SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN MANAGEMENT

Study and Analyze the consumer buying behaviour in fast moving DTH environment
SUBMITTED BY: Name: AMAN DHAWAN
MBA- (2012-2014) Enrollment No. : A30101912057

INDUSTRY GUIDE MR. GAUTAM KUMAR SINHA ASSISTANT MANAGER (SALES) DISHTV INDIA LTD

FACULTY GUIDE MR. CHINTAN VADGAMA LECTURER AGBS

AMITY GLOBAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY UTTAR PRADESH

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CERTIFICATE OF ORIGIN

This is to certify that Mr. Aman Dhawan, a student of Post Graduate Degree in Marketing and Finance, from Amity Global Business School, Noida has worked in the MARKETING DEPARTMENT, under the able guidance and supervision of Mr. Gautam Kumar Sinha, designation Assistant Manager (Sales), Company Dish TV India Ltd.

The period for which he was on training was for 8 weeks, starting from 1st JUNE, 2013 to 31st JULY, 2013. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in Marketing and Finance Degree. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature (Faculty Guide)

Signature (Student)

Acknowledgement

I express my sincere gratitude to my industry guide Mr. Gautam Kumar Sinha, Assistant Manager Sales, Dish TV India Limited, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of Dish TV India Limited, for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Prof Chintan Vadagama, Director A. S. Bahal and Dean Aparajita Das Gupta of my institute, for their continued guidance and invaluable encouragement.

Declaration
I, Aman Dhawan, Roll No. A30101912057, student of MBA at Amity Global Business School (Amity University) Noida, hereby declare that the project report on Study and Analyze the consumer buying behavior in fast moving DTH environment at Dish TV India Pvt Ltd. is an original and authenticated work done by me. I further declared that it has not been submitted elsewhere by any other person any of the Institute for the award of any degree/diploma.

AMAN DHAWAN

Contents
1. 2. Executive Summary ...................................................................................................................................... 8 Industry Overview......................................................................................................................................... 9 2.1. 2.2. History:.................................................................................................................................................. 9 Porters Analysis of DTH industry: .................................................................................................... 11 Threat of substitutes: ................................................................................................................ 11 Terrestrial Television: .......................................................................................................... 11 Cable TV: ............................................................................................................................... 11 Internet Protocol Television (IPTV):................................................................................... 11

2.2.1. 2.2.1.1. 2.2.1.2. 2.2.1.3. 2.2.2. 2.2.3. 2.2.4. 2.3. 2.4. 3.

Bargaining power of suppliers: .................................................................................................... 12 Bargaining power of buyers: ........................................................................................................ 12 Inter firm rivalry: ......................................................................................................................... 12 Current Scenario: ................................................................................................................................ 13 Future Outlook ................................................................................................................................ 13

Satellite Television ...................................................................................................................................... 15 3.1. Satellite television in India .................................................................................................................. 15

4. 4.1. 5.

Product line and consumer behaviour ......................................................................................................... 17 Product discription .................................................................................................................................. 17 Company Background - Essel group........................................................................................................... 19 5.1. 5.2. Group Profile....................................................................................................................................... 21 Dish Tv- Sab par dish sawar hai ......................................................................................................... 23

.................................................................................................................. 23 5.2.1. 5.2.2. 5.2.3. 6. 7. Lineage ........................................................................................................................................ 24 Satellite Link ............................................................................................................................... 24 Dish TV Edge.............................................................................................................................. 24

Competitors in DTH Industry : ................................................................................................................... 27 Swot Analysis ............................................................................................................................................. 32 7.1. 7.2. Strength ............................................................................................................................................... 32 Weakness ............................................................................................................................................ 32 5

7.3. 7.4. 8.

Opportunities ....................................................................................................................................... 32 Threats................................................................................................................................................. 32

BCG Matrix: ............................................................................................................................................... 34 Board of Directors:.......................................................................................................................................... 35

9.

Government Polices .................................................................................................................................... 36 9.1. 9.2. TRAI Rules ......................................................................................................................................... 36 Following new rules ............................................................................................................................ 36 Literature Review .................................................................................................................................... 38 Research methodology ............................................................................................................................ 44 Objectives of the project: ................................................................................................................ 44 Research methodology/ design........................................................................................................ 44 Research Method............................................................................................................................. 44 Data collection ................................................................................................................................ 44 Primary Data ................................................................................................................................... 44 Secondary Data ............................................................................................................................... 44 Research Methodology.................................................................................................................... 45 Research design:.............................................................................................................................. 45 Sources of data: ............................................................................................................................... 45 Data collection method: .................................................................................................................. 45 Method of communication: ............................................................................................................. 45 Sample size: .................................................................................................................................... 45 Sampling technique: ........................................................................................................................ 45 Area of survey: ................................................................................................................................ 46

10. 11.

11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7. 11.8. 11.9. 11.10. 11.11. 11.12. 11.13. 11.14. 12. 13.

Sampling Design ..................................................................................................................................... 47 Limitations of the study .......................................................................................................................... 48

14) Findings On survey ........................................................................................................................................ 49 15. Recommendation ................................................................................................................................ 50

16. Questionnaire ............................................................................................................................................... 51 17) Case Study ..................................................................................................................................................... 55 Direct-to-Home (DTH) in India: Direct to Loss? .............................................................................................. 55 Introduction: ................................................................................................................................................... 56 18 References............................................................................................................................................... 58 6

1.

Executive Summary
The development of the Direct to home sector has experienced a major process of transformation in terms of its growth, technological content and market structure in the last decade. Any company which is successful is because of their reach among customers which is possible through the effective tools through which a company communicates and attract its customer. Dish TV is most famous brand and have a sophisticated place and market leader position in the mind of customer. This is due to its strong brand image. The attempt behind this project was to find out the effectiveness of DISH TV as a brand over the retail outlets and its competitor position over these outlets, so that company would be able to find out its lagging area and can focus more effectively to target more and more customer and to communicate them more easily.

2.

Industry Overview
After a slow start, the DTH market in India is fuelled by fierce Competition between the incumbent Dish TV and challenger Tata Sky, plus several new entrants, but pricing and exclusivity remain key Contentious issues.

2.1.

History:
The history of Indian Television dates back to the launch of Doordarshan, the countrys national television network in 1959 when the transmission was in black & white. The 9th Asian games which were held in 1982 in the countrys capital New Delhi heralded the mark of colour television broadcast in India. In 1991, Indian economy was liberalised from the license raj and major initiatives like inviting FDI, deregulation of domestic businesses emerged. This led to the influx of foreign channels like Star TV and creation of domestic satellite channels like Sun TV and Zee TV. This virtually destroyed the monopoly held by Doordarshan. In 1992, the cable TV industry started which changed the way the average Indian watches the television. Every city in India had a new breed of entrepreneurs called as cable wallahs or Local Cable Operators (LCO) taking in charge of distribution. Since this was a disorganized sector carrying new channels on the existing infrastructure required new investments which the operators were reluctant to make. This led to the emergence of a new breed of firms called as Multi System Operators (MSO) who had heavy financial muscles to make capital investments and liaised between the cable operators and the channels. MSOs provide the feed to the local operators for a fee. In 1995, government felt the need of regulation in Cable TV and passed the Cable TV network (Regulation) Act. This was also the time when the state owned Doordarshan and All India Radio came under a new holding called as Prasar Bharati to give them enough autonomy. The LCOs reported a lower number of connections where as the broadcasters demanded a higher rate. MSOs were finding it difficult to operate under these conditions. This led to an amendment of the Cable TV networks(Regulation)Act in 2002 to provide Conditional Access System (CAS). With CAS, the last mile distribution could be addressable with accuracy and digitalization of broadcast was also possible. CAS was rolled out in 2003 staring from Chennai and later to parts of Delhi, Mumbai and Kolkata. On the DTH front, TRAI issued the guidelines for operating DTH. Countrys first DTH license was awarded to Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product DD-Direct+.

In 2007, TRAI proposed a new initiative by name Headend-In-The-Sky (HITS) model as an alternative to the existing cable distribution. Instead of the MSOs providing the bundle, there will be a single HITS operator who will prepare the bundle of channels and beam it to the Headend in the satellite. With the average Indian getting younger, and hence more likely to spend on nonessentials, the entertainment industry has the potential to grow explosively in the future. Now the industry is ready to enter a second stage of growth powered by the twin engines of technology (availability of quality infrastructure and the accelerated penetration of digital connectivity) and an enabling regulatory environment.

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2.2.
2.2.1.

Porters Analysis of DTH industry:

Threat of substitutes: DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry estimates, there are 130 million TV homes of which 85 million are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission.

2.2.1.1.

Terrestrial Television: Doordarshan is the worlds largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of Indias geographical area. Covering the remaining 12% area required substantial capital investments which does not outweigh the benefits. The transmission was done originally in Analog mode but beginning from 2002, Doordarshan has partnered with BBC resources the consulting wing of BBC, in offering digital terrestrial TV. The transmission could be received using a low cost Yagi antenna. However, due to lack of attractive content it does not seem to be a formidable threat for DTH.

2.2.1.2.

Cable TV: Cable TV currently operates in 2 modes viz. through CAS covering cities like Chennai, Delhi, Mumbai and Kolkatta, and through non-addressable system in the rest of the country. As seen from the above diagram Cable TV enjoys the maximum share as compared to other medium. In case of CAS controlled areas, the subscriber has to buy Set Top Box (STB) to see the pay channels. On the other hand, in areas where nonaddressable system is used, nearly all the channels are available without the need of any separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on the place. Due to phenomenal reach of Cable TV, it poses a serious threat to the growth of DTH industry.

2.2.1.3.

Internet Protocol Television (IPTV): IPTV is a service where television signals are digitally sent over the telecommunications line. It is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data (Broadband Internet) services. With widespread adoption of broadband in the country and the growing techno savvy population, IPTV has a potential to become a huge success. IPTV takes the interactivity to a newer level. In regular mediums, all the channels are pushed to the consumer regardless of his preference. IPTV encourages a two-way request response model where the consumer chooses the programs he wants to view. Right now those medium is totally unregulated and cable companies are urging the TRAI to issue a consultation paper process to include IPTV under the aegis of Cable TV act. IPTV is a considerable threat to DTH in urban and semi urban areas where broadband has made its mark. 11

2.2.2.

Bargaining power of suppliers: DTH industry relies on three major supplies: Customer Premise Equipment (CPE) comprising of the satellite dish, Set Top Box with the necessary Access card, the Ku band transponders in the orbiting satellites and content. With India overtaking Japan as Asias largest DTH, the bargaining power of Indian DTH operators with CPE supplies have increased. However, the availability of transponders is increasingly becoming difficult. 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 as its cash cow for the next 5 to 10 years. Also the crash of INSAT 4C and NSS-8 has worsened the situation of DTH players. As there 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.

2.2.3.

Bargaining power of buyers: With enough options to choose both from the Pont of alternate mediums like Cable, IPTV and Terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will to decide. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity

2.2.4.

Inter firm rivalry: With 6 operational players, the inter firm rivalry is quite high. The competition from state owned DD-Direct to private players is negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not charge any monthly subscription fee which poses a threat to the private players. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new connections. Being the first mover, Dish TV has price advantage in both the STB as well as procuring the transponders. On the other hand, Tata Sky claims its STB having superior DVD quality video. 17 Other than price wars and intense competition in increasing customer base, there is also a competition at acquiring the content. Dish TV, Tata Sky and Sun Direct are part of big groups that also have popular bouquet of channels like Zee, Star and Sun respectively. The channels indirectly refuse content for DTH operators by charging exorbitantly or mandating that all the channels of their bouquet to be transmitted when the vendor is already capacity constraint.

2.2.5.

Threat of new entrants: 12

With already 6 players in the DTH space, threat of new entrants is relatively low. There is already enough competition which will discourage new firms to enter this business. While getting a license is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the required transponders.

2.3.

Current Scenario:
In the current context of the global financial meltdown, the Direct to Home (DTH) industry in India is in the throes of multifarious challenges and opportunities. The big game is all about shaping up grandiose plans to master the winning rules to garner as much portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes big value, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets for improving the subscription base, popular bouquet of channels, set top boxes with superior quality of videos, improving content, etc as a desperate means to entice the Indian viewer. A neat 20 per cent annual growth is being witnessed in the DTH sector in India with over 16 million households having digital pay-TV. According to Harsh Bijoor, a brand consultant, Since Dish TV, the biggest market player on the Indian soil, has not scraped even five per cent of the pie, there is plenty left for other players to eat. In the early 2008, five major players, Zees Dish TV, Tata Sky, Reliance ADAG, Sun Direct and Bharti Telemedia formed an umbrella body DTH Operators Association of India (DOAI). Dish TV is the largest DTH provider with a subscriber base of around 5 million, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group (20:80), now has around 3.4 million connections and the forecast for 2012 is that it will further increase to eight million, Sun Direct, the 80:20 JV between the Maran family and the Astro Group of Malaysia, over 2.3 million, Big Tv about 1.2 million and Airtel Digital Tv about 0.3 million subscribers (Source: Business Standard, May 1, 2009). According to sources, DD Direct Plus has a subscriber base of about 3-4 million subscribers, mostly in the remote corners of the country not connected by terrestrial or cable television. DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would mean more channels for viewing. Tax burdens on DTH are another area of complaint for operators. Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for 13 services imposed by the Central government. Apart from this, there are entertainment taxes that differ from state to state. DTH stands for Direct To Home which is a direct mode of transmission between Broadcaster and Subscriber through satellite.

2.4.

Future Outlook
The Indian entertainment industry is on a high growth path. Domestic majors are finding better earnings potential in the huge overseas markets. At the same time, corporatization is finally starting to emerge in this 13

highly unorganized industry. This is likely to instill a greater discipline in the functioning of the industry and lead to greater consolidation in the future. The domestic consumer will opt for more sophisticated technology in the near future. Consequently, domestic majors will have to redefine their product offerings. With literacy levels forecasted to increase in the future, the publishing industry will continue to witness growth. Advent of new technologies such as e-book etc will take a longer time to have an impact on the domestic market when compared to the global markets. While piracy levels are declining slowly, better copyright laws and the rapid implementation of the same are imperative to preserve the creative talent in this industry. The government needs to implement the same in order to facilitate the high growth in this industry.

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3.

Satellite Television
Satellite television is television programming delivered by the means of communications satellite and received by an outdoor antenna, usually a parabolic reflector generally referred to as a satellite dish, and as far as household usage is concerned, a satellite receiver either in the form of an external set-top box or a satellite tuner module built into a TV set. Satellite TV tuners are also available as a card or a USB peripheral to be attached to a personal computer. In many areas of the world satellite television provides a wide range of channels and services, often to areas that are not serviced by terrestrial or cable providers. Direct-broadcast satellite television comes to the general public in two distinct flavors - analog and digital. This necessitates either having an analog satellite receiver or a digital satellite receiver. Analog satellite television is being replaced by digital satellite television and the latter is becoming available in a better quality known as high-definition television.

3.1.

Satellite television in India

Satellite television can be defined as television broadcasting using satellite technology. Television came to India in 1959 and satellite television in form of Satellite Instructional Television Experiment in 1975. After 1982 when Indian National Satellite (INSAT) was launched there came a sharp rise in number of transmitters, began colour television and telecast of Asiad games increased private investment in television sets. In early nineties new face of satellite television entered Indian households in the name of Cable & Satellite television (C&S TV) and transnational content entered Indian households. Today one third of Indian television households have access to C&S TV. Beginning of Satellite Television in India was marked by world first technosocial experiment SITE- Satellite Instructional Television Experimentfor education & development purposes. That followed number of other experiments like SITE Continuity, School Television, UGC Country Wide Class Room, Jhabua Development Communication Project, Indira Gandhi National Open University transmission and lately channels like Training and Development Communication Channel and Gyan Darshan for educational and social development purposes. Technologies per se provide the scope of democratization at the same time creates issues related to control and access for others who do not own it. The paper examines the notion of satellite television as democratizing force and concept of community television sets as one important component of all development communication experiments in India. The paper examines various projects and how the technology reached the poorest of poor and the divides of rich-poor, men-women urban-rural were somewhere brought into main text. At the same time it reports that satellite television in India has come a long way since 1975- SITE days but one thing is common over the years that it invariably has remained with people who had and have other technologies.

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4.

Product line and consumer behaviour

Range of products Set-Top-Box. Head-Antenna. Cable DVD Remote LCD TV/Plasma TV/Cathode Ray TV/LED TV

4.1.

Product discription
Set top box: The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology. Head-antenna: Antenna which receives signals directly from satellites, Cable: Cable connects antenna to the set up box DVD: One of the recent entrants into DTH industry is Videocon. This came with set top box with DVD Access card: The access card is another important thing in the set top box setup.Where the access card will receive the signals directly from satellite trough head top antenna LCD TV: Some companies are offering the whole set of LCD TV with DTH connection and in the case of cathode ray tubes and in case of PLASMA Remote: A compactable remote for both SET UP BOX and TV is used in operating both TV and Set top box. Complimentary Goods: LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic and paper which are used for recharge cards. Substitutes: 17

Local Cable Operators, Inter-Net which is bringing many facilities like live TV channels, along with the net browsing, Theaters, radio stations, I pods.

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5.

Company Background - Essel group

For over three decades, Essel Group has been a leading business conglomerate having diverse business presence across media, entertainment, packaging, infrastructure, education, precious metals and technology sectors. We have created an impressive track record of value creation in all our businesses that compares well with their respective industry peers. Our companies strive to bring the latest innovations and the best value offerings to all our consumers in our quest to deliver the best in class. "Faith in innovative and organized growth" works as the guiding principle behind every business at Essel and keeps us committed to enhancing operational excellence through greater focus on innovation and efficient resource utilization. This journey of a thousand miles began with a single step in 1976 with a commodity trading and export firm. With its ardent passion and a clear and focused vision, Essel has not only built and expanded new businesses but has built a formidable and exemplary position in all these businesses in a short span of time. Essel has grown to become a strong integrated media network in India with presence across the entire value chain, developing and adopting new technologies to remain ahead of the growth curve.

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Type

Private

Industry

Conglomerate

Founded

1976

Headquarters Mumbai, India

Key people

Subhash Chandra, (Chairman)

Products

cable programming, films, magazines, newspapers, satellite television, sporting events, television, websites, entertainment, infrastructure, metals

Revenue

US$ 2.5 billion (2010)

Employees

8,000 (2011)

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5.1.

Group Profile
Media

Technology

Packaging

Entertainment

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Infrastructure

Education

Healthy lifestyle and wellness

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5.2.

Dish Tv- Sab par dish sawar hai

Type Industry Founded

Public (BSE: 532839) Satellite television 2004

Headquarters Noida, India Area served India & Sri Lanka Pakistan, Afghanistan & Nepal R. C. Venkateish, (CEO) Direct Broadcast Satellite Pay TV Pay-per-view TV 1,538 crore (US$278.38 million)(2011)[1] Zee Network Enterprise (owned by Essel Group) Management Services Limited (ISMSL), Agrani Satellite Services Limited (ASSL) and Agrani Convergence Limited (ACL) www.dishtv.in

Key people Products

Revenue Parent Subsidiaries

Website

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Dish TV is Indias first direct to home entertainment service that has digitalized Indian entertainment to bring to your home the best in television viewing through the latest in digital technology. It not only broadcasts high quality programmes straight from the satellite to your home, but also gives you absolute and complete control of what you watch and pay for. It is almost like having your own satellite up in the sky. With Dish TV you can unleash the true potential of your high-end television set and complete your TV viewing experience with true DVD quality. If you are a connoisseur of good sound then make sure you experience true stereophonic sound effects, which only dishtv can bring to your home. It takes television viewing to the next level as it supports various futuristic features like Electronic Programme Guide, Parental Lock, Capacity up to 400 channels, Games, Interactive TV, Movie on Demand etc. Also brings you exclusive National and International channels for the first time in India! You can enjoy all of these never-seen -before channels in uninterrupted viewing without any transmission cuts. Brought to you by a Zee Network Enterprise, Dish TV has changed the face of the Indian television home, bringing it at par with the global entertainment industry. 5.2.1. Lineage

Dish TV is an Essel Group venture. Essel Group has a vast range of national and global business interests that include media programming, broadcasting & distribution, speciality packaging and entertainment.The businesses have close synergies in the areas of content, distribution and infrastructure. Essel Group has always been a pioneer Zee TV the first Indian Satellite Channel , SitiCable the first MSO, Essel world the first theme park, Playwin the first online lottery, Essel Propack , whi ch is the worlds No. 1 in packaging are all revolutionary concepts in their respective fields. Continuing with the same path-breaking tradition , the group now brings a new era of premium quality TV viewing. dishtv Indias first direct-to-home entertainment service. 5.2.2. Satellite Link Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17th December, 2002 by European-based satellite provider, NewSkies (one of the only four fixed satellite communications companies with truly global satellite coverage) India's first KU-band DTH entertainment service, hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the satellite was to increase the channel offering as NSS 6 offered more transponder capacity.

5.2.3.

Dish TV Edge Going the DTH way has a lot of benefits. You are automatically upgraded to a host of world class features that makes television viewing a pleasurable experience. Have a look at some of the key add on benefits that dishtv brings to your home.

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Digital Picture Quality

The exceptional digital and direct-to-home transmission ensures you watch all your favourite programmes in true DVD quality.

Stereophonic Sound

The Direct-to-Home satellite transmission treats your ears to a true theatre experience by providing awesome stereophonic sound.

Geographic Mobility

No matter which part of the country you are in or moving to, dishtv with its all India coverage ensures direct signals wherever you are.

Uninterrupted Viewing

With dishtv at your home, as long as your equipment is connected to a power source you can enjoy uninterrupted transmission of your favourite programmes.

Capacity up to 400 Channels

dishtv can offer you up to 400 entertaining channels. And that's not all, every month more channels will be added to provide complete entertainment to your family.

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6.

Competitors in DTH Industry :

DD Direct Plus

Doordarshan, the national broadcaster in India, at present has a network of more than 1400 transmitters spread throughout the country and its signals are available to about 90% (DD1) and 43% (DD-News) population of country. Presently the DD DIRECT+ is envisaged to telecast 50 free-to-air TV channels (containing both Doordarshan and private channels) Satellite Earth Station for uplink of signals has been setup at Delhi. DD DIRECT+ would be totally different, as Doordarshan would not be charging any subscription fee from the viewers, making the system cheap and affordable for all. Tata Sky

Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR. Tata Sky endeavors to offer Indian viewers a world-class television viewing experience through its satellite television service. over 170 TV channels and services in DVD quality picture and CD quality sound. 24x7 help. Support in 11 languages Get a 4-day listing of all programmes on television. You can also set reminders for your favourite programmes. Tata Sky has redefined the television viewing experience for thousands of families across India. We offer over 170 television channels in DVD quality picture and CD quality sound along with a host of new-age interactive services.

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Sun Direct

India's youngest and most exciting state of the art DTH Company. Sun Direct uses the latest MPEG-4 based technology to increase broadcast capacity. Sun Direct confirms to provide next-generation services in fast-growing and emerging markets quickly and efficiently. Sun Direct will be supported by Irdeto's conditional access solution to manage content and revenues in the satellite broadcasting venture. Sun Direct selected Oracle based on its convergent multi-service capabilities and proven real-time scalability allowing it to consolidate billing operations, enable powerful new service offerings and improve visibility into customer information across services. Big TV

Reliance is excited to present the next landmark of TV entertainment in India. With Big TV Digital Service, you can experience spectacular entertainment, blockbuster movies, up-to-the-minute news, and your favourite programs at the click of a button. Transform your home with Big TV Digital Service, powered by MPEG 4 technology for the first time in India. Big TV has fantastic features like pure digital viewing experience, more channel choice, many exclusive movie channels, easy programming guide, interactive services, parental control, 24x7 Customer Service and

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lots more Ensure a never before viewing experience with unlimited hours of fun and entertainment for your entire family.

Airtel Digital TV

Airtel has also joined the Direct-To-Home Satellite TV Services list and has launched the service today within 62 cities in India in their first phase with 21000 Airtel retail and relationship centers. The Airtel Digital TV is launched with 175 channels and pricing packages starting 2499Rs for a 6 months subscription with the channel price bands ranging from 99Rs to 424Rs a month. Generally most Direct-To-Home setup box dont work in bad weathers like rainy times but Airtels set top box is 20% bigger than other providers to make sure the service is not interrupted and the subscribers can continue enjoying their tv shows can watch onscreen account details, book cinema tickets, browse & travel holiday packages, make tele-shopping, get city based information guides and also get the stock updates using widgets along with worldspace radio content, which makes Airtel Digital TV superior than other providers because they offer seriously extra features which others dont offer.

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Videocon

Videocon d2h brings you Indias 1st real satellite television, via state of art satellites, which means you no longer have to tolerate all the hassles associated with Cable TV. No more frustrating disconnections right in the middle of an intense game. And whether youre watching a Hollywood thriller or a desi block buster, Videocon d2h results in aThe End to all the unnecessary interruptions. Our interactive Direct to Home Services will be available through Satellite LCD, Satellite TV, Satellite DVD as well as a Set Top Box (STB).We invite you to experience a world of awesome digital entertainment, crystal clear pictures, ultra sharp sound and state of art technology which uses the revolutionary MPEG -4 with DVB S2. Videocon d2h will provide unique active services, multi lingual user interface, more movie on demand channels, radio channels, cross genre tickers and many more value added services.

MARKET SHARE, BIG TV, 10.4, 11% MARKET SHARE, VIDEOCON, 11.4, 11% MARKET SHARE, SUN DIRECT, 16, 16%

MARKET SHARE (%)

MARKET SHARE, DISHTV, 28.2, 28%

DISHTV TATA SKY

MARKET SHARE, TATA SKY, 18, 18% MARKET SHARE, AIRTEL, 16, 16%

AIRTEL SUN DIRECT VIDEOCON BIG TV

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7.

SWOT Analysis

7.1.

Strength
Dishtv was the first entrant in the DTH category and has thus become synonymous with the satellite TV broadcasting business in India. Leveraging its lineage with the Zee group, dishtv has built a commendable brand and relevant product that answers the consumer needs for quality entertainment. Some of the inherent strengths stem from a strong presence all across the geography of India, consumer friendly and pocket friendly multi-tiered and customizable regional packages, abundant transponder capacity to support its widest content basket, a very strong and diversified content offering addressing consumers with diverse needs of genres and languages,an extremely cost conscious structure and a superior technology for the entire gamut of services. The technological edge and differentiation with respect to other brands stands exemplified through its unique offerings of mobile dish with presence in aircrafts(Kingfisher), navywar ships, mobile vans and selected railway saloons.

7.2.

Weakness
The subscriber acquisition cost is still very high. However, compared to the current industry benchmarks, it stands at the lowest by far. The cost towards acquiring consumers is under constant scrutiny in an endeavor to bring it down. In a market trend of consumers down sliding on the packaging tiers, due to more value being packaged at the lowest packs, dish tv has exhibited a growth in ARPU. However, ARPU continues to be an area of concern with the constant endeavor to monitor, upgrade and enhance the revenues.

7.3.

Opportunities
Indias 127 million television owning households, which define the potential depth for the DTH category, will act as a low hanging fruit for adoption. The further roll out of CAS by the new Government, into more towns will impact the growth rate of the DTH category and trigger consumers to make a decision between digital cable and DTH, thereby aiding faster expansion of the digital entertainment world. Enrichment of Value Added Services (VAS) basket with gaming and a host of active services, some going pay, will continue to be opportunity areas for revenue enhancement. An eventful sporting calendar with the ensuing Commonwealth games and a series of Cricketing tournaments will act as a catalyst for this category too. The recent stabilization and a revived hope for bouncing back of the economy as early as the second half of this year will facilitate faster adoption of the category. Emergence and growth of traffic at the organized retail chains like Big bazaar, Next, The mobile store, Reliance digital etc. will also add more visibility leading to better acceptance of the product.

7.4.

Threats

32

DTH is currently a six player market. Price cuts and reduced margins, spurred by severe competition, can pose a threat to revenue enhancement. Improved quality of services by digital cable and IPTV players are potential threats. Churn management and retention cost scan negatively impact bottom-lines unless constant attention and Strategy is deployed to manage and control the subscribers base.

33

8. BCG Matrix:

34

Board of Directors:

1. SUBHASH CHANDRA is the Non-Executive Chairman of the Board and promoter of Essel Group of Companies. 2. JAWARLAL GOEL is the Managing Director of the Company. 3. BHAGWAN DASS NARANG is an Independent Non-Executive Member of the Board 4. ASHOK KURIEN is a Non-Executive member of the Board. 5. ARUN DUGGAL is an Independent Non-Executive member of the Board. 6. PRITAM SINGH (Dr.) is an Independent Non-Executive member of the Board. 7. Eric Louis Zinterhofer is an Independent Non-Executive member of the Board. 8. LAKSHMI CHAND is an Independent Non-Executive Director on the Board of the Company. 9. MINTOO BHANDARI is a Non Executive Nominee Director of Apollo India Private Equity II (Mauritius) Limited on the Board of the Company with effect from October 27, 2010. 10. SANJAY HIRALAL PATEL is an Alternate Director to Mr. Mintoo Bhandari on the Board of the Company.

35

9.
9.1.

Government Polices
TRAI Rules
The Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007, were issued on 31st August, 2007. These regulations were issued to lay down the standards of quality of direct to home services and to protect the interests of direct to home subscribers. At the time of issue of these regulations, only two direct to home operators apart from Doordarshan were providing direct to home services in the country. Since then, three new direct to home operators have started commercial operations. With the evolution of the direct to home segment and the increase in the number of direct to home subscribers, new issues relating to quality of direct to home service have arisen. In order to address these issues the Authority has decided to amend the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007. Rationale for making amendment to the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007: The Authority noted that a large number of complaints have been received from the Direct to Home subscribers regarding dropping of channels from subscription packages offered by DTH operators. In case of subscription to DTH services, a subscriber subscribes to the service on the basis of specific channels included in the subscription package. If any channel is taken out of a subscription package and it is replaced by another channel then the DTH subscriber may be getting the same number of channels as earlier, but will be deprived of viewing the particular channel which has been removed. In case the channel which is removed is offered to the subscriber as an add-on package then the subscriber ends up paying more for viewing that channel which was earlier included in his subscription package. This subverts the tariff protection provided to DTH subscribers by Regulation 9 of the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007. This calls for DTH subscribers to know about the 51

9.2.

Following new rules

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 36

validity of a prepaid subscription package, whichever is 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. 7. Subscribers are allowed to request their DTH operator to suspend their services 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 months and does not comprise part of a calendar month. The above rules are compulsory for DTH operators to adhere to.

37

10.

Literature Review
VOLUME NO. 3 (2012), ISSUE NO. 4 (APRIL) ISSN 0976-2183

A STUDY ON CUSTOMER BUYING BEHAVIOUR OF DTH SERVICES IN PALAYAMKOTTAI T. SAMSON JOE DHINAKARAN ASST. PROFESSOR ST. JOHNS COLLEGE PALAYAMKOTTAI DTH Services are in a nascent stage in our country. However, there is a stiff competition among the present 6 Service providers. Most of the people are confused with which Service connection can be obtained. Moreover, DTH Service providers are also perplexed with what channel should be given free of cost and what channel should be offered at a price. This study aims at with these. Introduction DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite programmes with a personal dish in an individual home. DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. Only cable operators can receive satellite programmes and they then distribute them to individual homes. A DTH network consists of a broadcasting centre, satellites, encoders, multiplexers, modulators and DTH receivers. A DTH service provider has to lease Ku-band transponders from the satellite. The encoder converts the audio, video and data signals into the digital format and the multiplexer mixes these signals. At the user end, there will be a small dish antenna and set-top boxes to decode and view numerous channels. On the user's end, receiving dishes can be as small as 45 cm in diameter. DTH is an encrypted transmission that travels to the consumers directly through a satellite. DTH transmission 38

is received directly by the consumer at his end through the small dish Antenna. A set-top box, unlike the regular cable connection, decodes the encrypted transmission. Operational definitions Buyer Behaviour Buyer behavior is defined as all psychological Social and Physical behaviour as potential customers as they become aware of, evaluate purchase. Consume, and tell others about products and Services. Family Most consumers belong to a family group. The Family can exert considerable influence in shaping the pattern of consumption and indicating the decision - making roles. Personal values, attitudes and buying habits have been shaped by family influences. Reference Group The concept of reference group is borrowed from sociology and psychology Buyer behaviour is influenced by the small groups to which the buyer belongs. Social Class Sociology points out the relationship between social class and consumption patterns. As a predictor of consumption patterns, marketing management is familiar with social classes. Culture Culture represents an overall social heritage, a distinctive form of environmental adaptation by a whole society of people, It includes a set of learned beliefs, values, attitudes, morals, customs, habits and Forms of behaviour that are shared by a society and transmitted from generation to generation within that society. Objectives of the study India faces an acute increase in DTH service connections. Present study is based on the major objective that to identify the various factors which determine the preference of DTH service. The following are some other objectives of present study. To find the level of brand loyalty To know the problems faced by the DTH customers and 39

 To suggest remedial measure to solve the problems. METHODOLOGY The present study is an empirical research based on survey method. Primary data were collected directly from the respondents by using questionnaire. The relevant secondary data have been collected from the Journals, and Internet. The researcher has made the convenient random sampling of 120 Respondents in his report. The Collected data were coded, calculated and analyzed with the help of statistical tools like measures of central tendencies, Ranking, percentiles, and tabulation were used. A master table has been prepared to sum up all the information contained in the questionnaire, with the help of the master table, Classification tables have been prepared. Classification tables were taken directly for the analysis. Direct to home (DTH) an overview DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite programmes with a personal dish in an individual home. DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. Only cable operators can receive satellite programmes and they then distribute them to individual homes. Superiority of DTH over cable tv DTH offers better quality picture than cable TV. This is because cable TV in India is analog. Despite digital transmission and reception, the cable transmission is still analog. DTH offers stereophonic sound effects. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate. Apart from enhanced picture quality, DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc are pushing for it. History of DTH While today's hot DTH marketplace makes for an exciting story, this is an industry with a history unknown to most. It is a story of an industry which was never supposed to exist. An industry born out of the genius of a Stanford University college professor and publicized by ham radio conversations. An industry that defied all odds to grow from the backyards of techies and early adapters to today's multi-billion dollar first-line competitor to the cable monopoly in America. And, it is the story of an industry comprised of thousands of entrepreneurs who kept the dream alive during long periods of traumatic political and marketplace upheaval. Come with us now as we look at the people, the events, and the evolution of the technology.

40

DTH Service providers in India DTH services were first proposed in India in 1996. But they did not pass approval because there were concerns over national security and a cultural invasion. In 1997, the government even imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH services in India. Finally in 2000, DTH was allowed. The new policy requires all operators to set up earth stations in India within 12 months of getting a license. DTH licenses in India will cost $2.14 million and will be valid for 10 years. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the number of companies that can apply for the DTH license. In India till December 2008 there are 7 DTH service Providers are there, they are as follows Dish TV DD Direct + Tata Sky Sun Direct BIG TV

Airtel Digital TV Area Profile

Videocon d2h

Palayamkottai "Oxford of South India" - is a town in the Tirunelveli district in the South Indian state of Tamil Nadu. It is a part of Tirunelveli Municipal Corporation. It is on the eastern bank of the Thamirabarani River, while its twin city Tirunelveli is on the western bank. The archaic word Palayam in Tamil, means a small administrative region or district. A Kottai is a fort. The word Palayamkottai was hence derived historically from an ancient fort that was in the centre of the region. Today, the fort lies in ruins and is almost camouflaged by its surrounding old residential edifices. To anyone who reads about Palayamkottai for the first time, it may be surprising to see that atlases and other books refer to the city with both, an M or an N (Palayamkottai or Palayankottai). This uncertainty is because the actual Tamil word for the city uses an alphabet that is phonetically between M and N, and sometimes even completely substituted by G (pronounced Palayangkottai in colloquial Tamil). Natively speaking, it is hence correctly pronounced as Palayamnkottai. Even historically, during the British Raj, the area was referred to as Palancottah and also Palamkottah. The anglicization of the word was dropped by the locals immediately after independence, and the city is now called both Palayamkottai and Palayamkottai according to official government documents and records. For disambiguation, the city is referred to as Palayamkottai in this article. Popularly called the Oxford of South India, Palayamkottai is indeed a splendid little student city. A typical midweek morning traffic jam would be because of thousands of school and college students rushing to their classes. However, traffic jams are rare because the quiet little city does not have too many vehicles on the roads in comparison to the much bigger metropolises of Chennai and Bengalooru (Bangalore). Results and Discussion 41

DTH Service widely preferred The following table shows the date collected for the purpose of knowing what type of DTH the people prefer the most. Among the respondents chosen study 54% are using Sun Direct, 22% respondents are using Dish TV, 14% of the Respondents preferred Airtel Digital TV, 6% have preferred Big TV, 4% of sample DTH users preferred DD Direct Plus. In the study Area of Palayamkottai TATA SKY has not been mostly preferred by the people. In short majority of the respondents have preferred Sun Direct DTH Service. Reason for preferring DTH service Next survey is based on the preference of the respondents i.e. what is the main reason for them to watch the DTH connection. The respondents are classified on that basis and tabulated as below: To avoid the cable network monthly charges. 4.08 I 2 To watch more no. of TV channels. 3.40 II 3 As I have no cable Network service in my Area, I preferred DTH 3.00 III 4 To have clear picture as I can have good telecasting. 2.70 IV 5 To watch channels which cable networked does not provide. 1.82 V.

42

13

2 30 Dish Tv Tata sky

25

Airtel Sun Direct Big tv 8 22 Vedieocon

Market share of various DTH players in the market

Sources: - http://www.pluggd.in/dth-industry-in-india-analysis-297/ With 6 operational players, the segment rivalry is quite high. The competition from state owned DD-Direct to private players is negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not charge any monthly subscription fee which poses a threat to the private players. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new connections. Being the first mover, Dish TV has price advantage in both the STB as well as procuring the transponders. On the other hand, Tata Sky claims its STB having superior DVD quality video. There is also a competition at acquiring the content.

43

11.

Research methodology

11.1. Objectives of the project:

Study and Analyze the consumer buying behavior in fast changing DTH environment

11.2. Research methodology/ design

The methodology adopted for eliciting the data required for the study was survey method. It is the overall pattern or framework of the project that will dictate as to what information is to be collected, from which sources and by what procedures.

11.3. Research Method

Research methodology must be classified on the basis of the major purpose of the investigation. In this problem, description studies have been undertaken, as the objective of the project is to conduct the market survey on consumer buying behavior in fast changing DTH environment.

11.4. Data collection

The information needed to further proceed in the project had been collected through primary data and secondary data.

11.5. Primary Data

Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and all the retail outlets sellers using different brands and their competitors were contacted to take permission for asking certain questions from their customers in regard to their buying behavior for various DTH. Survey research is the approach best suited gathering description.

11.6. Secondary Data

The secondary data consists of information that already exists somewhere, having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data 44

includes the information available with the company. It may be the findings of research previously done in the field. Secondary data can also be collected from magazines, newspapers, other surveys conducted by known research agencies etc.

11.7. Research Methodology

The respondents are consumers of various DTH. The survey was carried in the state of Delhi-NCR with the sample size of 150. The survey was carried out with the help of a structured questionnaire, which helps in accomplishing the research objectives. The respondents by means of personal interview administer this structured ended questionnaire.

11.8. Research design:

Descriptive method is used in the research. A sufficient thought has been given in framing the questionnaire and deciding the types of data to be collected and the procedure to be used.

11.9. Sources of data:

Primary data:Questionnaire has been used to collect the data. It contains the open ended, closed ended and scaling techniques.

11.10. Data collection method:

Survey method has been used for collecting the data.

11.11. Method of communication:

Indirect communication (questionnaire) has been used for collecting the information.

11.12. Sample size:

150 customers have been surveyed.

11.13. Sampling technique:

Convenience area sampling has been used in the research.

45

11.14. Area of survey:

Various areas of DELHI-NCR

46

12.

Sampling Design
Delhi has a very large amount of population for carrying research study on any subject. It was thought proper to cover all type of outlet like consumer durable and recharge outlet. The sampling chosen is the non probability convenience sampling, because only those customers were interviewed that were accessible and available and in regular contact with the dealers.

Sample Size Selection: No statistical technique was applied to determine the sample size. For this survey the sample size selected is 150.

47

13.

Limitations of the study

The sampling plan was based on non-probability method and no scientific methods were adopted. The study concerns itself with consumer trading behavior, which is a complex activity. This is a psychological process and is so spontaneous sometimes, that, customer does not recognize it and remains unaware, and when customer is asked to give his views on such buying, it cannot be 100% reliable. The sample size is not sufficient to represent the whole population. Due to time constraint the survey has been done on the basis of convenience.

48

14) Findings On survey

1) Maximum Dealers keep Dish TV kit and recharge facility. 2) Awareness of new connection and new recharge offers of Dish TV is similar to Tata Sky and Airtel Digital. 3) There is a communication gap between the company ,the dealers and customers. This doesnt seem to be the case with other DTH providers. 4) Availability of vouchers lie between price ranges from Rs 100 to 1000. 5) Availability of voucher is one of the major issues among Dish TV dealers, approximately 40% of dealers in Delhi facing this problem. For small amount of recharge they use vouchers, but use other modes of recharge for large amounts. Due to the shortage of stock they are not able to retain their customer for long time. 6) EPRS system seems to be the most troublesome recharge option for Dish TV. 7) In case of Dish TV because of frequent trouble complains in EPRS recharge option, vouchers are preferred over others that are not the case with other brands who use all other options. 8) Customer care service is considered to be very poor as customers often complain of problems in recharge process managed by Dish TV. 9) Many customers say that the dealers recommend Tata Sky and Airtel because they get the installation done much faster in comparison to Dish TV. With Dish, it takes up to 3-4 days sometimes. 10) The company hasnt been able to keep up the promises made to the customers, like installation and activation commitments are often not met. 11) Connect between the Call Center and the Service center is not good. 12) Customer Care is not reachable on Toll-Free easily, waiting time is high on toll-free numbers. 13) Dish TV changes the price plans and offers more frequently as compared to other DTH providers. This along with improper communication confuses customers which beings down the consumer satisfaction levels. 14) There has been a growing trend of dish TV customers and dealers being shifting to other major brands like Tata Sky and Airtel Digital as they provide better value added services like after sale service, recharge facilities and customer care . 15) Other DTH brand provides best support facility, quick recharge and installation facility, which provides them with the competitive advantage.. 16) Good thing which i found in Dish TV according to customer feedback is offer but same time they shows unsatisfaction with frequent changes in offer.

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15.

Recommendation
1) Increase awareness: Since there is lack in communication channel, it should be tackled with care and dealers should be constantly made aware about the offers and new plans through meetings with company executives at regular intervals.

2) Improve processes and techniques: In order to make recharge or activation process more transparent and user friendly, the EPRS technology needs to be upgraded consistently. 3) Give more value added services: Since Tata sky and Airtel have clear edge over value added services like free installation DTH needs to mend its strategy to face these competition. One way of doing this would be to offer at least the same service as these two competitors are trying to eat the market share. 4) Improvement in after Sales Services: Arrange proper training for customer care executives as Dish TV lacks proper after sale service. 5) Standardized the price plans and avoid frequency changing: Frequent changes in price and offers is proving no good for Dish TV as it is in way frustrates the customers with changes in offers without being informed about it. So Dish TV needs to watch out for this and should pre inform the customers about the offers and changes well in advance. This in a way, I feel would create more brand loyalty and preference. 6) Voucher Availability: Make proper channel of Distribution of voucher.

7) Visibility: Danglers create more impact on customer mind, it always visible and promote offer and help to recall brand resonance.

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16. Questionnaire
1) Name

2) Gender Male Female 3) Martial Status Married Unmarried 4) Age

16-20 years 20-30 years 30-50 years 50 and above 5) Occupation Student Business Service Self employed Govt. Servant Housewife 6) Annual Family Income (INR) upto 1,00,000 1,00,000 - 5,00,000 5,00,000 - 10,00,000 10,00,000 - 15,00,000 Above 15,00,000

7) How many TV sets do u have at your home ?

51

0 1 2 3 and more 8) Are you using DTH ( direct to home) ? Yes No 8) If Yes, Which DTH Service you are using? Airtel Dish TV Tata Sky Videocon - d2h Big TV Sun Direct 9) Reason for using particular DTH Services? Package cost Installation cost Universal Remote Customer Service Audio-Video Quality No of HD channels Other: 10) Preferred way of DTH recharge? EPRS Vouchers Oxygen Website Mobile Recharge Credit card/ Debit card/ Net banking

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11) Recharge Convenience

1 Very Poor
Select a value from a range from 1,Very Poor, to 5,Very Good,.

5 Very Good

12) What recharge value you think is apt according to you ? 200 - 500 Rs 500 - 1000 Rs 1000 Rs and above 13) Are you aware about the service quality, tariffs and installation charge of DTH service used by you ? Yes No

14) If Yes , rate it ?

Highly Satisfactory Service Quality Tariffs Installation Charges

Satisfactory

Average Satisfactory

Dissatisfactory

Highly Dissatisfactory

15) Do you get the communication about the new offers ? Yes No 16) If Yes, how ? TV ads SMS Emails Telecalling

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17) Choose your favorite DTH on the basis of the following criteria ?

Dish TV Tata Sky Availability Price Offer After Sales Customer Satisfaction
Submit

Airtel

Videocon - d2h

Big TV

SUN Direct

54

17) Case Study

Direct-to-Home (DTH) in India: Direct to Loss?

This case study is written to raise an interesting debate on Even for a disruptive innovation to be successful, a minimum scale is required. The minimum scale is a function of value offered and value perceived at least in the beginning. After cable TV entered India in the early 1990s, the face of entertainment changed drastically. In a short time, Cable TV made rapid penetration in rural as well as urban India. However, the inherent nature of the industry, that operated like a cartel dominated by the Local Cable Operators (LCOs) created many problems operationally and otherwise. For the parties involved in the industry (broadcaster and cable networks), the major problem was the extent to which LCOs understated the subscription fees. Subscribers too were upset as the cheap and unbranded equipments used by LCOs resulted in poor program quality and frequent disturbances in signal transmission. The Conditional Access System (CAS) introduced in 2003, also failed to check the problem as many subscribers were unwilling to switch from the cheap cable alternative. In 2003, another option - Direct-to-Home (DTH) emerged to give a tough competition to the LCOs. In a short time, many DTH providers Dish TV, Tata Sky and Sun direct - mushroomed in the country and succeeded in making a humble beginning through aggressive marketing. As of 2007, Dish TV had 1.9 million subscribers, while Tata sky had 1.5 million subscribers. However, these numbers were not sufficient to compensate for the losses that they were making. Despite such a scenario, new players - Reliance and Bharti Airtel are planning to venture in DTH business and capture a major pie of the market. The case has been structured to analyse and understand: The reasons for the growth of Cable TV ? Why a substitute for Cable TV was needed ? The advantages of DTH over Cable TV ? Why the DTH companies are incurring losses ? The future potential of the DTH Industry ?
55

Whether DTH companies can pick up scale and be profitable in the future. ?

Introduction:
Since Cable TV entered India in 1992, entertainment on television has grown rapidly. Out of the 71 million TV households in 1999, 32 million had access to Cable TV. However, along with the soaring viewership complaints on quality also increased. In the cable industry that runs like a cartel, the control lay with Local Cable Operators (LCOs), who operated in an unorganised and fragmented way. Viewers had to adjust with poor quality signals, limited choice of channels and frequent hikes in subscriptions. As a solution to the problem, many alternatives were tried. In mid-1990s, Multi-System Operators (MSOs) emerged and in 2003, Conditional Access System (CAS) was introduced to provide better services to the viewers through digitisation. However, in spite of offering several advantages over the LCOs, these options did not work well in the Indian market. In 2003, a new service, DTH (Direct-to-Home) - a digital transmission of signals directly to the subscribers' homes through a Set Top Box (STB) entered India. Dish TV launched by Zee TV promoters (Essel Group) was the first and the leading DTH service provider in India followed by Tata Sky. To lure customers, DTH players spent heavily on marketing and slashed prices. However, in the process they incurred heavy losses. Surprisingly, this did not stop new players from entering the market. Two cash-rich companies - Reliance and Bharti Airtel - are preparing to flex their muscle in 2008. With a much cheaper and better offering, while these companies are planning to capture a major pie of the market share, the question is - can they make profits in this so far loss-making market? Cable TV in India Till the emergence of Cable TV in India, Doordarshan was the only broadcasting network. It televised public educative and socio-economic development programmes and operated as an 'advertisement-free' electronic media. For quiet some time, Doordarshan's viewership was limited. As television was considered a luxury, not many homes owned it. However, with the Asian Games held in Delhi in 1982, and the introduction of colour television sets in the same year, peoples' attitude started changing... DTH in India Digitalisation of Cable TV took a new form when DTH was launched in India in 2003. Although DTH services were proposed in India way back in 1996, it was banned for 6 years as the

56

government rejected approval due to concerns over national security and cultural invasion. To prevent the implementation of DTH service, even the cable operators had heavily lobbied the government... The New Indian Consumer India's rapid economic growth since the 1960s brought about many changes in its consumers. Increase in per capita GDP, resulted in a rapidly growing middle class (there are nearly 50 million middle class people in India), who with a greater purchasing power were influencing the consumer markets. Since 1995, Indians, earning between INR 90,000 and INR 200,000 ($1,969-$4,376) had grown from 18% to 41% in 2005. Known as aspirers, this section is expected to spend up to $1.76 trillion by 2025...

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18 References

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