Documente Academic
Documente Profesional
Documente Cultură
Industry Analysis
Direct To Home Market in India
Submitted By
Mayuresh Sharma (Roll No.65)
Raveesh S (Roll No.79)
Sameer Gupta (Roll No.83)
Venkataramana G (Roll No.108)
Vikram Yadav (Roll No.110)
Manoj Jindal (Roll No.114)
TOPIC Page No.
1.0 Introduction 3
7.1 DD DIRECT 14
7.2 Dish TV 15
7.3 Tata Sky 15
7.4 Sun Direct 16
7.5 BIG TV 17
7.6 Airtel digital TV 17
7.7 Videocon d2h 18
8.0 Bibliography 19
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.
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.
Oct’09 PT-PGPM Page 3
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.
Pay TV market on Growth Trajectory
Threat of Substitutes
Very High
Cable TV – High
IPTV – High
Terrestrial - Low
The Five Competitive Forces as applied to Direct to Home industry are described
as follows:
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.
Presently as on 2010, these are the main DTH service providers in India:
DD Direct – state owned free service provider
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.
Market Share
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.
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.
Dish TV India’s first DTH service provider launched in October 2003 is the
market 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.
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.
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:
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.
Price
Customer Service
Reception
Program choices
Technical Support
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 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
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.
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.
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
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. Now chairman of DD plus+ is Shri Arun
Bhatnagar and CEO is B S Lalli under the ministry of information and
broadcasting.
7.5 BIG TV