Dish TV
Dish TV
Dish TV
ON
(VISIBILITY OF DISH TV AND SCOPE FOR HD STB IN
Submitted To:-
Submitted By:-
VARUN GOYAL
M.B.A IInd (3rd sem)
1
Preface
Survey measure the visibility of the company product over the outlays of
retailers which insures the brand reach among customers and its market share.
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Acknowledgement
I would also like to thank the dealers of Bathinda and Mansa Districts, for the
support and help in the successful completion of my project.
Signature
(Varun Goyal)
3
Table of Contents
1. Introduction
1.1. DTH Industry
1.2. Current Scenario
1.3. Industry Porter`s Analysis
1.4. Company Overview
1.5. About Dish TV
1.6. Product Life Cycle
1.7. Types of Products and Services
1.8. Organizational Chart
1.9. Promoters
1.10. SWOT Analysis
1.11. Market Position
1.12. Review About Various DTH Players
1.13. DTH Market Structure
2. Literature Review
2.1 Back Ground of the Company
2.2 Government Policy
3. Research Methodology
3.1 Objectives of the Project
3.2 Research Methodology
3.3 Research Design
3.4 Limitations
3.5 Market Visit
3.6 Analysis and Interpretation
3.7 Findings
3.8 Recommendations
4. Bibliography
5. Annexure
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Synopsis
The development of the DTH (Direct to home) sector has experienced a major
process of transformation in terms of its growth, technological content and
market structure in the last decade. Any company which is successful is because
of its reach among customers which is possible through the effective tools
through which a company communicates and attracts its customer. Dish TV is
the most famous brand and have a sophisticated place and market leader
position in the mind of customer. This is due to its strong brand image.
The attempt behind this project was to find out the visibility of DISH TV as a
brand over the retail outlets and its competitors` position over these outlets, so
that company would be able to find out its lagging area and can focus more
effectively to target more and more customer and to communicate them more
easily.
An attempt has also been made in the project to access the scope of HD STB in
the concerned markets of Bathinda and Mansa.
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INTRODUCTION
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1.1 Industry Overview
After a slow start, the DTH market in India is fuelled by fierce Competition
between the incumbent Dish TV and challenger Tata Sky, plus several new
entrants, but pricing and exclusivity remain key Contentious issues.
History:
The history of Indian Television dates back to the launch of Doordarshan, the
country‘s national television network in 1959 when the transmission was in
black & white. The 9th Asian games which were held in 1982 in the country‘s
capital New Delhi heralded the mark of color television broadcast in India.
In 1991, Indian economy was liberalized from the license raj and major
initiatives like inviting FDI, deregulation of domestic businesses emerged. This
led to the influx of foreign channels like Star TV and creation of domestic
satellite channels like Sun TV and Zee TV. This virtually destroyed the
monopoly held by Doordarshan.
In 1992, the cable TV industry started which changed the way the average
Indian watches the television. Every city in India had a new breed of
entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in
charge of distribution. Since this was a disorganized sector carrying new
channels on the existing infrastructure required new investments which the
operators were reluctant to make. This led to the emergence of a new breed of
firms called as Multi System Operators (MSO) who had heavy financial
muscles to make capital investments and liaised between the cable operators
and the channels. MSOs provide the feed to the local operators for a fee.
In 1995, government felt the need of regulation in Cable TV and passed the
Cable TV network (Regulation) Act. This was also the time when the state
owned Doordarshan and All India Radio came under a new holding called as
Prasar Bharati to give them enough autonomy. The LCOs reported a lower
number of connections where as the broadcasters demanded a higher rate.
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MSOs were finding it difficult to operate under these conditions. This led to an
amendment of the Cable TV networks (Regulation)Act in 2002 to provide
Conditional Access System (CAS). With CAS, the last mile distribution could
be addressable with accuracy and digitalization of broadcast was also possible.
CAS was rolled out in 2003 staring from Chennai and later to parts of Delhi,
Mumbai and Kolkata. On the DTH front, TRAI issued the guidelines for
operating DTH.
Country‘s first DTH license was awarded to Dish TV in 2003 which started
operations in 2004. Prasar Bharati also started its product DD-Direct+.
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1.2 Current Scenario:
In the current context of the global financial meltdown, the Direct to Home
(DTH) industry in India is in the throes of multifarious challenges and
opportunities. The big game is all about shaping up grandiose plans to master
the winning rules to garner as much portion of the Indian DTH pie as possible
by a handful of players.
Since the DTH space denotes big value, akin to the space occupied by
television and telephony, inter-firm rivalries have thrown up price wars,
discount schemes, procurement of transponders, ambitious targets for improving
the subscription base, popular bouquet of channels, set top boxes with superior
quality of videos, improving content, etc as a desperate means to entice the
Indian viewer. A neat 20 per cent annual growth is being witnessed in the DTH
sector in India with over 16 million households having digital pay-TV.
According to Harsh Bijoor, a brand consultant―Since Dish TV, the biggest
market player on the Indian soil, has not scraped even five per cent of the pie,
there is plenty left for other players to eat. In the early 2008, five major players,
Zee`s Dish TV, Tata Sky, Reliance ADAG, Sun Direct and Bharti Telemedia
formed an umbrella body – DTH Operators Association of India (DOAI). Dish
TV is the largest DTH provider with a subscriber base of around 5 million. Tata
Sky, a DTH joint-venture Company between Star (owned by Rupert Murdoch)
and the Tata Group (20:80), now has around 3.4 million connections and the
forecast for 2012 is that it will further increase to eight million, Sun Direct, the
80:20 JV between the Maran family and the Astro Group of Malaysia, over 2.3
million, Big Tv about 1.2 million and Airtel Digital Tv about 0.3 million
subscribers (Source: Business Standard, May 1, 2009).
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Central government. Apart from this, there are entertainment taxes that differ
from state to state.
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Broadcast centre collects the signals from different programming sources (like
Sony, Zee, and Star). It processes the Signals and beams it to the Satellite.
Satellite will reprocess the signals and retransmits the signal to the subscribers.
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1.3 Porter’s Analysis of DTH industry:
1. Threat of substitutes:
DTH faces stiff competition from the terrestrial, cable and IPTV. As per the
industry estimates, there are 130 million TV homes of which 85 million are
served by cable and around 16 million by DTH with the remaining taken by
terrestrial transmission.
Indian Broadcasting
Dth
12%
Terrestrial
22%
Cable
66%
Terrestrial Television:
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Cable TV:
Cable TV currently operates in 2 modes viz. through CAS covering cities like
Chennai, Delhi, Mumbai and Kolkatta, and through non-addressable system in
the rest of the country. As seen from the above diagram Cable TV enjoys the
maximum share as compared to other medium. In case of CAS controlled areas,
the subscriber has to buy Set Top Box (STB) to see the pay channels. On the
other hand, in areas where non-addressable system is used, nearly all the
channels are available without the need of any separate receiver by paying
anywhere between Rs 100 to Rs 350 per month depending on the place.
Due to phenomenal reach of Cable TV, it poses a serious threat to the growth of
DTH industry.
IPTV takes the interactivity to a newer level. In regular mediums, all the
channels are pushed to the consumer regardless of his preference. IPTV
encourages a two-way request response model where the consumer chooses the
programs he wants to view. Right now thos medium is totally unregulated and
cable companies are urging the TRAI to issue a consultation paper process to
include IPTV under the aegis of Cable TV act.
IPTV is a considerable threat to DTH in urban and semi urban areas where
broadband has made its mark.
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2. Bargaining power of suppliers:
DTH industry relies on three major supplies: Customer Premise Equipment
(CPE) comprising of the satellite dish, Set Top Box with the necessary Access
card, the Ku band transponders in the orbiting satellites and content. With India
overtaking Japan as Asia‘s largest DTH, the bargaining power of Indian DTH
operators with CPE supplies have increased.
Customers will continue to have a high bargaining power until DTH platforms
try to differentiate them as superior players with better content and clarity.
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4. Inter firm rivalry:
With 6 operational players, the inter firm rivalry is quite high. The competition
from state owned DD-Direct to private players is negligible from the content
point of view as the number of channels offered by DD-Direct is very limited.
However, DD-Direct does not charge any monthly subscription fee which poses
a threat to the private players.
Between Dish TV and Tata Sky there is an intense rivalry exhibited by price
wars and discount schemes offered to new connections. Being the first mover,
Dish TV has price advantage in both the STB as well as procuring the
transponders. On the other hand, Tata Sky claims its STB having superior DVD
quality video.
Other than price wars and intense competition in increasing customer base,
there is also a competition at acquiring the content. Dish TV, Tata Sky and Sun
Direct are part of big groups that also have popular bouquet of channels like
Zee, Star and Sun respectively. The channels indirectly refuse content for DTH
operators by charging exorbitantly or mandating that all the channels of their
bouquet to be transmitted when the vendor is already capacity constraint.
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1.4 Company Overview
MEDIA______________________________________________________
_____________ Zee Entertainment Enterprise Ltd - India's largest media and
general television entertainment network with a range of businesses
encompassing the content-to-consumer value chain. Zee News Ltd - a cluster of
news and regional entertainment channels touching the lives of millions of
Indians. DNA - an English language newspaper in a joint venture with the
Dainik Bhaskar Group.
TECHNOLOGY___________________________________________
__________________ Dish TV - India's first direct-to-home (DTH)
entertainment service, brings the latest in digital technology to television
viewers, broadcasting high quality programmes straight from the satellite to the
consumer's home. Wire & Wireless India Ltd - the largest cable distribution
system in India, present in 45 cities. Intrex India - a revolution in the financial
services industry with two innovative businesses and unique payment
instruments - the country‘s first ever cashless /trade exchange and a multi-
purpose stored value card. Procall - India‘s first and only digital PTT telephony
service, powered by Motorola‘s iDEN technology . Cyquator Technologies
Limited – an IT infrastructure outsourcing company that provides end-to-end
Internet Data center and high-end managed hosting services. Digital Media
Convergence Limited - personalized, entertaining and informative multimedia
and textual content. Cornershop - a wide range of mobile content and
interactivity services, the first to launch reality-based TV interactivity for voting
and polling.
PACKAGING______________________________________________
_________________ Essel Propack - the world‘s largest specialty packaging
company manufacturing laminated tubes for personal care, pharmaceutical, food
and industrial businesses.
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ENTERTAINMENT______________________________________
_____________________ E-City Property Management Services - the first
organized corporate entity in the convergence of entertainment, retail and
technology with interests in realty development, mall-based property
management, digital cinema solutions, film distribution and syndication. ETC
Networks - among leading television networks in India with two channels -
ETC Hindi and ETC Punjabi.
Pan India Network Infravest Pvt Ltd – Playwin, India's first and largest
online gaming company, provides infrastructure, data communication,
marketing support and service to facilitate a secure online lottery network.
Essel Sports – pioneering sports initiatives with Indian Cricket League and
Mumbai Football Club to promote India in the global sports arena through an all
inclusive spirit of free and fair competition.
Fun Multiplex Pvt Ltd - With a leading position in the Indian multiplex
market, Fun Multiplex Pvt Ltd operates 70 cinema screens in 19 cities and
twenty three locations – Ahmedabad, Mumbai, Chandigarh, Hyderabad,
Guwahati, Gwalior, Delhi, Ghaziabad, Lucknow, Agra, Jaipur, Bangalore,
Panipat, Ambala, Karnal, Hyderabad, Gulbarga, Panjim and Margao.
E-City Digital Cinemas Pvt Ltd -The company was established in April 2004,
and is committed to revolutionise the Indian movie business by implementing
state-of-the-art digital technology, thereby eliminating print costs, curbing
piracy and offering audiences globally benchmarked cinema-viewing with a
uniform audio-visual experience.
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E-City Media Pvt Ltd - E-City Media has been incorporated to bring synergies
and to leverage upon E-City Venture‘s media assets. The on-screen and off-
screen media opportunities at E-City‘s Cinema & Malls have amassed to
become an attractive tool of communication for advertisers.
INFRASTRUCTURE_____________________________________
_____________________ Essel Infraprojects Limited – With Esselworld and
Water Kingdom, among the largest amusement theme parks, EIL is also
engaged in the development of roads, power plants, Sports complexes and
Special Economic Zones.
E-City Real Estate Pvt. Ltd – The Company behind the successful lifestyle
brand Fun Republic – plans to develop and operate 20 million sq ft of retail real
estate by 2011.
EDUCATION_______________________________________________
________________ Zee Interactive Learning Systems - the education arm of
the group runs India's largest chain of preschool and high schools. Zee Institute
of Media Arts provides training in media arts and technology while Zee Institute
of Creative Arts is an animation training academy.
Dish TV was only DTH operator in India to carry the two Turner channels
Turner Classic Movies and Boomerang. Both the channels were removed from
the platform due to unknown reasons in March 2009.
Dish TV imparts DVD quality picture and stereophonic sound effects to the
customers. It promises to change the experience of TV viewing with its
uninterrupted transmission service. The endeavour enters next level of
entertainment with futuristic features, such as EPG (Electronic Programme
Guide), parental lock, games, 400 channels, interactive TV and movie on
demand. Dish TV also brings exclusive national and international channels for
the first time in India.
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Dish TV is a division of Zee Network Enterprise (Essel Group Venture). EGV
has national and global presence with business interests in media programming,
broadcasting & distribution, speciality packaging and entertainment. Zee
Network incorporated Dish TV to modernize TV viewing. Dish TV is India‘s
first direct to home (DTH) entertainment service. By digitalizing Indian
entertainment, this enterprise brought best television viewing technology to the
living room. It not only transmits high quality programmes through satellite; but
also gives a complete control of selecting channels and paying for them.To
experience the new life breathing in television technology, Dish TV extends
high quality broadcast and thorough entertainment.
Vision of the company: To be the leader in changing the way the world
communicates by providing innovative technology, quality products and
dynamic services.
Mission of the company: To place our satellite dish in every home, school and
business throughout the world.
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1.6 Position /stage of Dish TV in product Life cycle
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1.7 Type of Product services
This card is just like a SIM card of mobile phone. To receive dishtv signals, this
card needs to be activated after installation. Every VC is uniquely numbered.
This number is of 11 digits followed by a hyphen and 1 digit after that. You can
locate this on your VC. For Example: 01500010000-1. No 2 VC‘s can have
same serial number. The viewing card is pre-activated so that you can start
watching the channels as soon as you get your dishtv installed.
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DISH ANTENNA
DISHTV bring to you yet another first in its bouquet of services - DISHTV on
Computer'.'DISHTV on Computer' is the first of its kind in India, by making
your computer double up as a television it gives you 'LIVE DIGITAL TV' right
on your workstation. You also get an added benefit, the set top box comes with
a dual advantage – it works with your computer AND your TV. Yes! With this
magical product, up to 100 + channels will now also be available on computer,
bringing to you Live News, Live Sports, Live Business news along with Active
services, Movie-On-Demand, Gaming, EPG, etc, whatever dish tv offers on
Television; now also on Computer! So go ahead, stay updated with the latest
news & views (whether business or political) either at work or at play!
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1.8 Organizational Chart
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1.9 Promoters
Individual Promoters
age 54 years, is one of the key architects of the Essel Group of companies. He
started his career in 1969 trading agro commodities and established Rama
Associates Limited along with his brothers. In 1980, he diversified Essel
Group‘s activities into handicraft exports and real estate development business.
He has contributed enormously in the establishment and progress of Essel
Propack Limited. At present, Mr. Goel holds the position of vice chairman of
the Essel Group of companies and is actively involved in the day-to-day
developmental activities of the Essel Group.
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Mr. Ashok Mathai
Managing Director, heads the business of Company. He has been one of the
pioneers of the DTH services in India and instrumental in establishing Dish TV
as a recognized brand in India.
Mr. Goel is also the acting president of Indian Broadcasting Foundation which
takes up various issues relating to broadcasting industry at various forums. He is
an active member on the board of various committees and task force set up by
Ministry of Information and Broadcasting, Government of India pertaining to
several matters relating to the industry. He played a vital role in conceptualizing
and establishing Siti Cable Network Limited as a multi system operator for
cable distribution network of various television channels in India in 1994.
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Promoters who are companies are:
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1.10 SWOT ANALYSIS
STRENGTHS
Dish tv was the first entrant in the DTH category and has thus become
synonymous with the satellite TV broadcasting business in India. Leveraging its
lineage with the Zee group, dish tv has built acommendable brand and relevant
product that answers the consumer needs‘ for quality entertainment. Some of
the inherent strengths stem from a strong presence all across the geography of
India, consumer friendly and pocket friendly multi-tiered and customizable
regional packages, abundant transponder capacity to support its widest content
basket, a very strong and diversified content offering addressing consumers
with diverse needs of genres and languages, an extremely cost conscious
structure and a superior technology for the entire gamut of services. The
technological edge and differentiation with respect to other brands stands
exemplified through its unique offerings of mobile dish with presence in
aircrafts(Kingfisher), navywar ships, mobile vans and selected railway saloons.
WEAKNESSES
The subscriber acquisition cost is still very high. However, compared to the
current industry benchmarks, it stands at the lowest by far. The cost towards
acquiring consumers is under constant scrutiny in an endeavor to bring it down.
In a market trend of consumers down sliding on the packaging tiers, due to
more value being packaged at the lowest packs, dish tv has exhibited a growth
in ARPU. However, ARPU continues to be an area of concern with the constant
endeavor to monitor, upgrade and enhance the revenues.
OPPORTUNITIES
India‘s 127 million television owning households, which define the potential
depth for the DTH category, will act as a low hanging fruit for adoption. The
further roll out of CAS by the new Government, into more towns will impact
the growth rate of the DTH category and trigger consumers to make a decision
between digital cable and DTH, thereby aiding faster expansion of the digital
entertainment world.
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Enrichment of Value Added Services (VAS) basket with gaming and a host of
active services, some going pay, will continue to be opportunity areas for
revenue enhancement. An eventful sporting calendar with the ensuing
Commonwealth games and a series of Cricketing tournaments will act as a
catalyst for this category too. The recent stabilization and a revived hope for
bouncing back of the economy as early as the second half of this year will
facilitate faster adoption of the category. Emergence and growth of traffic at the
organized retail chains like Big bazaar, Next, The mobile store, Reliance digital
etc. will also add more visibility leading to better acceptance of the product.
THREATS
DTH is currently a six player market. Price cuts and reduced margins, spurred
by severe competition, can pose a threat to revenue enhancement. Improved
quality of services by digital cable and IPTV players are potential threats. Churn
management and retention cost scan negatively impact bottom-lines unless
constant attention and Strategy is deployed to manage and control the
subscribers` base.
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1.11 Market Position
Market Leader:
Dish TV is India`s first DTH service provider launched in October 2003 is the
market leader with 6.4 million subscribers. Dish TV continues to be a market
leader with 30% market share in 7 player scenario on date, with sizeable sales
and distribution infrastructure of over 650 distributors and 45,000 dealers across
6500 towns – once again, the largest in the category. These reach into far flung
markets enables building of a diverse subscriber base across consumer
segments, which are supported by its rich content of regional channel offerings.
Dishtv has maintained its leadership position through an improved market share
of all DTH subscribers. New offers, extensive marketing campaigns have
contributed to impressive subscriber acquisition and are committed to provide
the best value to our customers and investors by enhancing operational
efficiencies and by leveraging economies of scale.
Market challengers:
The gap between the leader and the challengers is decreasing because of the
increasing competition and promotion strategy followed by each player.
TATA Sky
Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR.
Tata 38 Sky endeavors to offer Indian viewers a world-class television viewing
experience through its satellite television service. The key business challenge in
a country like India is meeting customer demands—which are very dynamic—
under the regulatory purview of the country.
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Sun DIRECT
Sun Direct is the fastest growing DTH service provider having garnered over
1.9 million subscribers since its launch in December 2007 and aims to become
one of the leading players in the DTH space. Sun Direct challenged the existing
players by involving them in the price war by acting as a discounted brand. It
started offering subscriptions at as low as Rs 99 to reach as much at the bottom
of the market. The biggest differentiator for the brand is the pricing point which
is lesser than the other brands.
Sun DTH was the first one to move into the MPEG4 league and soon after the
PAN India launch HD services will be launched. Another first from SUN DTH
is the launch of exclusive comedy channels for its subscribers.
Market followers:
The approach being followed is of Market Follower (as they are late entrant and
their primay objective is to attract max subscribers in shortest span of time).
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1.12 Reviews about various DTH players
Big Tv
13% Tata Sky
22%
Airtel Digital Tv
8%
Sources: - http://www.pluggd.in/dth-industry-in-india-analysis-297/
With 6 operational players, the segment rivalry is quite high. The competition
from state owned DD-Direct to private players is negligible from the content
point of view as the number of channels offered by DD-Direct is very limited.
However, DD-Direct does not charge any monthly subscription fee which poses
a threat to the private players. Between Dish TV and Tata Sky there is an
intense rivalry exhibited by price wars and discount schemes offered to new
connections.
Being the first mover, Dish TV has price advantage in both the STB as well as
procuring the transponders. On the other hand, Tata Sky claims its STB having
superior DVD quality video. There is also a competition at acquiring the
content.
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Tata Sky, an 80:20 joint venture between Tata Sons and the Star group,
provides satellite television services to Indian viewers. The company was
incorporated in 2004 and offers a range of media and entertainment options to
customers.
Tata Sky's direct-to-home satellite platform delivers more than 100 television
channels, movies and interactive services for games, learning, recipes, news,
chat rooms, etc. It has state-of-the-art digital infrastructure and a retail network
that covers more than 4,500 towns in India.
Based in Mumbai, the company has three call centres (Pune, Chandigarh and
Hyderabad).
Strengths Weaknesses
1. Leveraging on brand TATA and High 1. Second Mover after Dish TV who
brand recall captured Market Share
2. Technological expertise with 2. Cannot match free service like DD
Newscorp‘s DTH arm Sky 3. Currently Does not offer free Set Top
3. Superior Picture quality Box like Dish TV
4. Leads in introducing new packages & 4. Litigation due to issues related to
Services sports channels which it lost
5. Customer service 5. Dependency on broadcaster and had
6. Rural penetration through ITC E- issues with Sun TV
Choupal and Godrej Aadhar
7. Interactive channels and program guides
8. Innovative Product offering Tata Sky
Plus
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Opportunities Threats
1. Larger disposable incomes with India 1. IPTV provides superior technology if
2. Tapping niche markets with Better implemented
service and Product offering 2. Cable Set top Boxes provide easy
3. Expansion of distribution network switching due to negligible switching
through exclusive stores costs
4. Interactive advertising – Tie up of with 3. Increasing Competition internally
Samsung 4. Dependency on CPE suppliers to
5. Increase in number of TVs sold some extent
6. Increase in the geographical boundaries 5. High dependence for transponders on
with Rural Market untapped ISRO
7. Growing demand for quality of service in 6. Dependency on broadcasters for their
the form of DTH over Cable channel content and thus increase in cost
8. CAS being made Compulsory would 7. Videocon may enter DTH by building
encourage switch. its own set top boxes.
9. Value Added Services are gaining steam. 8. No Exclusivity in Content and Rule of
‗Must Carry‘
9. Cap on Investment (20%)
10. Interoperability Regulations
11. Cap on foreign Investment (49%)
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Airtel digital tv's standard definition broadcasts are in MPEG-4 with Interactive
Service(itv) and 7-day EPG (electronic programme guide). Interactive
Service(itv) of Airtel digital tv includes a add-on service which allows a user to
shop , book movie tickets etc. A universal remote is included in the package
which can , over IR frequencies control both the Tv and the DTH box. Like
other DTH service providers it also provides a Video on demand interactive
service which includes a catalogue of movies in Hindi, English and other
regional languages which can be ordered on demand.
Airtel digital launched on 8th October, 2008 with a 360 degree mega campaign
"Come Home to the Magic". Since that it has launched 2 other campaigns 'Stars
come home' (March 2009) and 'DTH Picture Clarity' (August 2009) has
increased its channel base to 183+ channels. Airtel digital TV is now amongst
the fastest growing DTH brands in the country and is available across 5000+
towns in India. It has also been ranked as the best DTH service by "Living
Digital" magazine.
Strengths Weaknesses
1. Leveraging on brand Airtel and High 1. Fourth Mover after Dish TV who
brand recall captured Market Share
2. Superior Picture quality 2. Cannot match free service like DD
3. Leads in introducing new packages & 3. Big Players having large market share
Services. 4. Litigation due to issues related to sports
4. Recording System channels which it lost.
5. Customer service
6. Large customer in telecom services.
7. Interactive channels and program guides.
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Opportunities Threats
1. Larger disposable incomes with India 1. IPTV provides superior technology if
2. Tapping niche markets with Better implemented
service and Product offering 2. Cable Set top Boxes provide easy
3. Expansion of distribution network switching due to negligible switching costs
through exclusive stores 3. Increasing Competition internally
4. Increase in the geographical boundaries 4. Dependency on CPE suppliers to some
with Rural Market untapped extent
5. Growing demand for quality of service in 5. High dependence for transponders on
the form of DTH over Cable ISRO
6. Value Added Services are gaining steam. 6. Dependency on broadcasters for their
channel content and thus increase in cost
7. Videocon may enter DTH by building
its own set top boxes.
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Reliance BIG TV limited is a part of Reliance Communications Ltd., a
subsidiary of Reliance Anil Dhirubhai Ambani Group[2] founded by the Late
Dhirubhai Ambani, the Indian business tycoon and owned by his son Anil
Ambani. BIG TV started operations from 19 August 2008 with the slogan "TV
ho Toh BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to
240 channels and many interactive ones, 32 cinema halls (i.e Pay Per View
Cinema Channels) as well as many Radio channels. The company plans to
increase the number of channels in the near future to 400 and begin High
Definition (HD) broadcast. It is the first Pan-India DTH provider that uses
MPEG-4 for broadcasting. There are also plans to introduce services like i-
Stock, i-News and other such interactive services in the future.
Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500
towns in India. This was literally unheard of in the DTH industry. They had
effectively out-stripped the competition here. When it came to pricing –
packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months of
free subscription. They also introduced 32 Pay-Per-View Movie Channels, the
highest by any DTH player. Not just that, while other players made subscribers
pay for each movie, Reliance BIG TV introduced the unique concept of
Subscriber-Video-On-Demand (SVOD) under which the subscriber paid a
monthly subscription of Rs. 50/- to get a 24 x 7 access to the 21 PPV channels
showing Hindi and Regional Films. We were also the first to introduce
dedicated PPV channels for Marathi, Gujarati and Bhojpuri films.
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Sun Direct is a DTH service in India, with its headquarters in Chennai, Tamil
Nadu. Sun Direct is a 80:20 joint venture between the Maran family and the
Astro Group of Malaysia. Sun Direct TV was registered in February 16, 2005.
However, the failed launch of INSAT 4Cresulted in a lack of transponders,
delaying the launch. The service was finally launched on 18th Jan 2008 after
availability of transponders from INSAT 4CR.
Sun Direct offered subscribers a satellite dish and Set-top box for free and basic
monthly plan as low as Rs. 110 (approximately). Because of this it achieved 1
million subscribers in 200 days.
Sun Direct is also the first to provide high-definition television services in India.
It is the first DTH service provider to show IPL in HD format and has tie up
with SET MAX.
Because of the lowest pricing of any DTH in India, Sun Direct spread rapidly
all over the country. In December, Sun Direct was launched in Mumbai and
announced its pan India launch. By 2009 it became the leading DTH provider
with 3 million subscribers.This makes it the second largest DTH service
provider of India. In April 2010, Sun Direct officially launched its HD service
in India.
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Videocon d2h is a DTH satellite television provider in India based in Mumbai,
using MPEG-4 with DVB S2 digital compression technology. Videocon
Leasing & Industrial Finance Limited was incorporated on 4th September, 1986
as Adhigam Trading Private Limited.In terms of the necessary resolutions
Passed under Sec. 21 of the Companies Act, 1956, the name of the Company
was changed to Videocon Leasing & Industrial Finance Limited on 14th
February, 1991.The Company received a fresh certificate of incorporation from
the Registrar of Companies, Gujarat at Ahmedabad on 14thFebruary, 1991.
Videocon d2h launched May 1, 2009. it came with a very good strategy for
selling both of its electronic products like TV`s DVD`s along with the new set
top box. This is offering direct to TV without any set top box also. Only the
antenna is enough, it also came with DVD which is connected directly to the
TV or antenna is connected to DVD which gives a best quality of out put.
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1.13 DTH Market Structure
MARKETING STRATEGIES
Though there has been a paradigm shift in the perception and awareness of the
DTH industry in the last two years, the challenge is to maintain, grow and create
a dynamic atmosphere for greater customer satisfaction and adoption of this
category. The theme for the current year will be more value for money to the
customers, enhanced value for the stakeholders of the Company, achieving
EBITA breakeven and consolidating the number one status in the category - in
terms of revenue, number of subscribers and quality of service.
The DTH market structure can be classified into three categories; Market
leaders, Market challengers and Market followers. There is intense competition
as some of the leading players have not only succumbed in the sales for
acquiring new customers but has started losing existing ones to Tata Sky, Big
TV and other new entrants.
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LITERATURE
OVERVIEW
42
DISH TV INDIA LIMITED
43
TRAI Rules
The Authority noted that a large number of complaints have been received from
the Direct to Home subscribers regarding dropping of channels from
subscription packages offered by DTH operators. In case of subscription to
DTH services, a subscriber subscribes to the service on the basis of specific
channels included in the subscription package. If any channel is taken out of a
subscription package and it is replaced by another channel then the DTH
subscriber may be getting the same number of channels as earlier, but will be
deprived of viewing the particular channel which has been removed. In case the
channel which is removed is offered to the subscriber as an add-on package then
the subscriber ends up paying more for viewing that channel which was earlier
included in his subscription package. This subverts the tariff protection
provided to DTH subscribers by Regulation 9 of the Direct to Home
Broadcasting Services (Standards of Quality of Service and Redressal of
Grievances) Regulations, 2007. This calls for DTH subscribers to know about
the following new rules.
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TRAI: The DTH operators have been prohibited from charging any fee
towards visiting charges or repair and maintenance charges of DTH
Consumer Premises Equipment during the period of warranty for such
DTH Consumer Premises Equipment acquired on outright purchase basis.
2. The DTH operators cannot alter the subscription package during the first
6 months, or till validity expiry, of a subscriber's enrollment.
TRAI: The DTH operators have been prohibited from changing the
composition of their subscription packages during first six months of
enrolment to the subscription package or during the period of validity of a
prepaid subscription package, whichever is longer.
4. The option of choosing the package with reduced charges or the package
with replaced channel has been given to the subscriber.
TRAI: Option to select the channel of the same genre and language in a
subscription package to replace a channel which has become unavailable
on the DTH platform, has been given to the DTH operator.
6. Your DTH operator needs to give a prior notice of fifteen days to you
before changing the composition of any subscription package.
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7. Subscribers are allowed to request their DTH operator to suspend their
services for up to 3 months. However, this suspension period should not
comprise the same calendar month.
The above rules are compulsory for DTH operators to adhere to.
46
RESEARCH
METHODOLOGY
47
To check the availability of DISH TV in the market of Bathinda and
Mansa districts.
To access the scope for High Definition Set Top Box in the area.
RESEARCH METHOD
DATA COLLECTION
The information needed to further proceed in the project had been collected
through primary data and secondary data.
PRIMARY DATA
Primary data consists of information collected for the specific purpose at hand
for the purpose of collecting primary data, survey research was used and all the
retail outlets sellers using different brands and their competitors were contacted.
Survey research is the approach best suited gathering description.
SECONDARY DATA
RESEARCH METHODOLOGY
49
The respondents are consumers of various DTH. The survey was carried in the
districts Bathinda and Mansa with the sample size of 100. The survey was
carried out with the help of a structured questionnaire, which helps in
accomplishing the research objectives. The respondents by means of personal
interview administer this structured ended questionnaire.
Research design:
Descriptive method is used in the research. A sufficient thought has been given
in framing the questionnaire and deciding the types of data to be collected and
the procedure to be used.
Sources of data:
Primary data:-
Questionnaire has been used to collect the data. It contains the open ended,
closed ended and scaling techniques.
Data collection method: Survey method has been used for collecting the data.
Method of communication:
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Bathinda and Mansa has a very large amount of population for carrying research
study on any subject. It was thought proper to cover all type of outlet like
consumer durable and recharge outlet.
The sampling chosen is the non probability convenience sampling, because only
those dealer were interviewed that were accessible and available.
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The sampling plan was based on non-probability method and no
scientific methods were adopted.
Due to time constraint the survey has been done on the basis of
convenience.
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Q. Whether selling DTH?
DTH Availability
92 90 89
80
55
40
Observation: Dish TV has a very strong presence in Bathinda and Mansa. The
closest competitors are TATA SKY and AIRTEL.
DISH TV can concentrate more in the area in order to attain 100% availability.
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Availability of GSB
DISH TV; 40
VIDEOCON; 15
BIG TV; 21 SUN DIRECT; 8
TATA SKY; 34
AIRTEL; 36
Observation: It is observed that still the no. of GSBs is less, moreover the
available GSBs are old and not functioning properly.
Also most of the installed GSBs have old logo of the company.
DISH TV should pay attention on installing more GSBs with new logo of the
company in the area to increase the visibility of the company in the area.
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Flange of Recharge Available
44
37 35
22
15
8
Interpretation: Above Bar Graph shows that DISH TV also leads in the
installation of the flange of recharge available.
Observation: It is observed that the no. of flanges can still be increased in the
area to increase the visibility of the company in the area.
Also the Flanges that are installed in the market bear the old logo of the
company.
Also the installed flanges are not properly visible or are hidden.
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POS Material Availability
DISH TV ; 82
SUN DIRECT; 52
VIDEOCON; 44
Interpretation: Above Pie Chart reveals that AIRTEL tops in the field of POS
material availability and has close competition with DISH TV and TATA SKY.
It is also observed that pamphlets are not frequently distributed in these areas as
a result of which new offers are not easily visible to the customers.
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DTH Demo Installed
VIDEOCON; 36
SUN DIRECT; 42
DISH TV; 90
BIG TV; 60
TATA SKY; 88
AIRTEL; 85
Interpretation: Above Pie Chart shows that DISH TV leads in terms of demos
installed having a stiff competition with TATA SKY and AIRTEL.
It is also observed that many of the demo connections have been terminated and
the dealers are not properly aware about the conditions required to be fulfilled
to keep the demo functional.
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Recharge Voucher Availability
VIDEOCON; 30
DISH TV; 92
SUN DIRECT; 45
BIG TV; 65
TATA SKY; 80
AIRTEL; 78
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EPRS Availability
VIDEOCON; 30
DISH TV; 65
SUN DIRECT; 40
BIG TV; 60
TATA SKY; 90
AIRTEL; 90
Interpretation: It is clear from the above Pie Chart that TATA SKY and
AIRTEL both leads the market in availability of EPRS.
There are many problems in using EPRS of DISH TV, on the other hand TATA
SKY and AIRTEL are using EPRS successfully.
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Maximum Sales
AIRTEL
32% DISH TV
35%
TATA SKY
33%
Interpretation: It is evident that 35% dealers admit that they sell DISH TV
maximum in comparison to other brands and DISH TV faces strong competition
from TATA SKY and AIRTEL.
Observation: It is observed that only the three big brands of DTH industry i.e
DISH TV, TATA SKY and AIRTEL are sold mostly in the area.
DISH TV has maximum sales because of the offers that the company provides
to its customers from time to time.
DISH TV also gets the benefit of being the oldest brand in DTH market.
Q. Brand Recommendation?
61
Brand Recommendation
DISH TV
23%
TATA SKY
35%
Also the installation and activation in other DTH brands is much more faster
than that of DISH TV.
Also the problems faced by the dealers in the EPRS of the company forces them
to recommend other brands than DISH TV.
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Competitors Do Better Than Us
OTHERS
SUPPORT 2%
25%
INSTALLATION
35%
CUSTOMER CARE
38%
Observation- when we are talking about other DTH player that what they are
doing which is better than Dish TV, maximum number of dealer express their
views and said that Tata Sky and Airtel provide one call customer service,
which mean that they never call again to customer care for same problem.
Problems are solved during the committed time.
Installation: - Many dealers say they recommend Tata Sky and Airtel because
they get the installation done much faster in comparison to Dish TV. With Dish,
it takes up to 3-4 days sometimes. The company hasn`t been able to keep up the
promises made to the customers like installation and activation commitments
are often not met.
Support:- It is being found that other DTH players are very strong in
relationship building with the dealers because there are certain examples to
prove this like if dealer has committed any mistake than customer care and
company executive won`t take much time to solve the same or take the request
of the dealer on the priority basis.
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Likings in DISH TV
NO COMMENT OFFER
26% 35%
EVERYTHING OK
9%
PRICE
30%
Interpretation: The above Pie Chart notifies the factors that make Dish TV
better than its competitors as per dealers in the area covered. It shows various
factors, like the offers made by Dish TV, the price it offers to its customers, or
some dealers would like to rate Dish TV above than the other brands in all
factors. There are some dealers who are indifferent among various DTH brands,
so they come under No Comment category.
Observation: 35% dealers in the area communicate that the offers made by
DISH TV are much better than other DTH brands. The pricing strategy of DISH
TV is rated better by 30% dealers, these dealers are of view that the prices of
DISH TV are more compatible as compared to other DTH brands. Few dealers
are of view that DISH TV is better than all brands in all aspects however the
percentage of such dealers is as low as 9%. About 26% of the dealers either
avoid to make any comment on this question, or are indifferent to all DTH
brands.
NOTE: The dealers who rate DISH TV better in terms of the offers made by
the company also comment that sometimes the offers change so frequently that
it is difficult for them to track all of them. They also state that it is difficult for
them to understand new offers and make customer aware and understand about
these offers.
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Q. Is there any demand for HD (High Definition) STB (Set Top Box)?
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Demand for HD STB
YES
14%
NO
86%
Observation: It is observed that the main reason for such a low demand of HD
STB is that the customers as well as the dealers are not aware of the concept of
HD STB.
Due to unawareness even the dealers selling LCDs and LEDs don’t show any
demand for HD STB.
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1) Maximum Dealers keep Dish TV kit and recharge facility.
2) Awareness of new connection and new recharge offers of Dish TV is similar
to Tata Sky and Airtel Digital.
3) There is a communication gap between the company and the dealers. This
doesn‘t seem to be the case with other DTH providers.
4) In terms of visibility Dish TV leads all other brands in the area with
maximum no. of GSBs and Flanges installed but there is a lot to do for the
company in case of POS materials.
5) Availability of vouchers lie between price range from Rs 100 to 500.
6) EPRS system seems to be the most troublesome recharge option for Dish TV.
7) In case of Dish TV because of frequent trouble complains in EPRS recharge
option, vouchers are preferred over others that are not the case with other brands
who use all other options.
8) Customer care service is considered to be very poor as dealers often
complain of problems in recharge process managed by Dish TV.
9) Many dealers say they recommend Tata Sky and Airtel because they get the
installation done much faster in comparison to Dish TV. With Dish, it takes up
to 3-4 days sometimes.
10) The company hasn`t been able to keep up the promises made to the
customers, like installation and activation commitments are often not met.
11) Connect between the Call Center and the Service center is not good.
12) Customer Care is not reachable on Toll-Free easily, waiting time is high on
toll-free numbers.
13) Dish TV changes the price plans and offers more frequently as compared to
other DTH providers. This along with improper communication confuses
customers which beings down the consumer satisfaction levels.
14) There has been a growing trend of dish TV customers and dealers being
shifting to other major brands like Tata Sky and Airtel as they provide better
value added services like after sale service, recharge facilities and customer
care.
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15) Most dealers surveyed have complained that the Distributor/Sales people do
not visit much and they are not receiving sufficient support.
16) Other DTH brand provides best support facility, quick recharge and
installation facility, which provides them with the competitive advantage..
17) Good thing which i found in Dish TV according to dealer feedback is offer,
dealers and customer like their but same time they shows unsatisfaction with
frequent changes in offer.
18) There is a very low demand for HD STB in the area and the company can
do a lot to pump up the demand for the same.
a) Due to the bad EPRS system of Dish TV, they are not able to recharge higher
amount and as they face such problems frequently, they try to recommend other
DTH brands to their customers.
b) The dealers mostly prefer to sell Tata Sky and Airtel because their
installation system is very fast. Also if dealers are committed to their customers
regarding any specific time limit, the other DTH brands never let them feel
down, which helps the dealers to keep good relation with their customers.
c) The dealers generally sell recharge vouchers of Tata sky worth Rs 1lac per
month, but in case of Dish TV they only sell vouchers worth Rs 5-10k. The
main reason behind it is lack of availability and also poor EPRS system. It took
long time to recharge. So dealers push its customer towards Tata sky and Airtel.
d) There has been problem on the behalf of the distributors front, distributor
have been setting there own price and negotiating according, this has been
matter of loss for the dealers in most the case the profit got is not up to the
mark.
3.8 Recommendations
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1) Visibility: The Company should increase the no. of GSBs and Flanges to
increase the visibility of the brand in the market.
2) POS Material: Company should pay more attention towards the POS
Material of the brand to increase the brand image and visibility.
5) EPRS: The Company should pay attention towards the problems that are
being faced by the dealers in EPRS so as to retain the valuable customers
of the company. It should be upgraded consistently.
7) Offer and Price: The practice of frequent price and offer change prove
no good for the company as it is in a way frustrates the customers with
changes in offers without any notice. So DISH TV needs to watch out for
this and pre inform the customers for any change in the offers and
changes well in advance. This will help increase the brand loyalty and
preference.
4. Bibliography
www.dishtv.in
www.tatasky.com
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www.airtel.in/digitaltv
www.sundirect.in
www.d2h.com
www.bigtv.co.in
www.sebi.govt.in
5. ANNEXURE
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Retailer`s Name:
a)Yes b) No
a)Yes b) No
......................................................................................................................
…..
…………………………………………………………………………
a)Yes b) No
.................................................................................................................
a) Yes b) No
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a) Dish TV b) Tata Sky c) Airtel d) Big TV e) Sun f) Videocon
a) Yes b) No
a)…………………..
b)…………………..
c)…………………..
d)…………………..
e)…………………..
f)…………………...
a)……………………
b)……………………
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c)……………………
d)……………………
e)……………………
f)…………………….
a) …………………..
b)………………......
c)……………………
d)…………………….
17. What do you like about Dish TV as compared to other DTH BRAND?
a) Offer
b) Price
c) Everything OK
d) No Comment
a) Yes b) No
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19. Is there any demand for HD STB?
a) Yes b) No
20. If deals in LCDs but there is no demand for HD STB, then why?
……………………………………………………………………………
......................................................................................................................
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