like Saif Ali Khan and Kareena, Vidya Balan
most respected business conglomerates and the SKY and Madhavan and Indian cricketers Gautam Gambhir etc.
brand, owned by the UK-based British Sky Broadcasting It has a subscriber base of 2.8 million (June 2014)
Group has over 20 years of experience in satellite (www.indiandth.com/2014/08/airtel-digital-tv-mops-
broadcasting. It launched its services pan-India in August upone- million.html) and has a bouquet of over 138
2006. It has over 168 channels to choose from. Tata Sky channels and world space satellite radio to choose from.
has launched an entry-level subscription plan called Super Airtel Digital has a basic pack of Rs 99 monthly for South
Hit Pack at Rs. 99 per month with a bouquet of 53 and Rs 125 monthly for north.
channels. Tata Sky frequently comes with innovative
product and services like Tata Sky 4K, Karaoke, Tata Sky 7. Videocon D2H
Plus (which use the personal video recording (PVR) Videocon the big Indian consumer durable player
technology that allows consumers to record live.) Tata Sky launched itself in the DTH market in June 2009 through its
Multi TV etc. Tata Sky recently launched a service which media arm Bharat Business Channel (BBCL). Right now it
allows a daily recharge of Rs. 8 has offered services in Punjab, J&K, Chandigarh,
Haryana, Himachal Pradesh and many other cities with
3. DD-Direct + packages as low as 150 per month. Advantage over other
DD Direct Plus was launched in December 2004 by players is that Videocon already makes analog set top box
Doordarshan. It is owned by parent company hence they are likely to manufacture Set Top Box for their
Doordarshan. It was Indias first DTH service offering DTH service as well.
about 59 TV channels and 21 radio stations. DD DTH is a
free service and has acquired a subscriber base of 6070
lakh connections (July 2014). VALUE CHAIN OF INDUSTRY
(www.dnaindia.com/money/report_prasar-bharati-dth-
moving-to-paymode_ 1277779) Value chain analysis
Value chain analysis helps companies to analyze specific
4. Sun Direct activities, through which firms can create a competitive
Sun Direct is a DTH service in India headquartered in advantage; it is also useful to model the firm as a chain of
Chennai, Tamil. Sun Direct is an 80:20 joint venture value creating activities. Michael porter identified a set of
between the Maran family and Astro Group of Malaysia. interrelated generic activities common to a wide range of
With 170+ TV channels and 31 Radio channels, Sun firms. The resulting model is known as the value chain
Direct has a subscriber base of 5 million (April 2014) and is depicted below. The goal of these activities is to
(www.topnews.in/sun-direct-launcheshd- services-crosses- create value that exceeds the cost of providing the product
5-million- activesubscriber-base-mark-2149664). Sun or services, thus generating a profit margin.
Direct has a basic pack of Rs 75 monthly subscription
which is the lowest price-point compared to the other The following diagram contained value chain of the
service providers. industry, which includes primary as well as supporting
activity. Contribution of each and every activity has been
mentioned as follow as particularly for DTH industry.

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR) ISSN: 2319-4413 19
Volume 4, No. 6, June 2015

Value chain of DTH


The direct-to-home (DTH) satellite industry has come on
strongly worldwide. It has grown from a niche delivery
mechanism into a mainstream business. The spread of
subscription-based DTH satellite TV promises to enhance
choices for many households in developing countries.
With the government throwing open the DTH sector in the
country, a handful of players have come up with grandiose
plans to enter the market. Given the stiff level of
competition this premium services will face from the
existing multi- channel cable network, possible entrants
need to clearly grasp a few of the winning rules of the
game.

PRIMARY ACTIVITIES (III) Outbound Logistics:-


The activities required getting product service to the
(I) Inbounds Logistic:- customers, installation, ordering fulfillment, quarry
Inbound logistics Include receiving, warehousing, and solution, new technology and service updates (may free or
inventory control of input materials. minor charges apply).The most important asset is arguably
an ability to play a unique role in the DTH value chain.
This advantage may reside in business that has little or no
Raw material sourcing obvious connection with DTH. A company that has
In DTH service provider companies generally has no any
pioneered a business offering credit for consumer durables
kind of raw material but sometimes given CPE (customer
in a developing country, for instance, might be well placed
premises equipment) are already supplied by CPE (dish,
to supply finance to purchasers of CPE.
set top box, cable) manufacturer company have to store it
or direct supply to retailer or outlet.
(IV) Sales & Marketing:-
Those activities associated with getting buyers to purchase
(II) Operation:- the product, including channel selection, advertising
The value creating activates that perform input into final
pricing, etc. in India demand is over pacing the supply. So,
product. DTH service provider collect private channel
generally we find less focus on the marketing activities
from their collaborated channel. System which has
from the companies side.
specially designed program to provide service as per
customer package as well as request send a signal to the
Two types of customers are there, one retail & second
Ku-band satellite which transfer signals to subscribers set
industrial or government. To attract business / industrial
top box through dish antenna and serve the service as
customer special commercial and news channel packages
consumer require whether it is private channel or service
are there in some players. Retail customer can be attracted
providers interactive service. System is similar like mobile
by providing sales promotion or advertising.
service system so it is very easy task for cellular service
provider.

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR) ISSN: 2319-4413 20
Volume 4, No. 6, June 2015

Promotion:- All of these will lead to improve the performance. So, all
Currently companies are using marketing tool like free of the players have to develop this.
STB or installation, customize channel package, special
package to attract the special customer segment like (II) Human Resource Management:-
business class. And also interactive services like The activities associated with recruiting, development,
educational program, same other time program recording, compensation of employees. One in each of the four
pay-per-view and also MDU (multi Dwelling Unit) for regions north, east, south and west for setting up regional
multi user service. training centers (RTCs) with commitment to human
resource development. The RTCs are equipped with state-
Build an appropriate content offer: of-the-art (high-tech) technologies, teaching aids and
This is the single most crucial choice a DTH company will equipment and specially made need based training
make. In a remote town with no access to television, for packages. High quality technical guidance has been
example, even a DTH bouquet of just two channels might translated into local languages also. Computer based
seem attractive. Transponder costs are also a factor in an training is given to personnel even at operator level. There
appropriate content offer. It is the bouquet size that are specially trained employee for installation and service
determines how many transponders are needed, creating a guide. And also they provide good remuneration to their
tradeoff between the cost of transponders and the richness employees.
of the offering.
Offer superior services
Advertising:- Cable companies are frequently criticized for installation
Ad revenue is also available to a DTH service provider, so delays, billing errors and surly staff and the nature of cable
the existence of a robust or growing ad market is plant makes signals prone to disruption. Staff and
important. For that have special movie time commercial, customer service issues relating to CPE installation and
20:20 and other sports live telecasting time commercial maintenance may yield a fine of differentiation above and
and also some special program like educational, own TV beyond picture quality.
serial production. DTH service provider companies are
using emotional approaches in advertising. but right now (III) Technological Development:-
they are started to endorse brand ambassadors like As this is crucial factor which affecting this service most.
Shahrukh khan in is Dish TV, Amir khan & gul panag in Company has to develop new technology as it helps not
Tata sky, Saif,Kareena, A.R.Rehman, Gautam Gambhir, only him but also to customer. Customer can get good
R. Madhvan and Zaheer khan in Airtel digital and quality of pictures through good technology.
television serial celebrities for big TV.
Implication
Installation:- A few things are assured in the DTH industry even in the
Generally players are providing installation service but in face of paradigm shifts. First, the value of transponders is
some cases (DD direct+) may happen customer purchase likely to fall as compression allows more and more content
their own CPE from the market. Service provider are to go through the same satellite, and as more satellite are
always try to provide Indian standard CPE. Doordarshan launched. Obscure sports and the like will become more
always prefer to serve 90 MHz and 120 MHz dish antenna valuable; conversely, much of the content that is currently
as well as good quality STB. valuable will face downward pricing pressure. Niche
content providers will emerge. The industry is likely to be
characterized first by a period of fragmentation and then
(V) Service:- by an increasing concentration of global consortia as
After provide an application equipment of DTH service
unprofitable participants fold. What is clearer than ever is
companies should have to provide a better broadcasting
that satellite TV is here to stay and will play role in
service like interactive service, PPV (pay-per-view),
bringing television to mass around the world?
movie- on-demand and also a query of the service users.

CONCLUSION
SUPPORT ACTIVITIES
Innovation in service provided by DTH industry is must
The primary activates described above are facilitated by
and it has a significant impact on growth of DTH.
following support activities.
Intensive distribution must be used by all players because
of cut-throat competition. Availability of product
(I) Firm Infrastructure:- everywhere is very important and for that strong
Infrastructure includes strategic location in term of nearby
distribution network is required. All the players of the
suppliers or nearby market, adequate space to run the
DTH industry provide their CPE through retailer and their
business, technological resources, transportation facility.

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International Journal of IT, Engineering and Applied Sciences Research (IJIEASR) ISSN: 2319-4413 21
Volume 4, No. 6, June 2015

outlets. Dish TV provide CPE through retailer only and


big TV, Airtel digital and Tata sky provide through both
retailer and their own outlay.

REFERENCES

[1] http://www.tatasky.com/wps/portal/TataSky/footerp
ages/abouttatasky
[2] www.Mib.Nic.In
[3] www.Dishtv.In
[4] www.Sundirect.In
[5] www.Airtel.In/Digitaltv
[6] www.Bigtv.Co.In
[7] www.Videocond2h.Com
[8] www.Indiabroadband.Net
[9] www.Indiatelevision.Com
[10] www.Indiainbusiness.Nic.In

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