Integrating TV programmes into your learning environment - Jisc Digital Festival 2015
BUSINESS ENVIRONMENT - DIST TV
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Transcript of BUSINESS ENVIRONMENT - DIST TV
Dish TVPRESENTED By:-Aakriti Handa -16BSP0015GG Aayush agarwall - 16BSP0028GGAbhisek kumar Jha - 16BSP0088GGAditi Tandon - 16BSP0131GGAkshit Shah - 16BSP0231GG Anand - 16BSP0289GGAnjali Parmar - 16BSP0326GGAnkit - 16BSP0336GG
Environmental scanningDish TV is the pioneer and leader of DTH services in India. It
is formerly known as ASC Enterprises Ltd., is a part of Zee Network Enterprise (Essel Group Venture). Dish TV was also voted India's most trusted DTH brand according to the Brand Trust Report 2014, a study conducted by Trust Research Advisory.
Its primary competitors are DD Free Dish , ABS Free Dish, Tata Sky, Sun Direct, Airtel digital TV, Videocon d2h and Reliance Digital TV.
Business Environment DTH service involves distribution of multi-channel TV
programmes by using a satellite system that provides TV signals directly to the subscriber’s premises.
Dish TV has changed the India Television technology by bringing up the different features such as:-
Interactive channels Uninterrupted viewing Parental lock Geographical Mobility Effective video gaming
Business It has 9000 outlets all over India with 100 vans and 150 dish
care centres.It include 225 channels with 21 audio channels.It has a huge distribution network of 650 customers, with
45000 dealers in 6500 cities.It has 24*7 call centres in 1600 seats in different languages.
Profit gain by the CompanyDish TV has incurred huge expenses on, spreading awareness
of the product and launching brand building on a pan-India basis.
Some cost entitle by the Company are Implementation CostCustomer Premises Equipment costContent Cost
In 2008TR= INR 4,130 MillionTC= INR 4,980 MillionTVC= INR 1,330 Million Where the TVC is greater than TR, but instead of being shut
down it overcomes its losses and thus the company is heading towards breakeven analysis.
Dish TV is still in operation because even if it shuts down its business it will have to incur the fixed costs. Since dish was the first entrant into the DTH services it has incurred huge capital expenditure thus in the hope of earning profits its still in operation and trying to achieve a leavel of break even.
Capturing the market shareSince there was no limit on the number of
companies that could apply for the DTH license, the number of competitors increased.
Even though Dish TV had first mover advantage there was cut throat competition.
Dish TV tried to capture the market by reducing costs to customers.
As per the Media Partners Asia’s report the DTH industry’s combined losses were set to cross INR 20,000 million in 2008-09.
The company realised it could not bear further losses. Thus they transferred their burden onto the customers in the form of
increasing chargers of its connection and offerings
Service tax @ 12%-12.5%(earlier absorbed by Dish TV)
INDUSTRY INITIATIVES HELPING DISH TVLicense fee reduced from 10% to
6.9% with effect from April 2008Central Value Added
Tax(CENTVAT) reduced from 14% to 10% leading to lowering of Customer Premises Equipment(CPE) cost.
CONCLUSIONAccording to the case Dish TV despite of being in this business for so long has still not been able to achieve its break even point. Its total cost is greater than the total revenue. However the company is planning to maximise its EBITDA. Since it’s a measure of a firm's gross income. A positive EBITDA implies that the company is heading towards achieving its break point i.e. a point of no profit or no loss. Dish TV is still the market leader despite of facing tough competition from various players like TATA SKY, AIRTEL etc.