“An In – Depth Study Of DTH

Industry In INDIA”

Presented By:
Ankit A. Modi
(23)
Bhavya Patel
(90)
Fahad Ramporia (46)
Introduction
Definition
“A digital satellite service that provides television services
direct to subscribers anywhere in the country. Since it makes
use of wireless technology, programs are sent to the
subscriber's television direct from the satellite, eliminating
the need for cables and any cable infrastructure.
Product History
•Concept of satellite television started 64
years ago in the mind of Arthur C. Clark.

•HBO moved first to satellite delivery of

programming.

•DTH Satellite receivers were developed in the

Early 1980.

•In 1981-85 dish fever grows faster in the

world.

•In India STAR TV initiated for DTH plans in

1997.
Substitutes of the product

1.Cable Operator

2. IPTV
(live television, time-shifted
programming, and content on
demand )
Product Technology and
service processing
 Television receive-only
 Direct to home television
• Programming
• Broadcasting centers
• Transmission
• The Dish
• The Receiver
Industry Life Cycle
Year Subscribers
(In million)
2003 0.00

2005 1.00

2007 4.00

2009 18.70

Source :TV VEOPAR JOURNAL/ April 2009/ Page No:40

Global Scenario
Region/Country Players

http://www.strategyr.com/DTH_Satellite_TV_Services_Market_Report.aspx
Source:
   
The United States 11

Canada 5
Japan 2
Europe 23
France 4
Germany 1
U.K. 5
Italy 1
Spain 1
Rest of Europe 11

Asia-Pacific (Excluding 28
Japan)
Middle East 2
Latin America 8
Africa 1
Indian DTH Industry
 Permitted in 2000, Started in 2001.
 Private Players entered in 2003 (Dish TV).
 Current 7 players (1 Govt. + 6 Private).

Company's Name Subscribers Market Share

(In Million)

Dish TV 5.92 31.62%

Tata Sky 4.50 24.04%
Sun Direct 4.30 22.97%
Airtel Digital TV 2.00 10.68%

Reliance Big TV 2.00 10.68%

Videocon d2h NA NA
DD Direct+ NA NA
Total  Source : Business Standards, 9-11-2009. 100.00%
18.72
Revenue Structure
Revenue Drivers Percentage (%)

Source : ACCEQUITY
Sales 1.29%
Subscription income 79.94%
Processing Charges/Service 1.80%
Income
Other Operational Income 16.96%
Total 100.00%
Cost Structure
Cost Drivers Percentage (%)

ACCEQUITY
Source :
Raw Material Consumed 1.42%
Power & Fuel Cost 0.24%
Employee Cost 4.33%
Production Expenses 57.03%
General and Administration 4.90%
Expenses
Selling and Distribution Expenses 29.03%
Miscellaneous Expenses 3.05%
  100.00%
Political Factors
Factors Unfavorable Neutral Favorable

Political Parties √
Regulatory Role of Government √

Rules for licensing √

Trade Restrictions And Tariffs √
FDI cap √
Government Stability √
(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (2*1+4*3)/ 6 =2.33

Thus the overall effect of Political factors on this industry is

Favorable.
Economic Factors
Factors Unfavorable Neutral Favorable

Currency Stability √
Gross Domestic √
Product
Inflation Rate √
GDP based on PPP √
(Here, Unfavorable-1 & Favorable-3)
Interest Rate √
Weighted
BudgetAverage
Impact= (1*1+5*3)/ 6 = 2.67 √
Thus the overall effect of economic factors on this industry is Favorable.
Social Factors
Factors Unfavorable Neutral Favorable

Consumer attitudes and √

opinions
Brand, company, technology √
image
Buying access and trends √
Age distribution
(Here, and
Unfavorable-1 lifestyle
& Favorable-3) √
(Here, Unfavorable-1 & Favorable-3)
trend
Weighted Average = (1*2+5*3)/ 6 = 2.83
Family form and Population √
Thus the overall effect of Social factors on this industry is Favorable.
shift
Cultural implications of DTH √
Technological Factors
Factors Unfavorable Neutral Favorable

Technology √
Govt. course of action √
towards Technology
Technology Initiative √
Rate of Technological √
Change
(Here, Unfavorable-1 & Favorable-3)
IndustryAverage
Weighted R&D Spend= (1*2+6*3)/ 7 = 2.86 √
Thus the overall effect of Social factors on this industry is Favorable.
Technology Push √
Productivity Improvements √
Five Force Model
Threats of New Entrants (Moderate to Low)

Factors Low Moderate Moderate Moderate High

To Low To High

Access to √
Distribution
network (High)
Advertising & √
Marketing Activity
(High)
Regulation & √
norms (Moderate
To High)

Capital √
Requirement
(High)
Cost Design √
(Moderate to Low)

Industry Growth √
Threats of Substitute Products (Moderate to
High)

Factors Low Moderate Moderate Moderate High

To Low To High

Determinants of √
substitution threat
(Low)
Costs of switching √
to substitutes
(Low)
Availability of √
substitutes
(Moderate To
High)
Bargaining Power of Supplier (Moderate to
Low)

Factors Low Moderat Moderat Moderate High

e To Low e To High

Backward √
Integration (High)

Supplier √
Switching Cost
(Low)
Forward √
integration(Low)
Bargaining Power of Buyers (Moderate to
High)
Factors Low Moderate Moderate Moderat High
To Low e To High

Buyer √
Switching
Costs (Low)
Brands √
Awareness
(High)
Availability of √
Substitute
Products (High)

Purchase √
Frequency
(High)
Innovative √
Services (High)
Inter Firm Rivalry (High)
Factors Low Moderate Moderate Moderate High
To Low To High

Competition between √
Companies (High)

Switching costs (Low) √

Demand Growth √
(High)
Untapped Market √
(High)
Promotional Activities √
(Moderate to High)

Exit barrier (High) √

BCG Matrix
Company's Subscriber Market Relative Market
Name s Share Share
(In Million)

Dish TV 5.92 31.62% 1.32

Tata Sky 4.50 24.04% 0.76
Sun Direct 4.30 22.97% 0.73
Airtel Digital TV 2.00 10.68% 0.34

Reliance Big TV 2.00 10.68% 0.34

Videocon d2h NA NA -
Total 18.72 100.00% 
Industry Growth Rate = 30%.
Source: Business Standards, 9-11-2009.
Continue…
GE 9 CELL Matrix
Business Weight Dish TV Tata Sky Sun Direct Airtel Big TV Videocon
Strength Digital D2h
  Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score
Market Share 0.25 9.00 2.25 7.50 1.88 7.50 1.88 5.00 1.25 5.00 1.25 2.00 0.50
Financial 0.20 7.00 1.40 8.50 1.70 8.00 1.60 7.50 1.50 7.50 1.50 4.00 0.80
Resources
Brand Reputation 0.15 7.50 1.13 7.50 1.13 6.50 0.98 7.00 1.05 7.50 1.13 6.00 0.90
Distribution 0.12 8.00 0.96 7.00 0.84 6.50 0.78 6.50 0.78 7.00 0.84 5.50 0.66
Capacity
Advertising 0.15 8.50 1.28 7.50 1.13 7.00 1.05 7.00 1.05 6.50 0.98 4.00 0.60
Capabilities
Ability to 0.13 8.00 1.04 7.00 0.91 7.50 0.98 7.00 0.91 7.00 0.91 5.00 0.65
Compete with
Rivals
  1.00 8.05 7.58 7.26 6.54 6.60 4.11

DTH Service
Industry
Industry Attractiveness Weight Rating Score
Current Market Size 0.20 8.00 1.60
Regulatory Environment 0.15 7.00 1.05
No. of Competitors 0.12 6.50 0.78
Barriers To Entry 0.10 7.00 0.70
Market Growth Rate 0.13 7.50 0.98
Industry Profitability 0.15 8.00 1.20
Technology Change 0.15 7.50 1.13
  1.00  7.43
Continue…
ADL (Arthur D. Little) Matrix
Driving Forces
Internet technology applications

Long term industry growth

Product innovations

Technological changes

Regulatory influence

Changing societal concerns, attitude & lifestyles

Key Success Factors
Innovative Services

Innovative Marketing

Distribution

Technology
Strategic Factors
Exploit Bottlenecks

Move First

Exploit Market Niche

Diamond Model
VALUE CHAIN ANALYSIS
OT Analysis
Opportunities :

 Huge Untapped market

 Govt. in favors of industry
 New products comes in the market
 Company have own cable subscriber
 Technology development and Innovative Services
 Market developments
 Geographical, export, import
 Industry or lifestyle trends
Continue…
Threats:

 switching cost
 Government policy/regulations
 IT developments
 Competitor intentions
 Seasonality, weather effects
 Lack of possibility of growth
Conclusion
THANK YOU………..