Presented by:

Preetika Bhadrish (19BSP3481)

Anushka Nayak (19BSP3497)
Presented to: Arpit Katare (19BSP3620)
Prof. Anand Shringarpure Abhay Jaiswal (19BSP3509)
Sufiyan Allana (19BSP3492)
Yash Lentin (19BSP3322)
Abhishek Jhawar (19BSP3746)
• DTH service involves distribution of multi-
channel TV programs by using a satellite
system that provides TV signals directly to the
subscriber’s premises.
• DTH digital entertainment service in India was
not very smooth.
• It was first proposed in 1996 and however
approval was denied on ground of national
security and cultural invasions.
• Government imposed a ban when Rupard
Murdoch owned Indian Sky Broadcasting which
about to launch it’s DTH service in India.
• Biggest cost lies in the process of customer
acquisition.
• Spends large amount on subsidizing the set top
boxes and first year subscription prices
• Hardly makes any money on hardware.
Therefore, it focuses on subscriber additions
and market share.
Dish TV platform includes
• 225 channels with 21 audio channels
• Huge distribution network of about 650
distributors and 45,000 dealers
• Call centre spread across cities to take care of
subscriber queries at any point of time to
ensure a timely solution to customer
problems.
• Indian DTH industry is first instance of cross
media restriction in India.
• Being a capital intensive industry, the
restriction hampers its progress.
• There is 49% cap on foreign investment.
• The capital intensive nature requires long
gestation period to reap results.
entertainment Tax 1%

middleware charges 2%

subscriber management
3%
transponder lease 15%

license fee 7%

uplink charges3%

content cost 69%

• Indian DTH policy requires all operators to set
earth station within 12 months of getting license.
• Dish TV incurred huge expenses on spreading
awareness and launching brand building.
• The costs on major heads include software, its
implementation cost, consumer premises
equipment (CPE) and contend cost.
• SAC is a key cost factor which includes variable
cost.
• The rest cost is fixed cost which includes license
fee, transponders fee, uplink charges, etc.
• The business viability depends on the maximization of
profit or minimization of loss.
• Profit= total revenue>total cost.
• Loss = total revenue< total cost.
• For dist TV, total revenue for FY2008 is INR 4130 million
while the total cost is accounted for INR 6310 million,
hence the loss of 2180 million constituted loss for FY2008.
• The total fixed cost of Dish TV being INR 4980 million, its
total variable cost is INR 1330 million.
• The total revenue of INR 4130 million> total variable cost
of INR 1330, dish TV prefers to remain in business.
• First mover advantage.
• Media Partners Asia’s recent reports reflects
that the DTH industry combined losses are set
to INR 20,000 million in 2008-09.
• Dish TV focuses on improving its business
economics.
• The license fee reduced from 10% to 5% with effect from April
1st 2008.
• Entertainment tax is passed to the subscriber through
consumers.
• Central value added tax is reduced from 14% to 10% leading to
lowering of customer premises equipment cost (CPE).
• All these will help the company to reduce cost as well as
variable cost which might help dish TV to achieve its goal.
• In March 2009, dish TV crossed the 5 million subscriber and
targets for 2009-10, to achieve 7.5 million subscribers.
• Dish TV expects carriage fees to increase from INR 250 million
to 500 million in 2009-10, which is additional source of