A STUDY ON DISTRIBUTION CHANNEL IN DIRECT TO HOME (DTH) SYSTEM

PREPARED BY: NITESH ODEDRA GUIDED BY: R P SHARMA SUBMITTED TO: GUJARAT UNIVERSITY AES POST GRUDUATE INSTITUTE OF MANAGEMENT

A GRAND PROJECT ON DISTRIBUTION CHANNEL IN DIRECT TO HOME (DTH) SYSTEM UNDER GUIDANCE OF DR. R. P. SHARMA SUBMITTED TO GUJARAT UNIVERSITY AES POST GREDUATE INSTITUTE OF MANAGEMENT UNDER PARTIAL FULLFILMENT OF M.B.A. GUJARAT UNIVERSITY SUBMITTED BY: NITESH ODEDRA

CERTIFICATE

This is to certify that Mr. Nitesh Odedra has successfully completed his grand project title Distribution Channel in Direct to Home (DTH) system for his partial fulfillment of M.B.A. programme Batch 2005-07 from (AES Post Graduate Institute of Management) Gujarat University.

.. Project Guide Dr. R.P. Sharma Date: Place: Ahmadabad

Director Dr. A. H. Kalro

PREFACE There is a fast growing entertainment industry all over the world. Direct to Home television service refers to distribution of Multi Channel TV programs in Ku Band by using a satellite system by Providing TV signals direct to subscribers' premises without passing through any intermediary such as cable operator. Its reception requires very small dish antenna as compared to large dish antenna. It provides better quality reception and stereophonic sound by using digital technology. It also provides more choice to consumers. It is ideally suited for areas which are not serviced by Cable TV and at the same time provides an alternative to consumers in areas already serviced by Cable. DTH is very useful for rural area, where more channels are not available, but due to the DTH technology it possible rural people can enjoy all channels which is available in metro city. In this project I have tried to acknowledge certain areas of DTH marketing and Distribution Channel, including the benefits of DTH and the problems in DTH. I also include how a distribution channel is being use in DTH and overview. I also cover topic of CAS (Conditional Access System) and IPTV (Internet Protocol Television) both are new concepts in India .The concept came into exist recent period.

ACKNOWLEDGEMENT

Any accomplishment requires the efforts of many people and this project accomplishment is no different. I am very grateful to all those, who have helped me throughout this project, as without their continuous and immense support, it would not have been an excellent learning experience for me. These have been a huge lot of value addition and concept building, which I feel is the core idea for any marketing student. I am greatly thankful to our honorable director Dr. A. H. Kalro AES Post Graduate Institute of Management. I am very obliged to Dr.RP. Sharma, my project guide, whose valuable guidance, suggestions, and direction gave me enough impulse in completing this report. I am really fortunate enough to get the opportunities to work under his guidance. I express my gratitude to Mr. Saturchi Varma and Mr. Paras Trivedi who helped in research by providing me with the information about how their companies are practicing in DTH marketing. I also thank all the persons who have helped me directly or indirectly preparing this report. Thank you

Executive Summary

Executive Summary
The Indian Entertainment Industry is one of the fastest growing sectors of the Indian economy riding on the economic growth and rising income levels that India has been experiencing in the past few years. Over the last decade, India has registered the fastest growth among major democracies and is now the fourth largest economy in terms of purchasing power parity. The Indian Entertainment Industry is expected to significantly benefit from this fast economic growth, as this cyclically sensitive industry grows faster when the economy is expanding. When incomes rise, proportionately more resources get spent on leisure and entertainment than on necessities. The Indian rural market with its vast size of 128 million households, nearly three times of urban India, also offers a huge opportunity that has, so far, remained largely untapped, due to reasons of accessibility and affordability. However, as a result of the growing affluence, fuelled by good monsoons and increase in agricultural output, rural India has a large potential consuming class, with over 40% of Indias middle-class and over 50% of the total disposable income.

I have covered topics in my report these are overview of entertainment industry

INDEX

CHAPTER 1

Entertainment Industry

About Entertainment Industry The Indian Entertainment Industry is one of the fastest growing sectors of the Indian economy riding on the economic growth and rising income levels that India has been experiencing in the past few years. Over the last decade, India has registered the fastest growth among major democracies and is now the fourth largest economy in terms of purchasing power parity. India could emerge as the worlds third largest economy and of these four countries; India has the potential to show the fastest growth over the next 30 to 50 years. The report also states that Rising incomes may also see these economies move through the sweet spot of growth for different kinds of products, as local spending patterns change. The Indian Entertainment Industry is expected to significantly benefit from this fast economic growth, as this cyclically sensitive industry grows faster when the economy is expanding. When incomes rise, proportionately more resources get spent on leisure and entertainment than on necessities. Higher consumption spending and consequent changes in lifestyle are also spurring the growth of the Indian Entertainment sector. Film Entertainment The Indian Film Industry continues to make its mark and is still the largest in the world in terms of number of films produced and admissions. The encouraging growth in the number of multiplexes is making the movie goers, especially in urban India, experience a new way of enjoying movies. The growth of the multiplexes was somewhat affected by the closure of some single screen theatres, as a result of which the number of screens in the country remained more or less the same. Though piracy continues to dampen the growth, measures taken by some companies to go digital and the increase in the number of digital cinemas, are helping reduce its extent. Some of the top producers of the country ventured into their own distribution arrangements in an attempt to get back their share, lost earlier to piracy. Emergence of professionally-run international companies, distributing domestically produced movies, has also contributed towards increase in legitimate revenues of the film producers.

Television The year 2004 witnessed several changes in the Television segment of the industry. The active role played by the Telecom Regulatory Authority of India (TRAI) has won accolades for their consultative approach and thorough research in bringing out recommendations on various aspects of the broadcast and cable services, including digitalization. However, the price freeze imposed on the cable prices and a negligible increase at the end of the year was criticized by most Television Broadcasters. DTH DTH (Direct to home) also made its debut during the year with Zees Dish TV and Doordarshans DD Direct Plus and original aspirant Star-TATA JV. Overall, the television segment saw the maximum growth in revenues and is expected to continue to spearhead the growth of the Indian Entertainment Industry as a whole. Animation & Gaming The emergence of the gaming industry also made its mark during the year with the first ever investment in this segment by a Chinese company in India games Limited. Though the Indian animation industry continued its dominance in the outsourcing segment, several co-produced projects and a move towards creating original IP was initiated. The year was also marked by increased use of animation in the film segment, as was evident by the Hindi Blockbuster Hum Tum. Effective use of animation in special effects and titling in the films, continued as before. The increased number of downloads of games on mobile phones is likely to open new opportunities for the existing gaming companies and will also encourage entry of new companies in this sector. Music As in most parts of the world, the traditional music market involving physical distribution, plagued by piracy, continued to remain weak. Though several noteworthy measures by the music industry in tackling piracy were carried out during the year, the segment saw the least growth in terms of revenue. As the Indian music industry is primarily dependent on the Indian film Industry, the revenues of the film producers in terms of sale of music rights, also saw a

decline. However, the continued spread of remixes and video albums did provide a push to the industry. Growth of listener ship in FM Radio, emergence of newer formats of digital delivery including mobile music downloads, iPODs and internet downloads, is expected to drive the music industry in the coming years.

Radio The private FM radio broadcasters continued their wait for policy regulations during the year, with most FM radio companies bleeding due to high license fee structure. Though active consultation between the Radio companies, TRAI and the Government did take place during the year (TRAI was also given the mandate for recommending radio policy during the year), no policy directive was issued by the Government in this regard, till the time of writing this report. The concept of Community Radio was brought to light this year, with TRAI floating its consultation paper on the same. Satellite Radio, though in existence for some years in the country, was also discussed by TRAI in relation to the FM Radio. A consultation paper on the same was also brought out. Live Entertainment Though the sector continued to be dominated by small players, some of the large corporate houses did make a mark in corporate events. 2004 witnessed large events such as the International Film Festival of India in Goa, and several others such as music concerts of International artists, film and television awards functions, fashion shows and routine corporate events. The segment also saw hectic activity in the area of weddings, a sector untapped earlier. The most commendable of all was the organization of the various events in aid of Tsunami including HELP! Telethon Concert, an event which saw the entire Entertainment Industry joins hands to collect aid for the Tsunami victims. Emerging Trends in the Sector Convergence is the mantra for Indian Entertainment Industry for the next five years. With the economy is doing very well and poised for a leap in the next five years, the Indian Entertainment Industry is expected to outperform the growth in economy by a significant margin in the coming years. Emerging Technologies In addition to new distribution channels, emerging technologies are helping reinvigorate existing segments in this market in India. In filmed entertainment,

DVDs have revitalized the home video segment with increase in revenues both from sales and rentals. The falling prices of DVD players have significantly contributed to the growth of this segment.TRAI is currently holding discussions on digitalization of cable TV network in recognition of the need for additional capacity for broadcasting new channels. This will allow transmission of more channels on the same bandwidth, thereby expanding the market for both advertisement and subscription services.

Industry Size The Indian Entertainment Industry stands at over Rs. 20,000 crores today. Overall, it is expected to grow in high double digits at 18% per annum compounded annually over the next five years, to reach over Rs. 45,000 crores (USD 10 billion) by 2009. The largest contributor to this growth will be the television segment followed closely by the film segment. Subscription revenues will drive the growth in the television segment in the next five years. In the short-term, growth is projected at 14%, primarily from growth in number of cable and satellite households (which is expected to grow at 8%) and improved realizations. Thereafter, corrections in the regulatory mechanism is expected to pave way for addressability in cable distribution and also fuel the growth in digital distribution formats such as DTH (Direct-to-home) and other emerging platforms such as IPTV. As the market matures, premium subscriptions for value-added services will drive growth in subscription revenues. Growth in television advertising, being linked to the GDP of the economy, is expected to outperform it by at least five percent in the coming years. It is projected to grow between 12-14% over the next five years to reach over Rs.9, 400 crores by 2009. Emergence of niche channels is expected to boost the realizations for the broadcasters along with the corrections in regulations in the distribution segment. Content producers revenues are likely to witness similar growth due to increases in the content spectrum, which are expected to grow at 16% per annum compounded annually over the next five years. Delivery of content over newer wireless delivery formats is expected to open a new revenue stream for such content producers. The film segment will ride on the growth of multiplexes and digital distribution formats. 18% year-on-year growth is also expected in this segment as in the case of television. Better realizations in box office collections, growth in

collections from the overseas markets as a result of better marketing and distribution set-ups and emergence of the home video market linked primarily with the purchasing power of the consumers, will drive the growth of the filmed entertainment in the next five years. The music industry world-over is plagued by piracy and is expected to grow marginally at 3%. Similar growth is projected for the Indian music industry which is riding on the boom of re-mixes and video albums. Digital delivery formats, wireless mobile phones and internet will be the emerging platforms and will bite into the traditional formats of CDs and cassettes.

The live entertainment segment continued its steady growth in the past years and is expected to grow at similar levels in the coming years. Boost provided by the television segment and corporatisation of entertainment segment is expected to drive the segment growth at 18% over the next five years. Future Outlook Technology will drive the Entertainment Industry into the next decade. In the new converged paradigm, its boundaries will be merged with those of the Telecommunications & Information Technology segments. This will give rise to a host of value added features for the consumers and new revenue streams for the players in each segment. Mobile entertainment with its ability to dissect the boundaries of time and space will be the biggest growth driver. Digitalization is the future of the Television Industry. It is only a matter of time before market forces propel the industry towards that. Resolution of current challenges of distribution and digitalization, will also define the content formats and the viewer ship patterns of the consumers in future. Digitalization will also revolutionalise the Film Industry by bringing out faster and cheaper modes of delivering films to the consumers. These will be in terms of digital distribution of films, emergence of the home video market entailing shorter release windows and new distribution formats like internet and mobile devices. Success in Animation & Gaming will be driven by co-productions and securing rights over content produced. This technology-intensive industry will evolve itself to come at par with the world standards, not only in terms of technological advancements but also creation of original content.

Finally, content is and will continue to be the king of entertainment in future. Securing rights over the content will decide the strength of the players across all segments. The challenge will then be of having a regulatory regime working towards adapting to this advancement The Industry is expected to touch Rs. 45,000 crores by 2009

CHAPTER 2

History of DTH

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DTH means Direct to Home. 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 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 world. 1945 Arthur C. Clark's Dream The entire satellite communications industry not just the DTH segment can trace its common heritage to one man. That man is the noted futurist and author Arthur C. Clark. Long before Clark was to take us to the farthest reaches of the universe in his legendary epic "2001: Clark explained that at this altitude, the platforms would orbit the earth at exactly the same speed as the earth turned ,thus they would appear to remain motionless in space when viewed from the ground. Obviously, Clark's paper was far ahead of its time. The world had yet to see the widespread development of TV let alone the ability to place any object, much less a large communications platform, into orbit. This basketball-sized satellite carried a transmitter which delivered a non-stop Morris code-based political message touting the technological superiority of the Soviet Union. Spurred into action, America embarked on one of the largest technology development programs in history. In fact, the very first live global television broadcast - the realization of Clark's dream - came as Neil Armstrong stepped onto the moon in July of 1969. First DTH service was started in USA these pioneers many operating out of their garages gave birth to an industry which sold approximately 5,000 systems in 1980. The journey towards the DTH industry of today had begun. 1981 - 1985 Dish Fever Grows The DTH industry grew quickly from its modest beginnings. As each new system was installed, the word of mouth advertising grew for the industry. Obviously the early DTH systems were very large, thus the simple act of having one installed drew the attention and interest of the neighborhood. Once non-dish owners experienced the diversity of satellite-delivered programming (new cable services were now launching at a rapid pace) coupled with the unsurpassed audio and video quality offered by a DTH system, the fever began to spread across the land. Things had to happen: (1) The price had to be reduced (2) The reliability and user friendliness of the hardware had to increase significantly (3) The legality of dish ownership by private citizens had to be clearly established.

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(4) There were no dependencies on cable operator. (5) Digital picture Quality (6) Stereophonic sound quality. Trend of DTH in USA Satellite TV was hot some 735,000 systems were produced in the United States. Some months in the latter part of the year saw in excess of 80,000 units sold. An industry which began the year with less than a million consumers ended the year with over 1.7 million satisfied customers. Indeed, to the outside observer, the DTH industry appeared to be one of the hottest technology bets available. In fact, this success was setting the industry up for a dramatic tumble one which would take years to overcome. January 15,1986 DTH World Changes Forever The lines were long at satellite dealerships, and sales were good. As the day wore on, suddenly the video on HBO was replaced by unrecognizable lines and the audio was gone. At that very moment, the hardware based DTH industry transitioned into one which would be driven by the sale of software programming. The first thing to happen was the wholesale defection of retailers who had entered the business in 1985 in search of the easy sale. This was followed by a bitter internal industry battle over scrambling which soon saw existing DTH system owners drawn into the fight to preserve the free airwaves. Worse yet, the industry allowed this battle to spread to new consumers as they entered dealer showrooms to consider the purchase of a dish. It even gave birth to three nightly satellite-delivered talk radio networks dedicated to discussing/debating the changing industry. 1987 - 1993 Piracy Dominates DTH This upswing in sales was driven by the advent of integrated receiver/decoders which combined the decoder module with the receiver unit, and perhaps even more importantly, the arrival of program packages. The grouping of encrypted services (all of which had chosen to use the Video Cipher scrambling system) into attractively priced packages was a major step forward in the sale of programming to the consumer who previously was required to make several phone calls to purchase individual programming services. The impact of piracy on the growth of the legitimate industry was significant. In years such as 1990, the DTH industry shipped approximately 380,000 new systems, but only 77,553 net VC II authorizations were recorded. Thus, not only were new systems being pirated at time of installation, many of the existing systems in the field was also being modified to steal programming services.

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Clearly, satellite signal theft posed a serious threat to the industry's access to programming. In 1987, SBCA leadership was contacted by the executives of the major Hollywood movie studios to discuss the emerging problem. The message from Hollywood was clear while it strongly supported the DTH industry and pledged to work closely with the SBCA, the piracy issue required immediate action. Failure to effectively deal with the issue would leave the movie studios with no choice but to discontinue licensing its movies for distribution to DTH owners. 1994 Ready for DIRECT BROADCASTING SERVICE The DTH industry had emerged from its second major crisis, and now, this industry which had begun so humbly, stood on the threshold of a new era, The Dawn of DBS. While 1994 marked the arrival of medium and high-power Ku-Band DBS service, it was also represented one of the best years ever for the C-Band industry. As the DTH industry celebrates the 20th anniversary of Taylor Howard's invention, it is clear that satellite TV is here to stay. The industry survived not only because it has a good product which offers unique programming at a good value, but because many of those early pioneers simply wouldn't let the dream slip away. Those pioneers are now leading this industry into the digital information age of 21st century.

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CHAPTER 3

DTH TECHNOLOGY

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What is DTH Direct-to-Home (DTH) satellite television is becoming a buzzword in the satellite broadcast industry due to the fact that DTH offers immense opportunities to both broadcasters and viewers. Thanks to the rapid development of digital technology, DTH broadcast operators worldwide have been able to introduce a large number of new interactive applications in the television market besides a large number of entertainment programs over a single delivery platform. In addition, since digital technology permits a highly efficient exploitation of the frequency spectrum, the number of TV channels that can be broadcast using digital technology is significantly higher than with analogue technology. The increased number of television channels allows the operator to satisfy the demand of a number of niche markets with dedicated transmissions. In general, DTH service is the one in which a large number of channels are digitally compressed, encrypted and beamed from very high power satellites. The programs can be directly received at homes. This mode of reception facilitates the use of small receive dish antennas of 45 to 60 cm diameter installed at convenient location in individual buildings without needing elaborate foundation /space etc. Also, DTH transmission eliminates local cable operator completely, since an individual user is directly connected to the service providers. However, a digital receiver is needed to receive the multiplexed signals and view them on a TV.

Transmission in Ku band is most appropriate and widely used for the purpose. As mentioned above, all the encoded transmission signals are digital - thus providing higher resolution picture quality and better audio than traditional analog signals. All the advantages of the digital transmission, as applicable to the terrestrial transmission are relevant in the satellite transmission also. 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 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.

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DTH licenses Fee 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 Zee group promoted Dish TV was the first to start DTH operations in India. The latest entrant in India is Tata-Sky is a joint venture between the Tata group and News Corporations Star TV. The signals are dispatched from a satellite directly to a viewer's home. In its simplest form, TV Channels would be broadcast from the satellite to a small dish antenna mounted on the window or rooftop of the viewer's home. In today's scenario of cable TV where, the cable operator or/and the Multi System Operator (M.S.O.) work as middlemen or distributors of the satellite signals, this method of transmitting directly to customer's premises does away with the middlemen. DTH can provide entertainment, news and lots more to a viewer and even to those pockets of the country where cable and Doordarshan have not yet reached. There are about 70 million TV homes out of which only 35 million have been connected by cable. The balance 35 million TV homes today have access to only Doordarshan. Within these homes, if accessibility to satellite channels is an issue, DTH will be able to provide a solution. The Zee group launched its Direct-to-Home (DTH) broadcasting service from October 2, next month. As per norms, only an Indian satellite is to be used. Zee would be employing ISRO's Insat 3A. Prasar Bharati's DTH service would be driven largely by Doordarshan's existing fare and is targeted at areas such as North East and Rajasthan where its terrestrial service is not readily available. DTH subscribers to Prasar Bharati's service would just have to make a one-time investment for the decoder and the dish antennae, with no monthly subscription charges. DTH, as a technology is going to play a major role in the new world of convergence. If India has to catch up with the world and become a super power, DTH can play a very important and deciding role. Any current user of internet, if he spends 2 hours per day on internet, his telephone bill on a monthly basis comes to about Rs. 1500/-. If the same service were offered to him on a DTH platform it would not only be faster and satisfying but also time saving. Such a customer may gladly give out Rs.1000/- per month for such a service. DTH can also be used to give number of other value added services like-fax, voice, teleshopping, e-commerce etc. The list is huge and only imagination of the DTH Company would be the barrier in tapping this extra ordinary communication tool.

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The cable operators then make payments to the M.S.O. on the basis of points declared and the rate at which the M.S.O. is providing signal feed to the operators while the M.S.O. in turn makes payment to the satellite channel operators for the various pay channels depending on the number of points they have agreed to and the rate of the pay channel negotiated between them. In DTH, the payments are made directly by the user to the Satellite Company offering such service. There is no need for a cable operator or M.S.O. The signals are received directly from the Satellite Company and the payments are made directly to the DTH Company. How does it work? DTH operating on Ku band which the government has recently allowed, needs only a small dish (1 or 2 feet) in diameter which can be easily installed on roof top or a window of the subscriber's home. Installation is simple and requires bare minimum of maintenance. The digital decoders which would be required can perform number of other functions like giving out electronic program guides, auto start favorite programs as per schedule, download data for other non-TV uses. DTH Reach DTH can provide entertainment, news and lots more to those people and those pockets of the country where cable and Doordarshan have not yet reached. There are about 70 million TV homes out of which only 35 million have been connected by cable. The balance 35 million TV homes today have access to only Doordarshan. Within these homes, if accessibility to satellite channels is an issue, DTH will be able to provide a solution. The Government has allowed DTH to be used for voice/date/fax/internet but only on the condition that for these value added services a separate license has to be taken by the DTH company. Is it a feasible Solution? Going back to the basics one must remember that DTH will operate on the Ku band, which is a band of frequency above 4800 MHz. Ku band has a peculiarity that during heavy rains the DTH signal just fades away. The attenuation of Ku band signals during rains is high in the atmosphere. The DTH subscriber may receive just nothing during rains. Cable TV has no such problem. Those DTH subscribers who face this problem would like to keep a cable connection as a stand by.

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As per data available the cable operators' local channel, which also shows movies, is the prime channel in terms of viewer ship. This local channel's popularity would induce DTH subscribers to keep their cable TV connection also. Local programming is not possible on DTH. As reception would be directly from the satellite, consumers of Direct-to-Home will receive better quality of transmission as against that received by consumers of CAS. In the CAS scenario the final picture and sound quality would depend on the type of STB box the MSO would go in for. The digital boxes would definitely provide better picture and sound then the conventional analog boxes. DTH loses out on the fact that it will operate on the Ku band, which has a peculiarity that during heavy rains the DTH signal just fades away. The attenuation of Ku band signals during rains is high in the atmosphere due to which the DTH subscriber may receive just nothing during rains. Cable TV has no such problem. The cable operators' local channel, which also shows movies, is the prime channel in terms of viewer ship. As local programming is not possible on DTH, the demand for the local channel would induce DTH subscribers to keep their cable TV connection also. DTH IN INDIA India is a dynamic study in itself. Just ten years ago, about 20 per cent of the total homes could only receive government services broadcast on one channel operated by Doordarshan, the national television operator. By 1997 there were 50 private satellite channels and 19 different services from a revitalized Doordarshan. One-third of the homes now have television and about 10 per cent of the total homes subscribe to cable. The most significant event in the cable sector was the passage of the Cable Television Ordinance Law in January 1995. This ordinance requires the registration of cable operators and mandated technical standards that required most operators to upgrade their systems in addition to issues regarding content. The challenge for cable exists in the rural areas where installation and application are extremely cost prohibitive, and nearly three quarters of India is designated as rural territory. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks. DTH providers claim to target only the wealthy rural population, although a high proportion of their subscribers will be the urban rich as well, many of whom already subscribe to the higher-end cable networks. DTH, however, is faced with a lack of high quality programming, a lagging infrastructure for distribution and collection and technological barriers.

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CHAPTER 4

Conditional Access Systems (CAS)

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In the existing arrangement the consumer was paying for all the channels, irrespective of what he actually watched or desired to watch. There was now needed to make the system transparent in respect of the Pay Channels /Pay programmes, which can be watched by selective subscribers. The subscriber ship of all 'Pay ' channels should be fully determinable. This transparency would allow entitled revenue to accrue to the different links in the chain, permit the consumer to have programming of his choice and watch channels according to their affordability, hopefully at a lower cost, and provide realistic and authentic viewer ship data. The Task Force was unanimous that the Conditional Access System is necessary to bring transparency at different levels, but that it should not add to the financial burden of the consumer. It was decided that the Government should mandate it by law. The Set Top Box, allowing addressability, should be required only for 'Pay' channels; for subscribers who opt to view only 'Free -to-Air' channels, there would be no requirement of a Set Top Box. The Set Top Box shall be supported by the MSOs/ Cable Operators through installation of necessary infrastructure like Subscriber Management System etc. It was considered desirable that the Government must be empowered to enter and inspect the premises and operations of the MSOs and Cable Operators to ensure enforcement of the requirements of the Set Top Box, of transparent recording of viewer ship figures, display of channel rates etc. In September 2001, the Government of India set up a task force to examine the possibility of introducing Conditional Access Systems (CAS) in India. Taking into account the commendations of the Task Force, the Ministry of Information & Broadcasting introduced the Cable Television Networks (Amendment) Bill, 2002 in the Lok Sabha. The Bill has been passed by the Lok Sabha and Rajya Sabha. In India, there is no system of issuing geographically franchising/ licensing areas to MSOs/ cable operators. Thus Cable TV operators have the opportunity to expand beyond their existing cities of operations. The MSOs in the country have grown primarily through a system of entering into franchise arrangements with Local Cable Operators (COs) who provide low cost yet fairly responsive customer care to CATV customers. Keeping in view the present structure where thousands of Independent operators co-exist with a few national and regional players, consolidation of the industry is expected to gather momentum in the coming years. To date, the focus of the CATV industry has been on the delivery of video services to the customers. In the absence of conditional access systems and addressable Set Top Boxes in the customer homes, all channels are delivered in Free to Air form to the customer. Currently the MSOs are caught between rising programming costs (on account to rising pay channel costs) and the inability to raise tariffs on account of resistance from customers / franchisee operators. The introduction of CAS is expected to restructure the CATV industry and give the MSOs a better position in the distribution chain. With the introduction of CAS and Set Top Boxes, customers can choose the programming they watch and pay based on actual

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viewer ship rather than current model of paying, for a plethora of channels, which they do not want or do not watch. CAS would also suitably address the issue of under declaration of connectivity prevalent in the CATV industry. The introduction of CAS will entail investments in Conditional Access Systems, subscriber management systems, sophisticated billing systems and customer care systems by the MSOs. The CAS regime will also enable the MSO to establish direct contact with the customer while preserving the position of the franchisee operator in customer care and servicing. The deployment of Set Top Boxes will enable MSOs to deliver valued added services such as internet-on TV, Pay per View, Home Banking and Home Shopping etc. In view of the shared nature of Cable TV network, CATV systems are well positioned to deliver multiple services viz. basic video, digital video, high speed data access, video on demand, interactive TV and telephony.

The salient features of Cable Television Networks (Amendment) Bill, 2002 are as under: 1. Introduction of Addressable Systems to be mandatory 2. Pay Channels to be delivered only to addressable systems 3. All Free to Air Channels to be delivered as part of the Basic Package 4. Government to specify rates and minimum number of channels for the Basic package 5. Monthly reporting by cable operators on subscriber 6. Base for free-to-air and pay channels 7. A period of 6 months for operators to introduce CAS Benefits of CAS 1. Freedom of Choice of Channels 2. Payments for channels they actually watch 3. Escape for frequent hike in tariffs, channel switch offs 4. Possible reduction in tariffs for customers opting for Free to Air Channels. More

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choice of programming as new, subscription based, niche channels would be encouraged to enter into Indian market 5. Even B&W TV sets can receive 99 channels using Set Top Boxes Set Top Boxes can result in new services such as: Pay per View, Internet on TV, Commerce- Home Shopping, and Home Banking The conditional access system (CAS) is a better and more acceptable choice than the direct-to-home or IPTV, if allowed to be implemented properly. This was voiced by the Multi System Operators alliance while debating the next generation platforms for television in India. The modern set-top-boxes will be made available at a loan of one rupee per day and it will enable viewers to choose from over 300 channels which not even DTH platform can give owing to the transponder problems, The Group acknowledged the fact that with progressive introduction of Digital Video Broadcasting technology, its combination with interactive return path, between the user and the Service operator, will pave the way for other Services, for which the Subscriber should be prepared to pay on the basis of charges fixed. RECOMMENDATIONS (1) The Conditional Access System and the supportive Subscriber Management System should be mandated under the Cable Television Networks (Regulation) Act, 1995. (2) The Set Top Box shall be required only for "Pay" Channels and the "Free to Air" channels shall be receivable by the subscribers in the current mode, without Set Top Box. The encrypted channel should be defined as "Subscription based Channel". (3) The Technical parameters of the Set Top Box shall conform to the Indian standards, to be prescribed by the Bureau of Indian Standards, in accordance with the provisions of the Bureau of Indian Standards Act, 1986. While doing so, the Bureau of Indian Standards may take into account the internationally acceptable standards and obtain recommendations from technologists and manufacturers of equipment. (4) It shall be mandatory for the Equipment Provider/ Manufacturer to declare, in a transparent manner, the capability of the Set Top Box and its interoperability on other networks.

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(5) In order to ensure transparency in the operations between MSOs, Cable Operators etc., and the Government must be empowered to obtain detailed information, on regular basis, from each level of operation. This may include information on total subscriber base, on individual programmers, viewership of independence channels, subscription rates, charges fixed by the Broadcasters, Content Creators for each channel etc. Each subscriber shall be keep informed in a transparent manner of the subscription rates for each individual 'Pay' channel. (6) Unauthorized viewing/ distribution/ redistribution of the broadcast signal should be made a cognizable offence. (7) The Government should regulate the price of 'Basic Tier' of the 'Free-to-Air' channels. The Government should also be enabled to revise the cost of the 'Basic Tier', from time to time. The Government will also make a special provision for the channels of the Public Services Broadcaster. No government intervention was considered necessary with regard to the cost of the Set Top Box or the rates of the individual 'Pay' channel. (8) There should be no requirement for change of the receiving set, irrespective of whether the consumer chooses to watch 'Free-to-Air' channels and/ or 'Pay' channels. (9) There was an immediate need to educate the consumer on the operation of cable television, on the cost of content creation and its distribution up to the households. The Broadcasters, Content Creators and MSOs should not enhance the charges of the 'Pay ' channels arbitrarily; it should be done in a transparent manner. (10) The packaging of services includes Value Added Services, as well as the pricing of the paid bouquets would be left to market forces. However, consumer interest needed to be protected by providing efficient and responsive service and through a transparent and accurate billing and collection system. This will also ensure that the revenue accruable to the Government is determined in a fair manner.

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CHAPTER 5

CHANNEL DISTRIBUTION

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Distribution is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured it is typically shipped (and typically sold) to a distributor. The distributor then sells the product to retailer or customers. Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. Channels A number of alternate 'channels' of distribution may be available:

Selling direct, such as via mail order, Internet and telephone sales Agent, who typically sells direct on behalf of the producer Distributor (also called wholesaler), who sells to retailers Retailer (also called dealer), who sells to end customers Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used Channel members Distribution channels can thus have a number of levels. Kotler defined the simplest level, which of direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor, says. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels.

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Channel management The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. In practice, if the producer is large enough, the use of intermediaries (particularly at the agent and wholesaler level) can sometimes cost more than going direct. Many of the theoretical arguments about channels therefore revolve around cost. On the other hand, most of the practical decisions are concerned with control of the consumer. The small company has no alternative but to use intermediaries, often several layers of them, but large companies 'do' have the choice. However, many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if he has any aspirations to be market-oriented, his job should really be extended to managing, albeit very indirectly, all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier: Monitoring and managing channels In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, of course, many organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customers and prospects. Market entry - Choosing a distribution channel Once you have committed to exporting and have selected the market(s) to enter, it is time to determine who will sell your product, how they will sell it and how it will be distributed. Selection of Agents and Distributors Dishtv, TATASKY and DD Direct use same channel distribution. They select dealers, distributors, and retailers select following way. Agency selection is a critical area of your export effort. Company need dealer which knows the export market, has influence with the key buying personnel in the appropriate sectors and knows and is committed to your business.Their replies should form the basis of a shortlist to be used

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for interviews when you next visit the market. Trade and bank references should also be sought. The more usual distribution channels are: Distributor Here, the distributor actually buys the goods from you, stores them in a warehouse and sells them on to a third party. The mark-up is usually around 15%.With a commission agent you may have to collect payment from a variety of customers. distributors on the other hand actually buy goods, so debt collection is considerably simplified. Do not rush to sign up with the first distributor who seems interested or has the right contacts and resources. Make sure to build a very clearly defined trial period into the agreement and if possible, incorporate the minimum level of sales you expect from them over a specified period. Direct Sales Direct Sales involves supplying overseas customers direct from your factory, with all contact looked after by you/your company or by your own resident sales personnel based in the market. You must ensure that your overseas sales personnel have the support of an office and possibly an administrative assistant. Combining Alternatives In some cases you can use several of the above methods in conjunction with each other or consecutively. For instance, an agent to promote sales, and a distributor to handle physical distribution. Or the exporter might start out selling direct and subsequently appoint an agent or distributor. Connect with your channels for an improved customer experience DTH companies have a variety of channels for reaching their producers and customers: portals, Web sites, mobile devices, call centers and face-to-face. However, when it comes to coverage that affects their entertainment, many DTH companies are finding customers still prefer face-to-face contact with an agent. Maintaining relationships with producers is essential to keeping customers satisfied.

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Our solutions enable allocation of marketing resources between channels and entities within channels, giving you better alignment between your distribution strategy, and overall business objectives. Dishtv is using maximum internet among the all companies. In fact, while the Internet is playing a major role in changing product distribution and is perceived to offer more opportunities for reaching customers, online marketers still face the same distribution issues and obstacles as those faced by offline marketers. Assessing the best distribution channels for getting products to customers Determining whether a reseller network is needed to assist in the distribution process Arranging a reliable ordering system that allows customers to place orders Creating a delivery system for transporting the product to the customer For tangible and digital goods, establishing facilities for product storage.

Function of Distribution channel

Ordering Handling and shipping Storage Display Promotion Selling Information feedback

Type of Channel Members Channel activities may be carried out by the marketer or the marketer may seek specialist organizations to assist with certain functions. We can classify specialist organizations into two broad categories: resellers and specialty service firms. Retailers Organizations that sell products directly to final consumers. Wholesalers Organizations that purchase products from suppliers, such as manufacturers or other wholesalers, and in turn sell these to other resellers, such as retailers or other wholesalers. Industrial Distributors Firms that work mainly in the business-to-business market selling products obtained from industrial suppliers.

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Importance of Distribution Channels As noted, distribution channels often require the assistance of others in order for the marketer to reach its target market. But why exactly does a company need others to help with the distribution of their product. Wouldnt a company that handles its own distribution functions be in a better position to exercise control over product sales and potentially earn higher profits? Also, doesnt the Internet make it much easier to distribute products thus lessening the need for others to be involved in selling a companys product? While on the surface it may seem to make sense for a company to operate its own distribution channel (i.e., handling all aspects of distribution) there are many factors preventing companies from doing so. While companies can do without the assistance of certain channel members, for many marketers some level of channel partnership is needed. When choosing a distribution strategy a marketer must determine what value a channel member adds to the firms products. Several surrounding features can be directly influenced by channel members, such as customer service, delivery, and availability. Consequently, for the marketer selecting a channel partner involves a value analysis in the same way customers make purchase decisions. That is, the marketer must assess the benefits received from utilizing a channel partner versus the cost incurred for using the services. Benefits Offered by Channel Members Cost Savings in Specialization Members of the distribution channel are specialists in what they do and can often perform tasks better and at lower cost than companies who do not have distribution experience. Marketers attempting to handle too many aspects of distribution may end up exhausting company resources as they learn how to distribute, resulting in the company being a jack of all trades but master of none. Reduce Exchange Time Not only are channel members able to reduce distribution costs by being experienced at what they do, they often perform their job more rapidly resulting in faster product delivery. For instance, consider what would happen if a grocery store received direct shipment from every manufacturer that sells products in the store. This delivery system would be chaotic as hundreds of trucks line up each day to make deliveries, many of which would consist of only a few boxes. On a busy day a truck may sit for hours waiting for space so they can unload their products.

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Customers want to Conveniently Shop for Variety Marketers have to understand what customers want in their shopping experience. Referring back to our grocery store example, consider a world without grocery stores and instead each marketer of grocery products sells through their own stores. As it is now, shopping is time consuming, but consider what would happen if customers had to visit multiple retailers each week to satisfy their grocery needs. Hence, resellers within the channel of distribution serve two very important needs: 1) they give customers the products they want by purchasing from many suppliers (termed accumulating and assortment services), and 2) they make it convenient to purchase by making products available in single location. Resellers Sell Smaller Quantities Not only do resellers allow customers to purchase products from a variety of suppliers, they also allow customers to purchase in quantities that work for them. Suppliers though like to ship products they produce in large quantities since this is more cost effective than shipping smaller amounts. For instance, consider what it costs to drive a truck a long distance. In terms of operational expenses for the truck (e.g., fuel, truck drivers cost) lets assume it cost (US) $1,000 to go from point A to point B. Yet in most cases, with the exception of a little decrease in fuel efficiency, it does not cost that much more to drive the truck whether it is filled with 1000 boxes containing the product or whether it only has 10 boxes. But when transportation costs are considered on a per product basis ($1 per box vs. $10 per box) the cost is much less for a full truck. The ability of intermediaries to purchase large quantities but to resell them in smaller quantities (referred to as bulk breaking) not only makes these products available to those wanting smaller quantities but the reseller is able to pass along to their customers a significant portion of the cost savings gained by purchasing in large volume. Create Sales Resellers are at the front line when it comes to creating demand for the marketers product. In some cases resellers perform an active selling role using persuasive techniques to encourage customers to purchase a marketers product. In other cases they encourage sales of the product through their own advertising efforts and using other promotional means such as special product displays. Offer Financial Support Resellers often provide programs that enable customers to more easily purchase products by offering financial programs that ease payment requirements. These programs include allowing customers to: purchase on credit; purchase using a payment plan; delay the start of payments; and allowing trade-in or exchange options.

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Provide Information Companies utilizing resellers for selling their products depend on distributors to provide information that can help improve the product. High-level intermediaries may offer their suppliers real-time access to sales data including information showing how products are selling by such characteristics as geographic location, type of customer, and product location (e.g., where located within a store, where found on a website). If high-level information is not available, marketers can often count on resellers to provide feedback as to how customers are responding to products. This feedback can occur either through surveys or interviews with resellers employees or by requesting the reseller allow the marketer to survey customers. There are three main levels of distribution coverage - mass coverage, selective and exclusive. Mass Coverage The mass coverage (also known as intensive distribution) strategy attempts to distribute products widely in nearly all locations in which that type of product is sold. This level of distribution is only feasible for relatively low priced products that appeal to very large target markets (e.g., see consumer convenience products). A product such as Coca-Cola is a classic example since it is available in a wide variety of locations including grocery stores, convenience stores, vending machines, hotels and many, many more. With such a large number of locations selling the product the cost of distribution is extremely high and must be offset with very high sales volume. Selective Coverage Under selective coverage the marketer deliberately seeks to limit the locations in which this type of product is sold. To the non-marketer it may seem strange for a marketer to not want to distribute their product in every possible location. However, the logic of this strategy is tied to the size and nature of the products target market. Products with selective coverage appeal to smaller, more focused target markets (e.g., see consumer shopping products) compared to the size of target markets for mass marketed products. Consequently, because the market size is smaller, the number of locations needed to support the distribution of the product is fewer.

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Exclusive Coverage Some high-end products target very narrow markets that have a relatively small number of customers. These customers are often characterized as discriminating in their taste for products and seek to satisfy some of their needs with high-quality, though expensive products. Additionally, many buyers of high-end products require a high level of customer service from the channel member from whom they purchase. These characteristics of the target market may lead the marketer to sell their products through a very select or exclusive group of resellers. Another type of exclusive distribution may not involve high-end products but rather products only available in selected locations such as company-owned stores. While these products may or may not be higher priced compared to competitive products, the fact these are only available in company outlets give exclusivity to the distribution

We conclude this section by noting that while the three distribution coverage options just discussed serve as a useful guide for envisioning how distribution intensity works, the advent of the Internet has brought into question the effectiveness of these schemes. For all intents and purposes all products available for purchase over the Internet are distributed in the same way - mass coverage. Channel Power A channel can be made up of many parties each adding value to the product purchased by customers. However, some parties within the channel may carry greater weight than others. In marketing terms this is called channel power, which refers to the influence one party within a channel has over other channel members. When power is exerted by a channel member they are often in the position to make demands of others. For instance, they may demand better financial terms (e.g., will only buy if prices are lowered, will only sell if price is higher) or demand others members perform certain tasks (e.g., do more marketing to customers, perform more product services). Channel power can be seen in several ways: Product Power Occurs when a product manufacturer or service provider markets a brand that has a high level of customer demand. The marketer of the brand is often in a power position since other channel members have little choice but to carry the brand or risk losing customers.

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Middle or Wholesale Power Occurs when an intermediary, such as a wholesaler, services a large number of smaller retailers with products obtained from a large number of manufacturers. In this situation the wholesaler can exert power since the small retailers are often not in the position to purchase products cost-effectively and in as much variety as what is offered by the wholesaler. Front or Retailer Power As the name suggests, the power in this situation rests with the retailer who can command major concessions from their suppliers. This type of power is most prevalent when the retailer commands a significant percentage of sales in the market they serve and others in the channel are dependent on the sales generated by the retailer. Channel Conflict In an effort to increase product sales, marketers are often attracted by the notion that sales can grow if the marketer expands distribution by adding additional resellers. Such decisions must be handled carefully, however, so that existing dealers do not feel threatened by the new distributors who they may feel are encroaching on their customers and siphoning potential business. For marketers, channel strategy designed to expand product distribution may in fact do the opposite if existing members feel there is a conflict in the decisions made by the marketer. If existing members sense a conflict and feel the marketer is not sensitive to their needs they may choose to stop handling the marketers products. Need for Long-Term Commitments Channel decisions have long-term consequences for marketers since efforts to establish new relationships can take an extensive period of time while ending existing relationships can prove difficult. For instance, Company A, a marketer of kitchen cabinets that wants to change distribution strategy, may decide to stop selling their product line through industrial supply companies that distribute cabinets to building contractors and instead sell through large retail home centers. If in the future Company A decides to once again enter the industrial supply market they may run into resistance since supply companies may have replaced Company As product line with other products and, given what happened to the previous relationship, may be reluctant to deal with Company A. As another example of problems with long-term commitments, building contractors may be comfortable purchasing kitchen cabinets from industrial suppliers. If Company A decides to change their reseller network they may find it difficult to regain the building contractor customer base, who may continue to purchase from the industrial suppliers but are now purchasing products from Company As competitors. In this case, Company A may have to give serious thought to whether breaking their long-term relationship with industrial suppliers is in the companys best interest.

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Overall Distribution Design Mindful of the factors affecting distribution decisions (i.e., marketing decision issues and relationship issues), the marketer has several options to choose from when settling on a design for their distribution network. We stress the word may since while in theory an option would appear to be available, marketing decision factors (e.g., product, promotion, pricing, target markets) or the nature of distribution channel relationships may not permit the marketer to pursue a particular option. For example, selling through a desired retailer may not be feasible if the retailer refuses to handle a product. For marketers the choice of distribution design comes down to selecting between direct or indirect methods, or in some case choosing both. Direct Distribution System With a direct distribution system the marketer reaches the intended final user of their product by distributing the product directly to the customer. That is, there are no other parties involved in the distribution process that take ownership of the product. The direct system can be further divided by the method of communication that takes place when a sale occurs. These methods are: Direct Marketing Systems With this system the customer places the order either through information gained from non-personal contact with the marketer, such as by visiting the marketers website or ordering from the marketers catalog, or through personal communication with a customer representative who is not a salesperson, such as through toll-free telephone ordering. Direct Retail Systems This type of system exists when a product marketer also operates their own retail outlets. As previously discussed, Starbucks would fall into this category. Personal Selling Systems The key to this direct distribution system is that a person whose main responsibility involves creating and managing sales (e.g., salesperson) is involved in the distribution process, generally by persuading the buyer to place an order. While the order itself may not be handled by the salesperson (e.g., buyer physically places the order online or by phone) the salesperson plays a role in generating the sales. Assisted Marketing Systems Under the assisted marketing system, the marketer relies on others to help communicate the marketers products but handles distribution directly to the customer. The classic example of assisted marketing systems is eBay which helps bring buyers and sellers together for a fee. Other agents and brokers would also fall into this category.

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Indirect Distribution System With an indirect distribution system the marketer reaches the intended final user with the help of others. These resellers generally take ownership of the product, though in the some cases they may sell products on a consignment basis (i.e., only pay the supplying company if the product is sold). Under this system intermediaries may be expected to assume many responsibilities to help sell the product. Indirect methods include: Single-Party Selling System - Under this system the marketer engages another party who then sells and distributes directly to the final customer. This is most likely to occur when the product is sold through large store-based retail chains or through online retailers, in which case it is often referred to as a trade selling system. Multiple-Party Selling System This indirect distribution system has the product passing through two or more distributors before reaching the final customer. The most likely scenario is when a wholesaler purchases from the manufacturer and sells the product to retailers. Multi-channel or Hybrid System In cases where a marketer utilizes more than one distribution design the marketer is following a multi-channel or hybrid distribution system. As we discussed, Starbucks follows this approach as their distribution design includes using a direct retail system by selling in company-owned stores, a direct marketing system by selling via direct mail, and a single-party selling system by selling through grocery stores (they also use other distribution systems). The multi-channel approach expands distribution and allows the marketer to reach a wider market, however, as we discussed under Channel Relationships, the marketer must be careful with this approach due to the potential for channel conflict. Establishing Channel Relationships Since channel members must be convinced to handle a marketers product it makes sense to consider channel partners needs in the same way the marketer considers the final users needs. However, the needs of channel members are much different than those of the final customer. As we noted in Part 4: Business Buying Behavior, resellers seek products of interest to the resellers customers but are also concerned with many other issues such as: Delivery Resellers want the product delivered on-time and in good condition in order to meet customer demand and avoid inventory out-of-stocks.

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Profit Margin Resellers are in business to make money so a key factor in their decision to handle a product is how much money they will make on each product sold. They expect that the difference (i.e., margin) between their cost for acquiring the product from a supplier and the price they charge to sell the product to their customers will be sufficient to meet their profit objectives. Other Incentives Besides profit margin, resellers may want other incentives to entice them especially if they are required to give extra effort selling the product. These incentives may be in the form of additional free products or even bonuses (e.g., bonus, free trips) for achieving sales goals. Packaging Resellers want to handle products as easily as possible and want their suppliers to ship and sell products in packages that fit within their system. For example, products may need to be a certain size or design in order to fit on a stores shelf, or the shipping package must fit within the resellers warehouse or receiving dock space. Also, many resellers are now requiring marketers to consider adding identification tags to products (e.g., RFID tags) to allow for easier inventory tracking when the product is received and also when it is sold. Training Some products require the reseller to have strong knowledge of the product including demonstrating the product to customers. Marketers must consider offering training to resellers to insure the reseller has the knowledge to present the product accurately. Promotional Help Resellers often seek additional help from the product supplier to promote the product to customers. Such help may come in the form of funding for advertisements, point-of-purchase product materials, or in-store demonstrations. We will continue our discussion of distribution decision in the next tutorial as we discuss in greater detail the reseller network retailers and wholesalers - and the processes involved in physically handling product flow through the channel. Functions of Intermediaries Primary role of middlemen is to transform the assortment of products made by producers in the assortments desired by consumers. Producers make narrow assortments in large quantities, consumers want broad assortments in small quantities, discrepancy in quantity and assortment. Types of Channels of Distribution DD Direct Channel distribution Producer | | | | Retailer | | |

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| Consumer . Dishtv Channel distribution Producer | | | Distributor | | | Dealer | | | Customer . Tata Sky Channel distribution Producer | | | Distributor | | | Dealer | | | Retailer | | | Customer .

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CHAPTER 5

PLAYERS IN DTH

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DD DIRECT

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There exists a tremendous potential for direct to home broadcast in Indian market and it is projected that within three years, there would be around 2.5 million DTH subscribers in India. This figure is likely to increase due to the increase in TV and Cable households and also the growing multiple TV households, which would form a large percentage of the total subscriber base. Since India's population crossed the one billion mark, it is no surprise that satellite operators and programmers world-wide have set their eyes on the world's largest open market for DTH satellite TV services. The growing popularity of TV as a communication medium has resulted in the TV media sectors undergoing a rapid transformation. Most of the DTH Systems, operating all over the world, provide Paid Service. The encrypted TV signals are received from the satellite on the Dish Antenna and transmitted to the digital decoder. The customer is provided with a Viewing Card, which is inserted into a slot in the digital decoder. The Viewing Card decrypts the TV signals chosen & paid for by the customer. A Viewing Card is a credit card sized smart card, which contains information about the channels that the customer has subscribed to. When inserted in the Decoder it enables viewing of the channels chosen by the subscriber. Prasar Bharati is being one of the leading public service broadcasting organizations in the world, does not want to be left behind. However, 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. Receive system of DD DIRECT+ would be cheaper as compared to receive system of other DTH operators as all the channels proposed Future of DTH in Indian Scenario Opportunities for DTH in India look great. Since cable has penetrated the Indian market in a big way with roughly 40 million C&S homes, it is imperative that in its first few years of operations, paid service of DTH will be focused on a niche market. This niche would basically constitute the rich segment from urban as well as rural areas due to the primary reason of high initial costs for DTH and the associated psychology of people. Since Doordarshan will be starting its novel free-to-air service on Ku band, it is likely to give the prospective private DTH operators tremors and nightmares. The most attractive part of the Doordarshan platform is going to be its low initial cost and no recurring expenditure. Many cable homes are likely to make a shift to its platform and the service is likely to show its full impact in the rural areas where cable service is not possible.

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Under Doordarshan project are Free-To-Air and therefore SMS and CAS are not envisaged. No smart card/conditional access system is required at the unlinking or down linking site. Prasar Bharati launched its direct-to-home (DTH) service in December 2004. Our DTH service, DD Direct Plus, is a runaway success. Within eight months of the launch by the Prime Minister, the Prasar Bharati DTH service has attracted over four million customers across the country, with Tamil Nadu leading the way. Maharashtra, Andhra Pradesh and Gujarat are the other States where our DTH has been quite popular. Currently, we are offering 35 television channels and 12 radio channels. We will be expanding our bouquet soon to include 52 television channels and 30 radio channels. Several private players have evinced interest in joining our DTH platform. However, DD Direct Plus being a free-to-air DTH service, we can only take non-pay channels. We are yet to take a decision on taking private radio channels on our platform. Doordarshan Channels DD-National DD-News DD-Sports DD-India DD-Bharati DD-Bangla DD-Chandana DD-Gujarati DD-Kashir DD-Malayalam DD-North East DDDD-Podhigai DD-Punjabi

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DD-Sahayadri DD-Sapthagiri DD-Gyandarshan DD-Lok Sabha DD-Rajya Sabha Private Channels Sun TV, Star Utsav, MH1, Jain TV, Akash Bangla, Kairali, BBC World, Punjabi, Smile TV, Zee Music, Aaj Tak, Headlines Today, TV9 ETV Marathi Radio Channels AIR Gujrati, AIR Kannada

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AIR Bangla, AIR Hindi, AIR NE, AIR Punjabi, Vividh Bharati, AIR Tamil, AIR Tegu, AIR Marathi, FM Rainbow

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CHAPTER

DISHTV

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Dishtv is an Essel Group venture. Essel Group has a vast range of national and global business interests that include media programming, broadcasting & distribution, packaging, entertainment, online gaming and telecom, in close synergies with ventures active in the areas of content, distribution and infrastructure. Essel Group has always been a pioneer - Zee TV the first Indian satellite channel, Sit cable the first MSO, Esselworld the first theme park, Play win the first online lottery, Essel Propack, which is the worlds No. 1 in packaging - were all revolutionary concepts in their respective fields.Continuing with the same path-breaking tradition, the group now brings to you a new era of digital quality TV viewing. Dishtv 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 what you pay for. It is almost like having your own satellite up in the sky. With Dishtv 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. Dishtv takes television viewing to the next level as it supports various futuristic features like Electronic Program Guide, Parental Lock, and Capacity up to 400 channels, Video Games, Interactive TV, Movie on Demand etc that act as value enhancements. Dishtv also brings to 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. Special Dish Network Offers Most people find convenience to be one of the most important aspects of choosing a television provider. Television viewing should be easy and provide plenty of enjoyable options. Dish Network offers its customers the maximum level of convenience, which has let it gain a subscriber base of over 12 million customers and win the JD Power award for best customer satisfaction. Dish Network is aware that customers are looking for the highest degree of service and choices, but also for simple, stress-free access. Dish Network makes it easy to switch to satellite TV, by giving you the option of ordering your new system online or by telephone. You can ask any questions you have about what equipment or programming would be best for you, and, once you have decided what to order, you can schedule your appointment for the professional installation. Within just a few days, a technician will come to your house to get everything set up and ready for your use. Because Dish Network offers great deals on their satellite systems, you will even receive your installation and equipment for free.

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DVR For the ultimate in home entertainment convenience, you will surely want to consider a Dish Network digital video recorder or DVR for short. With so many great channels to choose from, you are sure to want to record programs- whether you will miss them by being out of the house or you really want to watch two programs that are on at the same time. The DVR lets you watch these programs at a time that fits better into your schedule. Plus you can store up to 200 hours of programming to create your own library of your favorite shows. If you are watching a live program and something comes up, you can even pause or rewind your show so you don't have to miss a moment. This feature is especially convenient for sports games where you want to create your own instant replay. While every television company says it offers great customer service, Dish Network has continually proven that it puts its customer's needs first. Both recent surveys and the incredible number of people signing up for service show that customers appreciate everything that Dish network offers. By calling the toll-free number or checking out the on-line deals, you can also find out why Dish network is becoming the most popular satellite television provider. This is the end of your search for the best home entertainment. Switch to the best. Start now. Dish is giving impetus to customer care, the spokesperson says, "Better customer care through a 24/7 call centre is being ensured as we understand that happy and satisfied customers is the key to the success of DTH." Over the past few years, the DTH satellite industry has emerged with the launch of 55 DTH platforms worldwide. Subscribers to DTH platform or satellite premium services worldwide had skyrocketed to reach 60 million households in 2001, representing 200 million viewers, with an impressive growth in revenue to Rs 1,100 billion in 2001. Another 45 million households receive free-to-air TV channels through DTH.

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CHAPTER

TATA SKY

About Tata Sky

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Tata Sky Ltd., an 80:20 JV between TATA and STAR is committed to offering viewers the best of pay television through its nationwide satellite television service. Tata Sky offers subscribers a wide array of programming choices coupled with a host of interactive services. Tata Sky, a joint venture between Tata Sons and the Rupert Murdoch-controlled Star Group, is proposing to invest up to $ 500 million in capital expenditure in the DTH project that is looking at beaming 150-odd digital channels to subscribers' homes in India in the initial phase. Macrovision provides distribution, commerce and consumption solutions for software, entertainment and information content to the home video, PC games, music, cable/satellite, consumer software, enterprise software and information publishing industries. Macrovision holds approximately 240 issued or pending United States patents and more than 1,200 issued or pending international patents, and continues to increase its patent portfolio with new and innovative technologies in related fields. Macrovision is headquartered in Santa Clara, California, U.S.A. with other offices across the United States and around the world. Building on leading media companies' adoption of advanced technology to capitalize on the growth of digital content, Macro vision Corporation (NASDAQ: MVSN) is enabling its partners to create value in new distribution channels. Tata Sky Ltd., the joint venture from TATA and STAR, today announced that it has selected Macrovision technology to enable it to deliver protected blockbuster movies to consumers through its satellite television network in India. Macrovision is a registered trademark of Macrovision Corporation. All other brands and product names and trademarks are the registered property of their respective companies. With a big expansion plan in place, Tata Sky is investing Rs 3,000 crore and has already reached half-a-million households in 4,150 towns and cities across the country, through its 21,000-strong dealer network. Tata Sky's satellite television has also reached many hitherto inaccessible and remote areas such as Siachin. This is a world record in the DTH industry, Mr. Vikram Mehra, Head (Consumer Marketing) .The Company, 80:20 joint ventures between the Tata Group and STAR, is offering free subscription for three months to those subscribing. Tata Sky is currently offering 107 television channels on its platform for a monthly subscription of Rs 300 while the set-top box costs Rs 2,909 and its one-time installation charges are about Rs 1,000. Subscription for a second, third or four TV set in the same household would be given with separate set-top boxes and a monthly payment of Rs 300. Tata Sky's Active Sports viewers would be able to choose their favorite camera angle from which they wish to watch their cricketers. Highlights will also be available ondemand at any time during the match.

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Around the world consumers are excited about experiencing their favorite entertainment content in a variety of new and interesting ways made possible by digital technology, A big part of delivering on the promise of digital content is enabling key service providers like Tata Sky to offer content in a protected, flexible and consumerfriendly format. Tata Sky is an exciting company to collaborate with and we are pleased to play a key part in helping them offer their customers more choice and easier access to the content they want.

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CHAPTER

SUN DTH

Sun Network, India's second largest television network has power packed Twenty TV channels, Seven FM Radio Stations, Two Daily Newspapers and Four Magazines in several Indian languages. Original content is the essential driver for the consistent high performance of our media - the Sun Network controls over 50,000 hours of original content a year and is constantly adding to this vast value of content.

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Holding a bouquet of twenty top-rated channels in its clutch, Sun Network has got a reach, frequency and patronage that other groups covet but can't compete with. Sun Network believes in giving you wholesome fare. Be it news or entertainment, we are there first. If it is happening south of Vindhyas, its on Sun Network. And you are a part of it. With Twenty channels in four Indian languages and Seven FM Radio stations, we are able to connect to the Southern Diaspora erasing geographical distances. The response to our programmes and the viewership of our news has been phenomenal. The fact that we touch so many hearts gives us great pleasure. Every single South Indian channel that boasts of a No. 1 slot among its viewers belongs to the Sun Network. Crores of people all over the world watch a channel of Sun Network. With every programme a sell-out, every single transmission digitized, every serial a hit, for millions of viewers all over the world every day is indeed a Sunday. Sun Network believes in giving you wholesome fare. Be it news or entertainment, we are there first. If it is happening south of Vindhyas, its on Sun Network. And you are a part of it. We have come a long way. And its heartwarming to know that you were, and are, with us every step of the way. The response to our programmes and the viewership of our news has been phenomenal. The fact that we touch so many hearts gives us great pleasure. Sun network chairman and managing director Kalanithi Maran is preparing the ground to launch his direct-to-home (DTH) service. SUN DTH has decided on Iredeto as the encryption system while the set-top boxes (STBs) will be from Coship Electronics in China and South Africa based UEC Technologies, a source close to the company says. Sun is also looking at more STB vendors. Besides the basic box which will be competitively priced, he will have graded STBs. Multiple vendors will ensure supply safety in case of a huge demand for his service. Sun will be using MPEG-4 technology that will allow him to compress more TV channels per transponder. While MPEG-2 can pack in around 12 channels, the advanced compression technology will be able to accommodate over 20 channels. Sun will have seven Ku-band transponders on Insat-4B, which launches on 10 March07while Prasar Bharati's free-to-air (FTA) package DD Direct Plus will have five on the same satellite. Sun may consider him lucky when the launch of Insat-4C satellite failed in July 2006 after the rocket carrying it veered off course and exploded. He had booked six Ku-band transponders (and one more for digital satellite news gathering) on it for Sun Direct's DTH service. By being located on the same satellite, Sun's subscribers will be able to access DD Direct's channels without Maran having to separately put them on his transponders.

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Sun's channels command the highest audience shares in all the four southern states and viewership ratings for Sun TV during prime time in Tamil Nadu are way above those for Star Plus or Sony Entertainment Today, Sun TV is roughly one-fifth of the size of Zee. Its revenues for FY06 should hit Rs 325 crore (Rs 3.25 billion) compared with Zee's Rs 1,505 crore (Rs 15.05 billion). But if its initial public offering goes through, Sun's market capitalisation will be around Rs 5,000-6000 crore (Rs 50-60 billion) or half of Zee's Rs 10,000 crore (Rs 100 billion). The key to Sun's success, say industry watchers, has been the control over the distribution; it would be difficult for rival broadcasters to fight this even with superior content. Sun TV's multi-pronged growth strategy is based on:

Cashing in on audience share in a better environment Converting FTA channels into pay channels New niche channels for children and documentaries 41 new FM radio stations Leveraging the group's distribution business

So, Sun should command better pricing power, given its already high market share and the fact that it operates in the fairly affluent states of Tamil Nadu and Kerala. Analysts estimate the ad spend for the Tamil and Malayalam C&S TV markets at Rs 350 crores (Rs 3.5 billion) and Rs 100 crores (Rs 1 billion) in FY05 respectively. Despite this, it is hard to see the topline touching Rs 835 crores (Rs 8.35 billion) in the next couple of years, analysts predict. The DTH venture, too, will be set up in a group entity since regulations do not allow DTH in a broadcasting company. However, there will be indirect benefits since the same promoter controls all the businesses. Sun has built up a large library of around 2,600 films, in Tamil and Malayalam, which has helped it retain its prime position. Besides, it continues to buy rights for films.

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RELIANCE DTH

Reliance Entertainment is spearheading the Groups foray into the media and entertainment space. Reliance Entertainments core focus is to build significant presence for Reliance in the Entertainment eco-system: across content and distribution platforms. The key content initiative are across Movies, Music, Sports, Gaming, Internet & mobile portals, leading to direct opportunities in delivery across the emerging digital distribution platforms: digital cinema, IPTV, DTH and Mobile TV. Reliance ADA Group acquired Adlabs Films Limited in 2005, one of the largest entertainment companies in India, which has interests in film processing, production, exhibition & digital cinema. Reliance Entertainment has made an entry into FM Radio through BIG 92.7 FM. Launched across 13 cities now, BIG 92.7 FM is poised to become the largest FM radio network with more than 45 stations across the country. Reliance-ADAG had applied for license to enter DTH services about a year ago when the two Ambani brothers reached a settlement on the issue of ownership of the Reliance Group. Reliance sources said that Mr. Ambani was extremely keen on the high-end, 58

direct-to-home (DTH) broadcasting and was looking at alliances that would shorten the launch time. It is significant that the Tata-STAR venture was formally branded and launched as T-Sky soon after ADAEs official announcement of its proposed DTH venture. Reliance Communications DTH venture, Reliance Blue magic, has received the letter of intent from the ministry of information and broadcasting for offering DTH services. The nod came more than a year after the application was made. However, itll have to get licenses, which will take time, Also, the company will have to review the plan that was drawn out for DTH and figure out if it is relevant in the current market as two DTH operators have already scaling up operations, said sources. ADAG officials refused to comment on the matter. It is too early to say anything about our strategy. We are still in the process of drawing up plans, a senior company official said. September 2007 is the probable slated launch for Reliances Blue Magic or DTH service.Reliances DTH Venture Blue Magic may be in operation by the end of this year, informed industry sources. It is expected to differentiate its offering by way of quality of service and content. However as far as pricing is concerned, the source mentioned that DTH services are not viable below Rs 500 per subscriber and hence Blue Magic may be expected to offer its services at Rs 500. Close to Rs 200 crores have gone into the DTH venture of Reliance.

The potential of DTH in India is considered to be at 10 million subscribers. Of this universe, Dish TV and Tata Sky have already got close to 3.5 million subscribers. So the balance 6.5 million subscribers will effectively be shared between the five players. However, some shifting will also take place. Sources say that Blue Service may be looking at getting close to 2 million subscribers of the balance share. If a DTH subscriber shifts to another operator, the earlier set top box stands useless. So, while those with deep pockets will replace the set top box free of charge in order to get more subscribers, the ones running on tighter budgets will have to address this issue differently, considering that investment in set top boxes by a consumer is close to Rs 3000. In my opinion, Reliance has to fight the perception of a company which doesnt care. It is definitely a tough call; re-branding exercise or not. An ageing star brand ambassador cannot do anything about it.

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Cable vs. DTH An Overview of the World Scenario

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In the wake of the opening up of the earth and skies (literally) to private operators, India is all set to see a "war of the accesses". With very few large players, a widespread geography and an extremely rowdy and unorganized cable operator set-up, the options between DTH and Cable as access modes are both set to woo the ever increasingly discerning Indian consumer. Canada Cable competition has increased in Canada in the past few years due to changes in technology and government regulations. There have been delays, however, in launching direct broadcasting services (DBS), largely due to restrictions against non-Canadian programming - 51 per cent of channels carried on cable and DTH must be Canadian programming. As a result, a "gray market" exists: subscribers illegally using US made dishes and receiving US satellite signals. Despite the popularity of the dishes, Canadian DBS consumers basically face the same problems as US consumers: 1) Lack of local broadcast signals, 2) expensive equipment and installation, 3) zoning laws and tenant restrictions against mounting dishes, and 4) digital converters necessary for each TV set (and additions are costly). As in the US, the main factors affecting consumer choice between cable and DBS are programming choices, cost, and signal quality. In major markets, DBS offers a few local channels but cable still has the advantage. As in the US, Canadian cable operators

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plan to compete with DBS via new services, i.e. internet, digital and telephony. Despite competition from DBS and other subscription video services such as wireless, cable penetration has increased in the past few years, from 65.3% in 1994 to 67.8% in 1996. Competition in Canada is likely to increase overall multichannel subscriber ship, but cable has an advantage due to price and local programming. Latin America Latin America has approximately 13.4 million multi-channel subscribers with an overall penetration rate of 15 per cent. The problem with piracy has started to improve as thousands of cable licenses are being granted across the region. Deregulation of both cable and telecommunications is bringing foreign investment into Latin America, especially from the US, Canada and Europe. Consolidation and acquisition is necessary in order to upgrade cable networks to provide cable telephony and other new services. Smaller cable and MMDS systems are being acquired by the major MSOs. DBS has provided further impetus for cable operators to upgrade, with their digital packages providing 150 and more channels compared to 50 on cable. There were 487,000 subscribers to DBS in 1997, with 3.2 million forecast by 2002. Due to its high cable penetration rate, DBS growth in Argentina may be limited. Regulations and pricing have slowed DBS progress equipment costs and programming packages are expensive for the average consumer. Europe Cable companies around Europe are consolidating in order to upgrade their networks to provide digital, interactive and telephony services in Europe. Cable telephony is already in service in the UK and Scandinavia and is cable companies' biggest strategy against DTH in those countries. In fact, in the UK, cable telephony revenues are surpassing cable televisions. Cable television has over 30 million subscribers in Europe, but DTH is no idle threat with 17 million. Germany leads the region in both cable and DTH subscription with 28 million subscribers in both. Cable television has been in the U.K. since the early 1980s when the first franchises were awarded. In 1990, DTH services were launched with BSB and Sky - they were not successful and merged. Significant consolidation has taken place and today there are some half dozen cable operators. The UK has more DTH households than cable with a penetration rate of 15.9% vs. 11.8%. In Eastern Europe there is a high penetration of analog DTH compared to cable, but nothing much happening in digital either way so far. Africa

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It is difficult to predict the future for television in Africa. The liberalization of broadcasting regulations and the increasing penetration of low cost DTH technology have led to significant growth in Africa's television market. In November 1995, Multichoice was launched and continues to dominate the African DTH market. Multi-choice claims over 1.1 million subscribers, and even far-away places such as Zambia are receiving Multichoice's M-Net channels and have as many as 4,800 subscribers. The challenges, however, facing the African DTH market can be identified by a lack of funds, technological discrepancies or government intervention. DTH seems to be the most economical method of reaching widespread population, however it is also faced with the challenge of providing services to a country having over 60 dialects and widespread population that may have no interest nor means in paying for a satellite service because of its cost.

Middle East The Middle East, with a population of over 165 million and over 26 million television homes, demonstrates a market with significant potential. However, it remains a market where only a small minority actually pays for what they watch on TV. Cable TV is experiencing growth first beginning in Israel but Qatar has 12 channels available, while Bahrain and the UAE both have ten. The multi-channel alternatives, satellite and MMDS, are increasingly important, though in some states such as Qatar they are mutually exclusive. The satellite TV sector exploded after the Gulf War with the launch of services such as ESC (Egypt) and MBC (UK) in 1991, EDTV (Dubai, UAE) in 1992, Abu Dhabi in 1994, LBCI, FTV (Lebanon) and Al Jazeera (Qatar) in 1996 and ANN, a Syrian-owned channel broadcast via London, in 1997. The consumer taste for variety and polished programming packages has laid the foundation for the conversion from over-the-air broadcasting to pay TV. The challenge to becoming a successful operator in the Middle East lies in the provider's ability to offer a unique product while adhering to the cultural and religious sensitivities of the market.

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Satellite penetration is as high as 27% in Saudi Arabia and as low as 6% in Lebanon. Because of this widespread difference, it can be argued that MMDS will become the dominant medium for pay TV. Star TV, for example, is marketing the MMDS network in Qatar, Dubai and Bahrain. Finally, the Middle Eastern television viewer has yet to come to terms with actually paying for quality entertainment, but time will tell what will happen. Asia Broadcasting in Asia continues to grow by leaps and bounds. Penetration is consistently on the rise with DTH and cable penetration currently reaching one in five TV households and estimated to reach one in three households by 2005. In 1991, the first subscription DTH service was launched which led the way in the Asian satellite revolution. Growth is expected in cable, MMDS as well as DTH to meet consumer demand which is likely to rebound strongly after the current turmoil recedes. Which technology prevails in each market is likely to be determined by a combination of factors including geography, which technologies were first established, which players have the most "political clout", etc. Concentration of population and income level will dictate the ease in which a consumer can access a pay TV service. Australia In July 1997, the telecommunications market in Australia was deregulated allowing new carriers to compete directly with the two incumbent carriers, Telstra and Optus. Australia is also a unique study in cable, because it is one of the few countries in the world where competing services are laying fibre-optic cable and hanging it overhead simultaneously. The road to convergence in Australia has also not been a smooth one. The services vying for the ability to provide cable, telephony and data transmission all in one are experiencing losses at an alarming rate. Cable is in a state of overbuild with over 1 million homes already passed. It also seems that these competing cable companies are readily accepting losses in order to gain market dominance. Attempts to merge these systems have been repeatedly foiled by Australia's anti-trust regulator, the ACCC. Just what the future holds for Australia is unpredictable but one thing is certain, opportunities exist for the large and knowledgeable participant in traditional media and television, while emerging technologies and convergence opportunities will arise with the deregulation of the telecommunications sector.

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India India is a dynamic study in itself. Just ten years ago, about 20 per cent of the total homes could only receive government services broadcast on one channel operated by Doordarshan, the national television operator. By 1997 there were 50 private satellite channels and 19 different services from a revitalized Doordarshan. One-third of the homes now have television and about 10 per cent of the total homes subscribe to cable. The most significant event in the cable sector was the passage of the Cable Television Ordinance Law in January 1995. This ordinance requires the registration of cable operators and mandated technical standards that required most operators to upgrade their systems in addition to issues regarding content. This legislation has ended the "cottage industry or small scale industry," at least in the secondary cities. At one time there were over 100,000 cable operators in India, but that number has since been reduced to 60,000 networks. Many operators wishing to avoid the obligation of paying steep entertainment taxes, which can be as high as 30 to 40%, or the cost to upgrade their systems are selling out to emerging MSOs such as Siti Cable and In Cablenet or forming alliances to compete with larger MSOs.

The challenge for cable exists in the rural areas where installation and application are extremely cost prohibitive, and nearly three quarters of India is designated as rural territory. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks. Some of the key player who has shown an interest in operating a DTH service is the Star, Zee Telefilms (the Subhash-promoted group has decidedly cooled off on it though) and the Modi Group. Two or three other DTH packages are expected to launch in 2002, and package choice is likely to increase subscription rates in the medium term, although different marketing techniques may generate confusion as the benefits vary from package to package. DTH providers claim to target only the wealthy rural population, although a high proportion of their subscribers will be the urban rich as well, many of whom already subscribe to the higher-end cable networks. DTH, however, is faced with a lack of high quality programming, a lagging infrastructure for distribution and collection and technological barriers. However much like the USA the extremely high penetration of Cable in the Indian households would be a definite threat to the highly optimistic proponents of DTH in the country. Also, the MSOs are in an active drive to upgrade their existing networks in order to lay a backbone for the recently liberalized broadband industry. Hence the cable operators seem to have won the first round of the battle by providing the consumer value additions in the form of high speed Internet and other services.

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CHAPTER

IPTV
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IPTV (Internet Protocol Television) is a system where a digital television service is delivered using the Internet Protocol over a network infrastructure which may include delivery by a broadband connection. For residential users IPTV is often provided in conjunction with Video on Demand and may be bundled with I Video on Demand Internet services such as Web access. The commercial bundling of IPTV Internet access is referred to as a Triple Play. Adding the mobile voice service leads to the Quadruple Play denomination. IPTV is typically supplied by a broadband operator using a closed network infrastructure. This closed network approach is in competition with the delivery of TV content over the public Internet. This type of delivery is widely called TV over Internet or Internet Television. In businesses IPTV may be used to deliver television content over corporate LANs and business networks. Perhaps a simpler definition of IPTV would be television content that instead of being delivered through traditional formats and cabling is received by the viewer through the technologies used for computer networks. History In 1994, ABC's World News Now was the first television show to be broadcast over the Internet, using the CU-SeeMe videoconferencing software. In the past, this technology has been restricted by low broadband penetration. In the coming years, however, residential IPTV is expected to grow at a brisk pace as

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broadband is now available to more than 1 million households worldwide. Many of the world's major telecommunications providers are exploring IPTV as a new revenue opportunity from their existing markets and as a defensive measure against encroachment from more conventional Cable Television services. In the mean time, there are thousands of IPTV installations within schools, corporations, and other institutions that do not require the use of wide area connectivity. Broadcast IPTV has two major architecture forms: free and fee based. As of June 2006, there are over 1,300 free IPTV channels available. This sector is growing rapidly and major television broadcasters worldwide are transmitting their broadcast signal over the Internet. These free IPTV channels require only an Internet connection and an Internet enabled device such as a personal computer, HDTV connected to a computer or even a 3G cell/mobile phone to watch the IPTV broadcasts. See also: Internet television Mobile TV Because IPTV uses standard networking protocols, it promises lower costs for operators and lower prices for users. Using set-top boxes with broadband Internet connections, video can be streamed to households more efficiently than current coaxial cable. ISPs are upgrading their networks to bring higher speeds and to allow multiple High Definition TV channels. In 2006, AT&T launched its U-Verse IPTV service. Comprised of a national head end and regional video serving offices, AT&T offered over 300 channels in 11 cities with more to be added in 2007 and beyond. While using IP protocols, AT&T has built a private IP network exclusively for video transport. IPTV uses a two-way digital broadcast signal sent through a switched telephone or cable network by way of a broadband connection and a set-top box programmed with software that can handle viewer requests to access to many available media sources. Definition and Overview Definition IPTV is a system used to deliver digital television services to the consumers who are registered subscribers for this system. This delivery of digital television is made possible by using Internet Protocol over a broadband connection, usually in a managed network rather than the public Internet to preserve quality of service guarantees. Often, this service is provided together with Video facility on demand. In addition to this, there is provision to include Internet services such as web access and Voice over Internet Protocol. In cases when internet service is also provided, it may be called Triple Play. Today, IPTV is creating headlines all over the world. This mass publicity is the result of numerous instances and stories depicting its humble deployments and its future. IPTV is a very useful system, through which you can receive both TV and video signals along with other multimedia services by means of your Internet connection. In a

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nutshell, it is nothing but a broadband connection and a system to deliver various programs of television using the Internet protocol (i.e., language) over computer networks. Overview it is important to remember that IPTV is not like any ordinary television program broadcast through the Internet, but rather it is unique in itself. Its contour is represented by a closed, proprietary TV system which is similar to the cable services present today. But, in contrast, the delivery of IPTV is made via IP-based secure channels, which result in a sharp increase in content distribution control. The role of IPTV is to integrate numerous ways to scrutinize and trace choices of users. Its role is also to mark out the preferences and selections over a particular time period. It is therefore emerging as a perfect platform on which clients add personalized ecommerce options and a more targeted advertising. By now, IPTV has turned out to be a widespread denominator for systems where both television and video signals are circulated to subscribers or viewers.

IPTV uses an Internet Protocol over broadband connection and very often this service has been provided in parallel with the Internet connection of the subscriber, supplied by an operator dealing with broadband. This is done by using the same infrastructure but apparently over a dedicated bandwidth allocation. Hence, we can describe it as a system in which a digital television service is provided to subscribing consumers over a broadband connection using the Internet Protocol. Moreover, one must also remember that IPTV is noticeably different from "Internet Video". Internet Video provides services to watch videos, such as movie previews and web-cams. This service is a so-called "best effort" by providers of Internet, which has no back-to-back service management along with quality of service considerations. In contrast, IPTV technology is more advanced, user friendly, and incorporated with the higher speed digital subscriber line (DSL) access technologies, such as asymmetric digital subscriber line (ADSL2), ADSL2+ and very-high-data-rate digital subscriber line (VDSL). This certainly offers eye-catching revenue-generating opportunities for the telecom service providers. Therefore, IPTV allows the service providers to participate and to compete efficiently in the so-called "triple play" market space. It is important to note here that the service is very prompt and effective with the delivery of voice, data, and video services to customers who can be both residential and business related. In this article I report about the very negative experience of installing the newest Internet high-speed offering cum IPTV solution in my home as to avoid others not only

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the same frustrations and the waste of time and money, but also to share the fact that what many may still perceive as an upgrade offer to their Internet connectivity, is nothing else but your own very unconscious capitulation to net neutrality, as well as your official consent to install a proprietary IPTV system at your premises. "I am trying to watch some video clips from YouTube but I am scratching my head as none seems to load. What's going on? Why is everything so slow? Alice Home TV is taking all the bandwidth available, however large that is. I am left in a second-class channel, where I can see little or nothing of what I really wanted to see. Talk about what net neutrality looks like? While I would have sworn total resistance and refusal to both IPTV and regulations against supporting full net neutrality, I, a new media reporter, have fallen like a sleepy fish into the wide net set up by one telco (telecom - company). Nonetheless my articles on IPTV and its key differences with "open", bottom-up, Internet television, I couldn't see an IPTV line being installed in my home right in front of my nose, if only when it was too late. And just the same, nonetheless I have spent a good amount of time writing and preparing articles that would inform many of you on the significance and dangers that a lack of net neutrality would bring, I was myself the doorman that let my telco install hardware and devices that would in fact allow my provider to slice and dice how much bandwidth I would get for my own private web surfing, relative to the private commercial interests of my own telco IPTV channel. A telecom company, who is also a large Internet provider, needs only a little marketing campaign to convince its users and potential clients that with about $50 a month they can get the most unique offer to come around in recent times: super-high-speed Internet access, (the customer representative who called me to explain this offer and clarify any doubts said specifically 20 Mbps), home television channels with free and pay-per-view content including movies and live sports, and even a video-phone! What they don't tell you is that the moment you accept to do that, this is what will really happen: Protocols The playback of IPTV requires either a personal computer or a "set-top box" connected to a TV. Video content is typically compressed using either a MPEG-2 or a MPEG-4 codec and then sent in an MPEG transport stream delivered via IP Multicast in case of live TV or via IP Unicast in case of Video on Demand. IP Multicast is a method in which information can be sent to multiple computers at the same time. In standards-based IPTV systems, the primary underlying protocols used for:

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NPVR (network-based Private Video Recorder) Network Personal Video Recording is a consumer service where real-time broadcast television is captured in the network on a server allowing the end user to access the recorded programs on the schedule of their choice, rather than being tied to the broadcast schedule. The NPVR system provides ultimate time-shifted viewing of broadcast programs, allowing subscribers to record and watch programs at their convenience, without the added expense and maintenance needed for a hard driveequipped set-top box. It's like having a PVR built into the network. In this way, services usually provided by popular consumer electronics hardware can be offered as network services. Subscribers can watch what they want, when they want, without needing yet another device or remote control. Interactivity An IP-based platform also allows significant opportunities to make the TV viewing experience more interactive and personalized. The supplier may, for example, include an interactive program guide that allows viewers to search for content by title or actors name, or a picture-in-picture functionality that allows them to channel surf without leaving the program theyre watching. Viewers may be able to look up a players stats while watching a sports game, or control the camera angle. They also may be able to access photos or music from their PC on their television, use a wireless phone to schedule a recording of their favorite show, or even adjust parental controls so their child can watch a documentary for a school report, while theyre away from home. Better compression IPTV uses a more efficient compression standard than Free-To-Air digital television, resulting in lower bit rates for streams, but higher compression may result in lower quality TV pictures in some instances. Triple Play Traditionally, TV has come down one wire cable TV or a terrestrial antenna, the telephone has used another (the "Plain Old Telephone System"), and the Internet has been available on either. Both cable operators and Telco operators are starting to offer all three on one wire, which is more cost effective. Triple play is an expression used by service operators describing a bundle of telephony, data and video via a single connection. Triple play also refers to the combination of three services (typically Video, Voice and Internet) bundled together to entice customers to purchase all three products at a reduced rate. A quad play bundle usually includes a wireless component.

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IPTV based Converged Services Another advantage of an IP-based network is the opportunity for integration and convergence. A converged service implies interaction of existing services in a seamless manner to create new value added services. One good example is On-Screen Caller ID, getting Caller ID on your TV and the ability to handle it (send it to voice mail, etc). IPbased services will help to enable efforts to provide consumers anytime-anywhere access to content over their televisions, PCs and cell phones, and to integrate services and content to tie them together. Within businesses and institutions, IPTV eliminates the need to run a parallel infrastructure to deliver live and stored video services. Limitations Microsoft TV IPTV Edition is an integrated and comprehensive software platform developed specifically to deliver broadcast-quality video and new, integrated TV services over broadband networks. The platform combines market-leading features such as instant channel change (ICC) and multiple picture-in-pictures (PIP) with traditional TV services such as broadcast programming, VOD, and DVR. The software is developed to integrate seamlessly and economically with other IP-based communications and media services for PCs, phones, and other consumer devices. Microsoft TV IPTV Edition is ideal for telecommunications carriers and for cable operators looking to deliver differentiated TV services and experiences. Deployments of Microsoft TV IPTV Edition are in progress with leading broadband network operators around the world. Digital Video Recording With an internal or external hard disk drive, customers can pause, fast-forward, and rewind live and recorded content. With IPTV Edition, multiple recordings can be made without the need for multiple tuners, so there is no need for costly hardware upgrades. Management and Maintenance Software IPTV Edition incorporates industry leading SQL Server, BizTalk Server, Systems Management Server and Operations Management software, which help simplify the day-to-day management and maintenance of the IPTV solution. Build Value With Connected Experiences. Microsoft TV IPTV Edition is a comprehensive software solution that supports exciting new features, services, and experiences across devices in the home. Connected Devices and Media Provide simple, encrypted access from consumers' TVs to photos, music, and video located anywhere on a home network. Enable consumers to review and record TV programming remotely via the Internet. Connected Communications The Microsoft TV IPTV Edition platform enables operators to display caller ID

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information, instant messages, e-mail, or SMS on the TV even notify consumers about TV schedule changes as they occur. Connected Systems and Delivery Use unified configuration, operation, and management tools and interfaces to manage legacy back-office systems. Integrate delivery of TV services with voice and data services over common network architecture. IPTV heading for mass-market status IPTV is moving rapidly towards mass-market adoption. The involvement of incumbent telecoms operators in most major markets by 2007 (France, Spain, Italy, UK, Germany, Austria and the Netherlands, for example) will provide the marketing, word-of-mouth and - for the many conservative-minded television viewers yet to switch to digital TV the credibility that could boost the market for all IPTV providers. France Telecom has already announced that it will launch IPTV in Spain, the UK and Poland this year, followed by the Netherlands (not to mention Mauritius, Senegal and the Ivory Coast). Meanwhile Telecom Italia - through its subsidiary HanseNet - is adding television to its existing telephone and DSL services in Germany, starting in Hamburg. Telecom Italia also launched television services in France (via Telecom Italia Frances AliceBox triple-play service) in January. Meanwhile, Deutsche Telekom subsidiary T-Online is taking IPTV to Hungary, with a planned commercial roll-out of TV-over-DSL in Budapest and other major cities later this year. So with high-speed networks available and expanding their reach, multiple service launches and growing subscriber figures, the big questions are how much market share IPTV providers can take from satellite and cable, and whether they can make money if indeed, video revenues are their real motive rather than simply reducing churn on voice/data customers. Are there digital TV newcomers who will choose IPTV ahead of digital terrestrial - and are these the customers IPTV providers want? And can companies differentiate their services sufficiently from cable and satellite to tempt existing Pay TV subscribers away from them? IPTV WORLD FORUM 2007 Now in its third year, IPTV World Forum is established as the most important IPTV conference and exhibition. We continue to use our close contacts with IP video providers worldwide to create a market-leading conference programme that draws upon the experiences of key executives and engineers who have been directly involved in shaping and deploying IPTV services. This is combined with a lively and fast-growing exhibition and extensive networking opportunities to ensure that IPTV World Forum is an acknowledged gathering place for the IPTV community each spring. We will assess service strategies including how HDTV can be monetized most effectively, and how PVR, network PVR and Video on Demand can be harnessed to provide seamless on-demand experiences. The conference will examine how operators 73

can link live broadcast TV with on-demand TV and on-demand/interactive advertising, and how interactive applications can be exploited to increase customer satisfaction and revenues. Content strategies are another important subject that will be covered at IPTV World Forum 2007 - including availability, pricing, bundling, up selling, loss-leading and promotions. The conference will look at what type of content is working on IP networks today, and what kind of content can help drive ambitions for whole-home and mobile video experiences. This conference will also reflect the fact that IPTV roll-outs are ongoing and will look at major IPTV deployments during late 2006 and 2007. In particular, we will be assessing what impact deployments by major incumbent operators are having outside of their home markets. Typically that means an experience that's more like traditional TV, with the ability to flip channels and tune into live broadcasts and all that. We do know that Microsoft has been working on IPTV stuff for years now (they already offer a set-top box-based system that's being test marketed by a handful of telcos around the world), so it wouldn't be a shock to see them try and leverage the Xbox 360 as a platform. Right now we're just curious to see how they'd pull it off from a technical standpoint and what networks and/or programming they might be offering. Most folks my age and younger get their news not from the TV, but from the web, word of mouth, or perhaps even radio. Its not just TV, but Richard reflects that Subscription based content (like Cable and PPV) will increase and Ad media will diminish. The same could be true on the internet, websites that allow downloading of media will continue to explore and eventually grow.

IPTV in India
IPTV is coming to the Indian market. It's being implemented on a pilot basis in Bangalore All the basic services operators, looking for new revenue sources to compensate after the rise and rise of mobiles, are trying out the technology. And the two incumbents, BSNL and MTNL, are keen on generating new revenue streams from their costly local loop assets. Using fiber-to-the-premises to deliver IPTV is being tried by some operators. Besides, advances in technology have made running video over copper local loops more of a practical proposition. But the market for TV and video in India is not exactly empty. There is the huge cable and satellite TV infrastructure (with nearly 50 million subscribers) to contend with. The private telcos are working out business models, with their content providers and equipment/software partners, to penetrate the market. The incumbents have chosen the franchising route, looking at the franchisee as a 'strategic partner' to market the concept

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and organize supply. The success of IPTV in India will critically depend on the unique value proposition it offers relative to the existing cable TV fare; on successful implementation of last mile strategies; and on successfully ironing out bugs in the new technology, as well as support services like billing.

CHAPTER

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RESEARCH METHODOLOGY

The backbone of any research is the methodology used for it. Without a proper and effective methodology, research has no substance. In this chapter, I have discussed significance of the research, the statement of problem, objectives of the study etc. I have also focused on research design, sampling design and the methods employed for primary and secondary data collection. SIGNIFICANCE OF THE RESEARCH As I mentioned earlier that less research has taken place in the field of DTH distribution channel, the study will help me as well as companies who are taking the DTH distribution channel initiatives to get to know about the consumers preferences and their attitudes towards the their products. It will also be useful to marketers to design appropriate positioning strategies as well as in deciding upon how to differentiate themselves from the competitors.

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STATEMENT OF THE PROBLEM The study is an attempt to look at basic DTH distribution channel practices of Indian companies. As the concept is new in the Indian context, I have also tried to know something from the dealers, distributors, and retailers about their awareness of DTH products and how distribution channel and how it is worked. SCOPE OF THE STUDY Geographic Scope The study is limited to finding out DTH distribution channel working practices by different companies located in Ahmedabad only. The research companies include DD Direct, Tata sky and Dishtv OBJECTIVES OF THE STUDY The main objective of the study is looking at DTH distribution channel system of the Indian companies. Apart from this, the other objectives of the study are stated below. 1. To understand the concept of distribution channel marketing. 2. To compare DTH, CAS and IPTV. 3. To look at the importance of distribution channel. 4. To analyze the benefits distribution channel. 5. To explore the problems that companies face in distribution channel. 6. To study of DTH current market players and future coming playres 4.5 RESEARCH DESIGN The research design taken for this study was exploratory, followed by descriptive research. As the major objective of the study was to look at the green marketing

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practices of organizations, a thorough analysis of the secondary literature was done to come out with a few general practices followed across different industries. So the research had to look at both secondary information as well as primary information about eco-practices of Indian companies. Exploratory research helps in finding out the general green marketing practices and the descriptive research helps to test these practices in Indian context. A semi-structured questionnaire was developed for understanding the green marketing practices of Ahmedabad based companies. The questionnaire sought answers from senior managers of these companies about their eco-practices. The base of the questionnaire was a Likert scale, followed by open ended questions. Another questionnaire was developed to check the awareness of eco-friendly products amongst customers or general public. This questionnaire basically looks at the relationship of awareness with age and occupation of the respondents. 4.6 SAMPLING PROCEDURE As I mentioned earlier the geographic scope of the study is Ahmedabad city only. There are many companies in Ahmedabad which are following green marketing, but the companies for research were selected on the basis of convenience sampling. The reason being access to their senior managers and their willingness to provide relevant information. For the awareness research also the convenience sampling was used because of easy of administration and willingness of respondents. 4.7 DATA COLLECTION 4.7.1 Secondary Data Collection

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For any research, the researcher would first of all look at the secondary information available. For my research, the data has been collected from books, journals, research papers so as to develop the conceptual understanding of the topic. The source of all these was AES PG Institute of Business Managements library only. The World Wide Web or the internet was of great help in finding out a lot of information about the topic. Search engines like AltaVista, Google, yahoo, dogpile etc were of great help. 4.7.2 Primary Data Collection The primary data was collected through two sets of questionnaires, one for senior managers and another for customers. The questionnaire for managers contained 3 parts namely respondent profile, Likert scale questions and open ended questions. The questionnaire for customers was very short basically looking at rough idea about the awareness of eco-friendly products. 4.8 DATA ANALYSIS The actual work of researcher starts after the collection of data. Only heaps of data does not serve the purpose of primary research. The data are to be classified and analyzed properly so as to get the deep insights into the problems or the prospects of the opportunity. On the basis of green marketing practices research and awareness research, I will present facts and figures with the help of statistical tools as and when required. A few hypotheses will be tested as well as qualitative analysis has been done of descriptive open-ended questions.

4.9 LIMITATIONS OF THE STUDY The following are the limitations of the study:

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The study was undertaken with Ahmedabad based firms only. marketing are not located only in Ahmedabad.

So the

geographical coverage is a limitation as all organizations following green Time and cost Technical Infrastructure and expertise in using proved statistical tools

Chapter 6

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CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

As I discussed in the earlier chapter, I have conducted two types of primary research. One related to green marketing practices followed by organizations and another related to awareness of environment friendly products amongst customers. In this chapter, I have discussed the analysis and interpretations of the survey results. The instruments used are put in the appendices of the report. GREEN MARKETING PRACTICES FOLLOWED BY THE ORGANIZATIONS In order to know the green marketing practices of Indian companies, 3 Ahmedabad based firms were selected. They are Navneet Publications (India) Limited, Tata BP Solar India Limited and Ashapura Trade & Transport Pvt. Ltd. The related company information is presented in Chapter 5. The instrument developed for knowing green marketing practices followed by these organizations was divided in 3 parts. The first part looked at the respondent profile; the second part was designed to check practices. In this part, 21 statements were developed and the respondents were required to express their agreement or disagreement on a Likert Scale. The third part was aimed to know more about the organizations green initiatives and knowing thoroughly about their green practices. This part was made up of open ended questions. On the basis of part B of the questionnaire, the following 5 green marketing practices were identified and the organizations were assessed on these criteria. Product Price Promotion Corporate social responsibility Other organizational issues

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The product criterion looked at checking whether the organization is adopting product modifications, process modifications, packaging changes or innovations. It was found that organizations differed on this criterion. The reason being that the organizations selected represent different industries and accordingly some believed in innovations while others believed in product modifications and others. The price criterion aimed at checking whether the organizations believed that green marketing leads consumers to pay a price premium and whether going green costs more to them. It was found that organizations were having a good consensus on this criterion. They believed that customers pay a price premium for their eco-friendly products and they were also of the opinion that going green causes their cost to escalate in the initial period. The third criterion was basically looking at companies promotion policies. It checked whether green marketing organizations were promoting the environment benefit of their products. It also looked at whether green marketing helps promote and/or differentiate their products and ultimately more market share. It was found that All the three organizations were promoting eco-friendliness benefit of their products They also believe that green marketing helps them in promoting and differentiating their products. Less awareness about benefits of using eco-friendly products is considered a hindrance for them. The study also looked at knowing the motivations of these organizations for venturing into green marketing. So the fourth criterion looked at corporate social responsibility as one of the motive for going green. Not surprisingly each of them agreed that CSR is one of the important motives for them getting into green marketing. They also believed

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that organizations pursuing green marketing are more proactive towards the environment. The other issues addressed by the study relate to stakeholders, corporate image of the pursuing organization, government influence and others. findings related to that. Green marketing is beneficial for the eco-system and it also is helpful in shareholder value creation Green marketing organizations have better corporate image. In certain industries, government influence plays a role to force companies go green. Green marketing can be helpful as competitive advantage while dealing with competition. The following are the

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AWARENESS RESEARCH

Age Distribution of Respondents

>40 26% 30-40 24%
20-30 30-40 >40

The chart shows the age distribution of the respondents. Majority of the respondents were below the age of 40 years.

20-30 50%

Occupation Distribution of Respondents

Students Businessmen

33%

Professionals

The research conducted took students, businessmen and professionals. More number of students were taken in the survey due to their willingness to respond.

21%

46%

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Awareness of Eco-friendly Products

Aware Aware 72% Not Aware

Not Aware 28%

The research indicated that in the sample approx. 72% respondents were aware about environment friendly products. One of the reasons may be more no. of students and professionals being in the sample. Also the newly launched electric bikes, solar cookers, governments move against plastic bags and CNG fuel are some of the products which can be considered as reasons for high awareness of eco-friendly products.

After checking the awareness level of eco-friendly products, the research targeted at knowing the products which come to the respondents mind when they have to give names of eco-friendly products. Though the responses varied, but some products were general in the responses. They are as follows. Electric bikes ( Yo-bykes) CNG and LPG run vehicles Eco-buddy Notebooks Recycled plastics Paper carry bags Solar energy products like solar cooker, solar heater etc Organic food Herbal cosmetics

Source s of Aware ne s s
N ewsp ap ers T elev isio n Frien ds Bo o k let s, P am p h let s et c In t ern et Radio

I also tried to know which are the main sources of awareness for ecofriendly products. Though there were variations across different categories, but in general newspapers, televisions, friends and company booklets, pamphlets were the main sources. Especially in the student category Internet was also one of the important sources.

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Purchase Behavior of Eco-friendly Products

Yes No

No 58% Yes 42%

Though 72% of the respondents were aware about environment friendly products, only 42% has actually bought any. Of these, the main products were either notebooks, CNG, herbal cosmetics or e-bike etc.

After knowing the purchase behavior of eco-friendly products, respondents were asked about the motivations for using the eco-friendly products. From the responses, the following motivations or causes are generalizable. To be a responsible citizen To help reducing environmental harm Good for health Cost effective in the long run Greenpeace activists Uniqueness of the products Availability etc..

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Ms. Luz T. Suplico (Marketing) of De La Salle University, Philippines conducted a study regarding purchase behavior of eco-friendly products by students. The study aimed to determine the impact of green marketing on the students purchase behavior. The major points for consideration were awareness about eco-friendly products, sources of awareness, students purchase behavior, motivations for buying and using environment friendly products etc. The study also looked at checking whether the awareness and purchase behavior is the same across different age groups, gender, income level etc. I also have tried to cover these aspects in my research in Indian context. To check the awareness status among different age groups and different occupations, two hypothesis were set. They are as follows. Awareness of eco-friendly products is independent of age. Awareness of eco-friendly products is independent of occupation. The study reveals the following There is a clear relationship between the awareness of eco-friendly products and the age of respondents. Thus it can be inferred that green marketing awareness depends on the age and varies across different age groups. statistical analysis is present in the appendices. There is a dependency relationship between eco-friendly products awareness and occupation. Students generally were more aware about eco-friendly products, businessmen and professional were also aware about eco-friendly products but the awareness varied widely amongst different occupations. Thus it can be said that green marketing awareness is dependent on occupation of customers. The relevant statistical test is present in the appendices. The relevant

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DATA ANALYSYS AND INTERPRETATION

BIBLOGRAPHY

Source: Industry Estimates & PwC Analysis GOOGLE Tat sky Dishtv Ddindia Cablequest

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