dth vs cable
DESCRIPTION
A report on comparison of DTH & CABLE service in IndiaTRANSCRIPT
A Project Report On
Comparison ofComparison of
DTH & CABLE servicesDTH & CABLE services
In Partial Fulfillment of
Marketing Management
Page | 0
Contents
1.0 Introduction...............................................................................................2
2.0 Porter’s Five Competitive forces: Direct to Home...................................4
3.0 DTH Market Structure...............................................................................7
4.0 Consumer Behaviour Pattern.....................................................................9
5.0 Strategies to sustain in competitive growth market.................................10
6.0 Market segmentation...............................................................................13
7.0 Brief profile of players in the industry....................................................16
8.0 Rsearch Design........................................................................................22
9.0 Data Analysis & Interpretation................................................................23
10.0 Bibliography…………………………………………………………….33
Page | 1
1.0 Introduction
In earlier days there was only one TV channel in India the “Doordarshan”, Channel
Doordarshan was owned and operated by government of India. In this era, every home
which had a TV set used to have its own antenna to capture the signals. The Cable
Television Ordinance Law was passed in January 1995. This enabled cable operators to
feed channels and later on private companies were allowed to air their own channels and
this led to the explosive growth in number of TV channels and number of cable
operators.
The growth of TV channels & cable operators created a big industry and market
opportunities. There were as many as 1, 00,000 cable operators across India until few
years back. However the services provided by cable operators were poor. The strikes,
increase in tariff plan, selective broadcast and poor services were major cause of
dissatisfaction among the customers. This has created an opportunity for DTH, which
serves an immediate threat to the high- end cable networks India has about 130 million
TV homes of which, Cable & Satellite (C&S) services are present in 97 million (74%)
of the home. The DTH market in India comprises 11% of the total market with almost
15 million homes. The DTH industry growth lagged to 10.3% in 2008 from 16.7% a
year earlier. But industry players agree that the digitization drive is expanding by 35-
40% annually. However, industry estimates DTH to touch 35-40 million subscribers by
2012, and that’s the number that every DTH brand has set its sights on.
By 2015, DTH will enjoy a market share of 40%, digital cable 40% and analog cable
will follow with only 20% market share. The DTH service market in India has emerged
as one of the most lucrative markets which have successfully resisted the impacts of the
current economic slowdown. The slowdown, instead, proved a boon for the Indian
DTH industry as people started to cut on their entertainment expenditure and instead of
viewing movies at theatres, they preferred to stay at home with their television sets.Page | 2
The anticipated growth to the efforts of DTH industry players who are all trying to lure
viewers by cutting down prices as well as offering perks even though it translates into
loss of Rs 1,600-2,000 on each new subscriber acquired by them. They have started to
offer a number of value-added services such as
‘Movie on demand’, live recording of TV content, matrimonial match-making, etc.
Share of DTH in TV Household
Still, as DTH is still a relatively new category and most people are hesitant to experiment with it. It is 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.
Page | 3
2.0 Porter’s Five Competitive forces: Direct to Home
2.1. Buyers: Bargaining power of buyers
With enough options to choose both from the point 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.
Page | 4
2.2 Suppliers: 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 Asia’s 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 and
increasing DTH players, Astrix is in a better position to use DTH as its cash cow for the
next 5 to10 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.
2.3 Potential Entrants: Threat of new entrants
With already 7 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.
2.4 Substitutes: 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 97 million are served by cable
and around 15 million by DTH with the remaining taken by terrestrial transmission.
2.5 Industry competitors: Segment rivalry
Presently as on 2010, these are the main DTH service providers in India:
DD Direct – state owned free service providerPage | 5
Dish TV - owned by Essel Group, was the first commercial DTH service
provider.
TATA Sky – owned by TATA group, largest DTH service provider
presently in India.
Sun Direct – owned by Sun group, primary focus is on low income groups and
regional viewers.
Reliance Big TV - Owned by Reliance group, new entrant into the market.
Airtel Digital TV – Owned by Bharti group, new entrant with aggressive
marketing strategies.
Videocon D2H – Owned by Videocon group, new entrant into the market.
Market Share
Page | 6
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr0
102030405060708090
East
West
North
With 7 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.
3.0 DTH Market Structure
The DTH market structure can be classified into three categories; Market leaders,
Market challengers and Market followers. There is intense competition as some of the
leading players have not only succumbed in the sales for acquiring new customers but has
started loosing existing ones to Tata Sky, Big TV and other new entrants.
Market Leader:
Dish TV India’s first DTH service provider launched in October 2003 is the market
Page | 7
leader with 6.4 million subscribers. Dish TV continues to be a market leader with
32% market share in 7 player scenario on date, with sizeable
sales and distribution infrastructure of over 650 distributors and 45,000 dealers across
6500 towns – once again, the largest in the category. This reach into far flung markets
enables building of a diverse subscriber base across consumer segments, which are
supported by its rich content of regional channel offerings.
Dishtv has maintained its leadership position through an improved market share of all
DTH subscribers. New offers, extensive marketing campaigns have contributed to
impressive subscriber acquisition and are committed to provide the best value to our
customers and investors by enhancing operational efficiencies and by leveraging
economies of scale.
Market challengers:
The gap between the leader and the challengers is decreasing because of the
increasing competition and promotion strategy followed by each player.
TATA Sky
In the enormous consumer market that is India, occasionally an opportunity arises that
can create incredible growth and profit—provided those who seek to capture it can move
quickly enough. TATA wanted to capitalize on this opportunity as there was currently
only one player in the DTH market. It was the second Mover after Dish TV leveraging
on brand TATA and high brand recall.
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. The key business challenge in a country like India is
meeting customer demands—which are very dynamic— under the regulatory purview of
the country.
Page | 8
Sun DIRECT
Sun Direct is the fastest growing DTH service provider having garnered over 1.9 million
subscribers since its launch in December 2007 and aims to become one of the leading
players in the DTH space. Sun Direct challenged the existing players by involving them
in the price war by acting as a discounted brand. It started offering subscriptions at as
low as Rs 99 to reach as much at the bottom of the market. The biggest differentiator
for the brand is the pricing point which is lesser than the other brands.
The other point of differentiation is with regard to their distribution channels. It is being
made available in most basic shops such as telephone booths, cycle repair shops and
video parlors.
Sun DTH was the first one to move into the MPEG4 league and soon after the PAN India
launch HD services will be launched. Another first from SUN DTH is the launch of
exclusive comedy channels for its subscribers.
Market followers:
Reliance BIG TV/ Airtel Digital/Videocon d2h
The approach being followed is of Market Follower (as they are late entrant and
their primay objective is to attract max subscribers in shortest span of time.
4.0 Consumer Behavior Pattern
Major Factors influencing the purchase decision of DTH are as below:
Price
Customer Service
ReceptionPage | 9
Program choices
New Technology and
Technical Support
5.0 Strategies to sustain in competitive growth market
Advertising & Promotion:
Indian TV channel broadcast 15.7-mn advertisement every year, which totals to 362-
mn seconds of TV advertisement every year. India currently has over 400
channels.TV viewer ship has declined by 5% since 2001. TV broadcasters are
expected to increase advertisement rate this year by 16-18%.
DTH industry uses different marketing strategies for promotion and sales of its
products. It gives advertisements with their brand ambassadors which attract customers,
door to door selling, on the phone selling, discount and offer sales, packages, etc.
Marketing practices is a continuous process as the competition keeps increasing among
the players in the industry. Each player is investing lot of money in promoting there
brands.
Many players are making advertisement with movie actor and actress as brand
ambassadors for their products because DTH is mainly considered with entertainment.
Some of the companies like Tata sky is having Super Star Aamir khan as brand
ambassador and Airtel is having many film stars like Kareena Kapoor, A.R. Rahman,
Page | 10
Saif Ali khan, etc. Dish TV is also having Super Star Shahrukh khan as the brand
ambassador. Sun direct also use southern actress for their brand promotion.
Marketing practices are the decisions taken by the manufacturing company to increase
sales, expand themselves into many areas etc. Successful marketing practices bring
sale up, while unsuccessful marketing practices have no impact on sale or negatively
impact sale. Marketing concepts specific to the industry is primarily targeted at a
niche segment who buy the TV sets from the electronic retail chains.
Product Innovation
The concept of innovation in DTH industry is INCREMENTAL innovation; everything
that is done is due to constant research of many marketing and analysts to bring many
innovations to the existing products in the DTH industry. Incremental innovation is the
apt innovation which is suitable and all the DTH players are concentrating up on. This
innovation makes the business to grow continuously and brings advantages to the
customers using the products and the service.
There are many sources of innovation for this industry as mentioned in the above, the
technology and the people are the main sources for the innovation. Customer’s opinions
and their needs can be served by providing a service which is matching to their needs and
requirements.
Digital TV, the DTH service from Airtel, has announced India’s first skin integration
innovation on its EPG screen in partnership with Yahoo. Yahoo takes forward its latest
brand campaign “YOU” in this first of its kind partnership where an online portal will use
DTH as a medium to promote itself.
The ‘Electronic Programming Guide’ screen on Airtel digital TV is now completely
Page | 11
integrated with Yahoo India’s homepage. Customers will find a message ‘Fill your home
page with all the things that make YOU’ when they log
onto to the EPG screen. A prompting ‘Red Button’ will take them to a dedicated
landing page that elaborates the offerings on Yahoo India’s new home page.
The ‘YOU’ campaign enables users to customize the home page as per their liking and
empowers them with the choice to integrate social applications such as Facebook with
their Yahoo homepage. This whole idea was conceived by Network Play, right from
design elements to execution and thanks to Mindshare for buying into the idea and
flawlessly helping people execute it.
Tata Teleservices Limited has announced a technological breakthrough—a first-of-its-
kind innovation in India with the launch of TATA Photon TV, a new application that
allows Tata Photon Plus subscribers to watch live television channels on their laptops
while on the move, and on their personal computers at home and in the office. The
Photon TV service is exclusively available to Photon Plus users. “With its growing
popularity, Photon Plus has caught the admiration of millions of users across the country,
with its high-speed data access
capabilities and the ease of mobility.
TATA Photon TV is a personal computer- and laptop-based video- streaming
application, which allows Tata Photon Plus users to view live TV feed from various
sports, news, entertainment and regional channels, and to watch recorded TV shows
from the library (viz Coffee with Karan, Zoom, Pogo, etc), movies, music and videos on
demand.
Internet Browsing charges will be charged as per your Photon+ tariff plan and it would
be applicable while viewing Photon TV. These charges would be over and above the
subscription charges for the Photon TV. (Approximate data usage is 1-2MB per Min).
Rate of innovation in this sector is growing at a faster rate in the recent years where as it
Page | 12
is not very impressive before this period. The reason for this is the fair competition
between the all players in this DTH industry. It led to the development of new products
in this sector which also led to the diversification of products as there is abolition of entry
of foreign industries into Indian industries initially. It also made the industries in this
sector to establish their own R&D departments for successful product innovations like
Airtel Live, Videocon d2h.
6.0 Market segmentation
6.1 GEOGRAPHIC SEGMENTATION
In terms of geographical location, North India and Western India together
contribute over 8 million DTH subscribers, while the southern market
contributes 3 million. The states of Maharashtra, Goa, Punjab, Uttar Pradesh, and
Rajasthan are the leaders in DTH subscription, contributing over 6.5 million DTH
connections to the overall base.
Urban and Rural:
In order to cater to the diverse taste and needs of both urban and rural people, operators
provide entirely different range of services and offerings. In rural areas, fleet of vans for
demos, installation as well as selling hardware and pre-paid vouchers are being used. Most
players are building up their subscriber base by targeting viewers outside the big cities,
which suggests that about 60 per cent of DTH subscribers reside in rural areas and towns
with a population under a million.
Page | 13
Region and States:
It has come up with special offers for the southern region where regional and sports
channels are viewed the most. Like Ultimate sports bonanza offer – Rs 1890 with 3
Months of South Silver subscription available in Tamil Nadu, Kerala, Karnataka &
Pondicherry only. Ultimate sports bonanza offer - Rs 2490 with 12 Months of Silver
subscription available in Andhra Pradesh only. Dish TV has structured a basic
bouquet of customized package of channels which are in demand in a particular state
at a very affordable price pack like North diamond pack and South diamond pack.
Marathi channels namely Star Pravah and Star Majha for its Marathi speaking
customers.
6.2 DEMOGRAPHIC SGMENTATION
AGE and GENDER:
As the market gets fragmented, niche channels will become more and more desirable.
The increased interest in unique content channels is in line with the international trend,
where once the market matures, consumer needs come into focus. Thus channels on
Education, Women, Gardening, a variety of Sports, Wellness and Religion, etc. make
their appearance.
Most of the players in DTH offer niche channels to create a unique and exciting offering
for its viewers of every age and gender segment. DTH industry mainly concentrates on
women who don’t like missing their daily soap and news more ever women are able to
learn English speaking which is a very special feature of DTH. DTH also concentrates
on children also by providing them games, dictionary, some discovery videos specially
inbuilt, maths, and science and social knowledge. It also focuses on old people as it has
Page | 14
updated videos of various holy and religious places.
Dish TV recently launched ‘Children Films Festival’ with a bouquet of over 25 super-
hit films across various categories priced at Rs. 25/- per movie thus
targeting the children segment. Besides this value added services like Games Active,
Bhakti active services etc carters to needs of customers from various age groups and
gender.
INCOME:
Recognizing the vast differences in tastes and pocket sizes of different consumer
segments, content has been aggregated and classified into 4 different packages namely
MAXI, WELCOME, FREEDOM PLUS and FREEDOM packages .While the Maxi and
Welcome packs are price drivers and target high ARPU consumers, the value pack
offerings in Freedom and Freedom Plus packages are volume drivers that inspire new
subscribers to come on board through a low price point and basic channel offering. The
strategy is to gradually upgrade the low ARPU subscriber too, through tailor made add
on packs on a-la-carte like movies, business, etc. basis for specific entertainment needs.
Keeping income levels of consumers in mind, operators apprise the consumer of its
three tier pricing. It gives a choice to the consumer to select from a three level flexi plan
that bundle three, six or 12 months of subscription along with the initial box.
6.3 BEHAVIOURIAL SEGMENTATION
OCCASIONS:
DTH operators come out with new offers of channels or new buyer schemes at
relatively cheaper rates on occasions of festivals or major sports events. For example It
offers benefits to customers like: In a cricket match choosing the language of the
commentary, camera angles, know player statistics and watch match highlights at our
will. In the past Dish TV has come with schemes like
‘Diwali Double Dhamaka’ (November 2007), the IPL Pack (April 2010), 'Summer
Sports Bonanza' (June 2008), Special Onam Offer for Kerala (August 2007), World cup
offer (March 2007).
Page | 15
USER STATUS:
Every product has its non users, ex-users, potential users, first time users and regular
users. In order to attract the non users and potential users time and again competition has
forced players to introduce innovative and exciting consumer promotion offers into the
market. Schemes like World Cup Free Offer, Free bhi Zyaada bhi, Ab Sab Sikandar, and
the landmark Set Top Box Free Offer, have not only added to the pace of acquisitions but
attracted specific consumer audiences like sports lovers and kids into its fold.
In conclusion, each player has cautiously segmented the market through an expanded
product range at appropriate price points to stay competitive. By offering packages like
cinema active, khel active, movie active, music active is targeting people with specific
lifestyles. Premiering new movies within weeks of their releases is targeted at people
who want to see latest movies at affordable prices. Latest movies are premiered within
weeks of their release. Dish TV has also targeted the youth segment with offers like
“Michael Jackson Live in Bucharest tour” for just Rs 25, Microsoft Xbox 360 Arcade.
7.0 Brief profile of players in the industry
7.1 DD DIRECT
Doordarshan is the public television broadcaster of India and a division of Prasar
Bharati, a public service broadcaster nominated by the Government of India. It is one of
the largest broadcasting organizations in the world in terms of
the infrastructure of studios and transmitters. Recently, it has also started Digital
Terrestrial Transmitters. On September 15 2009, Doordarshan celebrated its 50th
anniversary. Doordarshan had a modest beginning with the experimental telecast starting
in Delhi on 15 September 1959 with a small transmitter and a makeshift studio.
The regular daily transmission started in 1965 as a part of All India Radio. The
television service was extended to Bombay (now Mumbai) and Amritsar in
Page | 16
1972. Till 1975, seven Indian cities had television service and Doordarshan remained the
only television channel in India. Television services were separated from radio in 1976.
Each office of All India Radio and Doordarshan were placed under the management of
two separate Director Generals in New Delhi.
Finally Doordarshan as a National Broadcaster came into existence. National
telecasts were introduced in 1982. In the same year, color TV was
introduced in the Indian market with the live telecast of the Independence Day speech by
then Prime Minister Indira Gandhi on 15 August 1982, followed by the
1982 Asian Games being held in Delhi. Now more than 90 percent of the Indian
population can receive Doordarshan (DD National) programmes through a network of
nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce TV
programs today.
DD Direct+ is a free Direct to Home (DTH) service that provides satellite television and
audio programming to households and businesses in the Indian subcontinent. Owned by
parent company Doordarshan, DD Direct Plus was launched on December 16, 2004.
7.2 Dish TV
Dish TV is the first private DTH satellite television provider in India, using MPEG-2
digital compression technology, transmitting using NSS Satellite at 95.0. Dish TV's
managing director and Head of Business is Jawahar Goel who is also the promoter of
Essel Group and is also the President of Indian Broadcasting Foundation and Mr.
Subhash Chandra is the Chairman of Dish TV.
Dish TV is a division of Zee Network Enterprise (Essel Group Venture). EGV has
national and global presence with business interests in media programming,
broadcasting & distribution, specialty packaging and entertainment. Zee Network
incorporated dishtv to modernize TV viewing. By digitalizing Indian entertainment, this
enterprise brought best television viewing technology to the living room. It not only
transmits high quality programmes through satellite but also gives a complete control of
Page | 17
selecting channels and paying.
DTH service was launched back in 2004 by launching of Dish TV by Essel Group's
Enterprises. Dish TV is on the same satellite where DD Direct+ is. Dish TV started its
service in Pakistan with the collaboration of Budget Communication. Dish TV was only
DTH operator in India to carry the two Turner channels, Turner Classic Movies and
Boomerang. Both the channels were removed from the platform due to unknown
reasons in March 2009. \
Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17 December,
2002 by European-based satellite provider, New Skies. Dish TV 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.
7.3 Tata Sky
Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital
compression technology, transmitting using INSAT 4A at 83.0°. Tata sky was
incorporated in 2004.
Tata Sky is a JV between the TATA Group and STAR. Tata Sky DTH endeavors to offer
Indian viewers a world-class television viewing experience through its satellite television
service. Vikram Kaushik is present CEO of Tata Sky Ltd. The TATA Group is one of
India's largest and most respected business conglomerates. It comprises 93 operating
companies in sevenbusiness sectors and diversified group information systems and
communications, engineering, materials, services, energy, consumer products and
chemicals.
The TATA Group has operations in more than 40 countries across six continents and its
companies export products and services to 140 nations. The Group and its enterprises
have been steadfast and distinctive in its adherence to
business ethics and their commitment to corporate social responsibility. This is a legacy
Page | 18
that has earned the Group the trust of many millions of stakeholders in measure few
business houses anywhere in the world can match.
The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Tata
Sky the reputation of more than 20 years experience of satellite broadcasting. SKY is well
known for the innovative products and services launched by BSky, such as DTH
broadcasting in 1989, digital satellite broadcasting in 1998, interactive television services
in 1999 and the SKY+ personal video recorder in 2001. Tata Sky joins an international
group of DTH businesses that includes platforms as far apart as the UK and Italy in
Europe, and Mexico and Brazil in Latin America.
Tata Sky Ltd is the First Indian DTH provider to be awarded the ISO 27001:2005
accreditation, the ultimate benchmark for information security. The assessment for the
certification was conducted by Intertek Systems Certification, the management systems
registration business unit of Intertek Group plc and is accredited by several internationally-
recognized accreditation bodies worldwide.
In October 2008, Tata Sky announced launching of DVR service Tata Sky+ which
allowed 45 hours of recording in a MPEG-4 compatible Set Top Box. The remote is
provided with playback control keys and is being sold with special offers for existing
subscribers. Tata Sky was selected as a SUPER BRAND for the year 2009-2010 by an
independent and voluntary council of experts known as Super brands Council. It is the
only Indian DTH to have won this distinction.
7.4 Sun Direct
Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital
compression technology, transmitting using INSAT 4B at 93.5°E. It is the country's first
MPEG 4 technology DTH service provider. Sun Direct is a DTH service in India
headquartered in Chennai, Tamil Nadu.
Sun Direct TV was registered in February 16, 2005. However, the failed launch of
Page | 19
INSAT 4C resulted in a lack of transponders, delaying the launch. The service was finally
launched on December 2007 after availability of transponders from INSAT 4CR.
Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all over the
country. On December Sun Direct was launched in Mumbai and announced its pan India
launch. By 2009 it became leading DTH provider with 3 million subscribers. This makes
it 4th largest DTH service provider of India.
In April 2009 Sun Direct officially launched its High-Definition service in India. Sun
Direct uses the latest MPEG-4 based technology to increase broadcast capacity.
Sun Direct provide next-generation services in fast-growing and emerging markets
quickly and efficiently. Sun Direct selected Oracle based on its convergent multi-
service capabilities and proven real-time scalability allowing it to consolidate billing
operations, enables powerful new service offerings and improves visibility into customer
information across services.
7.5 BIG TV
Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai,
using MPEG-4 digital compression technology, transmitting using MEASAT-3
91.5°east. It is the 5th DTH service launched in India. Reliance BIG TV limited is a
part of Reliance Communications Ltd., a subsidiary of
Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the
Indian business tycoon and owned by his son Anil Ambani.
BIG TV started operations from 19 August 2008 with the slogan "TV ho Tho BIG Ho"
("If you have a TV, make it BIG"). It currently offers close to 200 channels and many
interactive ones, 32 cinema halls (i.e. Pay Per View Cinema Channels) as well as many
Radio channels. The company plans to increase the number of channels in the near
future to 400 and begin High Definition (HD) broadcast. It is the first Pan-India DTH
provider that uses MPEG-4 for broadcasting. There are also plans to introduce services
like i-Stock, i-News and other such interactive services in the future.
Page | 20
Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing the
consumer with quality and enriched home entertainment service at value-driven pricing.
Reliance BIG TV's launch in August was probably the biggest roll-out in home
entertainment ever and deployed the most advanced MPEG4 technology that enabled
them to deliver best quality digital audio-video to the consumer. It also got prepared for
the future when Hi-Definition TV will be launched in India because only MPEG4
technology can support HD TV and not MPEG2 which is used by the earlier entrants in
the DTH industry.
Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns in
India. This was literally unheard of in the DTH industry. They had effectively out-
stripped the competition here. When it came to pricing – packaging, their introductory
offer stood at Rs. 1,490/- with 3 to 6 months of free subscription. They also introduced
32 Pay-Per-View Movie Channels, the highest by any DTH player.
7.6 Airtel digital TV
Bharti Airtel Limited is the flagship company of Bharti Enterprises and is India’s largest
integrated and the first private telecom services provider with a
footprint in all the 23 telecom circles. As India's leading telecommunications
company, the Airtel brand has played the role of a major catalyst in India's reforms,
contributing to its economic resurgence. Airtel since its inception has been at the
forefront of technology and has steered the course of the telecom sector in the country
with its world class products and services.
Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It uses MPEG-
4 digital compression with DVB-S2 technology, transmitting using INSAT 4CR 74°E
Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign 'Come
Home to the Magic. Since then it has launched 2 other campaigns: ‘Stars come home’
(March 2009) and ‘DTH Picture Clarity (August 2009) has increased its channel base to
183+ channels.
Page | 21
Airtel digital TV is now amongst the fastest growing DTH brands in the country and is
available across 5000+ towns in India. It has also been ranked as the best DTH service
by “Living Digital” magazine.
Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a bright
future in Indian market as the people are getting more attracted towards DTH because of
its quality and affordability.
7.7 Videocon d2h
Videocon d2h is a DTH satellite television provider in India based in Mumbai,
using MPEG-4 with DVB S2 digital compression technology. Videocon Leasing &
Industrial Finance Limited was incorporated on 4th September, 1986 as Adhigam
Trading Private Limited. In terms of the necessary resolutions Passed under Sec. 21 of
the Companies Act, 1956, the name of the Company was changed to Videocon Leasing
& Industrial Finance Limited on 14th February,
1991. The Company received a fresh certificate of incorporation from the Registrar of
Companies, Gujarat at Ahmedabad on 14thFebruary, 1991.
Videocon d2h launched May 1, 2009. it came with a very good strategy for
selling both of its electronic products like TV’s DVD’s along with the new set top box.
This is offering direct to TV without any set top box also. Only the antenna is enough, it
also came with DVD which is connected directly to the TV or antenna is connected to
DVD which gives a best quality of out put.
“There is only one winning strategy. It is to carefully define the target market and
direct a superior offering to that target market.”
Philip Kotler
Page | 22
8.0 Rsearch Design
Research Method: Exploratory Research
Sample Selection: Vadodara, Nadiad and V. VidyaNagar
Sample Size: 200
Sampling Method: Convenience Sampling
Survey Method: Personal Interview
Respondents: Households having DTH or Cable service
Research Instrument: structured Questionnaire
Page | 23
9.0 Data Analysis & InterpretationTools Used:
Type of Data: Primary Data
Primary Scale of Measurement: Interval Scale
Scaling Technique: Likert Scale
Analytical Tools:
# Use of Percentages
# Frequency tables
# Bar charts
# Pie charts
Question wise Analysis:
1. Which type of broadcasting service do you use?
Cable DTH
Page | 24
CABLE63%
DTH37%
Share of DTH & Cable in Household in %
Out of 200 respondents, 126 (63%) were using cable service and 74(37%) were using DTH
service. DTH users are increasing day by day but Cable service providers are still having
higher market share.
2. Which DTH brand of service do you use?
Dish T.V. Tata Sky Big T.V.
Sun Direct Airtel Digital Videocon D2H
Highest market share was found to be 24% of Dish TV which entered in market earlier
than other competitors. Dish TV has maintained its majority since its entrance in DTH
service providers. Lowest market share was found to be 8% for Sun Direct TV.
Page | 25
Dish TV; 24%
Tata Sky; 19%Airtel; 10%
Big TV; 9%
Video-con; 8%
Sun Direct; 4%
Market Share
3. How did you come to know about the above DTH brand?
T.V. Radio Outdoor hoardings
Friends Internet Print Advertising
Media Contribution in Awareness in %
TV Radio Outdoor Hordings Friends Internet Print Advertising0
10
20
30
40
50
60 57
38
14
6
12
Page | 26
Most of the people were attracted to purchase DTH through TV advertisements which
indicates TV advertising as a strong tool for marketing of DTH products. Radio listeners
were least attracted for using DTH services.
4. How did you purchase the DTH service?
Tele calling Leading electronic stores online booking
Tele calling9%
Leading electronic stores87%
Online booking4%
Purchase Source
As mentioned in pie chart, Most of the DTH users used leading electronic store to purchase
DTH. Out of 74 DTH users, 64 have purchased it from electronic store which indicates
higher leading electronic stores as a strong distribution channel.
5. Since how long have you been using DTH service?
Less than 6 months 6 months to 1 year 1 year to 2 years
2 years to 3 years More than 3 years
Page | 27
The data collected from this question clearly indicates rising trend in use of DTH services.
Among all DTH users, most of them have purchased DTH within last six months. Given
chart represents increasing usage of DTH services.
Less than 6 months 6 months to 1
year 1 year to 2 years 2 years to 3
years More than 3 years
0
5
10
15
20
2521
1618
12
7
Duration of Usage in %
7. Are you interested in switching over to Cable service?
Yes 9
No 65
Page | 28
010203040506070
YesNo
As chart suggest that there are more respondents who are not interested in switching over
to cable services. There are around 88% of the respondent who have DTH connection,
choose not switching over to cable connection.
8. Since how long have you been using cable service?
Less than 6 months 96 months to 1 year 111 year to 2 years 222 years to 3 years 30More than 3 years 54
Page | 29
05
1015202530354045
Less than 6 months
6 months to 1 year
1 year to 2 years
2 years to 3 years
More than 3 years
This question is for respondents who have cable connection. As we know that DTH
service new to India compare to cable services, more respondents have cable connection
for more than three years. Around 43% of the respondents are connected with cable
service for more than three years and around 24% of the respondents have cable
connection for 2 to 3 years.
10. Are you interested in switch over to DTH service?
Yes 89No 37
Page | 30
0102030405060708090
Yes
No
This question is for respondents who have cable connection. Out of 126 respondents 89
respondents wants to switch over to DTH service providers. Around 71% of the
respondents want to switch over to DTH service that shows the increasing popularity of
DTH services
11. Are you aware of any other DTH brand?
Reliance Big TV 37Tata sky 41Airtel 56Dish TV 27Videocon 34Others 5
Relience Big TVTata skyAirtelDish TVVideoconOthers
All the respondents are aware of the DTH service providers.
Page | 31
12. How did you come to know about the above DTH brand?
T.V. 67Radio 4Outdoor hordings 43Friends 11Internet 9Print advertisement 66
T.V.
Radio
Outdoor hordings
Friends
Internet
Print advertisement
As chart suggest that most of the respondents came to know about the DTH service
provider through T.V. and print advertisement. Around 67% of the respondents came to
know about DTH service by T.V. and print advertisement. Around 22% came to by
outdoor hoardings. So from this it becomes clearer that T.V. and print media are most
effective tool for promotion.
13. What are the parameters that a DTH brands should posses to be successful?
The consumers mostly prefer a “Service” as an important parameter in choosing DTH
connections. The least considered parameter is discount. Following details were found
from market research.
Page | 32
Parameter % preference
Service 35
Quality 20
Price 18
Promotion 15
Brand 7
Discounts 5
Likert Scale Analysis for Question 6 & 9
The likert scale is most frequently used variation of the summated rating scale. Following
steps were followed and analysis was done for Item analysis of each question’s options
using likert scale.
1) Different numbers were allocated to each person’s responses as:
a. 1 = Strongly disagree
b. 2 = Disagree
c. 3 = can’t say
d. 4 = Agree
e. 5 = Strongly agree
2) Each person’s responses were then added to secure a total score.
3) All total score were arrayed and portions representing the highest and lowest total
scores were selected.
a. Question 6
Total 50% of 74 = 37 was selected for likert analysis.
Page | 33
b. Question 9
Total 50% of 126 = 63 was selected for likert analysis.
4) The mean scores for the high score & low score groups were then used for computing t-
values.
5) As an indicator of statement’s discrimination power, those statements are suggested
which have t value greater than 1.75. In all item analysis, t values were found to be
more than 1.75 which indicates high discrimination power of statement.
Most of the respondents of DTH users have considered “Services” and “Audio visual
Quality” as a strong stand to stick on use of DTH service. In case of cable users, they
consider “satisfactory service” from cable operators for use of cable connection.
Following pages includes likert scale evaluation through item analysis for questions 6 & 9.
Page | 34
Bibliography
1. http://www.tamindia.com/tamindia
2. http://www.dishtv.in/
3. http://www.ibef.org/ “India Brand Equity foundation”
4. http://www.financialexpress.com/news/big-tv-launch-to-intensify-dth-battle/351013/
5. http://www.indianexpress.com/news/dth-space-hots-up-tata-sky-launched/10184/
6. http://www.financialexpress.com/news/dth-subscribers-double-in-7-mnths/379548/
7. http://ibscdc.org/index.asp
8. http://www.dth.co/408/cable-tv-vs-dth-growth/
9. http://www.indiastudychannel.com/forum/5481-New-Members-FAQ.aspx
10. http://en.wikipedia.org/wiki/Television_in_India
11. Cooper Donald R. & Schindler Pamela S, Business research methods, Tata McGraw
Hill, 9th Edition.
12. Malhotra Naresh K., Marketing Research, Eastern Economy Edition, 4th Edition.
Page | 35
Page | 36