Introduction In earlier days there was only one TV channel in India the “Doordarshan”, Channel Doordarshan was owned and operated by government of India. In this era, every home which had a TV set used to have its own antenna to capture the signals. The Cable Television Ordinance Law was passed in January 1995. This enabled cable operators to feed channels and later on private companies were allowed to air their own channels and this led to the explosive growth in number of TV channels and number of cable operators. The growth of TV channels & cable operators created a big industry and market opportunities. There were as many as 1, 00,000 cable operators across India until few years back. However the services provided by cable operators were poor. The strikes, increase in tariff plan, selective broadcast and poor services were major cause of dissatisfaction among the customers. This has created an opportunity for DTH, which serves an immediate
Transcript
Introduction
In earlier days there was only one TV channel in India the “Doordarshan”,
Channel Doordarshan was owned and operated by government of India. In
this era, every home which had a TV set used to have its own antenna to
capture the signals. The Cable Television Ordinance Law was passed in
January 1995. This enabled cable operators to feed channels and later on
private companies were allowed to air their own channels and this led to the
explosive growth in number of TV channels and number of cable operators.
The growth of TV channels & cable operators created a big industry and
market opportunities. There were as many as 1, 00,000 cable operators
across India until few years back. However the services provided by cable
operators were poor. The strikes, increase in tariff plan, selective broadcast
and poor services were major cause of dissatisfaction among the customers.
This has created an opportunity for DTH, which serves an immediate threat
to the high- end cable networks India has about 130 million TV homes of
which, Cable & Satellite (C&S) services are present in 97 million (74%) of
the home. The DTH market in India comprises 11% of the total market with
almost 15 million homes. The DTH industry growth lagged to 10.3% in
2008 from 16.7% a year earlier. But industry players agree that the
digitization drive is expanding by 35-40% annually. However, industry
estimates DTH to touch 35-40 million subscribers by 2012, and that’s the
number that every DTH brand has set its sights on.
By 2015, DTH will enjoy a market share of 40%, digital cable 40% and
analog cable will follow with only 20% market share. The DTH service
market in India has emerged as one of the most lucrative markets which
have successfully resisted the impacts of the current economic slowdown.
The slowdown, instead, proved a boon for the Indian DTH industry as
people started to cut on their entertainment expenditure and instead of
viewing movies at theatres, they preferred to stay at home with their
television sets.
The anticipated growth to the efforts of DTH industry players who are all
trying to lure viewers by cutting down prices as well as offering perks even
though it translates into loss of Rs 1,600-2,000 on each new subscriber
acquired by them. They have started to offer a number of value-added
services such as
‘Movie on demand’, live recording of TV content, matrimonial match-making,
etc.
Share of DTH in TV Household
Still, as DTH is still a relatively new category and most people are
hesitant to experiment with it. It is therefore imperative for companies
such as Tata Sky, Dish TV, and Reliance BIG TV to educate the
consumers about the advantages of the service and in turn create an
urge to invest in it.
Porter’s Five Competitive forces: Direct to Home
Buyers: Bargaining power of buyers
With enough options to choose both from the point of alternate mediums
like Cable, IPTV and Terrestrial broadcast and from the point of increasing
DTH operators, the consumer is at his will to decide. Customers will
continue to have a high bargaining power until DTH platforms try to
differentiate them as superior players with better content and clarity.
Suppliers: Bargaining power of suppliers
DTH industry relies on three major supplies: Customer Premise Equipment
(CPE) comprising of the satellite dish, Set Top Box with the necessary Access
card, the Ku band transponders in the orbiting satellites and content.
With India overtaking Japan as Asia’s largest DTH, the bargaining power of
Indian DTH operators with CPE supplies have increased. However, the
availability of transponders is increasingly becoming difficult. The Ku band
transponder is generally provided by Astrix, the commercial wing of ISRO
either through its own satellites or by leasing transponders from suppliers.
With only two domestic satellite launches between 2007 and 2010 and
increasing DTH players, Astrix is in a better position to use DTH as its cash
cow for the next 5 to10 years. Also the crash of INSAT 4C and NSS-8 has
worsened the situation of DTH players. As there is not much of regulation
particularly in terms of channel pricing, acquiring content from the
broadcasters is also difficult. DTH vendors are at the mercy of the
broadcasters.
Potential Entrants: Threat of new entrants
With already 7 players in the DTH space, threat of new entrants is relatively
low. There is already enough competition which will discourage new firms to
enter this business. While getting a license is relatively easy, the barriers to
entry are high when it comes to pricing of CPE and getting the required
transponders.
Substitutes: Threat of substitutes
DTH faces stiff competition from the terrestrial, cable and IPTV. As per
the industry estimates, there are 130 million TV homes of which 97
million are served by cable and around 15 million by DTH with the
remaining taken by terrestrial transmission.
Industry competitors: Segment rivalry
Presently as on 2010, these are the main DTH service providers in
India:
DD Direct – state owned free service provider
Dish TV - owned by Essel Group, was the first commercial DTH
service provider.
TATA Sky – owned by TATA group, largest DTH service
provider presently in India.
Sun Direct – owned by Sun group, primary focus is on low income
groups and regional viewers.
Reliance Big TV - Owned by Reliance group, new entrant into the
market.
Airtel Digital TV – Owned by Bharti group, new entrant with
aggressive marketing strategies.
Videocon D2H – Owned by Videocon group, new entrant into the
market.
Market Share
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr0
102030405060708090
East
West
North
With 7 operational players, the segment rivalry is quite high. The competition
from state owned DD-Direct to private players is negligible from the content
point of view as the number of channels offered by DD-Direct is very
limited. However, DD-Direct does not charge any monthly subscription fee
which poses a threat to the private players. Between Dish TV and Tata Sky
there is an intense rivalry exhibited by price wars and discount schemes
offered to new connections. Being the first mover, Dish TV has price
advantage in both the STB as well as procuring the transponders. On the
other hand, Tata Sky claims its STB having superior DVD quality video.
There is also a competition at acquiring the content.
DTH Market Structure
The DTH market structure can be classified into three categories; Market
leaders, Market challengers and Market followers. There is intense
competition as some of the leading players have not only succumbed in the
sales for acquiring new customers but has started loosing existing ones to
Tata Sky, Big TV and other new entrants.
Market Leader:
Dish TV India’s first DTH service provider launched in October 2003 is
the market leader with 6.4 million subscribers. Dish TV continues to be a
market leader with 32% market share in 7 player scenario on date, with
sizeable
sales and distribution infrastructure of over 650 distributors and 45,000
dealers across 6500 towns – once again, the largest in the category. This
reach into far flung markets enables building of a diverse subscriber base
across consumer segments, which are supported by its rich content of
regional channel offerings.
Dishtv has maintained its leadership position through an improved market
share of all DTH subscribers. New offers, extensive marketing campaigns
have contributed to impressive subscriber acquisition and are committed to
provide the best value to our customers and investors by enhancing
operational efficiencies and by leveraging economies of scale.
Market challengers:
The gap between the leader and the challengers is decreasing because of
the increasing competition and promotion strategy followed by each
player.
TATA Sky
In the enormous consumer market that is India, occasionally an opportunity
arises that can create incredible growth and profit—provided those who seek
to capture it can move quickly enough. TATA wanted to capitalize on this
opportunity as there was currently only one player in the DTH market. It was
the second Mover after Dish TV leveraging on brand TATA and high brand
recall.
Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR.
Tata Sky endeavors to offer Indian viewers a world-class television viewing
experience through its satellite television service. The key business challenge
in a country like India is meeting customer demands—which are very
dynamic— under the regulatory purview of the country.
Sun DIRECT
Sun Direct is the fastest growing DTH service provider having garnered over
1.9 million subscribers since its launch in December 2007 and aims to
become one of the leading players in the DTH space. Sun Direct challenged
the existing players by involving them in the price war by acting as a
discounted brand. It started offering subscriptions at as low as Rs 99 to reach
as much at the bottom of the market. The biggest differentiator for the brand
is the pricing point which is lesser than the other brands.
The other point of differentiation is with regard to their distribution
channels. It is being made available in most basic shops such as telephone
booths, cycle repair shops and video parlors.
Sun DTH was the first one to move into the MPEG4 league and soon after
the PAN India launch HD services will be launched. Another first from SUN
DTH is the launch of exclusive comedy channels for its subscribers.
Market followers:
Reliance BIG TV/ Airtel Digital/Videocon d2h
The approach being followed is of Market Follower (as they are late
entrant and their primay objective is to attract max subscribers in shortest
span of time.
Consumer Behavior Pattern
Major Factors influencing the purchase decision of DTH are as below:
Price
Customer Service
Reception
Program choices
New Technology and
Technical Support
Strategies to sustain in competitive growth market
Advertising & Promotion:
Indian TV channel broadcast 15.7-mn advertisement every year, which
totals to 362-mn seconds of TV advertisement every year. India currently
has over 400 channels.TV viewer ship has declined by 5% since 2001.
TV broadcasters are expected to increase advertisement rate this year by
16-18%.
DTH industry uses different marketing strategies for promotion and sales of
its products. It gives advertisements with their brand ambassadors which
attract customers, door to door selling, on the phone selling, discount and
offer sales, packages, etc. Marketing practices is a continuous process as the
competition keeps increasing among the players in the industry. Each
player is investing lot of money in promoting there brands.
Many players are making advertisement with movie actor and actress as
brand ambassadors for their products because DTH is mainly considered
with entertainment. Some of the companies like Tata sky is having Super
Star Aamir khan as brand ambassador and Airtel is having many film stars
like Kareena Kapoor, A.R. Rahman, Saif Ali khan, etc. Dish TV is also
having Super Star Shahrukh khan as the brand ambassador. Sun direct also
use southern actress for their brand promotion.
Marketing practices are the decisions taken by the manufacturing company
to increase sales, expand themselves into many areas etc. Successful
marketing practices bring sale up, while unsuccessful marketing practices
have no impact on sale or negatively impact sale. Marketing concepts
specific to the industry is primarily targeted at a niche segment who buy
the TV sets from the electronic retail chains.
Product Innovation
The concept of innovation in DTH industry is INCREMENTAL innovation;
everything that is done is due to constant research of many marketing and
analysts to bring many innovations to the existing products in the DTH
industry. Incremental innovation is the apt innovation which is suitable and all
the DTH players are concentrating up on. This innovation makes the business
to grow continuously and brings advantages to the customers using the
products and the service.
There are many sources of innovation for this industry as mentioned in the
above, the technology and the people are the main sources for the innovation.
Customer’s opinions and their needs can be served by providing a service
which is matching to their needs and requirements.
Digital TV, the DTH service from Airtel, has announced India’s first skin
integration innovation on its EPG screen in partnership with Yahoo. Yahoo
takes forward its latest brand campaign “YOU” in this first of its kind
partnership where an online portal will use DTH as a medium to promote
itself.
The ‘Electronic Programming Guide’ screen on Airtel digital TV is now
completely integrated with Yahoo India’s homepage. Customers will find a
message ‘Fill your home page with all the things that make YOU’ when they
log onto to the EPG screen. A prompting ‘Red Button’ will take them to a
dedicated landing page that elaborates the offerings on Yahoo India’s new
home page.
The ‘YOU’ campaign enables users to customize the home page as per their
liking and empowers them with the choice to integrate social applications
such as Facebook with their Yahoo homepage. This whole idea was
conceived by Network Play, right from design elements to execution and
thanks to Mindshare for buying into the idea and flawlessly helping people
execute it.
Tata Teleservices Limited has announced a technological breakthrough—a
first-of-its-kind innovation in India with the launch of TATA Photon TV, a
new application that allows Tata Photon Plus subscribers to watch live
television channels on their laptops while on the move, and on their personal
computers at home and in the office. The Photon TV service is exclusively
available to Photon Plus users. “With its growing popularity, Photon Plus has
caught the admiration of millions of users across the country, with its high-
speed data access capabilities and the ease of mobility.
TATA Photon TV is a personal computer- and laptop-based video-
streaming application, which allows Tata Photon Plus users to view live TV
feed from various sports, news, entertainment and regional channels, and to
watch recorded TV shows from the library (viz Coffee with Karan, Zoom,
Pogo, etc), movies, music and videos on demand.
Internet Browsing charges will be charged as per your Photon+ tariff plan
and it would be applicable while viewing Photon TV. These charges would
be over and above the subscription charges for the Photon TV.
(Approximate data usage is 1-2MB per Min).
Rate of innovation in this sector is growing at a faster rate in the recent years
where as it is not very impressive before this period. The reason for this is
the fair competition between the all players in this DTH industry. It led to the
development of new products in this sector which also led to the
diversification of products as there is abolition of entry of foreign industries
into Indian industries initially. It also made the industries in this sector to
establish their own R&D departments for successful product innovations like
Airtel Live, Videocon d2h.
Market segmentation
GEOGRAPHIC SEGMENTATION
In terms of geographical location, North India and Western India
together contribute over 8 million DTH subscribers, while the
southern market contributes 3 million. The states of Maharashtra, Goa,
Punjab, Uttar Pradesh, and Rajasthan are the leaders in DTH subscription,
contributing over 6.5 million DTH connections to the overall base.
Urban and Rural:
In order to cater to the diverse taste and needs of both urban and rural people,
operators provide entirely different range of services and offerings. In rural
areas, fleet of vans for demos, installation as well as selling hardware and pre-
paid vouchers are being used. Most players are building up their subscriber
base by targeting viewers outside the big cities, which suggests that about 60
per cent of DTH subscribers reside in rural areas and towns with a population
under a million.
Region and States:
It has come up with special offers for the southern region where regional
and sports channels are viewed the most. Like Ultimate sports bonanza
offer – Rs 1890 with 3 Months of South Silver subscription available in
Tamil Nadu, Kerala, Karnataka & Pondicherry only. Ultimate sports
bonanza offer - Rs 2490 with 12 Months of Silver subscription available
in Andhra Pradesh only. Dish TV has structured a basic bouquet of
customized package of channels which are in demand in a particular state
at a very affordable price pack like North diamond pack and South
diamond pack. Marathi channels namely Star Pravah and Star Majha for
its Marathi speaking customers.
DEMOGRAPHIC SGMENTATION
AGE and GENDER:
As the market gets fragmented, niche channels will become more and more
desirable. The increased interest in unique content channels is in line with
the international trend, where once the market matures, consumer needs
come into focus. Thus channels on Education, Women, Gardening, a
variety of Sports, Wellness and Religion, etc. make their appearance.
Most of the players in DTH offer niche channels to create a unique and
exciting offering for its viewers of every age and gender segment. DTH
industry mainly concentrates on women who don’t like missing their daily
soap and news more ever women are able to learn English speaking which is
a very special feature of DTH. DTH also concentrates on children also by
providing them games, dictionary, some discovery videos specially inbuilt,
maths, and science and social knowledge. It also focuses on old people as it
has updated videos of various holy and religious places.
Dish TV recently launched ‘Children Films Festival’ with a bouquet of over
25 super-hit films across various categories priced at Rs. 25/- per movie
thus
targeting the children segment. Besides this value added services like Games
Active, Bhakti active services etc carters to needs of customers from various
age groups and gender.
INCOME:
Recognizing the vast differences in tastes and pocket sizes of different
consumer segments, content has been aggregated and classified into 4
different packages namely MAXI, WELCOME, FREEDOM PLUS and
FREEDOM packages .While the Maxi and Welcome packs are price drivers
and target high ARPU consumers, the value pack offerings in Freedom and
Freedom Plus packages are volume drivers that inspire new subscribers to
come on board through a low price point and basic channel offering. The
strategy is to gradually upgrade the low ARPU subscriber too, through tailor
made add on packs on a-la-carte like movies, business, etc. basis for specific
entertainment needs. Keeping income levels of consumers in mind, operators
apprise the consumer of its three tier pricing. It gives a choice to the
consumer to select from a three level flexi plan that bundle three, six or 12
months of subscription along with the initial box.
BEHAVIOURIAL SEGMENTATION
OCCASIONS:
DTH operators come out with new offers of channels or new buyer
schemes at relatively cheaper rates on occasions of festivals or major sports
events. For example It offers benefits to customers like: In a cricket match
choosing the language of the commentary, camera angles, know player
statistics and watch match highlights at our will. In the past Dish TV has
come with schemes like
‘Diwali Double Dhamaka’ (November 2007), the IPL Pack (April 2010),
'Summer Sports Bonanza' (June 2008), Special Onam Offer for Kerala
(August 2007), World cup offer (March 2007).
USER STATUS:
Every product has its non users, ex-users, potential users, first time users and
regular users. In order to attract the non users and potential users time and
again competition has forced players to introduce innovative and exciting
consumer promotion offers into the market. Schemes like World Cup Free
Offer, Free bhi Zyaada bhi, Ab Sab Sikandar, and the landmark Set Top Box
Free Offer, have not only added to the pace of acquisitions but attracted
specific consumer audiences like sports lovers and kids into its fold.
In conclusion, each player has cautiously segmented the market through an
expanded product range at appropriate price points to stay competitive. By
offering packages like cinema active, khel active, movie active, music active
is targeting people with specific lifestyles. Premiering new movies within
weeks of their releases is targeted at people who want to see latest movies at
affordable prices. Latest movies are premiered within weeks of their release.
Dish TV has also targeted the youth segment with offers like “Michael
Jackson Live in Bucharest tour” for just Rs 25, Microsoft Xbox 360 Arcade.
Brief profile of players in the industry
DD DIRECT
Doordarshan is the public television broadcaster of India and a division of
Prasar Bharati, a public service broadcaster nominated by the Government
of India. It is one of the largest broadcasting organizations in the world in
terms of
the infrastructure of studios and transmitters. Recently, it has also started
Digital Terrestrial Transmitters. On September 15 2009, Doordarshan
celebrated its 50th anniversary. Doordarshan had a modest beginning with
the experimental telecast starting in Delhi on 15 September 1959 with a small
transmitter and a makeshift studio.
The regular daily transmission started in 1965 as a part of All India Radio.
The television service was extended to Bombay (now Mumbai) and
Amritsar in
1972. Till 1975, seven Indian cities had television service and Doordarshan
remained the only television channel in India. Television services were
separated from radio in 1976. Each office of All India Radio and
Doordarshan were placed under the management of two separate Director
Generals in New Delhi.
Finally Doordarshan as a National Broadcaster came into existence.
National telecasts were introduced in 1982. In the same year, color TV
was
introduced in the Indian market with the live telecast of the Independence
Day speech by then Prime Minister Indira Gandhi on 15 August 1982,
followed by the
1982 Asian Games being held in Delhi. Now more than 90 percent of the
Indian population can receive Doordarshan (DD National) programmes
through a network of nearly 1400 terrestrial transmitters and about 46
Doordarshan studios produce TV programs today.
DD Direct+ is a free Direct to Home (DTH) service that provides satellite
television and audio programming to households and businesses in the Indian
subcontinent. Owned by parent company Doordarshan, DD Direct Plus was
launched on December 16, 2004.
Dish TV
Dish TV is the first private DTH satellite television provider in India, using
MPEG-2 digital compression technology, transmitting using NSS Satellite at
95.0. Dish TV's managing director and Head of Business is Jawahar Goel
who is also the promoter of Essel Group and is also the President of Indian
Broadcasting Foundation and Mr. Subhash Chandra is the Chairman of Dish
TV.
Dish TV is a division of Zee Network Enterprise (Essel Group Venture).
EGV has national and global presence with business interests in media
programming, broadcasting & distribution, specialty packaging and
entertainment. Zee Network incorporated dishtv to modernize TV viewing.
By digitalizing Indian entertainment, this enterprise brought best television
viewing technology to the living room. It not only transmits high quality
programmes through satellite but also gives a complete control of selecting
channels and paying.
DTH service was launched back in 2004 by launching of Dish TV by Essel
Group's Enterprises. Dish TV is on the same satellite where DD Direct+ is.
Dish TV started its service in Pakistan with the collaboration of Budget
Communication. Dish TV was only DTH operator in India to carry the two
Turner channels, Turner Classic Movies and Boomerang. Both the channels
were removed from the platform due to unknown reasons in March 2009. \
Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17
December, 2002 by European-based satellite provider, New Skies. Dish TV
hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the
satellite was to increase the channel offering as NSS 6 offered more transponder
capacity.
Tata Sky
Tata Sky is a DTH satellite television provider in India, using MPEG-2
digital compression technology, transmitting using INSAT 4A at 83.0°. Tata
sky was incorporated in 2004.
Tata Sky is a JV between the TATA Group and STAR. Tata Sky DTH
endeavors to offer Indian viewers a world-class television viewing experience
through its satellite television service. Vikram Kaushik is present CEO of Tata
Sky Ltd. The TATA Group is one of India's largest and most respected business
conglomerates. It comprises 93 operating companies in sevenbusiness sectors
and diversified group information systems and communications, engineering,
materials, services, energy, consumer products and chemicals.
The TATA Group has operations in more than 40 countries across six
continents and its companies export products and services to 140 nations.
The Group and its enterprises have been steadfast and distinctive in its
adherence to
business ethics and their commitment to corporate social responsibility.
This is a legacy that has earned the Group the trust of many millions of
stakeholders in measure few business houses anywhere in the world can
match.
The SKY brand, owned by the UK-based British Sky Broadcasting Group,
brings to Tata Sky the reputation of more than 20 years experience of satellite
broadcasting. SKY is well known for the innovative products and services
launched by BSky, such as DTH broadcasting in 1989, digital satellite
broadcasting in 1998, interactive television services in 1999 and the SKY+
personal video recorder in 2001. Tata Sky joins an international group of
DTH businesses that includes platforms as far apart as the UK and Italy in
Europe, and Mexico and Brazil in Latin America.
Tata Sky Ltd is the First Indian DTH provider to be awarded the ISO
27001:2005 accreditation, the ultimate benchmark for information security.
The assessment for the certification was conducted by Intertek Systems
Certification, the management systems registration business unit of Intertek
Group plc and is accredited by several internationally-recognized accreditation
bodies worldwide.
In October 2008, Tata Sky announced launching of DVR service Tata Sky+
which allowed 45 hours of recording in a MPEG-4 compatible Set Top Box.
The remote is provided with playback control keys and is being sold with
special offers for existing subscribers. Tata Sky was selected as a SUPER
BRAND for the year 2009-2010 by an independent and voluntary council of
experts known as Super brands Council. It is the only Indian DTH to have
won this distinction.
Sun Direct
Sun Direct is a DTH satellite television provider in India, using MPEG-4
digital compression technology, transmitting using INSAT 4B at 93.5°E. It is
the country's first MPEG 4 technology DTH service provider. Sun Direct is a
DTH service in India headquartered in Chennai, Tamil Nadu.
Sun Direct TV was registered in February 16, 2005. However, the failed
launch of INSAT 4C resulted in a lack of transponders, delaying the launch.
The service was finally launched on December 2007 after availability of
transponders from INSAT 4CR. Because of the lowest pricing of any DTH in
India Sun Direct spread rapidly all over the country. On December Sun Direct
was launched in Mumbai and announced its pan India launch. By 2009 it
became leading DTH provider with 3 million subscribers. This makes it 4th
largest DTH service provider of India.
In April 2009 Sun Direct officially launched its High-Definition service in
India. Sun Direct uses the latest MPEG-4 based technology to increase
broadcast capacity.
Sun Direct provide next-generation services in fast-growing and emerging
markets quickly and efficiently. Sun Direct selected Oracle based on its
convergent multi-service capabilities and proven real-time scalability
allowing it to consolidate billing operations, enables powerful new service
offerings and improves visibility into customer information across services.
BIG TV
Reliance BIG TV is a DTH satellite television provider in India based in Navi
Mumbai, using MPEG-4 digital compression technology, transmitting using
MEASAT-3 91.5°east. It is the 5th DTH service launched in India. Reliance
BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of
Reliance Anil Dhirubhai Ambani Group founded by the Late Dhirubhai
Ambani, the Indian business tycoon and owned by his son Anil Ambani.
BIG TV started operations from 19 August 2008 with the slogan "TV ho
Tho BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to
200 channels and many interactive ones, 32 cinema halls (i.e. Pay Per View
Cinema Channels) as well as many Radio channels. The company plans to
increase the number of channels in the near future to 400 and begin High
Definition (HD) broadcast. It is the first Pan-India DTH provider that uses
MPEG-4 for broadcasting. There are also plans to introduce services like i-
Stock, i-News and other such interactive services in the future.
Reliance BIG TV was launched on August 19, 2008 with the sole aim of
providing the consumer with quality and enriched home entertainment
service at value-driven pricing. Reliance BIG TV's launch in August was
probably the biggest roll-out in home entertainment ever and deployed the
most advanced MPEG4 technology that enabled them to deliver best quality
digital audio-video to the consumer. It also got prepared for the future when
Hi-Definition TV will be launched in India because only MPEG4
technology can support HD TV and not MPEG2 which is used by the earlier
entrants in the DTH industry.
Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500
towns in India. This was literally unheard of in the DTH industry. They had
effectively out-stripped the competition here. When it came to pricing –
packaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months of
free subscription. They also introduced 32 Pay-Per-View Movie Channels,
the highest by any DTH player.
Airtel digital TV
Bharti Airtel Limited is the flagship company of Bharti Enterprises and is
India’s largest integrated and the first private telecom services provider with
a footprint in all the 23 telecom circles. As India's leading
telecommunications company, the Airtel brand has played the role of a
major catalyst in India's reforms, contributing to its economic resurgence.
Airtel since its inception has been at the forefront of technology and has
steered the course of the telecom sector in the country with its world class
products and services.
Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It
uses MPEG-4 digital compression with DVB-S2 technology, transmitting
using INSAT 4CR 74°E Airtel digital launched on 8 October, 2008 with a
360 degree mega campaign 'Come Home to the Magic. Since then it has
launched 2 other campaigns: ‘Stars come home’ (March 2009) and ‘DTH
Picture Clarity (August 2009) has increased its channel base to 183+
channels.
Airtel digital TV is now amongst the fastest growing DTH brands in the
country and is available across 5000+ towns in India. It has also been
ranked as the best DTH service by “Living Digital” magazine.
Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players
have a bright future in Indian market as the people are getting more attracted
towards DTH because of its quality and affordability.
Videocon d2h
Videocon d2h is a DTH satellite television provider in India based in
Mumbai, using MPEG-4 with DVB S2 digital compression technology.
Videocon Leasing & Industrial Finance Limited was incorporated on 4th
September, 1986 as Adhigam Trading Private Limited. In terms of the
necessary resolutions Passed under Sec. 21 of the Companies Act, 1956, the
name of the Company was changed to Videocon Leasing & Industrial
Finance Limited on 14th February,
1991. The Company received a fresh certificate of incorporation from the
Registrar of Companies, Gujarat at Ahmedabad on 14thFebruary, 1991.
Videocon d2h launched May 1, 2009. it came with a very good
strategy for selling both of its electronic products like TV’s DVD’s along
with the new set top box. This is offering direct to TV without any set top box
also. Only the antenna is enough, it also came with DVD which is connected
directly to the TV or antenna is connected to DVD which gives a best quality
of out put.
Research Methodology
Rsearch Design
Research Method: Exploratory Research
Sample Selection: Sagar City
Sample Size: 50
Sampling Method: Convenience Sampling
Survey Method: Personal Interview
Respondents: Households having DTH or Cable service
Research Instrument: structured Questionnaire
Data Analysis & Interpretation
Tools Used:
Type of Data: Primary Data
Primary Scale of Measurement: Interval Scale
Analytical Tools:
# Use of Percentages
# Frequency tables
# Bar charts
# Pie charts
Question wise Analysis:
1. Which DTH brand of service do you use?
Dish T.V. Tata Sky Big T.V.
Sun Direct Airtel Digital Videocon D2H
Highest market share was found to be 24% of Dish TV which entered in
market earlier than other competitors. Dish TV has maintained its majority
since its entrance in DTH service providers. Lowest market share was found to
be 8% for Sun Direct TV.
Dish TV; 24%
Tata Sky; 19%Airtel; 10%
Big TV; 9%
Video-con; 8%
Sun Direct; 4%
Market Share
2. How did you come to know about the above DTH brand?
T.V. Radio Outdoor hoardings
Friends Internet Print Advertising
Media Contribution in Awareness in %
TV Radio Outdoor Hordings Friends Internet Print Advertising0
10
20
30
40
50
60 57
38
14
6
12
Most of the people were attracted to purchase DTH through TV advertisements
which indicates TV advertising as a strong tool for marketing of DTH products.
Radio listeners were least attracted for using DTH services.
3. How did you purchase the DTH service?
Tele calling Leading electronic stores online booking
Tele calling9%
Leading electronic stores87%
Online booking4%
Purchase Source
As mentioned in pie chart, Most of the DTH users used leading electronic store
to purchase DTH. Out of 24 DTH users, 14 have purchased it from electronic
store which indicates higher leading electronic stores as a strong distribution
channel.
4. Since how long have you been using DTH service?
Less than 6 months 6 months to 1 year 1 year to 2 years
2 years to 3 years More than 3 years
The data collected from this question clearly indicates rising trend in use of
DTH services. Among all DTH users, most of them have purchased DTH
within last six months. Given chart represents increasing usage of DTH
services.
Less than 6 months 6 months to 1
year 1 year to 2 years 2 years to 3
years More than 3 years
0
5
10
15
20
2521
1618
12
7
5. Are you aware of any other DTH brand?
Reliance Big TV 37
Tata sky 41
Airtel 56
Dish TV 27
Videocon 34
Others 5
Relience Big TVTata skyAirtelDish TVVideoconOthers
All the respondents are aware of the DTH service providers.
6. How did you come to know about the above DTH brand?
T.V. 67
Radio 4
Outdoor hordings 43
Friends 11
Internet 9
Print 66
advertisement
T.V.
Radio
Outdoor hordings
Friends
Internet
Print advertisement
As chart suggest that most of the respondents came to know about the DTH
service provider through T.V. and print advertisement. Around 67% of the
respondents came to know about DTH service by T.V. and print
advertisement. Around 22% came to by outdoor hoardings. So from this it
becomes clearer that T.V. and print media are most effective tool for
promotion.
BIBLIOGRAPHYBIBLIOGRAPHY
Sharma D.D. : Marketing research Principles,
Application and cases , Sultranchand and Sons New Delhi.
Kothari, C.R. : Research Methodology, Methods and
Technology, Wishwa Prakashan, New Delhi.
Kolter, Philips d (2000), Marketing Management, Prentice
