DISSERTATION (2009-2011

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Name of the Student: Bhavish Shila Patel PGDM-C [Media Management], JICM, Bhopal Email: bhavish.jicm@gmail.com

Dissertation on To find Penetration of DTH in Bhopal & Consumer preferences

Dissertation Undertaken: Dheeraj Bhardwaj Vashisht Founder of: K&V Media

Submitted To: Dheeraj Bhardwaj Vashisht Email: vashishtd@gmail.com


 

 

TOPIC

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INTRODUCTION RELEVANCE OF STUDY LITERATURE REVIEW RESEARCH METHODHOLOGY SCOPE & LIMITATION Bibliography

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Research Proposal
To find DTH Penetration and Consumer Preferences among the DTH players in Bhopal

INTRODUCTION:
Since 2003, the DTH industry has been growing very fast. The DTH market acquired around 16 Million subscribers by the end of 2009, an increase of approximate 44 percent over the 2008. Since DTH TV industry is currently in growth phase, it is expected to attract a large number of subscribers in near future. As per our new research report “Indian DTH Market Forecast to 2012”, the number of DTH TV subscribers projected to grow at a CAGR of around 18 percent during 2010-2013 to 39 Million by 2013.Therefore, to understand the present market scenario of DTH industry and to identify the market king of DTH TV industry player in Bhopal. During the research, I’ll try to find consumer preferences among the various DTH service provider and cable in Bhopal market. Further, the strength and weakness of DTH players which was faced by customers. The study will focus on the penetration of DTH in Bhopal and also find the ratio of cable penetration and the DTH.The currently Indian DTh market is being served by six private players-Dishes TV, TATA sky, Sun Direct, Big TV, Airtel Digital TV and Videocon D2H. These reports also explain the reason why all the consumers buy a particular brand. It also explains the impact of TVC on purchasing behavior of the consumers. Since 1959, when Indian television was first launched and the state owned Doordarshan aired just two channels in black and white as recently as 1991; the world of entertainment has made rapid and unusual strides.The turning points were the 1982 Asian Games when colour television was introduced and the 1991 liberalisation and deregulation that ushered in the era of foreign investments and foreign channels that egged the domestic players to jump into the foray.From large metros, satellite TV moved to smaller towns that spurred the sale of TV sets and brought about an upgradation from black and white television viewing to the colour one. With time, more and more changes took place and finally the DTH services arrived.DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would mean more channels for viewing.Tax burdens on DTH are another area of complaint for operators.Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for services imposed by the Central government. Apart


 

 

from this, there are entertainment taxes that differ from state to state.Cable TV operators also give a stiff level of competition to the DTH sector by suppressing their prices artificially by way of under-declarations.This has pressurised the DTH operators to cut their profits to the extent of making them unviable.“At present, there are 80 million TV households in India, of which over seven million are DTH ones. Since the penetration is just under nine per cent, there is much room for a massive growth rate”, according to the Bharti Airtel’s head of brand and media, Chandrashekhar Balakrishnan.“This is what the company is focusing on, to enhance its subscription base to 20 per cent,” he added.Industry analyst Siva Sundaram said that India will be the leading power in Asia by 2010 in the field of cable market and by 2015; it will be the most profitable in the area of pay TV market.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. 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. 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. By 2015, DTH will enjoy a market share of 40%, digital cable 40% and analog cable will follow with only 20% market share. The DTH service market in India has emerged as one of the most lucrative markets which have successfully resisted the impacts of the current economic slowdown. The slowdown, instead, proved a boon for the Indian DTH industry as people started to cut on their entertainment expenditure and instead of viewing movies at theatres, they preferred to stay at home with their television sets. Current Scenario: Currently, the Indian DTH market is being served by six private players - Dish TV, Tata Sky, Sun Direct, Big TV, Airtel Digital TV and Videocon D2H. For the purpose of research, we have not included Doordarshan which is a free DTH service provider. The report contains comprehensive information about all the DTH service providers in India, with focus on indepth analysis of their strengths and weaknesses. It also explains the reason why all the incumbent players have been investing huge amounts in the promotion and marketing of


 

 

DTH services in the country. 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). Dish TV is the largest DTH provider with a subscriber base of around 5 million, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group (20:80), now has around 3.4 million connections and the forecast for 2012 is that it will further increase to eight million, Sun Direct, the 80:20 JV between the Maran family and the Astro Group of Malaysia, over 2.3 million, Big TV about 1.2 million and Airtel Digital TV about 0.3 million subscribers (Source: Business Standard, May 1, 2009). According to sources, DD Direct Plus has a subscriber base of about 3-4 million subscribers, mostly in the remote corners of the country not connected by terrestrial or cable television. DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would mean more channels for viewing. Tax burdens on DTH are another area of complaint for operators. Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for services imposed by the Central government. Apart from this, there are entertainment taxes that differ from state to state. DTH stands for Direct to Home which is a direct mode of transmission between Broadcaster‘ and Subscriber’ through satellite. Broadcast centre collects the signals from different programming sources (like Sony, Zee, and Star). It processes the Signals and beams it to the Satellite.

Porter’s Analysis of DTH industry In Bhopal
1. Threat of substitutes: DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry estimates, there are 130 million TV homes of which 85 million are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission. • Terrestrial Television: Doordarshan is the world‘s largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of India‘s geographical area. Covering the remaining 12% area required substantial capital investments which does not outweigh the benefits. The transmission was done originally in Analog mode but beginning from 2002, Doordarshan has partnered with BBC resources – the consulting wing of BBC, in offering digital terrestrial TV. The transmission could be


 

 

3. Astrix is in a better position to use DTH as its cash cow for the next 5 to 10 years. the availability of transponders is increasingly becoming difficult. Bargaining power of suppliers: DTH industry relies on three major supplies: Customer Premise Equipment (CPE) comprising of the satellite dish. it poses a serious threat to the growth of DTH industry. Also the crash of INSAT 4C and NSS8 has worsened the situation of DTH players. nearly all the channels are available without the need of any separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on the place. IPTV and Terrestrial broadcast and from the point of increasing DTH operators. As seen from the above diagram Cable TV enjoys the maximum share as compared to other medium.received using a low cost Yagi antenna. On the other hand. Due to phenomenal reach of Cable TV. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity. However. the commercial wing of ISRO either through its own satellites or by leasing transponders from suppliers. With only two domestic satellite launches between 2007 and 2010 an d increasing DTH players. and through non-addressable system in the rest of the country. acquiring content from the broadcasters is also difficult. through CAS covering cities like Chennai. With India overtaking Japan as Asia‘s largest DTH. Set Top Box with the necessary Access card. in areas where non-addressable system is used. In case of CAS controlled areas. the Ku band transponders in the orbiting satellites and content. • Cable TV: Cable TV currently operates in 2 modes viz. Mumbai and Kolkatta. The Ku band transponder is generally provided by Astrix. the subscriber has to buy Set Top Box (STB) to see the pay channels. Bargaining power of buyers: With enough options to choose both from the pont of alternate mediums like Cable. 2. due to lack of attractive content it does not seem to be a formidable threat for DTH. DTH vendors are at the mercy of the broadcasters. However. the consumer is at his will to decide. 6      . As there is not much of regulation particularly in terms of channel pricing. the bargaining power of Indian DTH operators with CPE supplies have increased. Delhi.

4. These reach into far flung markets enables building of a diverse subscriber base across consumer segments. the barriers to entry are high when it comes to pr icing of CPE and getting the connections. The channels indirectly refuse content exorbitantly or mandating that all the channels of their bouquet to be transmitted when the vendor is already capacity constraint. there is also a competition at acquiring the content. Star and Sun respectively. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new Other than price wars and intense competition in increasing customer base. The competition from state owned DD-Direct to private players is negligible from the content point of view as.000 dealers across 6500 towns – once again. Dish TV. New offers. Inter firm rivalry: With 6 operational players. 5. extensive marketing campaigns have contributed to impressive subscriber acquisition and are committed to provide the best value to our customers and investors by enhancing operational efficiencies and by leveraging economies of scale. Market Position Dish TV India‘s first DTH service provider launched in October 2003 is the market leader with 6. Threat of new entrants: With already 6 players in the DTH space. 7      . with sizeable sales and distribution infrastructure of over 650 distributors and 45. the inter firm rivalry is quite high. the largest in the category. Dish TV has price. Market challengers The gap between the leader and the challengers is decreasing because of the increasing competition and promotion strategy followed by each player. While getting a license is relatively easy. threat of new entrants is relatively low. There is already enough competition which will discourage new firms to enter this business. Tata Sky and Sun Direct are part of big groups that also have popular bouquet of channels like Zee. Being the first mover. Dish TV continues to be a market leader with 30% market share in 7 player scenario on date. which are supported by its rich content of regional channel offerings.4 million subscribers. Dish tv has maintained its leadership position through an improved market share of all DTH subscribers.

Sun Direct was also the first DTH operator to introduce HD in India. Based in Mumbai. Tata Sky's direct-to-home satellite platform delivers more than 100 television channels. Currently Does not offer free Set Top Box like Dish TV 4. Leads in introducing new packages & Services 5. chat rooms. Tamil Naidu. news. an 80:20 joint venture between Tata Sons and the Star group. learning. Strengths 1. Litigation due to issues related to sports channels which it lost 5. Interactive channels and program 8      . It has state-of-the-art digital infrastructure and a retail network that covers more than 4.500 towns in India. provides satellite television services to Indian viewers. Dependency on broadcaster and had issues with Sun TV Newscorp‘s DTH arm Sky 3.SUN DIRECT Sun Direct is an 80:20 Joint Venture between the Maran family and Astro Group of Malaysia. Customer service 6. the company has three call centres (Pune. etc. Second Mover after Dish TV who captured Market Share 2. Cannot match free service like DD 3. Chandigarh and Hyderabad). recipes. TATA SKY Tata Sky. With 170+ TV channels and 31 Radio channels. Sun Direct has a subscriber base of 3 million (April 2009) Sun Direct has a basic pack of Rs 75 monthly subscription which is the lowest price-point compared to the other service providers. movies and interactive services for games. Leveraging on brand TATA and High brand recall 2. Superior Picture quality 4. Its headquarters are located in Chennai. Technological expertise with Weaknesses 1. The company was incorporated in 2004 and offers a range of media and entertainment options to customers. Rural penetration through ITC EChoupal and Godrej Aadhar 7.

Increasing Competition internally 4. Dependency on broadcasters for their channel content and thus increase in cost 7. Cable Set top Boxes provide easy switching due to negligible switching through exclusive stores 4. Increase in number of TVs sold 6. Innovative Product offering Tata Sky Plus Opportunities 1.guides 8. Larger disposable incomes with India 2. Videocon may enter DTH by building 9      . Tapping niche markets with Better service and Product offering 3. Dependency on CPE suppliers to some extent 5. IPTV provides superior technology if implemented 2. Growing demand for quality of service in the form of DTH over Cable 8. Expansion of distribution network Threats 1. Interactive advertising – Tie up of with Samsung 5. High dependence for transponders on ISRO 6. CAS being made Compulsory costs 3. Increase in the geographical boundaries with Rural Market untapped 7.

its own set top boxes. Like other DTH service providers it also provides a Video on demand interactive service which includes a catalogue of movies in Hindi. Interoperability Regulations 11. No Exclusivity in Content and Rule of ‗Must Carry‘ 9. book movie tickets etc. over IR frequencies control both the TV and the DTH box. A universal remote is included in the package which can. English and other regional languages which can be ordered on demand. Airtel digital launched on 8th October. Value Added Services are gaining steam. It has also been ranked as the best DTH service by "Living Digital" magazine 10      . 2008 with a 360 degree mega campaign "Come Home to the Magic".would encourage switch. Cap on foreign Investment Airtel digital Airtel digital TV’s standard definition broadcasts are in MPEG-4 with Interactive Service (it) and 7-day EPG (electronic programmed guide). 9. Cap on Investment (20%) 10. Since that it has launched 2 other campaigns 'Stars come home' (March 2009) and 'DTH Picture Clarity' (August 2009) has increased its channel base to 183+ channels. Airtel digital TV is now amongst the fastest growing DTH brands in the country and is available across 5000+ towns in India. Interactive Service (it) of Airtel digital tv includes a add-on service which allows a user to shop. 8.

11      . Growing demand for quality of service in the form of DTH over Cable 6. Litigation due to issues related to sports channels which it lost Threats 1. IPTV provides superior technology if implemented 2. High dependence for transponders on ISRO 6. Fourth Mover after Dish TV who captured Market Share 2. Expansion of distribution network through exclusive stores 4. Leads in introducing new packages & Services. Larger disposable incomes with India 2. Superior Picture quality 3. Increase in the geographical Weaknesses 1. Big Players having large market share 4. 7. Cannot match free service like DD 3. Leveraging on brand Airtel and High brand recall 2. Customer service 6. 4. Interactive channels and program guides Opportunities 1. Tapping niche markets with Better service and Product offering 3. Value Added Services are gaining steam. Large customer in telecom services.Strengths 1. Cable Set top Boxes provide easy switching due to negligible switching costs 3. Recording System 5. Dependency on CPE suppliers to some extent 5. Increasing Competition internally 4. Videocon may enter DTH by boundaries with Rural Market untapped 5. Dependency on broadcasters for their channel content and thus increase in cost 7.

1986 as Adhigam Trading Private Limited.000 outlets in 6. They had effectively out-stripped the competition here. 21 of the Companies Act. the name of the Company was changed to Videocon Leasing & Industrial Finance Limited on 14th February. 1991. There are also plans to introduce services like i-Stock. while other players made subscribers pay for each movie. Reliance BIG TV introduced the unique concept of Subscriber-VideoOn-Demand (SVOD) under which the subscriber paid a monthly subscription of Rs.The Company received a fresh certificate of incorporation from the Registrar of Companies. the highest by any DTH player. They also introduced 32 Pay-Per-View Movie Channels. 50/. The company plans to increase the number of channels in the near future to 400 and begin High Definition (HD) broadcast.to get a 24 x 7 access to the 21 PPV channels showing Hindi and Regional Films. 1956. Videocon D2H Videocon d2h is a DTH satellite television provider in India based in Mumbai.e. 12      . Reliance BIG TV's retailer network is spread across 100. Videocon Leasing & Industrial Finance Limited was incorporated on 4th September. 32 cinema halls (i.with 3 to 6 months of free subscription.490/. a subsidiary of Reliance Anil Dhirubhai Ambani Group [2] founded by the Late Dhirubhai Ambani. Gujarati and Bhojpuri films. 1. Gujarat at Ahmadabad on 14thFebruary. When it came to pricing – packaging. Reliance BIG TV Reliance BIG TV limited is a part of Reliance Communications Ltd. using MPEG-4 with DVB S2 digital compression technology. Not just that. . make it BIG"). their introductory offer stood at Rs. BIG TV started operations from 19 August 2008 with the slogan "TV ho Toh BIG Ho" ("If you have a TV. We were also the first to introduce dedicated PPV channels for Marathi..500 towns in India. It is the first Pan-India DTH provider that uses MPEG-4 for broadcasting. i-News and other such interactive services in the future.In terms of the necessary resolutions Passed under Sec. the Indian business tycoon and owned by his son Anil Ambani. It currently offers close to 240 channels and many interactive ones. 1991. This was literally unheard of in the DTH industry.building its own set top boxes. Pay per View Cinema Channels) as well as many Radio channels.

To find the customer migration to other service provider/ cable TV. it came with a very good strategy for selling both of its electronic products like TV‘s DVD‘s along with the new set top box. 13      . Reasons of not using cable. Only the antenna is enough. it also came with DVD which is connected directly to the TV or antenna is connected to DVD which gives a best quality. The study also give the opportunity to understand why do consumers prefer DTH instead of cable? Apart from this the study can be further used for know who is the king in Bhopal market so that retailers is benefited which will ultimately benefit the organization. To find the impact of brand ambassador of DTH players. 2009.Videocon d2h launched May 1. Reasons of using Cable. This is offering direct to TV without any set top box also. Reasons of using DTH. Relevance of the research: This study is confined to the analysis the customers view on product and services of DTH players in Bhopal. Objective of study: To find the satisfaction level of consumer with the services used by them • • • • • • • Reasons of not using DTH. To find best TV commercial among the DTH players.

Owned by parent company Doordarshan. The television service was extended to Bombay (now Mumbai) and Amritsar in 1972. Television services were separated from radio in 1976. Later that year. The history of Indian television dates back to the launch of Doordarshan. television signals were available to 28% of the Indian population. Each office of All India Radio and Doordarshan were placed under the management of two separate Director Generals in New Delhi. the cable TV industry started which lead to revolution. deregulation of domestic business emerged. the government launched a program to set up low and high power transmitters that would pick-up the satellite distributed signals and re-transmit them to surrounding areas. Now more than 90 percent of the Indian population can receive Doordarshan (DD National) programmes through a network of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce TV programs today. the channel reached more than 90% of the Indian population. 14      . followed by the 1982 Asian Games being held in Delhi. By 1983. DD Direct+ is a free Direct to Home (DTH) service that provides satellite television and audio programming to households and businesses in the Indian subcontinent. In 1982. Indian economy was liberalized and inviting foreign direct investments. Fueled by the success of the channel's commercialization and increased revenue from advertising. To increase the channel's reach. all of Doordarshan's regional stations were networked using INSAT 1A and a national feed called National Programme was introduced. Till 1975. Now chairman of DD plus+ is Shri Arun Bhatnagar and CEO is B S Lalli under the ministry of information and broadcasting. Delhi played host to Asian Games which were covered by the channel. Finally Doordarshan as a National Broadcaster came into existence. color TV was introduced in the Indian market with the live telecast of the Independence Day speech by then Prime Minister Indira Gandhi on 15 August 1982. the channel's reach and popularity continued to grow and in 1990. 2004. In 1992. DD Direct Plus was launched on December 16. This lead to the influx of foreign channels like Star TV and creation of domestic satellite channels like Sun TV and Zee TV. India’s national TV network in 1959.Literature Review: The regular daily transmission started in 1965 as a part of All India Radio. In the same year. seven Indian cities had television service and Doordarshan remained the only television channel in India. In 1991. National telecasts were introduced in 1982. This virtually destroyed the monopoly held by Doordarshan.

With the Indian economy growing at a GDP growth rate of 7.Every city in the India had a complex web of co-axial cables running through the streets with a new breed of entrepreneurs called as Local Cable Operators (LCO) taking in charge of distribution. TRAI proposed a new initiative by name “Head end-In-The-Sky (HITS)” Model as an alternative to the existing cable distribution. there will be a single HITS operator who will prepare the bundle of channels and beam it to the Headed in the satellite. there is a sense of growth prevailing everywhere. 15      . After a change of government. The film industry was shocked by this sudden growth and there were even organized protests for calling off the Cable TV industry. Instead of the MSO’s providing the bundle. DTH Digital TV system receives signals directly from satellite through the dish. It is currently estimated at a worth of Rs. Terms which were alien to Indian’s like capital DTH. the United Front Government had issued a ban on use of ku-band transmission. the ban got lifted finally in 2001 and TRAI issued the guidelines for operating DTH. country wide implementation of CAS becomes instantaneous and cost-effective.4%. The Indian entertainment and media industry is not far behind. The average Indian’s disposable income and purchasing has risen to never before levels. There were simply too many cable operators in the country and the channels had a difficult time in getting its returns as the existing system was a non-addressable and the operators could simply give a reduced number of subscribers to amass profit. This benefits both the broadcasters and the customers by ensuring Addressability. The LCO’s can receive this digitalized bundle and deliver to the individual homes. decodes it with the Set-Top Box and then sends stunningly clear picture and sound to TV which is the business under taken by some companies by observing the rate of growth and scope for business & opportunity in the Indian market which has 120 million viewers of TV. Prasar Bharati also started its product DD-Direct+. Better quality of service and increased number of channels.450 billion with a CAGR of 18% over the next 5 years. In 2007. The MSO industry became highly monopolistic which warrants government participation to ensure competition. With HITS. Later on. This lead to the emergency of a new breed of firms called as Multi System Operators (MSO) who had heavy financial muscles to make capital investments. Country’s first private DTH license was awarded to Dish TV in 2003 which started operations in 2004. IPTV are suddenly finding presence in the country’s journals. Another emerging trend is the IPTV which is yet to be regulated and one can expect lot of action in this sector. digital cables. .

According to a report on Direct to home (DTH) service.000 Indian rupees (approx. While the largest company in the business. Both have launched huge advertising campaigns to attract consumers with their service offerings. 16      .000 set-top boxes have been installed in the CAS areas of Delhi and Mumbai. the DTH market will grow to 30 million. The government made it mandatory for all service providers in three major cities to switch to the CAS in January 2007. Tata Sky said it was receiving as many as 25.S. Both Tata Sky and Dish TV are enjoying the benefit of the mismatch between demand and supply of hardware. India.5 million. The Indian government has put a conditional access system (CAS) in place in some of the major metropolitan cities. Currently. $225) last year to 3. Doordarshan. Delhi and Kolkata—account for nearly 15 percent of all cable TV The two companies that benefited the most from the switch are Tata Sky and Dish TV.000 calls per day from customers inquiring about their services. The three cities—Mumbai. Industry sources estimate that by 2015. they hope to convince buyers to pay a little extra to get the DTH player as well as the additional software for hundreds of pay-channels. with an estimated 65 million homes subscribing to cable TV services. 300. DTH penetration is estimated at 3. has so far been concentrating on rural areas and the smaller towns. $75) this year. Viewers on the system only pay for the channels they watch.300 rupees (approx. But the demand for set-top boxes is bound to grow as hardware prices are expected to plummet. In the first few days after the CAS became operational. the two major DTH service providers in the country. aimed at protecting the interests of television viewers. Multi-service operators are currently importing most of the hardware—or the set-top boxes—into the country.7 million subscribers of Dish TV. it predicts that India would overtake Japan as Asia’s largest DTH by 2010 and be the Asia’s leading cable market by 2010 and the most profitable pay-TV market by 20015. and not for the entire package of channels offered by the cable operator/multi-service operator. over 200. These makers offer service packages of television channels through a personalized system of digital set-top boxes and a satellite dish antenna. prices of set-top boxes have declined rapidly from 10. U. Dish TV. the switch created a tremendous opportunity for makers homes of digital in set-top boxes. which includes 1.000 for Tata Sky and the rest accounted for by the national broadcaster’s DTH service. They hope to attract many consumers who would otherwise have purchased just a set-top box to access their favorite television channels. According to the Cable Operators Federation of India. As it is. it is now changing its strategy to target larger metropolitan cities with a range of value-added services. Given that India is the third-largest market in the world for cable TV. Instead.

DTH operators ask govt to rationalise taxes . direct-to-home (DTH) industry in India has been witnessing tremendous growth for the past few years. It also explains the reason why all the incumbent players have been investing heavily in the promotion and marketing of DTH services in the country.TDSAT dismisses Tata Sky review petition on licence fee Within the rural markets. The report outlines that. the DTH market will post 28% CAGR growth during 2011-2014. to remain competitive in the market. it is Dish TV and DD Direct Plus DTH services that have the most penetration. Thus. The southern market is dominated 17      . According to our research report "Indian DTH Market Forecast to 2012". Dish TV and Sun Direct DTH services are preferred brands in top metros. it is suggested that.2 million. say the findings of a report by Francis Kanoi.Subir Roy: The cobweb of wires is clearing">Subir Roy: The cobweb of wires is clearing . various DTH companies are coming up with more number of channels for their subscribers. including production of set-top boxes and satellite infrastructure. . the report contains comprehensive information about DTH service providers in India. $114 million) to upgrade its facilities.Shuchi Bansal: MyWay or the highway">Shuchi Bansal: MyWay or the highway . Tata Sky. High Definition (HD) content is an emerging market segment. the report says. Besides.Dish TV partners Indiatimes for mobile VAS . As DTH services improve and demand swells.Dish TV will be investing 5 billion rupees (approx. with a focus on in-depth analysis of their strengths and weaknesses. Additionally. thus positioning India as one of the most favorable destinations for industry investments. The research has identified that. Contrary to the perception that Direct-to-Home (DTH) television technology is an urban or a metro phenomenon. Such a stupendous growth is mainly due to the continuous drop in setup and service costs of DTH. a leading marketing research firm. it’s likely that new companies will emerge in the manufacture of set-top boxes to cater to the growing market. The affluent middle class consumers have widely accepted the market offerings and helped players to maximize their revenue results. It is anticipated that.Tata Sky tunes in to the power of plus . decline in the prices of Set-Top Box (STB) has made DTH a viable option for the Indian users. players require offering the latest bouquet of services along with the flexibility and content that consumers want. Further. which is currently at its early growth stage. And metros like Delhi or Mumbai contribute only 2-3 per cent to the overall DTH subscriber base of 13. 70 per cent of its DTH subscribers reside in rural areas and towns with a population under a million. the Indian DTH industry holds dynamic future prospects with new technologies and business opportunities emerging at a rapid pace.

This is significant because none of the five private DTH operators (and DD Direct) provide a state-wise or a region-wise break up of their subscriber base. it is these metro towns where our average revenue per user is better. Indian DTH industry India is witnessing a boom in the cable and satellite industry – today. come from rural markets alone. In 2008-09. “The top seven metros have a huge potential for DTH services.000). of which 50 per cent are based in rural India. where Dish TV and DD Direct Plus are the clear leaders. there are 134 million households that own television sets and over 500 television channels. The report also states that there are 126 million cable homes in the country.4 million DTH subscribers. contributing over 6. while the southern market contributes 3.” says a senior executive of a leading media agency. Such data are also not provided by the DTH companies to the government.500 crore. with the bulk still expected to come from rural India and semi-urban towns.” In terms of geographical location. Punjab. as 91 per cent of households still prefer cable TV over DTH. The states of Maharashtra. This is also significant because DTH is a fast growing market. the report states.2 million. Tata Sky is the dominant DTH brand. based on the feeling that DTH is watched by high-end consumers with large disposable incomes. the report says. estimated to touch Rs 3. COO. Agrees Salil Kapoor.” says the report. the size of the DTH market was around Rs 1. array of options. Towns of a population under one million (semi-urban towns) contribute another two million DTH subscribers.2 million.by Sun Direct DTH services. while in high-income households (monthly income above Rs 50. “There are several new channels that are only launched on the DTH platform and who tend to charge a premium from the advertisers on their spot-rates. Rural markets are important but competitive when it comes to offering the content. The push also came with the arrival of Direct-to-Home technology years back that changed the outlook of television viewing in India. The report breaks this myth. the report adds. and Rajasthan are the leaders in DTH subscription. Dish TV. However. the largest DTH operator: “We have a big challenge in the metros and a tough competitor in digital cable operators. The growth can be attributed to the fact of rising incomes.Just in the time gap of one year 18      . Uttar Pradesh. Over seven million DTH subscribers.000 crore in the current financial year based on sales turnover. North India and Western India together contribute over 8. as our value-added services are consumed largely.4 million DTH connections or 48 per cent to the overall DTH subscriber base. as it’s largely language-driven. with sharp preferences on what they want to watch. Goa. affordable prices and the presence of better technologies. or more than half the total of 13.

the rivalry is high. the DTH industry saw sub-Rs 2000 entry price triggered by incumbents in 2008 to counter rivals. Airtel. Initially. the digital space has witnessed a growth of 28 per cent with the subscriber base reaching to 20 million. Tata and Videocon.DTH will scale up to almost 35 per cent market share while cable will retain 70 per cent the report said.According to a report by Media Partners Asia (MPA).Dish TV.an achievement of sorts considering the subscriber base for DTH in 2006 was a scanty 1 million.(2009-2010). reaching more than US$12 billion by 2020. Sun Direct. the upfront price is hovering around Rs 1000 and a monthly fee of Rs 200-300 plus an option of packages. Brand Dish TV Tata Sky Launch 2004 2006   Market share 32% 25% 19    .The CAS (conditional access system) mandate changed the game in cable & pay TV industry. this diktat was accepted gradually with consumers lining up to purchase set top boxes. DD Direct. Dish TV was the only existing DTH player in the market. The report goes. Received by criticism. Reliance Big TV. CAS made it necessary for households in metro cities to watch television through set-top box only. which has got 32 million DTH subscribers base. total pay-TV subscription revenues in India will grow at an average annual rate of 14 percent over the next five years and 10 percent over the next decade. Today. Sun Direct immediately launched its DTH services. By this year-end. India will become largest DTH country leaving the US behind. A particular segment that has seen tremendous growth in the space of media and entertainment is Direct-to-home (DTH) technology. making mass users watch television at a reasonable price. the number of Indian DTH subscribers will reach 45 million by 2014. Tata Sky.At its commencement. But in 2007. and 58 million by 2020. Growth drivers • • • • • • Growing middle-class Rising incomes Increasing television penetration Sales of LCD monitors Price wars and various packages options attracting consumers Advantage over traditional cable operators The Big Three With 7 operational players. followed by market players like Reliance’s Big TV. Airtel Digital TV and Videocon D2H .

Dish TV has a distribution network of about 1400 distributors and 55. Years later. extensive marketing campaigns with Bollywood star Shahrukh Khan as brand ambassador and the fact that Dish was first to arrive. In 2008. It is now planning to modify its array of products for rural and urban markets. a valuable addition to television viewing.42% 4. It was recently announced that Astro will make an investment of Rs 3.50% DishTV is the first private satellite television service provider in India. Tata Sky is a joint venture between the Tata Group. that owns 80% and STAR Group that owns a 20% stake. Tata Sky arrived when there was only one DTH brand in the market. on demand movies). Singapore-based Temasek Holdings picked up 10% stake in Tata Sky from the Tata Group which reduced latter’s stake in the venture to 75%. a scheme that was followed by others.Tata Sky recently surprised everyone when it slashed the price of its set-top-box by 40% to Rs 999. Along 20      . Dish TV has on its platform 267 channels and services including 21 audio channels.96 billion in Sun Direct which will take up former’s share to 35%. It recently posted a revenue collection of Rs 3286 million in the second quarter of this fiscal.4 million homes. the brand now boasts of over 9 million subscribers in the country.000 dealers that spans around 6600 towns across the country. it stays as the main competition to Dish TV which it follows in the league of highest market share.27% 11.56% 6. With 2.Sun Direct Big TV Airtel Digital Others *Analysts Reports 2008 2008 2008 - 19. Sun Direct is clawing its way up in the DTH market claiming that it now reaches more than 6. Sun Direct was the first one to launch it. have added to its phenomenal subscriber acquisition. The company is an 80:20 joint venture between Kalanithi Maran owned Kal Media Services and Astro All Asia Networks Plc (Astro). a Malaysia-based cross-media group. The brand is promoted by Aamir Khan who is aptly pitted against Shahrukh Khan of Dish TV.8 million subscribers added in the second quarter.Of the ‘High definition television’ services being offered by players these days. It also introduced an educational application for its users.Dish TV that was launched in 2004 and is a division of Zee Network Enterprise (Essel Group Venture). New offers (cash back.

DTH is doing to television viewing. The rural push What mobile phone did to communication across India.with a tie-up with television channel Set Max. the growth of DTH-using households has been stupendous if compared to urban households. Initially considered an exclusive for urban families. The growth of digital viewing in rural households emerges from the affordability factor. The set-top-boxes and connections are cheap and so are the television sets.Bharti Airtel wooed customers in smaller towns by providing new DTH subscribers with free talk time on their Airtel phone connections. Yet. Share of pay-DTH among all DTH households 2008 73% Urban 34% Rural *TAM survey 2010 2009 79% 49% 2010 86% 64% According to TAM 2010 report. NRI and PIO investments and portfolio investments are permitted up to 49 per cent for DTH under Government route. including FDI. FDI will not exceed 20 per cent. It involves its rivals in price wars by acting as a discounted brand but with hidden taxes. 21      . the share of pay-DTH among all DTH households has been 86% for urban compared to 64% for rural areas. Within the limit of 49 per cent. The chart below shows that a number of states (largely rural) in the country have been showing great interest in opting for digital TV: Government & Foreign investments • Foreign investment. Tata Sky has introduced its programming guide in Hindi whereas others are offering attractive cost-effective prices in rural areas. Sun Direct also became the first one to broadcast IPL-3 in high definition. DTH services have now successfully penetrated in the rural market which has 70 million TV owning households (2010).

they money gets lost somewhere with them. India has 9 million broadband connections which makes the market quite ready for IPTV.000 cable TV operators are present at all corners of the country.• The total direct and indirect foreign investment including portfolio and foreign direct investment in Headend-In-The-Sky also called HITS (Comcast's satellite multiplex service) Broadcasting Service shall not exceed 74 per cent. Internet Protocol Television: A digital television service provided through internet protocol. With the installation of set-top-boxes and monthly rentals they work upon providing CAS services to users which brings bouquet of channels to users with their local and regional channels. To tackle the menace of local cable operators. But the sector is not entirely organized. which includes delivery by broadband connection. That is why Telecom giants like BSNL. *(Ibef) • 40 per cent of the costs incurred by DTH players are due to high taxations and high license fee imposed by the government. IPTV. the biggies are pushing the government to phase-out analogue cable networks by making encrypted set-top boxes compulsory for users. MTNl and Airtel have already seeped in and international companies like UTStarcom and CopperGate have shown interest in the Indian market. FDI upto 49 per cent would be on automatic route and beyond that under government route. HITS. the regulator is not only attempting to digitalize the television but also curb the long running monopoly of cable industry. as of 2010. Even as DTH grew faster than cable industry. There are too many local cable operators and when it comes to calculating collective revenues. the larger share of television pie is still with the latter. IPTV services is slowly penetrating the television market. According to TAM report. there are 103 million C&S (cable & satellite) households in India. The threats Cable television: With TRAI’s (Telecom Regulatory Authority of India) nod to services like DTH. An approximate of 30. 22      . a growth of 15.2% from 90 million in 2009.

although. Headend in the sky or HITS: This is a satellite multiplex service that provides cable channels to cable television operations. Internet Protocol Television (known widely as IP TV). the government issued policy guidelines for HITS after getting a nod from the Union Cabinet and also allowed a concessional customs duty of 5 per cent on importing digital headend equipments. after which the cable operator distributes the signals to subscribers’ homes through set-top-boxes. It expects 15. There are three kinds of digital television broadcast systems existing today including Satellite TV. in India. Cable TV Television is not a new concept.It is believed that while IPTV is for classes. In 2009. HITS players were also provided with the FDI limit of 74%.000 subscribers by 2011. the difference lies in the fact that HITS can not reach directly to a subscriber. This becomes advantageous as existing broadband distribution infrastructure can be 23      .9 per cent of all the residential broadband subscribers in India to use IPTV by the end of 2011. DTH vs. unlike DTH which sends the signal to the homes without the requirement of a cable operator. people got more choices to select the medium of their television viewing experience. Even though the service is cost friendly. the number of subscribers is expected to reach 966. Similar to Satellite TV andCable TV. DTH is for masses . it should not be forgotten that the latter received the same conjecture at its arrival. Every one is going beyond terrestrial broadcast to get the best quality and enhanced television viewing experience. Digital TV: IP TV vs. the signal is encrypted using vendor specific security mechanisms and can only be decrypted by a receiver (STB). The Essel group is the current existing permission holder for offering HITS. HITS chooses a clever method of penetrating cable homes through a deal with cable operators. as everyone knows. IP TV is a mechanism of viewing the regular television channels over IP. As per IDC (International Data Corporation). technology is ever evolving which is leading towards the exponential changes in the world of television. We are watching television for more than three decades. With the advent of Digital TV. threatens the other two mediums by promising to give a tough competition. Digital Cable TV and IP TV (Internet Protocol Television) being the latest entrant in the world of television content broadcasting. But. being the newest arrival on the block. The video is sent in the form of IP packets over the existing broadband infrastructure and is assembled at the viewers’ end with the help of a Set Top Box. A HITS operator transmits channels to the cable operators using a satellite.

even ADSL2+ technology can support only up to 25 Mbps). This STB works only after a particular signal quality & strength is achieved which is fine tuned by using signal meter while installing the dish antenna. signal is received using a dish antenna installed at the user premises. IP-TV is in roll out phase with broadcasters being BSNL. the advantages of DVD quality signal and stereo sound are implicitly available to the viewer. lets move on to Satellite TV (popularly known asDTH). Internet and IP-TV bundled together and offered over the same network. Also. Similarly.used to deliver television signals enabling the user to enjoy television over the same broadband connection used for surfing the internet. Cable TV was one of the very early systems deployed worldwide against the traditional 24      . hundreds of channels cannot be broadcasted simultaneously. IP –TV. DD Direct. IP – TV has it own advantages but now. the content is direct controlled by the broadcaster and enables the viewer to pay and view the channels/bouquets as per his requirements. Satellite TV or DTH seems very promising and is quite a but successful in getting hold of market share but Cable TV is still on top claiming the highest numbers of subscribers to itself. From this antenna. is not very stable. this enables broadcasters to have two way communications with the viewers as opposed to in case of DTH and Cable TV. Currently. RG-6 coaxial cable connects the STB for signal transmission. Even the customer specific services of Video on Demand (VOD) become a reality. The specifications of dish antenna may vary for each broadcaster with some broadcaster using bigger dish or varying the number of LNBs(Low Noise Blocks). Airtel and Reliance only in selected cities of India. Reliance Big TV. and Dish TV. STB receiver is used to decrypt the signal and enable the viewer to watch TV. Due to high bandwidth requirement (approximately 5 Gbps. This dish antenna receives the signal in encrypted form from the satellite and is installed with in direct line of sight of the satellite. Various DTH broadcasters in India are Tata Sky. As in the case of Cable TV. Every channel change request by the user goes to the content server resulting in a delay for changing a channel. Sun Direct. In DTH. The major advantage comes in the form of signal being available 24/7 as there is no intermediate operator between the broadcaster and the viewer unlike IP TV orDigital Cable TV. “Triple Play” service refers to three different services of VoIP. Bharti Airel. Also. This is beneficial for broadcasters as they can offer “Triple Play” service of voice. still being in its stage of infancy. MTNL. With IP TV. In case of DTH. a Set Top Box (STB) is placed inside the viewer’s home. data and television over the same network using the same infrastructure. one can be assured of better video quality and stereophonic sound much like in case of DTH & DigitalCable TV.

The signals from the various satellites were received at the Multi System Operator (MSO) end with the use of multiple high end dish antennas. Hathway & DigiCable. Cable TV viewing experience is much different from what it used to be in case of Analog Cable TV as mentioned earlier. It started with the analog systems in place. So. Uninterrupted Signal : This is first and foremost need for television viewing.terrestrial system. Every system is useless if we do not have continuous signal available. The major advantage comes in the form of crystal clear Video and stereo audio. Now. But the signal is now encrypted and can only be decrypted by STB. The architecture of these headends varies completely from each other and the implementation is very much specific to technology solution providers like NDS & Nagravision. transmitted to homes using coaxial cables. the intermediate area operators’ set up faults or failures can cause disruption in signals which is quite possible given the power supply scenario is most parts of India. Also. These signals were then multiplexed at MSO end and then. that the Digital Cable TV is in place with broadcasters. The leading Cable TV broadcasters inIndia are Den Networks. we need to keep the following points in mind before subscribing to one particular medium of television viewing. These headend systems track the users for their viewing needs. Where as in case ofCable TV. Generally. As a viewer. These headend systems ensure that the signal is encrypted correctly and control the complete broadcast. Signals were stolen by placing hooks on the wire adding to a lot of noise. IP 25      . the major difference lies in the broadcast medium. All the three mediums need altogether different kinds of headend systems. The whole network was managed by distributors authorized by MSO according to the area divisions. With Digital Cable TV. The signal availability depends on the medium of broadcast. even if someone tries to form a signal leakage point. This made life miserable for those who paid these MSO’s on a regular basis for the services. But as the signals were analog and were transmitted in a clear format. a lot of noise used to get added over the network before it reached the end user. These signals were amplified by placing signal amplifiers at strategic points in the cable network. it is of no use as the signal is nothing but a noise without subscription from MSO. the user needs to install a Set Top Box (STB) at home and has a luxury of choosing channels/bouquets as per his requirements. The signal distribution model still remains the same. As we discussed about the three different mediums of Television viewing. the least signal interruption occurs in case of Satellite TV as the signal is received directly from the Satellite to the viewer’s home.

but still the noise can get added to Cable and IP TV broadcast mediums in particular areas making signals problematic. Although broadcasters are claiming to offer high speed internet services. cost will definitely be a deciding factor. this software needs to be reliable. So. the services offered by the broadcasters vary very widely. But in case ofSatellite TV signal. Cost: In the end. storms etc. Electronic Program Guides (EPGs) flexibilities and accuracy should be a consideration. Digital Cable TV and DTH have stabilized over a period of time. In a nutshell. The Digital Television broadcasting technology is still evolving and it will get complex with the advent of Personal Video Recorders (PVRs) and High Definition content. Although.TVnetwork also suffers due to ongoing construction works in the neighborhoods resulting in coaxial cable disruptions and thus. And as every field of life has it. this is most important consideration for IP TVrequirements. the quality of audio/video does not differ drastically. Customer Service: One major deciding factor should be the customer service provided by the broadcaster. only the fittest will survive. As we need to use different services. IP TV seems to be cost effective only if “Triple Play” services to be used. Signal outage occurs in case of DTH due to heavy rains. This will deteriorate more once the HDTV channels come into focus. Cable TV is still the cheapest option as the existing network infrastructure is being used to deliver the signals. easy access to these services is a must. It takes a lot of infrastructure support to provide seamless digital and interactive television experience. Satellite TV is not for you. Technically. the digital television industry is in its nascent stage in India with IP TV just being born. It will take some more time for IP TV in the coming years to prove its edge over the other two mediums. IP TV requires a huge bandwidth to make TV viewing experience seamless which is still a deterrent in India. 26      . If you live in an area prone to heavy rainfalls or storms. STB Software reliability: As everyone is aware. Signal Quality: As the three broadcast mediums are different. Network Infrastructure: As I mentioned earlier. all the receivers (STBs) work using a software. Satellite TV costs are higher due to installation and packaging of channels varying with each service provider. IP TV is much more suitable to the needs if you require Video on Demand much frequently. Make sure that you have done enough review of a product before subscribing to it. Also. it is still seen that required speed is not available in most parts of India. nature plays an important role. Services Offered: All the three broadcast mediums being different. Signal quality also might vary. All the three different mediums cause the cost to vary to extremes. switching off the whole Triple Play Network.

" At Rs 3. we had the highest sales achieved by any operator during October 2008. Says Salil Kapoor. roping in Abhishek Bachchan to endorse its offering. "We have been able to move from a functional to an emotional positioning thanks to this campaign. so it makes perfect sense for us to rope in Bollywood stars because they belong to this domain. while the ARPU for the industry stands at about Rs 200-Rs 250. CEO. Bharti Telemedia. In November last year. Add to that the fact that DTH players subsidise equipment and content to gain a sizeable subscriber base and some like Sanjay Behl. So. doubling our September sales in the process. Vidya Balan et al. Dish TV. "Brand ambassadors are an integral part of our communication strategy. Brand Airtel has a clutch of film stars. Airtel Digital and Videocon D2H. "We are a part of the entertainment industry. CEO. Sun Direct. Airtel Digital has Saif Ali Khan and Kareena Kapoor singing its praises. Dish TV.000. The 20-million subscribers strong Indian DTH market has six major players—Dish TV. Videocon D2H is the latest to have jumped on the bandwagon." avers Puri. Big TV. feel that celebrities do not justify their costs. Reliance Big TV. They gives us instant clutter-breaking capability and help build brand recognition faster." Clearly.which are used in different promotions as and when required. the average cost of getting each new subscriber for DTH operators is fairly high. And four of them have a bollywood star endorsing them. while Shah Rukh Khan and Aamir Khan endorse Dish TV and Tata Sky.Shah Rukh Khan. "Thanks to that campaign. R Madhavan. director and CEO. CEO. D2H explains the rationale behind signing up Abhishek Bachchan.Bollywood biggies occupy DTH space As the Indian DTH turf heats up. Anil Khera. which effectively means a long investment recovery period." Airtel Digital TV used eleven celebrities to launch in October 2008. Hiring Shah Rukh Khan has enabled us to save on advertising spends as he helps us get the message across more effectively in fewer exposures. the company launched a six week ad campaign with Saif Ali Khan and Kareena Kapoor. In September last year. 27      . Says Ajai Puri. the market leader envisaged on a brand revamp campaign 'Ghar aayi Zindagi' with its brand ambassador Shah Rukh Khan and is going to spend Rs 100crore on advertising in the coming financial year. marketers in the fray are leaning on top Bollywood stars to help their cause. Bollywood stars have become a norm in the DTH space. respectively. Tata Sky.

more than half the population of the country looks forward to these stars as their icons and idols – be it Amitabh Bachchan or Sachin Tendulkar. Abhishek Bachchan was earlier endorsing Reliance’s Big TV but jumped to Videocon D2H in 2010. Shahrukh Khan. Consumer Durables. Today. actors like Vidya Balan. Yuvraj Singh are a few names who not only have an iconic status but also endorse a number of brands. The companies have time and again tried their best to capture the emotions of their consumers. [The Economics Times] DTH players eyeing big with Brand Ambassadors: Celebrity Endorsement Sachin Tendulkar. Electronics and Technology.Madhavan and cricketers Zaheer Khan and Gautam Gambhir endorsing for them. Industry experts have a take on the celebrity endorsements that have been happening since quite sometime. It is the emotional quotient attached to the star power that the brands like to cash on. It is seen that in almost all sectors of FMCG." Nonetheless."In the DTH sphere.Rahman. Amitabh Bachchan. They still continue to count on the star power of SRK.R. the father-son duo of Amitabh and Abhishek have both endorsed for Big TV at some point in time in their respective careers. Aamir Khan. The brand has had the likes of A. of which Big TV is a part. DTH players have never been far from doing the same. Industry sources say that the company will be spending Rs 150-crore on advertising this year. the ambassador of Reliance Communications. The curiosity to peep into celebrity life is at its peak with the technology growing at a brisk pace. Mahendra Singh Dhoni. Tata Sky roped in Aamir Khan in 2008 with the television commercials gaining a lot of popularity because of the actor’s different looks and the humor blended with each look. the operator is close on the heels of launching a promotional campaign with Hrithik Roshan. The current brand ambassadors for Airtel DTH are the   28    . R. Perhaps. Dish TV had roped in Shahrukh Khan as their brand ambassador in 2007 and have extended their contract again. The recently concluded Cricket World Cup 2011 saw a list of cricketers being fetched by big brands to sign in for their products. The moneys spent in attaining these stars takes the budget to a new level and at times reaching an all time high. Similarly. Why do brands need an ambassador? Why is it that celebrities want to endorse brands catering to different segments of the market? These are just a few pertinent questions arising in many brains. there are at least two celebrities endorsing rival brands. These are recognized faces that the people see everyday. There are two things in India that sell more than anything – Bollywood and Cricket. it is dangerous if you do not watch costs with a hawk eye.

Bollywood cuts across all segments removing all barriers in terms of age.At present. 35% growth for the DTH industry came from metropolitan cities. DishTV. religion or even region. As brand ambassador. Chennai based Sun Network’s DTH service. while the rest came from cities and towns of tier-2 and below. we shall soon be witnessing changing brand ambassadors. there are 135 mn TV households in India.Industry insiders believe that DTH will continue to lead in terms of growth.real life couple Saif Ali Khan and Kareena Kapoor and the earlier campaigns revolved around their relationship with a tinge of humor. The reason is simple: as the DTH market in the country is in a nascent stage. With changing technology in the DTH arena.Not willing to lose the celebrity mileage Tata Sky has roped in Amir 29      . sex. with over 7 mn new subscribers adopting DTH service. The company had first tied up with Khan in 2007 to endorse its DTH service. She will soon be seen in the television commercials for Nepal’s first DTH provider Home TV. Dish Karo. We believe his endorsement of DishTV reinforces the attributes of the brand and reiterates the positioning: Thoda Aur Wish Karo. ease of installation and independence from cable plant. DishTV is promoted by Shahrukh Khan. COO. which has just began.” says Salil Kapoor. A close second in the hearts of the people is cricket which is popular and played in almost all the parts of the country. The war among players is not limited to services and subscribers. As the penetration of DTH is just 9%. Of the total industry growth. due to better awareness. and no one wants to lose the opportunity. “SRK cuts across age groups and demographics and appeals to a universal audience just like our products. and was therefore a natural fit for the brand. especially in tier-1 and -2 cities. However the future is too vague to speak about now and it will be left on the imagination of the common man to keep guessing as to which brand will come up with a new brand ambassador to tingle their senses and deviate their buying behavior. but is on the advertisement front as well. 91% of it is still untapped. in print and outdoor media. He quickest way of ending a war is to lose it. The company has recently extended its brand association with 'King Khan' for another eighteen months. Industry people expect DTH to grow at over 30% per year. Khan plays a key role in product communication on television. But none of the DTH player in India is willing to lose the battle. there is a huge untapped potential.The DTH industry experienced 300% growth in FY 2008-09. The brand believes that celebrities or icons definitely help in enhancing the image of the brand as well as increasing sales. The only player in the Indian DTH market who has not yet acknowledged the services of celebrities to promote themselves is Sun Direct. till 2012. out of which over 12 mn have DTH service. Today every sportsman or sportswoman who makes India proud soon sees himself or herself as the ambassador of some or the other brand.

In international markets such as the US.  hijacked the teaser by floating its own campaign on similar lines. which is by far a huge deviation from the industry norms. The Bharti Group owned Airtel Digital had as many as ten celebrities in its launch ads. chief marketing officer. Big TV.” says Sugato Banerji. and we expect that this is where most innovations will happen. With our history of offering innovative and collaborative products. In the global market.“We want the quality and affordability of our services to speak for ourself. value-added-services like movie-on-demand (MOD) and pay per view (PPV) are features that give DTH operators the edge. the ADAG Group venture. PVRs and standard features. In India.Tata Sky was the first private player to introduce DVR in the Indian market. Our churn is less than 2%. It is about how you strategically address different needs of various customer segments for a long lasting relationship with the existing customers and reaching out to new DTH users. Bharti Airtel. In the absence of content differentiation. the finely segmented channels. the rule of 'must-carry' obliges a DTH player to carry all the channels provided by the broadcaster. has no celebrity to endorse the brand. COO. a 80:20 joint venture between the Maran family and the Astro Group of Malaysia. rest of the players.Khan to promote its brand. exclusive content and high penetration of interfaces such as digital video recorder (DVR) have grown the market. sports programing has benefited greatly through on-demand services. exclusivity remains one of the biggest USPs of DTH operators worldwide. These players are making TV viewing a completely new experience. DTH.” points out Tony D'Silva. and there is a perfect competition in the market. Sun Direct.One would also remember that even before Airtel Digital could break the campaign or get it to its envisioned end. except Sun Direct. Globally.Besides pricing. Trai has indicated that exclusivity can only be provided when the Indian DTH market matures. “In the absence of an exclusivity of content.Sun Direct. the competition remains in pricing.One would remember how Airtel Digital had designed a teaser campaign to announce its arrival. have made the technology available to their subscribers. PPV and interactive features are the core two differentiators for DTH operators. this is an area where we will leverage our competitive strengths. 30      . the regulatory framework in India does not permit exclusive content. To remain in the competition. Unlike the global market. which may even cannibalize the industry. where the ad had a plush red sofa landing with a thud and the tag line at the bottom read: 'See you at home'. in addition to the value added services like DVRs.

HD channel is another potential differentiator. has had the advantage of first mover. CMO. Each operator is looking at ways of monetizing these interactive services. Differentiation in the minds of customers has created customer service. while others are not far behind. it would be interesting to see how Bhatri's Airtel Digital and ADAG's Big TV. “Since Dish TV. when the government has imposed a 5% customs duty on set-top boxes. Matrimony-based classifieds. Since the DTH space denotes ‘big value’. educational applications for young students. the market leader. According to Harsh Bijoor. etc as a desperate means to entice the Indian viewer. improving content.5 million households having digital pay-TV. the biggest market player on the Indian soil. inter-firm rivalries have thrown up price wars. discount schemes. “The content is developed to meet the expectations of our subscribers across various age groups. Inc.A neat 20 per cent annual growth is being witnessed in the DTH sector in India with over 8. a brand consultant. the Direct to Home (DTH) industry in India is in the throes of multifarious challenges and opportunities. has not scraped even five per cent of the pie. Sun Direct. because there is a radical difference between the existing standard definition and high definition. ambitious targets for improving the subscription base. the two giants of India.DishTV has recently launched interactive banking service ICICI ACTIVE. by offering new and enhanced services to customers. the shift is towards high definition (HD) technology. set top boxes with superior quality of videos. procurement of transponders. Especially.Interactive services have become another warfare. from the convenience of their homes. carry forward the battle. Tata Sky has fourteen interactive services. The service enables DishTV viewers to access information on ICICI Bank products and services. popular bouquet of channels.Though DishTV. Tata Sky. 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. cooking recipes-on-demand and 24x7 Darshan on TV have been all firsts in the Indian market” says Vikram Mehra. claims to be the pioneer in launching HD services in the DTH industry. which is spearheading the price war. making the cost to the consumer costiler. and quality of delivery and software. there is plenty left for other 31      . Flash back: DTH INDUSTRY IN INDIA IN THE current context of the global financial meltdown. The trend is slowly picking up in the country's DTH industry. akin to the space occupied by television and telephony. innovative bundling.Similarly.In the developed DTH market.

said. executive director Bharti Telemedia. Tata Sky. Shahrukh Khan endorses for the Dish TV. chairman CASBAA. in the provision of DTH services. he said. priced at Rs 8. which entered the DTH sector as a discounted brand in opposition to Tata Sky. the Asia Pacific market is healthy and the decline in growth will not derail the industry. state-of-the-art services to our DTH service customers”.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. were sold as claimed by the Tata Sky MD.While Tata Sky has roped in Bollywood actors Amir Khan and Gul Panag for its promotion.7 million connections and the forecast for 2012 is that it will further increase to eight million. It is being hailed a ‘major introduction’ in the Indian DTH market. 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.players to eat. 999.”Starting with a million strong subscriber base in August 2006. with the support of our technology partner NDS.A deal along similar lines was announced by Bharti Airtel. Zee’s Dish TV. the digital pay-TV market is finally taking off and this degree of penetration represents a tipping point for our industry in Asia.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. “Despite the global sinking of economies. we will render superior. Reliance ADAG. five major players. Vikram Kaushik. recently confirmed in an interview that the company estimates were standing at Rs 40 billion for its final funding requirement as ‘competitive entries’. Sun Direct. notched at a 30 per cent premium and supposedly mopped up over a million subscribers 32      . “Since DTH is the future of home entertainment.MD and CEO of Tata Sky. Kaushik.1billion will gradually be taken over by the legal DTH industry. Tata Sky.N Arjun. With 1.”In the early 2008.The Indian DTH growth scenario bodes well for the advertising industry as well with over Rs 30-40 crores being earmarked by these companies annually for advertising revenues. now has more than 2.7 million digital cable subscriptions.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. Within a few days of its launch 2. a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group. ‘explosive growth in volume’ and customer acquisition have jacked up the costs. dependent on NDS for its conditional access. Sun Direct and Bharti Telemedia formed an umbrella body – DTH Operators Association of India (DOAI).Marcel Fenez. 500 PVRs.

from a total of 165 million pay TV households. is open to segmentations. From large metros. of which over seven million are DTH ones.within a short time span. about 40 million subscribers by 2015.A demand of a tax holiday of five years from the government has been mooted by the DOAI that should incentivise the DTH industry as its market has reportedly surpassed the Japanese one in the last five years. Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for services imposed by the Central government. though placed at a launch-premium of Rs 1. Cable TV operators also give a stiff level of competition to the DTH sector by suppressing their prices artificially by way of under-declarations. The turning points were the 1982 Asian Games when colour television was introduced and the 1991 liberalisation and deregulation that ushered in the era of foreign investments and foreign channels that egged the domestic players to jump into the foray.000. DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A. more and more changes took place and finally the DTH services arrived. This has pressurised the DTH operators to cut their profits to the extent of making them unviable. Since the penetration is just under nine per cent. satellite TV moved to smaller towns that spurred the sale of TV sets and brought about an upgradation from black and white television viewing to the colour one. there are entertainment taxes that differ from state to state. Apart from this.Tata Sky. when Indian television was first launched and the state owned Doordarshan aired just two channels in black and white as recently as 1991. there is much room for a massive 33      . Analysis Since 1959. With time.The Indian DTH industry players look forward to a seven times multiplication of its market. which in turn would mean more channels for viewing. Tax burdens on DTH are another area of complaint for operators. “At present. the world of entertainment has made rapid and unusual strides. there are 80 million TV households in India.

24 million topping the subscriber base charts and the North. The ‘Indian Readership Survey 2008 R2’ findings have shown that the Dish TV is the largest player with over 3. to enhance its subscription base to 20 per cent. Chandrashekhar Balakrishnan. South and East following the lead. While the ‘big game’ hots up between the DTH service providers. which has a predominance in the southern zone. The zone wise analysis puts the western zone with 2.1 million subscribers. Industry analyst Siva Sundaram said that India will be the leading power in Asia by 2010 in the field of cable market and by 2015. the rural rich were the first to positively respond to the advent of DTH industry and those in the remote areas with no or unreliable access to the cable services will be tapped in by the DTH players. it will be the most profitable in the area of pay TV market.growth rate”. Tata Sky and Sun Direct. 34      . “This is what the company is focusing on. the regular big Indian couch potatoes may keep surfing the channels and choosing from the burgeoning options.” he added. according to the Bharti Airtel’s head of brand and media. followed by DD Direct. Interestingly.

TAM: Current Scenario STATE-WISE PERPECTIVE 35      .

Rural: DTH PENETRATION: 36      .

SECs PENETRATION: Awareness of DTH: 37      .

dish tv has exhibited a growth in ARPU. The further roll out of CAS by the new Government. OPPORTUNITIES India‘s 127 million television owning households. The mobile store. However. Next.SWOT ANALYSIS OF DTH: STRENGTH Dishtv was the first entrant in the DTH category and has thus become synonymous with the satellite TV broadcasting business in India. it stands at the lowest by far. will also add more visibility leading to better acceptance of the product. due to more value being packaged at the lowest packs. upgrade and enhance the revenues. which define the potential depth for the DTH category. Enrichment of Value Added Services (VAS) basket with gaming and a host of active services. The cost towards acquiring consumers is under constant scrutiny in an endeavor to bring it down. will act as a low hanging fruit for adoption. WEAKNESS The subscriber acquisition cost is still very high. The recent stabilization and a revived hope for bouncing back of the economy as early as the second half of this year will facilitate faster adoption of the category. ARPU continues to be an area of concern with the constant endeavor to monitor. into more towns will impact the growth rate of the DTH category and trigger consumers to make a decision between digital cable and DTH. some going pay. dishtv has built acommendable brand and relevant product that answers the consumer needs‘for quality entertainment. Emergence and growth of traffic at the organized retail chains like Big bazaar. compared to the current industry benchmarks. In a market trend of consumers down sliding on the packaging tiers. 38      . However. The technological edge and differentiation with respect to other brands stands exemplified through its unique offerings of mobile dish with presence in aircrafts (Kingfisher). An eventful sporting calendar with the ensuing Commonwealth games and a series of Cricketing tournaments will act as a catalyst for this category too. mobile vans and selected railway saloons. Reliance digital etc. thereby aiding faster expansion of the digital entertainment world. will continue to be opportunity areas for revenue enhancement. navywar ships. Leveraging its lineage with the Zee group.

Dish TV was only DTH operator in India to carry the two Turner channels Turner Classic Movies and Boomerang. but also gives a complete control of selecting channels and paying for them. Competitors in Bhopal: PLAYER’S DISH TV:DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Zee Entertainment Enterprises. this enterprise brought best television viewing technology to the living room.THREATS DTH is currently a six player market. EGV has national and global presence with business interests in media programming. speciality packaging and entertainment. By digitalizing Indian entertainment. using MPEG-2 digital compression technology.0. Price cuts and reduced margins. Both the channels were removed from the platform due to unknown reasons in March 2009. Dish TV started its service in Pakistan with the collaboration of Budget Communication. Churn management and retention cost scan negatively impact bottom-lines unless constant attention and Strategy is deployed to manage and control the subscribers base. such as EPG (Electronic Programme Guide). interactive TV and movie on demand. 39      . can pose a threat to revenue enhancement. transmitting using NSS Satellite at 95. Dish TV’s managing director and Head Of Business is Jawahar Goel who is also the promoter of Essel Group and is also the President of Indian Broadcasting Foundation. Dish TV is a division of Zee Network Enterprise (Essel Group Venture). games. Improved quality of services by digital cable and IPTV players are potential threats. spurred by severe competition. Dish TV is on the same satellite where DD Direct+ is. broadcasting & distribution. Dish TV imparts DVD quality picture and stereophonic sound effects to the customers. parental lock. The endeavour enters next level of entertainment with futuristic features. Dish TV is a DTH satellite television provider in India. It promises to change the experience of TV viewing with its uninterrupted transmission service. Zee Network incorporated Dish TV to modernize TV viewing. 400 channels. It not only transmits high quality programmes through satellite. Dish TV is India‘s first direct to home (DTH) entertainment service.

With 170+ TV channels and 31 Radio channels. The Viewing Card decrypts the TV signals chosen & paid for by the customer. provides satellite television services to Indian viewers. The viewing card is pre-activated so that you can start watching the channels as soon as you get your dishtv installed. etc.CUSTOMER PREMISE EQUIPMENT (CPE) The Equipment or Customer Premise Equipment (CPE) consists of the following: Dish Antenna with LNB STB with Remote Pre-activated Viewing Card The Dish Antenna is installed at an appropriate location at the customer's premise. No 2 VC‘s can have same serial number. Sun Direct was also the first DTH operator to introduce HD. The cable in turn. an 80:20 joint venture between Tata Sons and the Star group. is connected to the TV set. movies and interactive services for games.500 towns in India. 40      . For Example: 01500010000-1. This number is of 11 digits followed by a hyphen and 1 digit after that. It has state-of-the-art digital infrastructure and a retail network that covers more than 4. Tata Sky's direct-to-home satellite platform delivers more than 100 television channels. this card needs to be activated after installation. news. You can locate this on your VC. Tamil Naidu. The company was incorporated in 2004 and offers a range of media and entertainment options to customers. which is inserted into a slot in the STB.The encrypted TV signals are received from the satellite on the Dish Antenna and transmitted to the STB. SUN TV: Sun Direct is an 80:20 Joint Venture between the Maran family and Astro Group of Malaysia. learning. chat rooms. Sun Direct has a subscriber base of 3 million (April 2009) Sun Direct has a basic pack of Rs 75 monthly subscription which is the lowest price-point compared to the other service providers. PRE-ACTIVATED VIEWING CARD This card is just like a SIM card of mobile phone. The customer is also provided with a Viewing Card. TATA SKY Tata Sky. recipes. for better clarity of viewing on TV. To receive dishtv signals. Its headquarters are located in Chennai. Every VC is uniquely numbered. It is then connected to the STB through a cable.

The company plans to increase the number of channels in the near future to 400 and begin High Definition (HD) broadcast. BIG TV started operations from 19 August 2008 with the slogan "TV ho Toh BIG Ho" ("If you have a TV. the Indian business tycoon and owned by his son Anil Ambani. 32 cinema halls (i. a subsidiary of Reliance Anil Dhirubhai Ambani Group [2] founded by the Late Dhirubhai Ambani. 41      . Like other DTH service providers it also provides a Video on demand interactive service which includes a catalogue of movies in Hindi. 1. English and other regional languages which can be ordered on demand. Interactive Service (it) of Airtel digital tv includes a add-on service which allows a user to shop. Pay per View Cinema Channels) as well as many Radio channels. book movie tickets etc.to get a 24 x 7 access to the 21 PPV channels showing Hindi and Regional Films. make it BIG"). It is the first Pan-India DTH provider that uses MPEG-4 for broadcasting. 50/. while other players made subscribers pay for each movie.. their introductory offer stood at Rs. A universal remote is included in the package which can.e.Airtel DTH: Airtel digital TV’s standard definition broadcasts are in MPEG-4 with Interactive Service (it) and 7-day EPG (electronic programmed guide). Reliance BIG TV's retailer network is spread across 100. i-News and other such interactive services in the future. When it came to pricing – packaging. It currently offers close to 240 channels and many interactive ones. Reliance BIG TV:Reliance BIG TV limited is a part of Reliance Communications Ltd. the highest by any DTH player. Airtel digital launched on 8th October. They also introduced 32 Pay-Per-View Movie Channels.490/. There are also plans to introduce services like i-Stock.500 towns in India.000 outlets in 6. Not just that. Gujarati and Bhojpuri films. They had effectively out-stripped the competition here. Airtel digital TV is now amongst the fastest growing DTH brands in the country and is available across 5000+ towns in India. Reliance BIG TV introduced the unique concept of Subscriber-VideoOn-Demand (SVOD) under which the subscriber paid a monthly subscription of Rs. Since that it has launched 2 other campaigns 'Stars come home' (March 2009) and 'DTH Picture Clarity' (August 2009) has increased its channel base to 183+ channels. We were also the first to introduce dedicated PPV channels for Marathi. over IR frequencies control both the TV and the DTH box. 2008 with a 360 degree mega campaign "Come Home to the Magic". It has also been ranked as the best DTH service by "Living Digital" magazine. This was literally unheard of in the DTH industry.with 3 to 6 months of free subscription.

which recorded a phenomenal 74. Migration. the establishment of Mandideep industrial area coupled with heavy commercialization. the Government of India has added another task to prepare a National Population Register (NPR) along with census data. Fertility and Mortality. Religion. Bhopal was made the state capital and.53% of the district population lives in urban areas. The urban population then rose steadily from its low 30. the urbanization declined as a result of plague outbreaks. Thereafter also the population continued to grow rapidly before declining to approx.Primary Research: Bhopal Bhopal population: Population Census of India 2011 .The Census of India 2011 which started on 1st of April in 2010 is a historical landmark in Indian history. predominantly. rate of urbanization seems to be eventually stabilizing at about 80%. Government of India will collect data from each and every household in the states and union territories of India. 42      . Bhopal city is the most urbanized districts of the state. in the city.3% in 1951. In the decade of 1971-81. Urbanization.4% in 1921 to 43. Disability and many other socio-cultural and demographic data in India. This led to substantial population-increase and by 1961 the urbanization of the district rose to 61. In subsequent decades. 34. Housing and Household Amenities. Literacy and Education. However this year.92% during 1991-2001. in the same decade.6%.35% decadal growth. Indian census has been a reliable source of information on Demography. Language. In between 1901 to 1921. Scheduled Castes and Scheduled Tribes. the industrial township of BHEL was established. Over the years. and expansion of Government services further gave impetus to the population. There is a clear indication that unusually high growth is now stabilizing and the rate will further slowdown in the following decades particularly because the area base has significantly widened. Economic Activity.During 1951-61 the population growth was nearly 120%. In 1956. The Census 2011 is the 15th National Census of India undertaken by the government after a gap of 10 years. As per 2001 census. 80. This will be largest census in human history till date ever done by any government in the world.

the city had 898 females per 1. A lower female ratio indicates difficult housing situation prevailing in the city. According to 2001 Census. which is essential for creative and productive life. The migrant worker has a tendency to leave his family behind unless he is hopeful of obtaining a house within his rent paying capacity.000 population.Social Structure The city has shown a continuous growth in the female population.000 males which is almost equal to the State average (Urban) of 912 females per 1. 43      . but it is lower than the other class I cities of the Region which have not been subjected to sudden migration and are socially more stabilized. Increased rate of housing supply will certainly improve social and cultural life of the city.

The main purpose the research is to find the penetration of different DTH players in the Bhopal market M. Interview of respondents but not each respondent because they don’t want to face camera. Data Collection The information needed to further proceed in the project had been collected through primary data. It refers to the technique or the procedure the researcher would adopt in selecting the items for the sample. We used the tool enquiry through conversation and observation apart from interview. In this project. 44      . The major purpose of descriptive research is the description of the state of affairs as it exists at present. Data collection procedure: • • • • • • Primary data collected through questionnaire .P. Then. Considering the brief I have to choose the research site which was Bhopal in M. We taken picture. This is a Descriptive research because it is based on primary and secondary data and survey on DTH used to interpret the research problem and tries to give some insight in to problem. But they are most comfort with simply conversation.P. we go to door to and simply conversation cum interview with respondents. Random Sample A sample design is a definite plan for obtaining in sample from a given population.Type of Research • Descriptive Research: Descriptive research includes surreys and fact finding enquiries kind. Sample has been taken from different area of Bhopal. the samples have been selected from the population using simple random sampling Technique Sample size: 50 household random samples were chosen for this research. at least we take one member from a household. Next level we selected sample size according to brief.

Survey research is the approach best suited gathering description. Due to time constraint the survey has been done on the basis of convenience PROCESS OF DATA ANALYSIS:The whole research was done in two parts. B . the most spoken words were extracted from the recordings. Limitations The sampling plan was based on non-probability method and no scientific methods were adopted. On the basis of their answers. In this part there was a cheat sheet prepared which consisted the questions to be asked to the respondents? The conversation was then recorded in an audio device. The universe selection and sample size is not sufficient to represent the whole population. survey research was used and all the retail outlets sellers using different brands and their competitors were contacted. 45      . In this dissertation. Objective: To find DTH Penetration & Consumer Preferences among the DTH players in Bhopal. The cheat sheet consisted of the various questions asked to the interviewee. the 1st part consisted of descriptive qualitative research.PRIMARY DATA Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data. the primary data was collected through questionnaire from the people belonging to SEC A.

which is a large share. questionnaire consists of number of questions printed or typed in a definite order on a form or set of forms. while 49% of them watch using Cable.Methodology used: Questionnaire method Sampling Design: A sample design is a definite plan for obtaining in sample from a given population. Questionnaire is a Performa containing sequence of questions to collect information from the respondent. Questionnaire: 1. Thus. More than half a population has shifted towards DTH. 46      . It refers to the technique or the procedure the researcher would adopt in selecting the items for the sample. Do you watch Television using DTH or Local cable connection? o DTH o Local Cable Connection 51%  49%  DTH  Cable Interpretation: 51% of viewers view television using DTH. Research Instrument The instrument which has been utilized for the collection of data is the questionnaire.

If you have a DTH connection.2. 3. which among you use? o TATA SKY o DISH TV o AIRTEL o BIG TV o SUN TV o OTHERS TATASKY       DISH TV 35%         39%  BIG 5%           AIRTEL 15%  Others 6% Interpretation Tata Sky is the market leader with 39% of market share. followed by Dish TV and Airtel with 15% of market share respectively.. CHANNEL  PREFENCES& AD ON   SERVICES 20%  PICTURE QUALITY   30% HOUSEHOLD  PICTURE  QUALITY&COST50%  Interpretation 47      . Why you choose DTH over Cable? o o o o Because of the Picture quality You want more channels with clarity Connection problem with Local cables Cost is Less Other: ………………….

20% told great services and more channels. Does celebrity endorsement affect on purchasing decision? o No o Yes 70%  30%  NO  YES  5. Which TVC of DTH you like? o TATA SKY o DISH TV o AIRTEL o BIG TV o D2H VIDEOCON o NONE OF THESE 40%  25%  20% Dish TV  “Shahrukh khan”  None of these  TATASKY “Amir khan”  15% Airtel  “Kareena Kapoor”  48      .30% respondents choose DTH because of better picture quality. 50% gave reason of both picture quality and cost . 4.

How much do you pay to your DTH Operator? (Monthly) o o o o o 100‐200  200‐300  300‐400  400‐500  More than 500  Interpretation: 25% DTH users spend 100‐200 per month for subscription fee while 36% spend 200‐300  per month.6. 20% spend  variable amount between 200‐ 450 per month. 5% spend 400‐600 per month. 14% spend 300‐400 per month.      49      . Who is your favourate brand endorser of DTH? o Sharukh khan o Amir Khan o Saif Ali Khan o Kareena Kapoor o Abhisek Bachchan o Vidya Balan Others   15%  Kareena 15%  AMIR  30%  SRK         40%  7.

How often do you watch or would like to watch Regional News Channels? o o o Regularly  Occasionally  Never  Interpretation  36% of population watches or would like to watch Regional News Channels regularly.  Address: Name…………………………………………………………Age…………………… • • Male Female House No. Do you activate any extra value added service of DTH? o YES o NO o SOMETIME o NEVER 10. 30% rest. 38%  occasionally and 26% never. 50      .  9. What is one thing you don’t like about DTH services? o Pay-extra money for other services o Bad signal due to rain 11.:……………………….8. Which extra services of DTH services do you like most? o Game o Movie on demand o Englisg speaking o Live record your favourate program Interpretation  70% of household watches or would like to movie on demand.

8) Customer care service is considered to be very poor as dealers often complain of problems in recharge process managed by Dish TV. like installation and activation commitments are often not met. waiting time is high on toll-free numbers. vouchers are preferred over others that are not the case with other brands who use all other options. 7) In case of Dish TV because of frequent trouble complains in EPRS recharge option. 6) EPRS system seems to be the most troublesome recharge option for Dish TV. This doesn‘t seem to be the case with other DTH providers. 51      . 3) There is a communication gap between the company and the customers. 5) Availability of voucher is one of the major issues among Dish TV dealers. Due to the shortage of stock they are not able to retain their customer for long time. 10) The company hasn‘t been able to keep up the promises made to the customers. 9) Many persons say they recommend Tata Sky and Airtel because they get the installation done much faster in comparison to Dish TV. 11) Connect between the Call Center and the Service center is not good. 12) Customer Care is not reachable on Toll-Free easily. With Dish. 2) Awareness of new connection and new recharge offers of Dish TV is similar to Tata Sky and Airtel Digital. it takes up to 3-4 days sometimes. but use other modes of recharge for large amounts. For small amount of recharge they use vouchers.Findings On survey 1) Maximum Person keep Dish TV kit and recharge facility. 4) Availability of vouchers lie between price ranges from Rs 100 to 1000.

the other DTH brands never let them feel down. which helps the dealers to keep good relation with their customers. This along with improper communication confuses customers which beings down the consumer satisfaction levels. dealers and customer like their but same time they shows un satisfaction with frequent changes in offer. 18) Specific Comments By customers:a) Due to the bad EPRS system of Dish TV.. they are not able to recharge higher amount and as they face such problems frequently. 17) Good thing which i found in Dish TV according to dealer feedback is offer. they try to recommend other DTH brands to their customers. b) The dealers mostly prefer to sell Tata Sky and Airtel because their installation system is very fast. which provides them with the competitive advantage. 52      . Also if dealers are committed to their customers regarding any specific time limit. 16) Other DTH brand provides best support facility. quick recharge and installation facility.13) Dish TV changes the price plans and offers more frequently as compared to other DTH providers. 14) There has been a growing trend of dish TV customers and dealers being shifting to other major brands like Tata Sky and Airtel Digital as they provide better value added services like after sale service. recharge facilities and customer care 15) Most customers surveyed have complained that the Distributor/Sales people do not visit much and they are not receiving sufficient support.

distributer have been setting there own price and negotiating according. this has been matter of loss for the dealers in most the case the profit got is not up to the mark. One way of doing this would be to offer at least the same service as these two competitors are trying to eat the market share. It took long time to recharge. but in case of Dish TV they only sell vouchers worth Rs 5-10k. RECOMMENDATION & SCOPE 1) Increase awareness: Since there is lack in communication channel. 2) Improve processes and techniques: In order to make recharge or activation process more transparent and user friendly. 3) Give more value added services: Since Tata sky and Airtel have clear edge over value added services like free installation DTH needs to mend its strategy to face these competition. So Dish TV needs to watch out for this and should pre inform the customers about the offers and changes well in advance. 7) Visibility: Danglers create more impact on customer mind. it always visible and promote offer and help to recall brand resonance. 4) Improvement in after Sales Services: Arrange proper training for customer care executives as Dish TV lacks proper after sale service. the EPRS technology needs to be upgraded consistently. The main reason behind it is lack of availability and also poor EPRS system.c) The dealers generally sell recharge vouchers of Tata sky worth Rs 1lac per month. 6) Voucher Availability: Make proper channel of Distribution of voucher. I feel would create more brand loyalty and preference. 5) Standardized the price plans and avoid frequency changing: Frequent changes in price and offers is proving no good for Dish TV as it is in way frustrates the customers with changes in offers without being informed about it. d) There has been problem on the behalf of the distributers front. 53      . So dealers push its customer towards Tata sky and Airtel Digital. This in a way. it should be tackled with care and dealers should be constantly made aware about the offers and new plans through meetings with company executives at regular intervals.

com/dth/airtel-dth.televisionpoint. Zee 24 Ghante Chhattisgarh 54      .A Growth Story Unfolds TAM Report.asp http://www.php?mediaId=1 http://realinfo.php?id=1252499760 http://en.info/index.wikipedia.com/why-tata-sky.com/mpanews120809. Media & Entertainment Industry projected to grow at 13% over next five years to INR 1091 bn FICCI Report.topicseen http://www.php?topic=810.articlesnatch.indiandth.tatasky.html http://en.wikipedia.simplymalayalees.com/DTH_fullstory.rediff.html http://www.aspx?passfrom=DTH&storyid=7981&se ction=S218 http://en.0.com/Article/Analysis-Of-The-Media-Industry-InIndia/995277 http://www.com/forum_posts.htm http://teck.in/dth-direct-to-home-tv-in-india-features-and-price-comparison.mumbaispace.wikipedia.media-partners-asia.org/wiki/IPTV http://www.sundirect.htm www.telecomtiger.com/mba-journal/marketing/outdoor-ooh-changing-faceoutdoor-advertising-india http://www.com/news2009/newsfullstory.in/ www.org/wiki/Tata_Sky FICCI-KPMG Report.in/mediaDetails. The Indian Entertainment and Media Industries .coolavenues.asp?TID=696 http://www.com/money/2005/apr/18eco.org/wiki/Dish_Network http://www.REFERENCE  http://www.

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