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A

GRAND PROJECT REPORT

ON

“Vital Purchase Criteria of Customers While Selecting ‘DTH’ Services

&

INDUSTRY ANALYSIS”

In requirement of partial fulfillment of the Master of Business Administration (MBA)

2-year full time programme of Gujarat University

SUBMITTED BY:

Bhavesh Grover [08/MBA/16]

Project Guide:

Prof.Mayank Bhatia

AHMEDABAD INSTITUTE OFTECHNOLOGY

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DECLARATION

I Bhavesh Grover here by declare that the project report entitled “Vital Purchase Criteria Of Customers While Selecting DTH service & Industry Analysis” under the guidance of Prof.Mayank Bhatia in partial fulfillment of the requirements for the degree of master of business administration to Gujarat University.

DATE: Signature:

PLACE: AHMEDABAD

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CERTIFICATE

This is to certify that Mr. BHAVESH GROVER (08/MBA/16) , MBA Batch2008-10 has worked on the project titled “Vital Purchase Criteria Of Customers While Selecting DTH service & Industry Analysis” under my guidance. This is his original work and has not been submitted elsewhere for award of any degree/diploma so far. They have put their sincere efforts to complete the project.

We wish him all the best.

Project Guide:Prof. Mayank Bhatia

PREFACE

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The project report has been prepared as a part of the course curriculum of second year of MBA. At each and every stage of life we require some sort of theoretical knowledge as well as practical knowledge. It means, only classroom lectures may not be enough to get proper knowledge. It has to be supplemented with practical experience.

I had undertaken the project on “ Vital Purchase Criteria Of Customers While Selecting ‘DTH’ Services". Through this project I have learnt a lot about DTH industry and The factors considered by the customers for selecting a DTH service . Thus in this report I had tried my level best to cover most of the aspects regarding the same.

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ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I am fortunate enough to get support from large number of persons to whom I shall always remain grateful. With immense pleasure I would like to express my sincere thanks and gratitude to my project guide Prof. Mayank Bhatia and all who helped me in the project without whom I could not get such an opportunity to work on this subject.

I conducted the survey at various places

10 ACRES MALL [Maninagar]BRAND FACTORY [Shyamal]CITY GOLD [Bopal]D’ MART [Visat]AHMEDABAD CENTRAL [Mithakhali]

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Executive summary

DTH market is the most attractive and developing market. due to the increased importance of latest technology and the increased demand for the hybrid and new generation products. People are getting more and more concerned towards the products and the Brands.

More attractiveness results to increased competition from various small and medium players and dynamics of the market. Thus, the growing concern requires the marketers to strictly look at consumer buying decision process and more focus on the factors such as Prices, Perceived quality, Perceived service, Perceived value, and Purchase intention that subsequently determine willingness to purchase a brand of DTH service. On this basis, this research deals with criteria that are vital to the customers for selecting a DTH service

Primary Data collection conducted by the survey of 250 people depicts that tata sky is the leading and most preferred service provider in DTH industry and the most effective factors that prompt people to buy a particular DTH service is low monthly cost along with low initial price which clearly shows how price sensitive Ahmedabad market is. Variation in price can lead to increase or decrease in demand of the product. People normally prefer to pay for the service either monthly or half yearly.

Various other analysis such as Financial Analysis, PEST analysis, Michael Porters Five Forces analysis , Value Chain analysis, OT analysis and the Strategic Factor analysis provides in-depth knowledge regarding the DTH industry

The DTH industry is at the”GROWTH STAGE” of the Industry Life cycle.

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Research Objective:

Primary Objective: To know the vital purchase criteria of customers for selecting

DTH service and Study of DTH Industry in India.

Secondary Objective: To Find Out Over All Market Condition Of DTH Industry. To Study The Political, Economical, Social, And Technological

Factors Affecting IndianDTH Industry.

Compare The Market Competition Among Different Players. To Find Out Opportunity & Threats In Indian DTH Industry. To Study The Reason Behind Growth Of DTH Market.

Information Needs: Product History. Related To Substitute Product. Application Of Product. Global Position Of The Market. Information About Different Brands In India. Various Companies’ Market Share. Macro Environmental Factor. Size And Growth Rate Of The Market And Economy. Opportunity And Threats.

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Research MethodologySampling design

Population consist of DTH users

Types of sampling Cluster

Research Approach Descriptive

Techniques to be used in research approach Survey and interview

Sampling Unit Individual

SAMPLE SIZE DETERMINATION

1. Let desired level of precision =

2. Confidence level =

3. value associated with the confidence level =

4. Suppose 80 % of the people agree to provide information for survey. Thus, value

of

5. Thus, value of

6. Sample size determination using standard error of proportion is given as follows:

»»

Therefore, sample size n equals to

Data collection

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Primary Data Collection Structured questionnaire for the customer.

Secondary data collection Books Web-sites, News papers

Limitation:

Some Data Is Based On Secondary Sources. So, It May Be Insufficient

Introduction

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Product Profile

Definitions:

The Direct-To-Home (DTH) Service:

In Technical Point Of View: “A Digital Satellite Service That Provides Television Services Direct To Subscribers Anywhere In The Country. Since It Makes Use Of Wireless Technology, Programs Are Sent To The Subscriber's Television Direct From The Satellite, Eliminating The Need For Cables And Any Cable Infrastructure.”

In Customer Point Of View: “The Reception Of Satellite Programs With A Personal Dish In An Individual Home. And An Individual Set Top Box Empowering You To Pick & Choose You Bundles Of Choice And Pay For What You Watch.”2

The Original Concept Of Satellite Television Started Over 64 Years Ago Almost, Direct To Home (DTH) Satellite Receivers Were Developed In The Early 1980’s.

DTH Offers Better Quality Picture Than Cable TV And Stereophonic Sound Effects. It Reaches Even Those Places Where Cable Is Not Available. This Service Is Also Providing Value-Added Services That Include Tale-Text, Dual Audio For Channels, Parental Control, Electronic Program Guide And Radio Channels.

DTH Has Also Allows For Interactive TV Services Such As Movie-On-Demand, Internet Access, Video Conferencing And E-Mail. If You Want To Record Your Favorite Programs You Can Get A Free DVR (Digital Video Recorder) Receiver. Main Disadvantage Of DTH Is Fading Of The Signal Due To Rains. Heavy Rains May Result Into Outage For A Few Minutes In The DTH Signal.

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Direct Broadcast Satellite (DBS) Is A Term Used To Refer To Satellite Television Broadcasts Intended For Home Reception, Also Referred To More Broadly As Direct-To-Home Signals.

DTH Service

Direct-To-Home (DTH) Service Refers To Distribution Of Multi-Channel TV Programs In Ku Band By Using A Satellite System For Providing TV Signals Direct To Subscribers' Premises.

DTH Provides Subscribers The Advantage Of Geographical Mobility Meaning Thereby That Once A Customer Purchases DTH Hardware, He/She Can Continue To Use The Same Unit Anywhere In India.

DD DIRECT+ Is India's First And Only Free To Air (FTA) Direct-To-Home Service Being Provided By Prasar Bharati. Apart From Prasar Bharati - A Public Service Broadcaster, M/S Dish TV India Ltd. M/S Tata Sky Ltd, And M/S Sun Direct TV Pvt. Ltd. M/S Reliance Big TV Pvt. Ltd., M/S Bharti Telemedia Ltd. M/S. Bharat Business Channel Ltd. And Videocon India Pvt. Ltd. Have Also Been Granted License For Operating DTH Service.

The Eligibility Conditions Provide For Total Foreign Equity Holding, Including FDI/ NRI/ OCB/ FII, In The ApplicantCompany Not To Exceed 74%, And Within The Foreign Equity, ItAlso Provides That Applicant Company Must Have IndianManagement Control With The Majority Representatives On TheBoard As Well As Chief Executive Of The Company Being Resident Indians.

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Indian Market

Indian DTH Space Is A Rapidly Rising Industry. Since The Time, It First Arrived In India, More And More New Players Are Joining The Bandwagon. Because Of Arrival Of New Entrants, This Industry Has Become Very Competitive Which Ultimately Results In Customers Having More Benefits And Options.

Direct to Home (DTH)

India has about 130 million TV homes of which, Cable & Satellite (C&S) services are present in 97 million (74%) of the homes (www.financialexpress.com/news/thats-entertainment-direct-to-home/497502/).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 has certainly proved a boon for the Indian DTH industry as people have now started to cut on their entertainment expenditure and instead of viewing movies at theatres, they are preferring to stay at home with their television sets.

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The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009 and the numbers are forecasted to surge further at around 30% through 2012.So apart from Tata Sky, Dish TV, Airtel Digital and Reliance BIG, southern heavyweight Sun TV has entered the fray with Direct, while Videocon has entered the market in June 2009. Still, as DTH is still a relatively new category and most people were hesitant to experiment with it. While Indian consumers were not completely satisfied with their cable services, they did not feel the need to switch over to any other means of entertainment. It was therefore imperative for companies such as Tata Sky, Dish TV, and Reliance BIG TV to educate the consumers about the advantages of the service and in turn create an urge to invest in it.

Current Players:

The current players in DTH industry are:

1. Dish TV - Zee group Dish TV is a venture by the Essel Group and was launched in 2004. Dish TV is India’s first private player in DTH industry with a presence in 19 states. It has a subscriber base of 5.07 million (March2009). (http://voicendata.ciol.com/content/service_provider/109080102.asp).It has a bouquet of over 240 channels to choose from. Recently Dish TV has launched an entry-level subscription at Rs. 99 per month with the largest offering of 110 channels

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2. TATA Sky – Joint venture between Tata Group and UK-based British Sky

Tata Sky was incorporated in 2004. TATA is one of India's largest and most respected business conglomerates and the SKY brand, owned by the UK-based British Sky Broadcasting Group has over 20 years of experience in satellite broadcasting. It launched its services pan-India in August 2006.Within a short span of time it garnered a subscriber base of nearly 4 million (Aug 2009) (www.tvnext.in/news/155/ARTICLE/2142/2009-08-06.html).It has over 168 channels to choose from. Tata Sky has launched an entry-level subscription plan called ‘Super Hit Pack’ at Rs. 99 per month with a bouquet of 53 channels. Tata Sky recently launched Tata Sky Plus which uses the personal video recording (PVR) technology that allows consumers to record live.

3. DD-Direct + -Owned by parent company Doordarshan

DD Direct Plus was launched in December 2004 by Doordarshan. It was India’s first DTH service offering about 59 TV channels and 21 radio stations. DD DTH

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is a free service and has acquired a subscriber base of 60–70 lakh connections (July 2009).

(www.dnaindia.com/money/report_prasar-bharati-dth-moving-to-pay-mode_1277779)

4. Sun Direct - Rs 1000-crore Indian DTH television network based in Chennai from Sun group.

Sun Direct is a DTH service in India headquartered in Chennai, Tamil. Sun Direct is an 80:20 joint venture between the Maran family and Astro Group of Malaysia. With 170+ TV channels and 31 Radio channels, Sun Direct has a subscriber base of 3 million (April 2009) (www.topnews.in/sun-direct-launches-hd-services-crosses-3-million-activesubscriber-base-mark-2149664). Sun Direct has a basic pack of Rs 75 monthly subscription which is the lowest price-point compared to the other service providers

5. Reliance BIG TV Limited – a part of Reliance Anil Dhirubhai Ambani Group.

Reliance Communication a more recent entrant in the DTH space has the brand name ‘Big TV’. It has aggressively priced packages as low as Rs. 1490 with an offering of 64 channels and a three month free subscription in addition to 20 video-on-demand movie channels. Within a short span of time it garnered a subscriber base of nearly 1.8 million (Aug2009)

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(www.livemint.com/2009/06/21231941/Big-TV-to-go-on-a-content-acqu.html). Big TV currently offers 202 channels. BIG TV focuses on VAS and claims to have a next generation user guide which is indexed

6. Airtel DTH - Bharti Airtel Limited

The recent and much talked about player in the market is Bharti- Airtel. A teaser campaign ‘See you at home’ was followed up by a multi-starrer campaign with celebrities like Saif Ali Khan and Kareena, Vidya Balan and Madhavan and Indian cricketers Gautam Gambhir etc.It has a subscriber base of 1 million (June 2009) (www.indiandth.com/2009/08/airtel-digital-tv-mops-up-one-million.html) and has a bouquet of over 138 channels and world space satellite radio to choose from. Airtel Digital has a basic pack of Rs 99 monthly for South and Rs 125 monthly for north.

6. Videocon D2H

Videocon – the big Indian consumer durable player launched itself in the DTH market in June 2009 through its media arm Bharat Business Channel (BBCL). Right now it has offered services in Punjab, J&K, Chandigarh, Haryana and

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Himachal Pradesh with packages as low as 150 per month. Advantage over other players is that Videocon already makes analog set top box hence they are likely to manufacture Set Top Box for their DTH service as well

MARKET SHARE:

The current Market Share is:

Dish TV – 32.56% • Tata Sky – 25.69 • Sun Direct – 19.27% • Big TV – 11.56% • Airtel Digital TV – 6.42% • Others – 4.5%

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PROJECTED GROWTH RATE:

(http://www.indiandth.com/2009/08/dth-picture-bright-on-growth-but.html)

A Practical Perspective

The Initial Excitement In Nov. 2000 Has Largely Been Transformed By A

Realistic Look At The Guidelines For DTH Service In India.

The Key Features Of The Guidelines Are:

1. The Total Foreign Investment Cannot Exceed 49 Per Cent (Now Its 74%).

2. No Broadcast Or Cable Company Can Own More Than 20 Per Cent.

3. The Applicant Company Will Have To Pay An Entry Fee Of Rs 100 Million, Pay 10 Per Cent Annual Revenue And Execute A Bank Guarantee Of RS 400 Million For The Duration Of The 10 Years License.

4. Violation Of License Conditions Can Include Revocation Of License And / Or Penalty Of Up To RS 500 Million.

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5. The Licensee Will Have To Set Up An Indian Earth Station In 12 Months And Provide Access To Various Content Providers On A Non-Discriminatory Basis.

6. The Set Top Boxes Required To Receive The Encrypted Signals Will Have To Be Open Standard Boxes.

7. The DTH License Cannot Be Used For Other Modes Of Communication Including Voice Fax, Data Internet Unless Specific Licenses For These Value Added Services Have Been Obtained From The Competent Authority.

On The Face Of It, The DTH Regulations Are Quite In Tune With Media Policy Of The Ruling Alliance. However, There Are Many Pitfalls In The Policy Some Of Which Are Outlined Below.

1. A Modest Entry Fee Of RS 100 Million And A Bank Guarantee Of RS 400 Million Has Been Mandated With No Restriction On The Number Of DTH Operators In The Country. However, The DTH Operator Will Have To Pass On 10 Per Cent Of Revenues As Annual Fees To The Government. It Is Assumed That This Is Gross Revenue Without Deduction Of Expenses And Is Not 10 Per Cent Of Net ProfitWhich Would Have Been More Equitable.

2. The Period Of License Is For 10 Years And Non Exclusive. However, There Is No Provision For Automatic Renewal Of The License After 10 Years Based On Performance Of The DTH Operator.

3. No Broadcasters Or Cable Television Company Is Allowed To Own More Than 20 Per Cent Of DTH. This Has Supposedly Been Done To Prevent Emergence Of Vertically Integrated Monopoly. This Is Despite The Worldwide Move Towards Convergence And Even The Provisions Of The Convergence Bill!

4. The DTH Operator Shall Have To Follow The Advertising And Program Code Of Doordarshan And Maintain A Video Record For 90 Days Of Advertisements And Programs. A DTH Operator Who Does Not Own Content Will, Like The Present Cable Operators, Be Solely Responsible For The Implementation Of Advertising And Program Code. No Liability Has Been Put On The Content Providers At All.

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5. Apart From Open Architecture For Stbs, The Government Has Mandated That DTH Operators Should Not Discriminate Between Various Channels Wanting To Get On The Network. This Is A Welcome Development As It Will Enable Content Providers To Be Available On All Competing DTH Platforms.

6. I&B Ministry Will Be The Licensing Authority Until One Is Set Up. There Is No Mention In This Notification About The Broadcast Regulatory Authority As Mandated By The Supreme Court In Cricket Association Of Bengal Judgment In 1995.

7. The DTH Operator Is Bound To Carry All Prasar Bharati Channels On Most

Favorable Terms Offered To Any Other Channel. No Mention Is Made About The Present Requirements Under The Cable Act To Carry A Minimum Three

Doordarshan Channels On Prime Band, Despite The Fact That Carriage Of All

Prasar Bharati Channels May Not Be Commercially Desirable. Of Course, It Will Not Be Easy To Convince Any Government To Leave It To The DTH Operator To Carry Only Specific Prasar Bharati Channels.

8. The DTH Operator Is Allowed To Carry Value Added Services Such As Fax, Voice Or Broadband As Long As It Gets Clearance From The Right Competent Authority. While The Government Is Willing To Allow Data, Fax And Broadband Service From The DTH Operator, The Stipulations Of Getting Clearance From The Right Competent Authority Without Creating A Single Window Approach Will In Effect Delay Provision Of Value Added Services By The DTH Operator And IsAgainst The Provisions Of The Convergence Bill Planned To Be Introduced In Parliament In May 2001.

‘The Only Positive Announcement After The Government Notification So Far Has Been From Videsh Sanchar Nigam Limited (VSNL) Which Plans To Set Up A Neutral DTH Facility Using Its Large Number Of Earth Stations To Give Opportunity To Broadcasters Wishing To Join A Common Platform.’

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Substitutes Of The Product

1.1 Cable ServiceA Private Cable Operator (Also Known As PCO) Is A Private Small Independent Cable Company Competing Directly With Multi System Operators. Pcos Typically Offer Services To Multi-Family Dwellings, Gated Communities, Hotels And Other Small Businesses. In Some Small Municipalities The City May Be A PCO.

DefinitionCable Operator Means Company Providing Access To Cable And Satellite Channels Within A Given Region Or Area.

1.2 IPTV

Definition

Internet Protocol Television (IPTV) Is A System Through Which Digital Television Service Is Delivered Using The Architecture And Networking Methods Of The Internet Protocol Suite Over A Packet-Switched Network Infrastructure, E.G., The Internet And Broadband Internet Access Networks, Instead Of Being Delivered Through Traditional Radio Frequency Broadcast, Satellite Signal, AndCable Television (CATV) Formats.

Internet Protocol Television (IPTV) – Is Like Cable TV, But It Uses ABroadband Connection To The Internet Instead Of Cable For The Delivery OfVideo Services. IPTV Works On Your TV With A Set-Top Box That Accesses Channels, Subscription Services, And Movies On Demand. The Advantage Over Cable Is That The Communication Can Be Two-Way, Making Customized Programming And Interactive Media Possible Without An Additional Connection.

“PTV Services May Be Classified Into Three Main Groups: Live Television, Time- Shifted Programming, And Content (Or Video) On Demand. It Is Distinguished From General Internet-Based Or Web-Based Multimedia Services By Its On-Going Standardization Process (E.G., ETSI) And Preferential Deployment

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Scenarios In Subscriber-Based Telecommunications Networks With High-Speed Access Channels Into End-User Premises Via Set-Top Boxes (STB) Or Other Customer-Premises-Equipment (CPE)”

1.3 Head-End In The Sky (HITS)16To Speed Up The Process Of Digitalization Of Cable Services Located In Non-CAS Areas Of The Country, The Government Is In The Process Of Taking A View On The Recommendations Of TRAI On The Issue Of The Proposed Policy Framework On The Headend In The Sky (HITS) Mode Of Delivery Of Content To The Cable Operators. This System Will Enable The Packaging Of Content In Digital Form At The Level OfHITS Operator Who Will Uplink It To A Satellite To Be Received By The Cable Operators And Thereafter Distributed In Digital Mode Through Cable Network. TheKey Factor In Conversion Of Small Time Cable Operators To The Digital Mode Of Delivery Is The Investment Required To Be Made In The Setting Up Of Digital Headend, CAS And SMS. Introduction Of HITS Services Can Help Reduce These Costs For The Small Time Cable Operators, Thus Speeding Up The Transition And Will Also Be Beneficial To Consumers.

1.4 Television Receive-OnlyThe Term Television Receive-Only, Or TVRO, Arose During The Early Days Of

Satellite Television Reception To Differentiate It From Commercial Satellite

Television Uplink And Downlink Operations (Transmit And Receive). This Was Before There Was A DTH Satellite Television Broadcast Industry. Satellite Television Channels At That Time Were Intended To Be Used By Cable Television Networks Rather Than Received By Home Viewers. Satellite TV Receiver SystemsWere Largely Constructed By Hobbyists And Engineers. These TVRO System Operated Mainly On The C Band Frequencies And The Dishes Required Were Large; Typically Over 3 Meters (10 Ft) In Diameter. Consequently TVRO Is Often Referred To As "Big Dish" Or "Big Ugly Dish" (BUD) Satellite Television.TVRO Systems Are Designed To Receive Analog And Digital Satellite Feeds Of Both Television And Audio From Both C-Band And Ku-Band Transponders On FSSType Satellites. The Higher Frequency Ku-Band Systems Tend To Be Direct To Home Systems And Can Use A Smaller Dish Antenna Because Of The Higher Power Transmissions And Greater Antenna Gain.

TVRO Systems Tend To Use Larger Rather Than Smaller Satellite Dish Antennas, Since It Is More Likely That The Owner Of A TVRO System Would

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Have A C-Band- Only Setup Rather Than A Ku Band-Only Setup. Additional Receiver Boxes Allow For Different Types Of Digital Satellite Signal Reception, Such As DVB/MPEG-2 And 4DTV.

The Narrow Beam Width Of A Normal Parabolic Satellite Antenna Means It Can Only Receive Signals From A Single Satellite At A Time. Simulate Or The Vertex- RSI TORUS Is A Quasi-Parabolic Satellite Earth Station Antenna That Is Capable Of Receiving Satellite Transmissions From 35 Or More C- And Ku-Band

Satellites Simultaneously.

Direct To Home Television

Today, Most Satellite TV Customers In Developed Television Markets Get Their Programming Through A Direct Broadcast Satellite (DBS) Provider, Such As DISH TV Or DTH Platform. The Provider Selects Programs And Broadcasts Them To Subscribers As A Set Package. Basically, The Provider’s Goal Is To Bring Dozens Or Even Hundreds Of Channels To The Customer’s Television In A Form That Approximates The Competition From Cable TV. Unlike Earlier Programming, TheProvider’s Broadcast Is Completely Digital, Which Means It Has High Picture And Stereo Sound Quality. Early Satellite Television Was Broadcast In C-Band – Radio In The 3.4-Gigahertz (Ghz) To 7 Ghz Frequency Range. Digital Broadcast Satellite Transmits Programming In The Ku Frequency Range (10 Ghz To 14 Ghz). There Are Five Major Components Involved In A Direct To Home (DTH) Satellite System:The Programming Source, The Broadcast Center, The Satellite, The Satellite Dish And The Receiver.

Programming Sources Are Simply The Channels That Provide Programming For Broadcast. The Provider (The DTH Platform) Doesn’t Create Original Programming Itself; It Pays Other Companies (HBO, For Example, Or ESPN Or STAR TV Or Sahara Etc.) For The Right To Broadcast Their Content Via

Satellite. In This Way, The Provider Is Kind Of Like A Broker Between The Viewer And The Actual Programming Sources. (Cable Television Networks Also Work On The Same Principle.) The Broadcast Center Is The Central Hub Of The System. At The Broadcast Center Or The Playout & Uplink Location, The Television Provider Receives Signals From Various Programming Sources, Compresses These Signals Using Digital Compression (Scrambling If Necessary), And Beams A Broadcast Signal To The Proper Satellite. The

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Satellite Receives The Signal From The Broadcast Station And Rebroadcast Them To The Ground. The Viewer’s Dish PicksUp The Signal From The Satellite (Or Multiple Satellites In The Same Part Of The Sky) And Passes It On To The Receiver In The Viewer’s House. The Receiver Processes The Signal And Passes It On To A Standard Television. These Are The Steps In Greater Detail:

Programming

Satellite TV Providers Get Programming From Two Major Sources: International Turnaround Channels (Such As HBO, ESPN And CNN, STAR TV, SET, B4U Etc) And Various Local Channels (Sabe TV, Sahara TV, Doordarshan, Etc). Most Of The Turnaround Channels Also Provide Programming For Cable Television, So Sometimes Some Of The DTH Platforms Will Add In Some Special Channels Exclusive To Itself To Attract More Subscriptions. Turnaround Channels Usually Have A Distribution Center That Beams Their Programming To A Geostationary Satellite. The Broadcast Center Uses Large Satellite Dishes To Pick Up These

Analog And Digital Signals From Several Sources.

Broadcasting CentersThe Broadcast Center Converts All Of This Programming Into A High-Quality, Uncompressed Digital Stream. At This Point, The Stream Contains A Vast Quantity Of Data — About 270 Megabits Per Second (Mbit/S) For Each Channel. In Order To Transmit The Signal From There, The Broadcast Center Has To Compress It. Otherwise, It Would Be Too Big For The Satellite To Handle. The Providers Use The MPEG-2 Compressed Video Format — The Same Format Used To Store Movies On Dvds. With MPEG-2 Compression, The Provider Can Reduce The 270-Mbit/S Stream To About 3 Or 10 Mbit/S (Depending On The TypeOf Programming).

This Is The Crucial Step That Has Made DTH Service A Success. With Digital Compression, A Typical Satellite Can Transmit About 200 Channels. Without Digital Compression, It Can Transmit About 30 Channels. At The Broadcast Center, The High-Quality Digital Stream Of Video Goes Through An MPEG-2 Encoder, Which Converts The Programming To MPEG-2 Video Of The Correct Size And Format For The Satellite Receiver In Your House.

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Encryption And TransmissionAfter The Video Is Compressed, The Provider Needs To Encrypt It In Order To Keep People From Accessing It For Free. Encryption crambles The Digital Data InSuch A Way That It Can Only Be Decrypted (Converted Back Into Usable Data) If The Receiver Has The Correct Decoding Satellite Receiver With Decryption Algorithm And Security Keys. Once The Signal Is Compressed And Encrypted, The Broadcast Center Beams It Directly To One Of Its Satellites. The Satellite Picks UpThe Signal, Amplifies It And Beams It Back To Earth, Where Viewers Can Pick It Up.

The DishA Satellite Dish Is Just A Special Kind Of Antenna Designed To Focus On A Specific Broadcast Source. The Standard Dish Consists Of A Parabolic (Bowl-Shaped) Surface And A Central Feed Horn. To Transmit A Signal, A Controller Sends It Through The Horn, And The Dish Focuses The Signal Into A Relatively Narrow Beam. The Dish On The Receiving End Can’t Transmit Information; It Can Only Receive It. The Receiving Dish Works In The Exact Opposite Way Of The Transmitter. When A Beam Hits The Curved Dish, The Parabola Shape ReflectsThe Radio Signal Inward Onto A Particular Point, Just Like A Concave Mirror Focuses Light Onto A Particular Point. The Curved Dish Focuses Incoming Radio Waves Onto The Feed Horn. In This Case, The Point Is The Dish’s Feed Horn, Which Passes The Signal Onto The Receiving Equipment. In An Ideal Setup, There Aren’t Any Major Obstacles Between The Satellite And The Dish, So The Dish Receives A Clear Signal.

In Some Systems, The Dish Needs To Pick Up Signals From Two Or More Satellites At The Same Time. The Satellites May Be Close Enough Together That A Regular Dish With A Single Horn Can Pick Up Signals From Both. This Compromises Quality Somewhat, Because The Dish Isn’t Aimed Directly At One Or More Of The Satellites. A New Dish Design Uses Two Or More Horns To Pick Up Different Satellite Signals. As The Beams From Different Satellites Hit The Curved Dish, They Reflect At Different Angles So That One Beam Hits One Of The Horns And Another Beam Hits A Different Horn. The Central Element In The Feed Horn Is The Low Noise Blockdown Converter, Or LNB. The LNB Amplifies The Signal Bouncing Off The Dish And Filters Out The Noise (Signals Not Carrying Programming). The LNB Passes The Amplified, Filtered Signal To The Satellite Receiver Inside TheViewer’s House.

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The Receiver

Further Information: Set-Top Box (STB) The End Component In The Entire Satellite TV System Is The Receiver. The Receiver Has Four Essential Jobs: It De-Scrambles The Encrypted Signal. In Order To Unlock The Signal, The Receiver Needs The Proper Decoder Chip For That Programming Package. The Provider Can Communicate With The Chip, Via The Satellite Signal, To Make Necessary Adjustments To Its Decoding Programs. The Provider May Occasionally Send Signals That Disrupt Illegal De-Scramblers, As An Electronic Counter Measure (ECM) Against Illegal Users. It Takes The Digital MPEG-2 Signal And Converts It Into An Analog Format That A Standard Television Can Recognize. Since The Receiver Spits Out Only One Channel At A Time, You Can’t Tape One Program And Watch Another. You Also Can’t Watch Two Different Programs On Two Tvs Hooked Up To The Same Receiver. In Order To Do These Things, Which Are Standard On Conventional Cable, You Need To Buy An Additional Receiver. Some Receivers Have A Number Of Other Features As Well. They Pick Up A Programming Schedule Signal From The Provider And Present This Information In An Onscreen Programming Guide. Many Receivers Have Parental Lock-Out Options, And Some Have Built-In Digital Video Recorders (Dvrs), Which Let You Pause Live Television Or Record It On A Hard Drive. While Digital Broadcast Satellite Service Is Still Lacking Some Of The Basic Features Of Conventional Cable (The Ability To Easily Split Signals Between Different Tvs And Vcrs, For Example), Its High-Quality Picture, Varied Programming Selection And Extended Service Areas Are Features Now Seen As An Alternative. With The Rise Of Digital Cable, Which Also Has Improved Picture Quality And Extended Channel Selection, The TV War Is Really Heating Up. Just About Anything Could Happen In The Next 10 Years As All Of These Television Providers Battle It Out.

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Implication:

1. Introduction Stage

Seven Years Ago, Launching A Direct-To-Home Service Could Have Been A Recipe For Disaster. Investment Costs Were Very High So Customers Had To Fork Out Much More.

But Today, The Market Has Been Transformed: Prices Of The Dish And The Set- Top-Box Have Crashed Through The Roof, Overall Investment In Putting Up A DTH Infrastructure Has Dropped And Customers Are Also Reaping The Benefits Of More Attractive Tariffs.

Just A Few Year Ago, When Star TV Made An Unsuccessful Attempt To Launch DTH, The Same System Cost Rs 14,000 To Rs 15,000 At That Time A Cable Operators Charging Rs. 1000 To Rs.2000 Deposit (For Cables And Other Requirement) And Monthly Average Rs.175 (For Channel) Service. And Because The Costs Were So High, Companies That Were Planning To Offer DTH Services Hit On The Only Survival Strategy That They Could Think Of: Subsidies The Box At Rs 5,000, But Make It Up By Asking Customers To Fork Out A Steep Rs. 700 A Month For The Basic Bouquet On DTH. But The Fall In Box Prices Have Helped In Offering The Services At An Attractive Price, Which Is Expected To Start From As Low As Rs. 100 For 38 Channels Going Up Depending On The Quality Of The Channels Shown.

As A Result, Siti Cable Is Looking At A Large Number Of Subscribers To Get Hooked On To The DTH Channel. The Target Is To Rope In As Many As 1 Million Subscribers In A Period Of 15 Months. This Certainly Isn't A Niche Product. What Has Added To The Viability Is That The Upfront Cost Of Putting Up The DTH Platform Has Also Fallen. We Are Investing Rs 250 Crore (Rs 2.5 Billion) On The Project For 38 Channels And The Same Infrastructure Is Being Leveraged To Run The Company's Head End In The Sky Infrastructure. Even If We Assume That 50 Per Cent Of The Remaining TV Owners Do Not Have The Cash To Go For Cable Services, There Are Still As Many As 20 Million Households Waiting To Be Tapped. Many Of Them Live In Remote Areas, Isolated

Pockets Where Cable TV Is Unviable, And DTH Could Be The Only Answer.

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2. Growth Stage

After The Introduction Growth Stage Comes. From The Above Graphical Presentation We Can See That The Subscribers Of DTH Service Industry Is Increase With Increasing Rate. Year Is Plating On “X” Axis And Subscriber Is On “Y” Axis.

Here, Life Cycle Of Industry Is Interpreted With The Help Of Six Years Analysis. If We Can Talk About Earlier Year Means 2004-05, Then At That Time There Was Only One Player And Also Government Is Not Helping Like Today. And Also Awareness Of This Service Is Not So Much.

After 2004-05, The Growth In Subscribers Is Increase. Because At That Time There Were 2 New Companies Also Entered In The Market. And Also Awareness, Life Style Of Our Country’s People Increase. After 2006-07, It Is Increase Very Much. Because In 2008 There Were 10mn Subscribers.

So, We Can Say That This Industry Is On Growth Stage.

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SURVEY ANALYSIS

Primary Tabulation And Interpretation

1) How many DTH service providers do you know about?

DTH service provider known to customer

100%

94%

100%62%

52%

96%

92%a Tata Sky

b Airtel

c Dish Tv

d Videocon

e Sun Tv

f GTPL

g Reliance

Interpretation;

Most of the customers are aware about all major brands. Sun TV and Videocon d2h are not very much popular in the market. Tata Sky, Dish Tv, Airtel & Reliance are well known players in the city of

Ahmedabad.

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Q2) Which DTH connection do you have ?

DTH service purchased by the customers

34%

8%

22%

4%

2%

24%

6%

Tata Sky

Airtel

Dish Tv

Videocon

Sun Tv

GTPL

Reliance

Interpretation;

Highest share of Ahmedabad market has been captured by Tata Sky followed by Dish TV and GTPL

Sun TV and Videocon d2h are least bought brands in the city. Airtel & Reliance Big TV are slowly picking up popularity in the market.

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Q3) How did you came to know about that provider?

Media Of Awareness

80%

16%

54%

68%

32%

6%12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

TV Ad. News Retailer Friend Relative Magazine Others

Interpretation;

The major source of brand awareness is TV Advertisements, Friends, and Retailers.

News & Magazines are least effective medium for selecting a particular brand. Word of Mouth from friend, relative and retailer also proved to be an effective

factor creating Brand awareness in the survey.

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Q4) Whom do you consult to finalise the decision?

Opinion Leaders

64%

78%

44%

58%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Myself Friends Family Retailers Neighbours

Interpretation;

Most of the people consult friends and retailer while finalizing decision Opinion Leaders are an effective factor affecting consumer preference while

selecting DTH service.

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Q5) What are the factors which influenced you to buy the service of your choice?

Factors Influencing Buyers Behaviour

32%

20%

48%

66%68%

78%72%

0%10%20%30%40%50%60%70%80%90%

Low Initial

Price

Low

monthly

Rental

Nice

Packages

Clearity Brand

Image

Easy

Access To

Dealer

Value

added

services

Interpretation;

The major factor influencing buyers behaviour are Low monthly rental, low initial price and nice packages.

Clarity and brand image are also taken into consideration while selection.

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Q6) which are the value added services that are important to be involved in your package?

Preferred Value Added Services

52%

8%

28%

38%

6%

28%24%

34%

42%

58%

0%

10%

20%

30%

40%

50%

60%

70%

Learning

Active

Movie On

Demand

Shaadi

Active

Travel

Active

Mobile

Active

Icici

Active

Bhakti

Active

J obs

Active

Astro

Active

Gaming

Interpretation;

Most people prefer learning active, gaming and jobs active. Movie on demand and bhakti active comes next in preference criteria. Astro active, travel active and icici active are least taken into consideration.

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Q7) Which type of package do you prefer?

Packages Preferred

34%

16%

28%

22%

Monthly

Quaterly

Half Yearly

Yearly

Interpretation;

Monthly and half yearly packages are being preferred the most. Yearly packages comes next in the preference criteria. Quaterly packages are not being opted by the people.

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Q 8) Do you think your DTH provide value for money?

Value For Money

64%

36%

Yes

No

Interpretation;

64% of the People Using DTH do feel that that their DTH provides value for money.

36% of the people are having the opinion that their DTH doesn’t provide value

for money.

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Q9) Overall how would you rate your DTH provider ?

Rating As Per Satisfaction

12%

30%

22%

14%

6%

16%

Excellent

Good

Average

Poor

Terrible

No, Sure

Interpretation;

42% of the DTH users rate their providers as good 22% of the people rated average to their service provider 20% of the users rated poor to their DTH providers.

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16% of people were not sure about their answer.

Sign test for Ratings given to the service provider by their users..

Number of + sign 105Number of – sign 50Neutral 95Total 250

H0:p = 0.5← null hypotheses customers doesn’t rated goodH1:p = 0.5← alternate hypotheses: customers rated good

pH0 = 0.5qH0 = 0.5 n= 155_p = 105/155=0.68_q = 50/155=0.32

e =√ (0.5)(0.5) = 0.04

155 _z = p – pH0 = 0.68-0.5 = 4.5

ep 0.04

z = 1.96

so 4.5 is out of acceptance region. So null hypotheses is rejected.

So we can say that consumer’s response towards their DTH providers are Favourable.

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Q10) Overall how satisfied are with Network service of your company?

Satisfaction Level

12%

34%

28%

18%

8%

Very Satisfied

Satisfied

Neutral

Dissatisfied

very dissatisfied

Interpretation;

46% of the DTH users are satisfied with the network service of their provider. 28% of the users are neither satisfied nor dissatisfied.

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26% of the DTH users are dissatisfied with the network service of their provider.

Sign test for satisfaction level of customers

Number of + sign 115Number of – sign 65Neutral 70Total 250

H0:p = 0.5← null hypotheses: Customers are not satisfied.H1:p = 0.5← alternate hypotheses: customers are satisfied.

pH0 = 0.5qH0 = 0.5n= 185

p =115/185= 0.62 _q =70/185= 0.38

e =√ (0.5)(0.5) = 0.036

185 _z = p – pH0 = 0.89-0.5 = 8.86 0.62-0.5 = 3.33

ep 0.044 0.036

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z = 1.96

so 3.33 is out of acceptance region. So null hypotheses is rejected.

So we can say that DTH Users are satisfied with their service providers.

Q11) Reason for the above answer ?

Ans) Most of the people answered that they are satisfied by the uninterrupted services provided by their service provider, as compared to the cable the interruption occurs very minorly and that too for a negligible time period. Even the clearity is far better than as it was in the cable services.

Q12) Whom do you think is the best DTH service provider?

Ans) Tata Sky seems to be the best service provider in the eyes of the customers followed by the Dish Tv.

Q13) Reason for the above answer?

ANS> The postpurchase service provided by DTH is the best among all the

providers. The complaints are solved as soon as possible. The installation technique and machine used are very good.

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The Tata Sky plus provides the function of recording the live program, as well as one can pause the live show too. This is something new and better technology compared to others.

Q14) Rank all the service provider as per your preferrance?

1st preferred DTH provider

0% 10% 20% 30% 40% 50%

Tata Sky

Dish Tv

GTPL

Airtel

Reliance

Videocon

Sun Tv

Interpretation;

42% of the people ranked Tata Sky as 1st preferred Brand. 30% of the people ranked Dish TV as 1st preferred Brand. 22% of the people ranked GTPL as 1st preferred Brand. 4% of the people ranked Airtel as 1st preferred Brand. 2% of the people ranked Reliance Big TV as 1st preferred Brand.

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Implication:

On The Above Graph We Can Say That Revenue Structure Of This Industry Have Some Fixed Options. And These Are Sales, Subscription Income, Processing Charges/ Service Income & Other Operational Income. Out Of These All Incomes, Mostly Companies Get From Subscription. It Is Around

80% Of Total Income. And Then After Other Operational Income Takes Place. It Is Around 17%. After That Processing Charges/ Service Income And Then Sales Take Place From Recharges And All Other Things.

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Implication:

On The Above Graph We Can Say That Cost Structure Of This Industry Have Many Different Expenses. And These Are Raw Material Exp., Power & Fuel Exp., Employee Cost, Production Exp., General & Administrative Exp., Selling & Distribution Exp. And Miscellaneous Expenses.

Out Of These All Expenses, Mostly Companies Consume Production Expenses Are The Most. It Is Around 57% Of Total Expenses. And Then After Selling & Distribution Expenses Take The Place. It Is Around 29%. After That General & Administrative Exp. And Then Employee Cost And So And So.

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In The Production Exp. Companies Most Consumed On Programs Production Exp. And Programs & Film Rights. And In The Selling & Distribution Exp., Companies Most Consumed

On Sales Commission & Incentives And Advertisements & Sales Promotion.

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PEST Analysis

A Scan Of The External Macro-Environment In Which The Firm Operates Can Be Expressed In Terms Of The Following Factors:

1. Political2. Economic3. Social4. Technological

The Acronym PEST (Or Sometimes Rearranged As "STEP") Is Used To Describe A Framework For The Analysis Of These Macro Environmental Factors.

Political Factors

Political Factors Include Government Regulations And Legal Issues And Define Both Formal And Informal Rules Under Which The Firm Must Operate. Some Examples Include:

Opposition By Political Parties:

At Its Entry Stage In Indian Market, Direct To Home Television Has Faced Lot Of Opposition From All The Political Parties; It Was A Bad Word With Everyone Concerned. Every Politician Screamed That It Would Pose A Threat To National Security When Star TV Threatened To Flag Off Its Iskyb Project. The Major Opposition To Iskyb Came From Wannabe DTH Players Such As Subhash Chandra And Lalit Modi As They Did Not Want Murdoch To Be The First In This Game In The Indian Market.

But With Passage Of Time Thing Changed, After A Long Brainstorming Session On DTH Issue Taking Into Consideration The Advantages It Provides To CommonMan, Finally All The Political Parties Agreed Upon Allowing DTH Technology In India.

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Regulatory Role Of Government

Information & Broadcast Ministry Of India Finalized The Guidelines For The Companies Entering Into This Business And After Assuring All The Security Aspects, DTH Players Were Allowed To Start Their Play In India. As They Made Rules For License Fee, Entry Fee, Etc.

Rules For Licensing

1. No. Of Licenses Issued: There Will Be No Restrictions On The Number Of DTH Service Provider To Issue The License, The License Issued By Any New Service Provider Who Fulfils The Terms And Conditions Which Are Regulated By TRAI (Telecom Regularity

Authority Of India).

TRAI Also Regulated The Security And Technical Clearances Service Provide To The DTH Service Holders By The Appropriate Authorities Of The Government.

2. Validity Of License: Wireless Planning And Coordination Wing Of Ministry Of Communication, The Rules And Regulation Of The Government The License Provide To The DTH Service Provider Which Is Valid Up To 10 Years From The Date Of Issue Of Wireless

Operational License.

3. DTH License Fee Reduction: The Ministry’s Move To Reduce The License Fee For DTH Players From 10% Of Gross Revenue To 6% May Soon Bear Fruition. Secretary Singh Said The Ministry May Be Able To Announce This Soon. This Process Has Been On For Nearly A Year. Due To The Multiplicity Of Agencies—Telecom Regulator TRAI, I&B Ministry And The Finance Ministry Are Involved In This Decision—The File Seems To Have Been Moving Back And Forth For Nearly An Entire Year. One DTH Industry Source, Who Has Followed The Policy Change Closely, Told Us That The First Time Around, The Finance Ministry Had Some Reservations About The Change After I&B Ministry And TRAI Had Approved The Change. So The Ministry Had To Make Some Amendments And Get TRAI Recommendation Once Again And The File Has Gone Back Again To The Finance Ministry. Singh’s Reiteration Of The Decision May Be An Indication That The Ministry Is Expecting The Finance Ministry’s Nod

Soon.

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4. Laws For The Termination: Either Party Has A Right To Terminate This Agreement On Immediate Written Notice To The Other In The Event Of:

a. Material Breach of This Agreement by The Other Party Which Has Not Been Cured Within Thirty (30) Days Of Being Required In Writing To DoSo;

b. The Bankruptcy, Insolvency Or Appointment Of Receiver Over The Assets Of The Other Party;

c. The DTH License Or Any Other Material License Necessary For DTH Co. To Operate Its DTH Service Being Revoked At Anytime Other Than Due To The Fault Of DTH Co. GBN Shall Have The Right To Terminate This Agreement On Written Notice To DTH Co. If

(I) DTH Co. Breaches Any Of The Anti Piracy Requirements And Fails To Cure Such Breach Within Two (2) Days Of Being Required In Writing To Do So, Or

(ii) GBN Discontinues CNN-IBN With Respect To All Distributors In The Territory And Provides DTH Co. With At Least Ninety (90) Days Prior Written Notice.

DTH Co. Shall Have The Right To Terminate This Agreement On Written Notice To GBN If DTH Co. Discontinues Its DTH Business And Provides At Least Ninety (90) Days Prior Written Notice.

d. Termination Of This Agreement Shall Not Affect Any Continuing Obligations Of Each Of

The Parties, Including Any Rights And Obligations Relating To Indemnification And Audit.

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Trade Restrictions And Tariffs

Rationale For Making Amendment To The Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redresses Of Grievances) Regulations, 2007: 1. No Visiting Or Repair And Maintenance Charges Of DTH Equipment During Warranty Period. TRAI: The DTH Operators Have Been Prohibited From Charging Any Fee Towards Visiting Charges Or Repair And Maintenance Charges Of DTH Consumer Premises Equipment During The Period Of Warranty For Such DTH Consumer Premises Equipment Acquired On Outright Purchase Basis.

2. The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment. TRAI: The DTH Operators Have Been Prohibited From Changing The Composition Of Their Subscription Packages During First Six Months Of Enrolment To The Subscription Package Or During The Period Of Validity Of A Prepaid Subscription Package, Whichever Is Longer.

3. In Case A Channel Is Removed From A Subscription Package In The First 6 Months Of Enrollment, The DTH Operator Must Reduce The Price Proportionately, Or Replace The Removed Channel With One Of The Same Genre And Language. TRAI: The DTH Operators Have Been Mandated To Proportionately Reduce The Subscription Charges For A Package From Which Any Channel Is Removed For First Six Months Of Enrolment Or During The Period Of Validity Of A Prepaid Subscription Package, WhicheverIs Longer Or To Replace The Channel With A Channel Of Same Genre And Language.

4. The Option Of Choosing The Package With Reduced Charges Or The Package With

Replaced Channel Has Been Given To The Subscriber.

5. In Case A Removed Channel Needs To Be Replaced, The Replacement Option Will Be In The Hands Of The DTH Operator. TRAI: Option To Select The Channel Of The Same Genre And Language In A Subscription Package To Replace A Channel Which Has Become Unavailable On The DTH

Platform, Has Been Given To The DTH Operator.

6. Your DTH Operator Needs To Give A Prior Notice Of Fifteen Days To You Before Changing

The Composition Of Any Subscription Package.

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7. Subscribers Are Allowed To Request Their DTH Operator To Suspend TheirServices

8. For Up To 3 Months. However, This Suspension Period Should Not Comprise The Same Calendar Month. TRAI: DTH Operators Have Been Mandated To Entertain Requests Of DTH Subscribers For Suspension Of Services If Requested Period Of Suspension Does Not Exceed Three Calendar MonthsAnd Does Not Comprise Part Of A Calendar Month.

The Above Rules Are Compulsory For DTH Operators To Adhere To.

Implication:

The Licensing Norms Of This Industry Is Not So Much Strict. Because, Norms Provide Easy Entry And Exit To DTH Players. But, The Service Norms Are Somewhat Strict. Companies Have To Give Good Services To Their Customers Especially To Set Top Box. They Don’t Take Any Repairing Chargers During Warranty Periods. DTH Providers Also Can’t Change The Composition Of Subscription Of Customer’s Schemes Till The Expiry Date Of Their Enrolment. FDI Cap In DTH To Go Up To 74%

.Government Stability

The Era Of Coalition Politics Had Arrived, And It May Be Some Time Before A Single Party Government Comes Into Power. The Regionalization Of Indian Politics Has Also Led To State-Level Innovation And Greater Competition Between The State Governments To Attract

Foreign Capital.

Implication

There Is Change In The Political Party And Their Rules For The Particular Company And Its Service Provides Style. Instability In Rules And Regulation By The Government As A Ruling Party, As Evidenced In The Pattern Of Shifting Alliances And Collapsing Governments That

Has Marked Recent Policies.

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Economic Factors .

Economic Factors Affect The Purchasing Power Of Potential Customers And The Firm's Cost Of Capital. The Following Are Examples Of Factors In The Macro Economy:

Currency Stability

Exchange Rate:

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Implication: The Currency Rate Of India Is Ranging From Rs.40 To Rs.50 Per Dollar. The Currency Rate Affects To The Importer. The Government Is Helping To The Industry As Reduced Import Duty Of STB (Set Top Box) To Zero Percent From 7.5 %. But The Final Amount Paid By Importer Will Depend On Exchange Rate. The Overall Impact Of This Exchange Rate Will Mix, As The Rate Of Exchange Is Fluctuated. The Overall Impact Of Exchange Rate In Current Scenario Is Not So Much Favorable. Because Of The Rupee Is Depreciated

GDP (Gross Domestic Product)

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Implication: The Growth Rate Of The Country Is At Around 6.10% And Sector Growth Around 25%, So It Is Directly Showing That The Industry Is Very Lucrative. The Growth Rate Of Industry Will Attract New Players And May FDI Side Because FDI Is Allowed To 74%. The GDP Rate Of India Is Between 4.40% To 6.10% Respect To 2000-01 To 2009-10 (First Quarter). The GDP Rate Is Sign Of Boosting The Overall Industry Development And Has Given Good Support To Our Industry In The Form Of Reduction In Regulations.

Inflation Rate

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Implication: As We Can Say That The Inflation Rate Is Showing Continuously Flexible Trend. As The Price Of All Things Goes High, Consumers Don’t Have Enough Money To Spend On Their Extra Facilities Like Pay-Per-View. It Is Obvious That Inflation And Our Industry Have Positive Relationship. Because Of The Inflation Is Directly Affected To This Industry.

Social Factors .

Social Factors Include The Cultural Aspects And Include Health Consciousness, Population Growth Rate, Age Distribution, Career Attitudes And Emphasis On Safety. Trends In Social Factors Affect The Demand For A Company's Products And How That Company Operates Its

Business.

Consumer Attitudes And Opinions

Consumer Attitude And Opinion Of The Product Affect To More Company’s Growth And Development. DTH Customer Is Successful To Satisfy The Customer Demand And Their Needs. And Consumer Attitude Towards DTH Is Positive And It Is Going To Increase. When DTH Introduce In INDIA, This Industry Do Not Get Support From The Consumer. DTH Is Very Useful To Wondering Consumer Class. Due To Our Survey, We Show That In “Slum Area Nearby VASNA, Ahmadabad There Are More Than 20 DTH Is Installed And Nearby That One Building There Is Only Three DTH Connections. But, There Are Still Some Other Viewers Who Can Prefer Cable Operators As Per Traditional Thinks.

Brand, Company, Technology Image

Now This Industry Is Development Stage. For This Industry It Is Difficult For Them To Grab The Market Share Of Cable TV And IPTV TV. This Industry Comes To Forward With New Technology And New Schemes To Make Image Of The Company In Consumer Mind. Dish TV, Tata Sky And Big TV Is Able And We Can Say Success To Make Their Awareness In Market. MPEG-4 Technology Is More Efficient In Broadcasting Superb Quality Video And More Channels As Well. MPEG4 Standard With DVB S2 Technology Will Be Used By The Company To Provide Great Picture Quality And Sound Standard. Various Technology Used By Different Company Provide Greater Satisfaction To Consumer. Dish TV Is Able To Convince Consumer. And To Say Quality Wise Tata Sky.

Buying Access And Trends

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Dish TV Is Successful To Become Brand And To Grab The Market Share Of The Industry. And After That TATA Sky Is Second Potion After Dish TV. TATA Sky Come Recent More Advertisement And New Active Services Like Recent Making Food, News Games And Many More. Tata Sky Also Come With Unique Service Is That Consumer Can Record Serial /Live Math On DTH Set Up Box And We Can See Any Time. And Third Potion Going To SUN TV Is Also Satisfied To Consumer.

Age Distribution And Lifestyle Trend

Age Structure:

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As Per Above Table 15-64 Years Population Is Very High And Median Age Is 25.3 Year. So India’s Population Has A High Tendency To Spend Than Save. So Demand Of The Product Is Increase. DTH Industry Is Also Type Of Entertainment As We Know 15-64 Years Have More Changes In Lifestyle. They Are Ready To Adopt New Innovation And New Changes In These Age Awareness Increasing Regarding New Era And Increasing The Income Level.

Implication:Indian Population Age Median Is 25.3 Years So We Can Say Large Amount Of Population Is From Young Generation. So Here Dth Industry Has Positive Impact. Because They Want New Innovation. And This Industry Will Come New Active Service, Internet Base Service Etc.

Cultural Implications Of DTH

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The Social Cause Of The Effect Of Foreign TV Channels On The Indian Citizen Is Of Paramount Importance And Cannot Be Sacrificed. From A Technology And Consumer Viewpoint The Entry Of DTH Technology In India Is A Welcome Step, But As Another Side Of A Coin It Threatens To Spoil The Culture Of The Country. Easy Access To Foreign Channels, Increasing Television Viewing Hours, Overexposure To Western Culture All This May Negatively Affect The Mindsets Of People, Especially The Children.

Therefore, DTH Should Not Be Green-Signalled From A Regulatory Viewpoint. Almost Every Country Has Had Some Sort Of Regulatory Framework Built Before Allowing DTH In Their Country.

Now The Company Provide The Various Service Like Active Service Which Provide Food Recipe, Game Yoga Instruction Etc. This Is Very Helpful To Society.

Technological Factors .

Technological Factors Can Lower Barriers To Entry, Reduce Minimum Efficient Production Levels, And Influence Outsourcing Decisions. Some Technological Factors Include:

DTH Technology

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As Per Technology DTH Is A Digital Satellite Service That Provides Television Services Direct To Subscribers Anywhere In The Country. Since It Makes Use Of Wireless Technology, Programs Are Sent To The Subscriber's Television Direct From The Satellite, Eliminating The Need For Cables And Any Cable Infrastructure.

Its Technology Eliminates The Need Of Any Intermediary Between The Service Providers And The Viewer. The Technology Used Is Wireless (With No Cables Running Into The Viewers Home) Making It Easier To Reach The Remote Areas Of The Country.

The Viewer Has A Dish Antenna32 Installed Outside Of The Location (In Open Air) To Catches The Signals From The Satellite And Then Directs It To The Set Top Box Installed. The Set-Top-Box Is Fitted With A Viewing Card-VC (Similar To Sim-Card) Which Is Uniquely Numbered And Contains Information About The Channels Or User Selected Plan To Consume/ Entertain That Have Been Subscribed To By The Viewer. It Is Only For Private Service Provider’s Recharge Policy Also Includes AnAgent For Recharge As Well As Change Service Plan Whether In The Case Of DD Direct –Pulse User Have Not To Pay After Pay First Installation Charge With All Equipment.

Dish Antenna Has More Than Two Different Ranges Available In Market. As Per Doordarshan They Provide 120 Mhz And 90 Mhz Frequency Enable Dish Antenna Which Is Suitable In Rainy Season As Well As A Long Distance Area.

Implication:

A Technology Makes Easy Entertainment For Audience. By This Service Technology A Customer Can Select Their Suitable And Required Channel Plan And Pay For That. But, Doordarshan Provides One Time Pay And Get Entertainment At Home Or Your Location (Office, Shop As Well As On Vehicle Service In Selected South-Indian Region) For Life Time. So, This Technology Is Very Effective For TheUsers.

Govt. Course Of Action Towards Technology

TRAI Has Directed That The DTH Service Providers Will Need To Provide The Rival Channels Too. However Unlike CAS In Cable TV System, For Which TRAI Has Set Up A Cap For The Pay Channel Charges, No Such Cap Exists For The DTH Tariffs. Therefore, Viewers May Get Hit By Subscription Fee Hikes.

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Government Launched INSAT 4A, India’s Most Powerful Communication Satellite. It Provided Direct-To-Home (DTH) Telecasts From Early 2006. This Was Good News For All Those Of Us Who Had To Suffer The Cable TV Operators.

At Present There Is Zero Duty On Import Of Set Top Boxes From Existing 7.5 % The Finance Minister Has Also Removed Duty On Import Of Specified Parts Of The Set Top Boxes. This Will Provide Leverage And Opportunity For DTH Players To Evaluate The Option Of Manufacturing STB (Set Top Boxes) Locally. Since The CVD (Counter Veiling Duty) Is Reduced From 16 Percent To 14 Percent, The Cost Of The C.P.E (Customer Premises Equipment) Will Go Down To The Similar Affect And Will Benefit The DTH Operator Who Already Providing Considerable Subsidies To Consumer And Will Further Accelerate The Date Of Digitalization In The Country. And Also A Government Player Doordarshan, DTH Service Providers Have To Add Channels In Their Predefined Or Least Channel Package.

Following Are The Simplified Steps On How DTH Works With Ku Band Satellite:

1. Broadcaster Sends The Signals.2. The Satellite Receives The Signals At Ku-Band363. The Dish Antenna At Subscriber’s Home Receives The Signals4. The Set Top Box Decodes The Signal And Sends It To TV Set

Implication:

By This Technological Service All DTH Service Provider Can Get Direct Service Distribution Initiative To Their Customer. Service Providers Also Get An Advantage Of This Technology By PPV (Pay-Per-View) Service To The Customer. Same As A DTH Service User Can Get Direct Privet Channel Service With Better Quality And Sound Better Then Private Cable Operator Service As Well As By Their Own Dish Antenna And STB They Can Easily Operate And Change Its Location Anywhere In India And Can Get Initiative Their Customize Channel Out Of Private Cable Service Providers Barrier.

Michel Porter’s Five Force Analysis

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Threats Of New Entrants

There Are Many Factors Affecting Bargaining Power Of Buyers. As They Are Given Below:

Access To Distribution Net-Work:

For This Business Readily Availability Of Service To Target Segment Is Must. For That Companies Have To Build Strong Distribution Network. Companies Like Airtel Digital TV , TATA Sky Have Strong Distribution Network. Airtel Digital TV Has Only 1day Processing Time. And Tata Sky Has Only 2day Processing Time.43 For New Companies Who Don’t Have Strong Distribution Network Or Not Able To Meet Order In Least Time, This Business Is Very Tough Task For Them. So, It Is High.

So, Threat From New Competitor Entry Is Low.

Advertising & Marketing Activity:

For This Starting Of DTH Service, It Is Required To Create Awareness Regarding Brand Name Among The People. Now A Days, There Is Trend Of Using Brand Ambassador To Promote Brand. Tata Sky Came Out With Aamir Khan, Dish TV Came Out With Shahrukh Khan , Airtel Digitel Came Out With Saif Ali Khan & Kareena Kapoor,Etc. To Create And Maintain Strong Present In The Market It Requires Efficient And Skilled Sales Force. It’s Required Huge Investment And Expertise To Maintain It And It Is Not For Everyone’s Cup Of Tea.

So, Threat From New Competitor Entry Is Moderate To Low.

Regulation & Norms:

TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH Service Industry. DTH Service Covered Under The Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redresses Of Grievances) Regulations, 2007. Government Has

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Imposed Strong Rules Like No Visiting Or Repair And Maintenance Charges Against DTH Equipment During Warranty Period, The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment, Etc.

So, The Threat From New Entry Is Moderate To Low.

Capital Requirement:

There Is Low Capital Requirement In This Industry. It Is Just Rs.10 Cr Which Is Non-Refundable. And Also Need To Investment In Technology. So, It’s Not Easy For Any Corporate House. And Also Need To Invest In Technology. It Is High.

So, The Threat From New Entry Is Low.

Cost Design:

In This Service Industry Low Cost Design Is An Important Factor. Dish TV Uses The Multi Dwelling Unit (MDU). It Is Customized Solution For Connecting Multiple Houses Within The Same Multi Storied Building With A Single/ Two Dish Antennae To Receive DTH Services. In This Service, Common Dish Installed On The Terrace Of The Multi Storied Building Powers TV Sets In Multiple Homes In The Building Through A Cable, Which Runs Into Each Flat.44 Thus, Dish TV Has Lo Cost Design. But, It’s Not A Cup Of Tea For Each And Every Company To Implement Lo Cost Design.

So, The Threat From New Entry Is Moderate To Low.

Industry Growth:

Annual Compounded Growth Rate Of DTH Service Industry Is Around 30%, Which Shows Demand Is Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have Driven Growth. So, Market Is Attractive For The New Players.

So, The Threat From New Entry Is High.

Government Policy:

Government Is Providing Good Facilities To DTH Service Industry. As Government Reduced Import Duty To Zero Percent From 7.5% On Set Top Box. And Also Reduced License Fee From 10% To 6% And The CVD (Counter Veiling Duty) Is Reduced From 16% To 14%. This Shows Government Provides Friendly Policy To DTH Service Providers. But, There Is Also Non-Refundable Fee Of Rs.10 Cr. At The

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Time Of New Entry.

So, The Threat From New Entry Is Moderate To High.

Summary:

Access To Distribution Is High So Threats Of New Entrants Are Low. Advertising & Marketing Activity Is Also High So Threats Of New Entrants Are Low. Regulations & Norms Are Strict So Threats Of New Entrants Are Low. There Is Low Capital Requirement So Threats Of New Entrants Are High. In Respect Of The Low Cost Design Threats Of New Entrants Is Moderate To Low. There Is Low Level Of Switching Cost So Threats Of New Entrants Are High. The Buyer Demand Is Growing Rapidly So Threats Of New Entrants Are High. And Government Policy Is Somewhat Friendly So Threats Of New Entrants Are Moderate To High.

The Overall Threats Of New Entrants Is, Moderate To Low.

Threats Of Substitutes .

Determinants Of Substitution Threat

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In This Industry Mainly Four Type Of Substitute Available And They Are Closely Related To Dth Industry. Four Substitutes Are: IPTV, Cable Terrestrial, Television And CAS.

IPTV Provide Services Have Been Very Attractive Levels With The Subscription Charges Depending On City And Provide Set Up Box Free With Refundable Security Deposits. And They Provide Unique Features. IPTV Is Expected To Take Some Time To Catch Up S Infrastructure To

Cover Wider Scale.

As We Know Cable TV Have Huge Market. 73 Million Households Have Cable Connection.

Doordharshan Is World‘S Largest Broadcast With Over 1400 Terrestrial Television Transmitters. And The Reach Provided By This Route Is Phenomenal With Provided Coving 88% Geographic Area Of India.

Introduction Of CAS By The Government In Specified Are Since 2007 And This Also Put Push Towards Digitization Of Cable. If Regulated And Implemented Properly Could Pose A Threat To DTH Player In Future.

New Technology Accepted By TRAI Is Headend In The Sky (HITS). DTH Have End User Of Consumer, The HITS End User Is A Cable Operator.

So, Threats From Substitutes Are Moderate To High.

Costs Of Switching To Substitutes:

Package Price Of Services Is Not More Different From Substitute To Substitute. So Buyer Can Easily Switch From One To Another. They Charge Low Price So That Customer Do Not Incur Big Cost. They Can Transfer To Substitute. IPTV Provide Subscription Charge s Between Rs. 100 To Rs. 200 Per Month. And DTH Services Have Lowest Price Rs. 90. (Starting Price) And Cable Provide Services Starts With Rs. 250. So We Can Say Here No Huge Difference.

So Threat From Substitute Is HIGH.

Availability Of Substitute Products:

HITS, The New Technology Is Being Looked At Positive By TRAI.HITS Has The End Number Of Cable Operator Who Delivers The Signals To The End No. Of

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Consumers.

Mobile Television Is Also Coming Soon In The Market. DOOR DHARSHAN Launched Its Mobile TV Pilot With Handset Major Nokia And Samsung On DVB-H

Platform.

LG LCD With New Blue Race Technology Which Can Record A Program At A

Time Of Broadcasting In CD /DVD. Its Affects To Videocon LCD Sales.

Here Threats From Substitutes Products Are Moderate To High Because

Technology Used By Substitute.

Summary:

Threat From Substitute Is Moderate To High Because Substitutes Have Power On Market And Also New Technology Is Positively Taken By Government. There Is No Huge Difference In Price. So, Cost Of Switching Cost Is Low. Because Of It Threat Is High. And Availability Of Substitute Is Moderate To High In Market. So, Threat Is Also Moderate To High.

The Overall Threat Of Substitutes Is Moderate To High. Bargaining Power Of Suppliers

DTH Industry Relies On Three Major Suppliers:

1. Customer Premise Equipment (CPE)2. Comprising Of The Satellite Dish3. Set-Top-Box With The Necessary Access Card.

Satellite:

The Ku-Band Transponders Are In The Orbiting Satellites And Content Are Few Larger Suppliers. With India Set To Overtake Japan As Asia’s Largest DTH Market. But Government

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Launches INSAT 4A, India’s Most Powerful Communication Satellite. It Will Provide Direct-To-Home (DTH) Telecasts From Early 2006.

The Ku Band Transponder Is Generally Provided By Astrix, 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, Astrix Is In A Better Position To Use DTH. Also The Crash Of INSAT 4C And NSS-8 Has Worsened The Situation Of DTH Players. AsThere Is Not Much Of Regulation Particularly In Terms Of Channel Pricing, Acquiring Content From The Broadcasters Is Also Difficult. DTH Vendors Are At The Mercy Of The Broadcasters

Indian DTH Service Provider Can Take Initiative Of Indian Satellite For Large Area Coverage From India As Well As Take Home Base Secure Service Satellite.

Set-Top Box:

As Per A STB Equipment Provider Is Concern Indian Govt. Give An Advantage Of Customs Duty On Set-Top Box Was Reduced To NIL In The Budget 2006, Whereas, Inputs Attract Customs Duty Of 5/12.5%.

Most DTH Players Import Their Set-Top Boxes (STB) And Sell Their Products At A Discounted Price To Consumers In A Bid To Grab Larger Volumes. A MPEG2 STB Could Cost A Company Between $32-50 And Its Consumer Acquisition Cost Is Around Rs 2,600-5,000 Per STB For The DTH Players. Similarly, MPEG4 STB Could Cost A Firm Between $50-62 Taking The Subscriber Acquisition Cost For A DTHPlayer Up To Rs 5,600 Per Set Top Box. So As A Service Provider Company Can Import STB Like Tatasky Import Sky Broadcastings STB From USA For Low Cost And High Quality Service?

Here The Production Of DTH Instruments, Cables And Other Materials Is Very Costly For The DTH Service Provider Companies So They Have To Be Dependent On The Suppliers Of This Equipment. And Because Of This Reason Their Bargaining Power Is High.

Bargaining Power Of Supplier .

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Backward Integration:

Industry Players Can Get Qualitative Raw Material At Affordable Price. So, They Can Think To Do Backward Integration In Terms Of Set Top Box, Etc. And Also All The Corporate House Can Do This.

So, Bargaining Power Of Supplier Is Low.

Supplier Switching Cost:

The Decision Of Switch From One Supplier To Another Supplier Is Very Critical To Any Manufacturer. Because At That Time They Have To Check The Cost Of Switching From One Supplier To Another. But In This Industry It Is Very Low. There Are Many Players Who Provide Dish And Set Top Box In The World.

So, Bargaining Power Of Supplier Is Low.

Forward Integration:

Supplier Of Raw Material Providers Can’t Easily Entered In This Industry. Because There Is Need Of Huge Investment Required While Starting The Business In This Industry.

So, Bargaining Power Of Supplier Is Moderate To Low.

Summary:

Bargaining Power Of Supplier Is Low Because There Is A Possibility Of Backward Integration. Inter Firm Rivalry Is High Because Market Share Of The Players Have Not More Differences. Supplier Switching Cost Is Low So Bargaining Power Of Supplier Is Also Low. And The Determinants On Supply Power Are Not So Much. So, Bargaining Power Of Supplier Is Moderate To Low.

The Overall Bargaining Power Of Suppliers Is Low.

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Bargaining Power Of Buyers .

There Are Many Factors Affecting Bargaining Power Of Buyers. As They Are Given

Below:

Buyer Switching Costs:

The Cost Of Service In DTH Service Industry Is Not That Much High What Consumer Cannot Afford To Change. So In This Industry Consumer Can Easily Divert From One Brand To Another. There Are Several Reasons To Change The Brand Like Price Level, Quality Of Set Top Box, Etc. In That Case Service Provider Can’t Take Any Strong Action To Make Consumer Brand Loyal Each & Every Players Are Provide DTH Service At Near To Same Price. That’s Why Consumer Can Easily Change The Brands.

Due To Low Switching Cost From One Brand To Another, The Bargaining Power Of Buyer Is Moderate To High.

Brand Awareness:

Customers Are Becoming Literate And Take Interest To Get Aware About Different Brands And Their Services Which Are Available In The Market. In DTH Service Industry There Are No

More Players But They Provide Many Different Services.Mostly People Are Aware About Brands And Services, That’s Why They Can Easily Find Out Which Product Is Good In Price, Quality Of Services, Etc. In This Industry Mostly Each & Every Service Providers Are Concentrating On High Advertising To Increase Awareness Of Their Brands And Services.

Due To High Awareness Of Different Brands And Services, The Bargaining Power Of Buyer Is Moderate To High.

Availability Of Substitute Products:

In Recent Time We Can Easily Find Substitute Product In This Industry. Substitute Products Are Cable TV & IP TV. Customer Can Easily Get Both Of These Products With Minimum Charges.

Due To Easily Availability Of Substitute Products, The Bargaining Power Of Buyer Is High.

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Buyers’ Purchase Frequency:

DTH Service Is Such Kind Of Products That Consumers Cannot Purchase ItFrequently. But, Consumer Has To Do Recharge Monthly. They Have To BuyMonthly Or Yearly Packages. Because Of These Reasons, Purchase Frequency Is High.

Due To This, Bargaining Power Of Buyer Is Moderate To High.

Innovative Services:

In DTH Service Industry, Service Provider Every Time Launch Different Services Via Different Types Of Recharges. Consumers Can Easily Get Recharge And Monthly As Per Their Need.

Example: Reliance Big TV Provides 10 Different Types Of Monthly Pack. Due To This, Bargaining Power Of Buyer Is Moderate To High.

Summary:

Buyers Switching Cost Is Low So Bargaining Power Of Buyer Is Moderate To High. Awareness About Different Brands Is Also High So Bargaining Power Of Buyer Is Moderate To High. Substitute Products Are Easily Available So Power Of Buyer Is High. Purchase Of Frequently Is Low So Power Of Buyer Is Also Low. There Are Many Innovative Services So Bargaining Power Of Buyer Is Moderate To High.

The Overall Bargaining Power Of Buyers Is Moderate To High.

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Inter Firm Rivalry

No. Of Player In Industry

After Government Approval In 2000 Dish TV Is One The Pioneer In Industry. In This Year Company Cross 5 Million Subscribers. Dish TV, Part Of Media Conglomerate Zee Group Has 5.92 Million Subscribers In The Month Of September. Dish TV Is Known For Its Innovation And Marketing Starting With Roping In Shah Rukh Khan (Arguably The Biggest Brand In India) For Advertising To Providing Wide Range Of Value Added Services With Slogan “DISH KARO WISH KARO”. Dish TV Has Done It All. Recent Addition To Its Innovation Is The Interactive Banking Services Called ICICI Active.

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Tata Sky Is A DTH Satellite Television Provider In India, Using MPEG-4 Digital Compression Technology. They Provide Service Through First MPEG-2 And Second Adopted By NDS Technology. It Is A Joint Venture Between The Tata Group, That Owns 80% And STAR TV That Owns A 20% Stake. Tata Was Incorporated In 2004 But Was Launched Only In 2006. The Company Uses The Sky Brand Owned By British Sky Broadcasting. In October 2008; Tata Sky Announced Launching Of PVR Service Tatasky+ Which Allowed 45 Hours Of Recording In A MPEG-4 Compatible STB. The Remote Will Be Provided With Playback Control Keys.

Sun Direct Is The Part Sun TV. Sun Direct Provide Dth Service S From The December 2007. Company Was Incorporated As Sumangali Publications Private Limited On December 18, 1985.Sun Tv Also Provide Video Quality With Sound Quality. Sun Direct Have Establish Dec.2007 And Now Have 4.3 Million Subscribers In India.

The DTH Service Of Bharti Airtel Comes From Its Subsidiary, Bharti Telemedia Limited Launched In October 2008. They Comes With MPEG 4technology.There Are Nine Interactive Service Currently And Three Recharge Option And Airtel Has Been Position As A Premium Player In The DTH Market

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Big TV Ltd. Is Part Of Reliance Communication Ltd. It Comes In To Industry In August 2008 With Slogan “TV Ho Toh Big Ho” ("If You Have A TV, Make It BIG"). Now Company Going To Planned Provide 400 Channels And Begin High Definition Broadcast. Company Covers In One Year 2 Million Subscribers.

Videocon Industries, An India-Based Electronics Goods Manufacturing Company Has Finalized May’09 As Launch Of DTH Services With The Name Of 'D2H+'. The Company Will Launch Integrated Digital Televisions (Idtvs) And Set Top Boxes (STBs). The Company Is Planning To Sell 70-80 Per Cent Idtvs And 20 Per Cent STBs. The Company Is Testing The STBs By Installing At Employees' Homes At No Cost. In Addition, The Company Is Presently Ensuring A Strong Sales Network And Has Been Recruiting Sales And Service Staff Through Its Media Arm, Bharat Business Channel.

Summary:

Dish TV Is Leader Of Industry. Dish TV Market Share Is 31.62% That Is Highest. But We See Other Competitor Of Industry Not More Difference In Their Market Share. Tata Sky Is Very Near To Cross The Dish TV On The Other Hand Big TV And Airtel Able To Get The Market Share 10.68% Only In One Year. Now Recent Videocon Enter Into Market. Videocon Is Ready To Beat To Their Rival. DD Direct Is Also Public Company.

Here, No. Of Player Is Only 6 (Not Including In DD Direct) Which Have High Competition To Grab Market Share So. Interval Rivalry Is High.

Industry Growth:

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Average Annual Growth Rate Of DTH Service Industry Is Around 30%, Which Shows Demand Is Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have Driven Growth. So, Market Is Attractive For The New Players.

So, The Threat From New Entry Is High.

Untapped Market:

In India Cable Operators Have Huge Market Share Than DTH And IPTV. Now DTH Service Providers Have Huge Opportunity To Adopt The Market Share Of Cable And IPTV. There Is Huge Demand In Rural Area Also That We Can Say Untapped Market.

There Is Huge Untapped Market For This Industry. So, Inter Firm Rivalry

Is Very High.

Promotional Activities:

All Companies In DTH Come With Different Types Of Schemes And Offers In The Market. All The Time They Try To Attract More Numbers Of Customers With Huge Marketing & Advertisement.

Mostly All Of The Players In Industry Introduced New Promotional Scheme Almost In One Week Duration. So, Inter Firm Rivalry Is Moderate To High.

Exit Barrier:

To Enter In This Industry, Entry Fee Is Rs.10 Crores Which Is Not Refundable. And Also Establishment For Technology There Is Huge Investment Needed. This Also Means That The Players Need To Have A Deep Pocket To Sustain The Losses Till Then.

So, Exit Barrier Is High. And Inter Firm Rivalry Is Also High.

Summary:

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Inter Firm Rivalry Is High Because Market Share Of The Players Have Not More Differences Between Their Market Share. Switch Cost Is Low So That Competition Is High. There Is Huge Untapped Market And Thus New Strategy Adopted By The Players. So It Is High & Moderate To High Respectively. Exit Barrier Is High For Huge Investment In Industry. Thus It Is Affected Negatively To Competition.

The Overall Inter Firm Rivalry High.

Driving Forces

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Internet Technology Applications:

The Internet Is Proving To Be An Important As A Distribution Channel, Allowing Manufacturers To Access Customers Directly Rather Than Distribute Exclusively Through Traditional Wholesale And Retail Channel. By The Use Of Internet Applications The Service Providers Provide The Product Offerings Of Competitors And Shop The Market For The Best Value To The Customers.

Long Term Industry Growth:

Shifts In Industry Growth Up Or Down Are A Driving Force For The Industry Change, Affecting The Balance Industry Supply And Buyer Demand. The Industry Growth Of The Direct To Home (DTH) Is Around 30%, So The Industry Growth For The DTH Companies Concern As A Driving Force, Which Plays An Important Role For The DTH Service Providers.

Product Innovations:

The Innovation In The Product Is Very Important Factor Because The New Product Creates The Market Demand Which Is More Important For The Any Player In The Industry. Successful New Product Innovations Strengthen The Market Positions Of The Companies With The Innovative Products. By The Product Differentiation The Service Providers To Be The Market Leader Or From That The Companies Capture The Market Share. The Product Innovations & Product Differentiation Will Be A Competitive Advantage For The Company Among The Rivals Of The Industry.

Technological Changes:

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Advances In Technology Can Dramatically Alter An Industry’s Landscape. There Are Gradually Upgrade In The Technology. So, The Improved Or Innovative In The Technologies Of DTH Services Are Enforcing To Drive The DTH Service Industry.

Regulatory Influence:

TRAI (Telecom Regularity Authority Of India) & Ministry Of Broadcasting Both Are The Governing Bodies For The DTH Industry By Which Regulated To The DTH Industry. By The TRAI Recommend That The Import Duty On The Set Top Box (STB) Removed Which Is Beneficial For The DTH (Direct To Home) ServiceProviders And The Effects On The Customers Because By That The Price Of The Set Top Box Reduced And The Benefit From That The Price Of STB (Set Top Box) At The Low Cost To The Customers.

Changing Societal Concerns, Attitude & Lifestyles:

In India, Generally The Style Of The Family Pattern Is Nuclear Family. So It Helps To The Family Members To Watch The Different Channel For The Different Member Of The Same Family. After That The Lifestyles Of The Family Who Are Using The DTH Services For Their Entertainment Is Different And Attitude Towards The DTH Users Different More Than The Non-Users. Nowadays The DTH Service Providers Also Provide The Common Dish For The Same Society.

Innovative Marketing:

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Marketing Is Most Important To Become Very Successful In Any Industry. To Grab The Market Share And Subscriber Base, Player Done High Advertisement And Marketing. By Creating Marketing Innovation You Can Easily Get Attention Of Customer. Many Player Of This Industry Have Done Innovation In Marketing And Spent Handsome Money Behind This.

Dish TV Is Leader Of The Industry. It Comes With Most Successful Slogan

“Dish Karo Wish Karo” Through Brand Ambassador Shahrukh Khan This Provide Them Most Successful To Grab Subscriber Base. They Are Also Come With New 360 Dergee Approach In Marketing With Slogan “Ghar Ayi Jindgi” To Compete With Tata Sky And Big TV.

Tata Sky Enters Into Market With Brand Ambassador Amir Khan For Their Advertisement. Through Amir Khan They Try To Make Aware About Their Schemes.

Bid TV Is Also Not Behind In Promotion Activates. They Do Not Take Help Of Any Brand Ambassador But They Done 360 Degree Angle Advertisement With Popular Slogan “TV Ho Toh Big Ho”

Technology:

This Factor Is Very Important To Drive The Industry Because The Scope Of Innovation In The Technology Is Very Wide And The Technology Is Upgraded Day To Day. In The Industry The DTH Service Provider Provides The Moving Picture Expert

Group Version 2 (MPEG2), But Now A Days The Technology Is Upgraded And Some Of The Service Provides The MPEG4 For The High Standard Quality Picture At The Low Cost With The Innovative Features Like Airtel Digital TV And Reliance BIG TV.

Airtel - Uses The Latest MPEG4 Standard With DVB S2 Technology.

Sun Direct Is Advanced Technology HDTV (High Definition Television)

Reliance BIG TV Also Provides The MPEG4 With The Digital VideoBroadcasting (DVB) As Well As The Picture In Picture (PIP) System To TheDTH Service Holder.

Strategic Factors:

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Exploit Bottlenecks:

In This Market, Content And Transponder Capacity Are Scarce And Controlled ByA Few Players.

With Content, Access To Unique Local Language Material Is Critical. In A Market Like India, All A DTH Player May Need To Do Is Repackage Existing Channels That Are Not Universally Available. In Sports, Some Players Have Won An Advantage Through Long-Term Rights Purchases. Broadcasting Rights To Cricket In India, For Example, Belongs To ESPN For The Next Five Years. It Also Controls The Right To Football For West Bengal (The Most Popular League) For Ten Years.

The Second Obvious Bottleneck Is In Transponder Capacity. A Modest DTH Offering Is Likely To Require A Minimum Of 10 To 15 Transponders-Almost A Dedicated Satellite. The Number Of Satellite That Can Broadcast To A Particular Region Is Limited By Physics.

Move First:

In The DTH Industry, A Credible And Well Managed First-Mover Service Has A Tremendous Advantage Over Others. In India, A First Mover May Effectively Shut Out Competition.

Exploit Market Niche:

In Some Markets, The Segment Of Consumers Who Desire Highly Specific Content May Be Large Enough To Form The Core Subscribership Of A DTH Service. An Example Of This Could Be Again Cricket In Our Country. A Few Things Are Assured In The DTH Industry Even In The Face Of Paradigm Shifts. First, The Value Of Transponders Is Likely To Fall As Compression Allows More And More Content To Go Through The Same Satellite, And As More Satellite Are Launched. Second, As Bandwidth Explodes, So Will Demand For Content.Obscure Sports And The Like Will Become More Valuable; Conversely, Much Of The Content That Is Currently Valuable Will Face Downward Pricing Pressure. Niche Content Providers Will Emerge. The Industry Is Likely To Be Characterized First By A Period Of Fragmentation And Then By An Increasing Concentration Of Global Consortia As Unprofitable Participants Fold. What Is Clearer Than Ever Is That Satellite TV Is Here To Stay And Will Play Role In Bringing Television To Mass Around The World?

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Sun Direct:

· Sun Direct Is A 80:20 Joint Venture Between The Tamil Nadu Based Maran Family And The Astro Group Of Malaysia.

· Sun Direct Is Now Using Most Advanced Technology HDTV (High Definition) Content. This Technology Makes Their Service Very Effective And Better Quality.

· Sun Direct Provide Their Packages At Low Package Price Rs. 10 To Rs. 115Per Month And Also.

· Sun Direct Consider To Be Rational In Terms Of Package In Terms OfSchemes And Packages Set Top Box (STB) And Monthly Packages.

· Sun Direct Concentrates On Regional Channel.

· Sun Direct Using MPEG 4 Technology.

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Airtel:

Big TV:

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Value Chain Of Industry

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Value Chain Analysis:

Value Chain Analysis Help Companies To Analyze Specific Activities, Through Which Firms Can Create A Competitive Advantage, It Is Also Useful To Model The Firm As A Chain Of Value Creating Activities. Michael Porter Identified A Set Of Interrelated Generic Activities Common To A Wide Range Of Firms. The Resulting Model Is Known As The “Value Chain” And Is Depicted Below. The Goal Of These Activities Is To Create Value That Exceeds The Cost Of Providing The Product Or Services, Thus Generating A Profit Margin.

The Following Diagram Contained Value Chain Of The Industry, Which Includes Primary As Well As Supporting Activity. Contribution Of Each And Every Activity Has Been

Mentioned As Follow As Particularly For DTH Industry.

Value Chain

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Over The Last Three Years, The Direct-To-Home (DTH) Satellite Industry Has Come On Strongly Worldwide. It Has Grown From A Niche Delivery Mechanism Into A Mainstream Business. The Spread Of Subscription-Based DTH Satellite TV Promises To Enhance Choices For Many Households In Developing Countries. With The Government Throwing Open The DTH Sector In The Country, A Handful Of Players Have Come Up With Grandiose Plans To Enter The Market. Given The Stiff Level Of Competition This Premium Services Will Face From The Existing Multi-Channel Cable Network, Possible Entrants Need To Clearly Grasp A Few Of The Winning Rules Of The Game.

Inbounds Logistic:-

Include Receiving, Warehousing, And Inventory Control Of Input Materials.

Raw Material Sourcing:-

In DTH Service Provider Companies Generally Has No Any Kind Of Raw Material But Sometimes Given CPE Are Already Supplied By CPE (Dish, STB, Cable) Manufacturer

Company Have To Store It Or Direct Supply To Retailer Or Outlet.

Operation:-

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The Value Creating Activates That Perform Input Into Final Product. DTH Service Provider Collect Private Channel From Their Collaborated Channel. System Which Has Specially Designed Program To Provide Service As Per Customer Package As Well As Request Send A Signal To The Ku-Band Satellite Which Transfer Signals To Subscribers Set-Top-Box Through Dish Antenna And Serve The Service As Consumer Require Whether It Is Private Channel Or Service Providers Interactive Service. System Is Similar

Like Mobile Service System So It Is Very Easy Task For Cellular Service Provider.

Outbound Logistics:-

The Activities Required Getting Product Service To The Customers, Installation, Ordering Fulfillment, Quarry Solution, New Technology And Service Updates (May Free Or Minor Charges Apply)

POSITION IN A MARKET (SUPPLY)

The Most Important Asset Is Arguably An Ability To Play A Unique Role In The DTH Value Chain. This Advantage May Reside In Business That Has Little Or No Obvious Connection With DTH. A Company That Has Pioneered A Business Offering Credit For Consumer Durables In A Developing Country, For Instance, Might Be Well Placed To Supply Finance To Purchasers Of CPE.

Sales & Marketing:-

Those Activities Associated With Getting Buyers To Purchase The Product, Including Channel Selection, Advertising Pricing, Etc. In India Demand Is Over Pacing The Supply. So, Generally We Find Less Focus On The Marketing Activities From The Companies’ Side. Two Types Of Customers Are There, One Retail & Second Industrial Or Government. To Attract Business / Industrial Customer Special Commercial And News Channel Packages Are There In Some Players. Retail Customer Can Be Attracted By Providing Sales Promotion Or Advertising.

Promotion:-Currently Companies Are Using Marketing Tool Like Free STB Or Installation, Customize Channel Package, Special Package To Attract The Special Customer Segment Like Business Class. And Also Interactive Services Like Educational Program, Same Other Time Program Recording, Pay-Per-View And Also MDU For Multi User Service.

Build An Appropriate Content OfferThis Is The Single Most Crucial Choice A DTH Company Will Make. In A Remote Town With No Access To Television, For Example, Even A DTH Bouquet Of Just Two Channels

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Might Seem Attractive. Transponder Costs Are Also A Factor In An Appropriate Content Offer. It Is The Bouquet Size That Determines How Many Transponders Are Needed, Creating A Tradeoff Between The Cost Of Transponders And The Richness Of The Offering.

Advertising:-Ad Revenue Is Also Available To A DTH Service Provider, So The Existence Of A Robust Or Growing Ad Market Is Important. For That Have Special Movie Time Commercial, 20:20 And Other Sports Live Telecasting Time Commercial And Also Some Special Program Like Educational, Own TV Serial Production. DTH Service Provider Companies Are Using Emotional Approaches In Advertising. But Right Now They Are Started To Endorse Brand Ambassadors Like Shahrukh Khan In Dishtv, Amir Khan & Gul Panag In Tata Sky, Saif_Kareena_ A.R.Rehman_ Gautam Gambhir_ R.Madhvan And Zaheer Khan In Airtel Digitaltv And Television Serial Celebrities For Bigtv.

InstallationGenerally Players Are Provide Installation Service But In Some Cases (DD Direct+) May Happen Customer Purchase Their Own CPE From The Market. Service Provider Are Always Try To Provide Indian Standard CPE. Doordarshan Always Prefer To Serve 90

Mhz And 120 Mhz Dish Antenna As Well As Good Quality STB.

Service:-After Provide An Application Equipment Of DTH Service Companies Should Have To Provide A Better Broadcasting Service Like Interactive Service, PPV (Pay-Per-View),

Movie-On-Demand And Also A Query Of The Service Users.

Supporting Activity:-The Primary Activates Described Above Are Facilitated By Support Activities.

Infrastructure:-

Infrastructure Includes Strategic Location In Term Of Nearby Suppliers Or Nearby Market, Adequate Space To Run The Business, Technological Resources, Transportation Facility. All Of These Will Lead To Improve The Performance. So, All Of The Players Have To Develop This.

Human Resource Management:-

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The Activities Associated With Recruiting, Development, Compensation Of Employees. One In Each Of The Four Regions North, East, South And West For Setting Up Regional Training Centers (Rtcs) With Commitment To Human Resource Development. The Rtcs Are Equipped With State-Of-The-Art (High-Tech) Technologies, Teaching Aids And Equipment And Specially Made Need Based Training Packages. High Quality Technical Guidance Has Been Translated Into Local Languages Also. Computer Based Training Is Given To Personnel Even At Operator Level. There Are Specially Trained Employee For Installation And Service Guide. And Also They Provide Good Remuneration To TheirEmployees.

Offer Superior ServicesCable Companies Are Frequently Criticized For Installation Delays, Billing Errors And Surly Staff And The Nature Of Cable Plant Makes Signals Prone To Disruption. Staff And Customer Service Issues Relating To CPE Installation And Maintenance May Yield A Fine

Of Differentiation Above And Beyond Picture Quality.

Technology Development:As This Is Crucial Factor Which Affecting This Service Most. Company Has To Develop New Technology As It Helps Not Only Him But Also To Customer. Customer Can Get Good Quality Of Pictures Through Good Technology.

Implication:-

A Few Things Are Assured In The DTH Industry Even In The Face Of Paradigm Shifts. First, The Value Of Transponders Is Likely To Fall As Compression Allows More And More Content To Go Through The Same Satellite, And As More Satellite Are Launched. Obscure Sports And The Like Will Become More Valuable; Conversely, Much Of The Content That Is Currently Valuable Will Face Downward Pricing Pressure. Niche Content Providers Will Emerge. The Industry Is Likely To Be Characterized First By A Period Of Fragmentation And Then By An Increasing Concentration Of Global Consortia As Unprofitable Participants Fold. What Is Clearer Than Ever Is That Satellite TV Is Here To Stay And Will Play Role In Bringing Television To Mass Around The World?

OT Analysis

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Opportunity:

·Huge Untapped Market :

Industry observers, like dish tv believes that the dth market grow exponentially to touch 37 million subscribers by 2010.

Dth is the emerging industry in india and there is huge market to provide the dth service in india.

Around 2500-3000 new subscriber are being added everyday to private dth operators, whereas only 200-300 are added to dd’s free network.

Suggestions are being mooted for the simultaneous release of movies, both in theaters as well as on dth.

There are several remote area in india where as dth services are more suitable than cable connections.

So, there is opportunity to grab untapped market for dth companies.

Govt. In Favors Of Industry:

Govt. Is Considering 74% FDI Capital In The DTH Sector And Taxation Polices Need To Be Friendly And Encouraging.

The Growing Subscriber Base Will Definitely Bring Down The Prices Of Stbs (Set Top Box) In The Long Run And Import Duty Free On Stbs (Set Top Box).

Government Reduces The License Fee, Which May Be Reduced From 10 Per Cent Venues To 6 Per Cent Of The Gross Revenue Of The DTH Service Providers. For, The Above Points We Can Say It Is Beneficial To New Entrance As Well As Existing Companies.

New Products Comes In The Market:

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LG LCD With New Blue Race Technology Which Can Record A Programe At A Time Of Broadcasting In CD /DVD. This Is Very Helpful To DTH Companies To Provide Service To Customer. The DTH Service Providers Are Improving Their Technology For Their Product

And Also Improvement In Their Service To Provide To The Customers.

·Company Have Own Cable Subscriber:

Airtel And Reliance Have Huge Mobile Subscribers Base Where As Sun Direct And Dish TV Have Got The Cable Subscriber Base Of Sun Network And ZEE Network To Penetrate More Into The DTH Market.

Airtel And Dish TV Have Easy To Grab The Cable Market Share.

Technology Development And Innovative Services:

Now DTH Companies Are More Concentrating On Their Services And Schemes Them. All The Players Are Always Ready To Innovative Their Services To Attract The Customers Dish TV And TATA Sky Provide The A-LA-Carte Services Means Special Channel That You Can Add As Per Your Choice. And Also MS Service Provides That Called Multi Services. These Both Are Benefit To Customer To See Their Favorite Programs. In Short Time Internet Will Also Available On The DTH Service.

Market Developments:

The Major Factors Which Contribute For The Imminent Growth Are – Economic And Low End Entry Fee, Free Offers, Value-Added Services, Matrimonial Information, Educational Kits Etc.

The Players Can Easily Initiate And Develop Their Market If They Have Required

Capital Availability.

Geographical, Export, Import:

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Fed Up With Poor, Unpredictable Cable Television Across Small Towns And Cities, People Are Switching Over To DTH Entertainment For Their Television At The Speed Of Light.

This Can Be Justified Because India Has A Varied Geography And Population Distribution. So Cable Television Is Not Available Everywhere, Particularly In Remote Hills, Villages, Farmhouses Etc. These Are The Places Where The Demand For Satellite Television Is Rising.

Industry Or Lifestyle Trends:

·India Has A Total Of Almost 90 Million Households Which Have Television. Out Of These, Cable Television And DTH Services Are Accessed In About 45 Million (Half).

·In The Next Few Years, It Is Set To Increase By Another 10. This Will Then Make The Indian Market The World’s Biggest Cable Television Market.

·The Changing Life Style And Choice May Positively Affect To This Industry.

Implication:

DTH Industry Is At Growth Stage. Industry Has Huge Opportunity And Growth. Government Is More Concentrating On This Industry. As They Reduced Import Duty On STB And Also Reduced License Fee. Out Of Six Players, Two Companies Have Own Cable Subscriber. This Could Be Benefit To Companies. As Companies Are More Focusing On Advertising Activity, Awareness About DTH Services Is Increasing In The Market. There Is Huge Untapped Market. Existing Companies Provides Innovative Services And Schemes. So, DTH Companies Have Benefit To Cover That Market.

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Threats .

Substitutes

Internet Protocol Television (IPTV) Is An Upcoming Threat To DTH, But Still In The Nascent Stage.

CAS, If Regulated And Implemented Properly, Could Pose A Threat To DTH Players In Future.

IPTV And CAS Is Main Substitute Of DTH Industry. They Are Coming With New Technology And When It Implemented Right Way Then They Become Threat For DTH Industry.

New Technology In The Market:

New Technology Accepted By TRAI Is Headend In The Sky (HITS). HITS End- User Is A Cable Operate Who Delivers The Singles To The End Consumer.

HITS Technology Directly Connect To Cable Operate And DTH Contact To Consumer. So, This Technology Will Become Harmful To DTH Industry.

Low Switching Cost:

There Is Not More Difference Between Package Price Charge By DTH And Its Substitute.

Service Provides By DTH And Its Substitute Is Almost Same. So One Can Transfer From One To Another. So, Here Switching Cost Is Low For The Customers About The DTH Service.

Government Policy/Regulations:

TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH Service Industry. DTH Service Covered Under The Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redressal Of Grievances) Regulations, 2007.

Government Has Imposed Strong Rules Like No Visiting Or Repair And Maintenance Charges Against DTH Equipment During Warranty Period, The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment, Etc.

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IT Developments:

The Biggest Threat To The DTH Industry And Also To The Television Industry Is From The Growth Of The Internet And Other IT Developments Which May Enable Viewers To Enjoy Their Daily Sops, News Etc. Direct Through Internet

Competitor Intentions:

After The Higher Charges On License And Availability Of The Capital, It Is Very Easy To The Firm To Enter In The Industry.

The Deductions And Relieves Provided By The Government May Also Attract The New Players.

Seasonality, Weather Effects:

The Major Obstacle Faced By The Industry Is Lack Of The Proper Signals In Bad Climate.

Therefore, In Hilly Or Rainy Areas The Industry Is Unable To Provide The Services At Its Best.

Lack Of Possibility Of Growth:

At Present The Industry Is At Growth Stage, Numbers Of Peoples Are Still Remaining To Be Covered By The DTH.

But After Covering The As Many Numbers Of The People As It Can, There Is No Scope For The Industry To Grow Further In The Same Market

Even It Would Be Difficult To Attract The Users From One Service Provider To The Other Because Of The Lack Of The Difference In The Core Competency.

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Implication:

DTH Substitutes Will Become Strong By Adopting New Technology Nearby Future. And HITS (Head End In The Sky) New Technology Comes In To Market If It Successful Than The It Is Harmful To DTH Industry. Competitors Are More Conscious About Their Technological Development And Market Expansion By The Innovation In Technology As

Well As With The Innovative Products. The Climate Plays Vital Role To Affect The Service. The Improvement In The Technology Affect To The DTH Industry. Above These Factors Can Become Threat For DTH Industry In Future.

Summary:

From The OT Analysis, The Opportunity For The Players To Enter As Well As To Envelop The Market Because The Market Is Untapped And The Policies From The Government Are Much More Liberal For The DTH Service Providers Provide To The Customers. So, It Is The Win-Win Situation For Both The Parties Like, DTH Service Providers And Customers. There Are Also Some Threats For The DTH Service Providers By The Improvements In The Technology, Climate Condition, Substitutes Also Affect To The Rivals Of The Industry Because The Cable Operator Already Covered Market.

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FINDINGS

The survey has been conducted taking into consideration all age groups so that the preferences and criteria of total population can be analyzed.

The feedback received from sample population depicts that tata sky is the leading and most preferred service provider in DTH industry.

Most of the people are getting awareness about DTH providers from Television advertisement , Friends and Retailers

TATA sky , dish TV and GTPL are strong players of ahmedabad market

The most effective factors that prompt people to buy a particular dth service is low monthly cost along with low initial price which clearly shows how price sensitive ahmedabad market is. Variation in price can lead to increase or decrease in demand of the product.

People normally prefer to pay for the service either monthly or half yearly.

People do consult Friends and Retailers while making a decision to purchase a particular DTH service

Almost 46 % of customers are satisfied with the DTH provider they have.

The feedback provided by the sample population about the network coverage of DTH service provider is good/satisfied. Most of the times they receive flawless, un interrupted and better quality programs with negligible disturbance from their service provider .and these factors make people think that the DTH provider thay are having is providing the best service as compared to other medium of entertainment like cable, doordarshan radio etc.

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Recommended Strategy:

Dish TV:

As Dish TV Is Already Market Leader. So They Have To Go For Expansion Of Distribution Network. So Customer Of Dish TV And New Customer Are Easily Getting Their Service And Recharge Coupon Also.

The Customer Is King Of The Market And To Win The Customer One Have To Implement Service Marketing Concept And Provide Complete Satisfaction To Customer. To Make The Customer Loyal, The Quality Of The Service Provide By The Company Should Be Best And As Per Customer Wants.

Service Provided By The Dish TV Is A-La-Carte. This Service Is Satisfy Customer Need So, To Introduce This Type Of Service May Attract To Customer.

Dish TV Have To Adopted Aggressive Pricing Strategy To Attract To Customer.

Indian People Have More Value Of Their Region. Company Has To Adopt The New Tie Up With Region Channel. And Also Introduce Packages. So Customer Can Enjoy Their Region Channel In Other State Also.

Tata Sky Introduces The TV Service On Mobile And Wheel. They Are Able To Capture The Market. So, Dish TV Has To Introduce This Type Of Services.

Company Has To Focus On Rural Expansion .There Is Huge Market To Grab The Market Share.

Tata Sky:

TATA Sky Is The Best DTH Service Provider Among The Rivals, So They Should Maintain Their Position With The Differentiation On The Basis On The Interactive As Well As The Sales After Service To The Customers.

After That They Should Concentrate On The Top Of The Position With The Innovation In Product As Well As The More Interactive Services Provide To The Customers.

They Should Also Provide The Recharge System Like The Reliance Big TV Provides The Recharge Coupon For The Various Schemes.

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Sun Direct:

Sun Direct Is The Silent Well Known Company In Indian DTH Industry.

Awareness Of Sun Direct Is Less. So, Sun Direct Invest In More Awareness About Service Provide By Company.

India Is Having Tremendous Opportunity As More And More Diversify Population Is Having. There Is Untapped Market In Urban As Well As Rural Area. In Sun Direct Should Invest For More In Marketing And Advertising So That Grab The Market Share.

Sun Direct Should Also Provide Other Good Channel Packages Rather Than Regional Channel.

Sun Direct More Concentrate On The South India. So, Sun Direct Should Cover The Other Region Of India As A Market.

BIG TV:

Reliance Big TV More Focuses On Their Product Promotion And Innovation In The Technology For Their Product. So, They Should Also Deliberate On The Services Like, TATA Sky Provides The Interactive And Active Service, Stock Ticker Etc.

They Should Also Concentrate On The Development Of Market By Their Distribution Channel Or The Sales After Service.

They Should Focus On The Development Of Rural Market As They Have Strong Back Up Of Parents Company.

CONCLUSIONS

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Key Success Factors

Innovative Services:

Innovation In Service Provided By DTH Industry Is Must And It Has A Significant Impact On Growth Of DTH.

Dish Tv Is Comes With New Innovative Service Called A-La-Carte. This Service Provides To Choose The Customer Extra 15 Channels From Their ALa- Carle Packs.

Dish TV Provide Active Service Like Job, Shaadi, Game Etc. They Provide Special Bank Active Service That Called ICICI ACTIVE Through This You Can Done Your

Bank Transaction.

Tata Sky Provides Tata Sky Offers A DVD Picture Quality And CD Quality In Sound. Tata Sky Is Rated As Best Service Provider In The Industry.

Tata Sky Come With New Service S Called Multi Dwelling Unit (MDU) Model. This Model Provide One Dish Is Shared By Every Home Is A Good Way To Attract The Group Of The Customer.

Low Scheme And Package Charge By Sun Direct. They Offer Regional Channel To All State In Their Packages.

Big TV Provides PIP (Picture In Picture) Service. This Service Provide Innovative Feature And Also Enable Customer To View Twelve Channels At A Same Time.

They Also Tied With The Oxygen For The Recharge With The Help Of Debit Cards, Internet Banking, Mobile Mode Payment (SMS) Or By The Calling The Toll Free Number.

Distribution:

Intensive Distribution Must Be Used By All Players Because Of Cut-ThroatCompetition. Availability Of Product Everywhere Is Very Important And For That Strong Distribution Network Is Required.

All The Players Of The DTH Industry Provide Their CPE Through Retailer And Their Outlets. Dish TV Provide CPE Through Retailer Only And Big TV, Airtel Digital And Tata Sky Provide Through Both Retailer And Their Own Outlay.

Annexure

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Questionnaire

NAME-  ___________________                  AREA 

____________________     

AGE-  ________           OCCUPATION-

_________________

Q1) How many DTH service provider you know about?

a) Tata Sky ----------- b) Airtel ---------------

c) Dish TV ------------- d) Videocon

-----------

e) Sun TV --------------- f) GTPL

---------------

g) Reliance --------------

Q2) Which DTH connection do you have?

a) Tata Sky ----------- b) Airtel ---------------

c) Dish TV ------------- d) Videocon -----------

e) Sun TV --------------- f) GTPL ---------------

g) Reliance --------------

Q3) How did you came to know about that provider ?

a) TV Ad -------------- b) News Papers -----------

c) Hoardings ---------- d) Retailers ---------------

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e) Friends ----------- f) Relatives ---------------

g) Magazines ------------- h) Others -----------------

Q4) Whom do you consult to finalize the decision?

a) Myself -------------- b) Family ------------------

c) Friends\ Relatives --------- d) Retailers ----------------

e) Neighbors ---------------

Q5) What are the factors which influenced you to buy

the service of your choice ?

a) Low initial Price ----------- b) Good Clarity --------------

c) Nice packages --------- d) Low Monthly Cost ----------

e) Brand Image ------------- f) Easy Access to Dealer --------

g) Value Added Services ------------

Q6) Which type of package do you prefer?

a) Monthly --------- b) Quarterly ------------

c) Half Yearly -------- d) Yearly --------------

Q7) Do you think your DTH provide value for money?

a) Yes ---------- b) No --------

Q8) Overall, how would you rate your service provider?

a) Excellent     b) Good    c) Average     d) Poor     e) Terrible      f) Not Sure

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Q9) Overall, how satisfied are you, with network service

of your company?

a) Very satisfied b) Satisfied c) Neutral d) Dissatisfied e) Very dissatisfied

Q10) Reason for the above answer

--------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

--------------------------------------------------

Q11) Whom do you think is the best DTH service Provider

?

---------------------------------------------------------------------------------------------------

--------------

Q12) Why

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Q13) Rank all the Service Provider as per your preference

criteria ? ( 1 to the first preference and so on)

a) Tata Sky ----------

b) Airtel ---------

c) Dish Tv --------

d) Videocon --------

e) Sun tv --------

f) GTPL ---------

g) Reliance --------

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Bibliography

Reference Books

Jr., A. A. (Special Indian Edition).Crafting And Executing Strategy. TataMcgraw Hill Pub. Co. Ltd.Jr., O. C. (5th Edition). MarketingStretegy. Tata Mcgraw Hill Pub. Co.Ltd.Philp, K. (13th Edition). MarketingManagement. PEARSON.

News PapersEconomic TimesBusiness StandardFinancial ExpressTimes Of India

Search EngineGoogleYahooMSN

Web SitesWww.Mib.Nic.InWww.Dishtv.InWww.Tatasky.ComWww.Sundirect.InWww.Airtel.In/DigitaltvWww.Bigtv.Co.InWww.Videocond2h.ComWww.Indiabroadband.NetWww.Indiatelevision.ComWww.Indiainbusiness.Nic.In

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Www.Strategyr.Com

Contents

1) Executive Summary---------------------------------------------------------------------06

2) Research Objectivea. Primary Objective

--------------------------------------------------------------07b. Secondary Objective

-----------------------------------------------------------07c. Information Needs

-------------------------------------------------------------073) Research Methodology

a. Sampling Design ---------------------------------------------------------------08

b. Data Collection -----------------------------------------------------------------09

4) Product Profilea. Definitions

-----------------------------------------------------------------------10b. DTH Service

--------------------------------------------------------------------115) Indian Market

a. Current Players ----------------------------------------------------------------14

b. Market Share -------------------------------------------------------------------18

c. Projected Growth Rate --------------------------------------------------------19

d. Practical Perspective ----------------------------------------------------------19

6) Substitutes of the Product ------------------------------------------------------------22

7) Industry Life Cycle --------------------------------------------------------------------28

a. Introduction Stage ------------------------------------------------------------29

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b. Growth Stage -------------------------------------------------------------------30

8) Survey Analysis

a. Primary Tabulation and Interpretation ---------------------------------- 31

9) Financial Analysis

----------------------------------------------------------------------4510) PEST Analysis

---------------------------------------------------------------------------47a) Political Factors

--------------------------------------------------------- 48b) Economic Factors

-------------------------------------------------------53c) Social Factors

------------------------------------------------------------56d) Technological Factors

--------------------------------------------------5911) Michel Porter's Five Force Analysis

a) Threats Of New Entrants ----------------------------------------61

b) Threats Of Substitutes --------------------------------------------64

c) Bargaining Power of Supplier-----------------------------------67

d) Bargaining Power of Buyers -------------------------------------68

e) Inter Firm Rivalry -------------------------------------------------70

12) Driving Forces --------------------------------------------------------------------------75

13) Strategic Factors ------------------------------------------------------------------------78

14) Value Chain of Industry ---------------------------------------------------------------85

15) OT Analysis ------------------------------------------------------------------------------90

16) Findings ----------------------------------------------------------------------------------96

17) Recommended Strategy --------------------------------------------------------------97

18) Conclusions ------------------------------------------------------------------------------99

19) Annexure -------------------------------------------------------------------------------100

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20) Bibliography ----------------------------------------------------------------------------103

PRINT THE ABOVE “CONTENTS” SEPARATELY BY COPYING IT TO NEW DOCUMENTS SO THAT PAGE NUMBERS DOESN’T GET CHANGED.

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