GROWING PREFERENCE OF DTH OVER CABLE TV

Submitted in the partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

TO

Guru Gobind Singh Indraprastha University, Delhi

UNDER THE SUPERVISION AND GUIDANCE OF: PROF. RAJESH BAJAJ

SUBMITTED BY:GARIMA WADHAWAN BBA-VI(M) 0621701708

SESSION: 2008 2011

TECNIA INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, Ministry of HRD, Govt. of India) Affiliated To Guru Gobind Singh Indraprastha University, Delhi INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085 E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org Fax No: 27555120, Tel: 27555121

CERTIFICATE
I, Ms. GARIMA WADHAWAN, Roll No. 0621701708 certify that the Project Report/Dissertation (BBA-310) entitled GROWING PREFERENCE OF DTH OVER CABLE TV is done by me and it is an authentic work carried out by me at TECNIA INSTITUTE OF ADVANCED STUDIES. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student Date:

Certified that the Project Report/Dissertation (BBA-310) entitled GROWING

PREFERENCE OF DTH OVER CABLE TV done by Ms. GARIMA WADHAWAN, Roll No.0621701708, is completed under my guidance.

Signature of the Guide Date: Name of the Guide: Designation: Address: Tecnia Institute of Advanced Studies, New Delhi

Countersigned Director/Project Coordinator

ACKNOWELEDGEMENT
I , GARIMA WADHAWAN, student of Bachelors of Business Administration, Tecnia Institute of Advanced Studies ,Guru Gobind Singh Indraprastha

University(GGSIPU) with great sense of satisfaction I would like to express profound sense of gratitude and respect those who helped me throughout the duration of this project report

Certainly, this project could not have completed without the valuable suggestions from various sources.

I would like to express my earnest gratefulness to Prof. RAJESH BAJAJ, faculty, Tecnia institute of advanced studies, Rohini for giving me an opportunity to undertake this research project under his expert guidance and for helping me in understanding and completing the same in a fruitful manner.

This acknowledgement is incomplete without thanking and expressing a profound and earnest gratitude to all the respondents who gave me their time and patience for carrying out this research and helped me in finding out conclusion in a better and significant manner.

I would also like to thank my institute Tecnia institute of advanced studies for giving me an opportunity to work on this project. I would also like to thank my friends for their support.

GARIMA WADHAWAN 3

CONTENTS
S No 1 2 3 4 9 10 11 12 13 Topic Certificate (s) Acknowledgements List of Abbreviations Chapter-1: Introduction Chapter-2: Data Reduction & Presentation Chapter-3: Data Analysis Chapter-4: Summary and Conclusions References/Bibliography Appendices Page No 2 3 5 6-43 44-53 54-62 63-69 70 71-74

LIST OF ABBREVIATIONS S No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Abbreviated Name DTH TV CAS STB IPTV AV CPE ISRO NSS DVD EPG SV-O-D KU DD LCD LED SWOT Full Name Direct to home Television conditional access system Set top box
Internet Protocol television Audio video Customer Premise Equipment Indian Space Research Organisation New skies satellite Digital Versatile Disc Electronic programmer guide Subscription video on demand Name of the band Doordarshan liquid crystal display light-emitting diode Strengths, Weaknesses, Opportunities, and Threats

1.1AIM OF THE RESEARCH

To show that DTH is growing in preference over Cable TV

1.2 OBJECTIVE OF THE RESEARCH

Every research work undertaken is completed with some objective in mind which is in accordance with the significance of the study. Objective of the study is the main purpose towards which the study is directed and it is important for undertaking any research work in the right direction. To determine how many people use Cable TV. To determine how many people use DTH. To give the interactive features of various DTH services. To show the growing preference of DTH over Cable TV. To understand purchase criteria of customers for selecting DTH or Cable Services To understand competition between various players To Find Out Opportunity & Threats In Indian DTH Industry. To Study The Reason Behind Growth Of DTH Market.

1.3 SCOPE OF THE RESEARCH PROBLEM

The growing preference of DTH over Cable TV- is a recent phenomenon and has not been extensively researched.

Moreover, the research being primary in nature itself describes the newness of topic. I feel that there is indeed a vast scope for research in this field keeping in mind the advancement of technology day by day.

1.4 OVERVIEW OF DTH INDUSTRY:

DIRECT TO HOME/ SATELLITE TELEVISION

DTH: stands for Direct-To-Home television. DTH is defined as the reception of satellite programmes with a personal dish in an individual home. DTH is a new technology that circumvents the cable operators by directly delivering a bundle of channels to the end user. DTH involves transmission of encoded audio/ video signals (Ku band) via satellite. The end user needs an antenna to receive the signals and a decoder (set top box) to unscramble the encrypted signals. DTH services elsewhere in the world are Echostar and DirecTV (USA) and B sky B (Europe). Rupert Murdoch of Star TV fame owns BskyB. The size of the antenna in DTH will be 1.5-2 ft in diameter, shortly. In the meantime, DD has sought to be the exclusive licensee for providing DTH services. The license will be for a period of 15 years, the first 5 being exclusive and in the balance 10; DD will be exposed to competition. The DTH market in India, according to Star TV reports, is estimated at 0.1mn households. Another issue that will impact valuations will be local program content. In India, given the diversity and differences in tastes, regional content is critical for success. This has been proved by the success of Sun TV in Chennai. DTH will result in restructuring of the cable television industry. It will become imperative to have cash reserves to withstand the technology threat. Upgradation to fiber optic backbone will become necessary. A fiber optic network will cost about

Rs0.5mn per km as compared to Rs0.1mn per km for coaxial cable. The stage is now ripe for consolidation. DTH services were first proposed in India in 1996. But they did not pass approval because there were concerns over national security and a cultural invasion. In 1997, the government even imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH services in India. Finally in 2000, DTH was allowed. The new policy requires all operators to set up earth stations in India within 12 months of getting a license. DTH licenses in India will cost $2.14 million and will be valid for 10 years. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the number of companies that can apply for the DTH license. Since its inception in 2003, the Indian Direct-To-Home (DTH) TV industry has been growing at a rapid pace. This growth has been supported by huge investments by the existing and new players. Defying the global trend of economic crisis, DTH industry posted significant growth in 2008 and 2009. The DTH market acquired around 16 Million subscribers by the end of 2009, an increase of approximately 44% over the 2008 levels. With the entry of new players in the Indian DTH industry, competition is getting intense. Due to this intensifying competition, installation prices are declining and subscribers have a wide range of options to make choices. The reason for high growth in DTH subscriber base can be attributed to the fact that quality of service delivered by DTH is superior as compared to cable or any other medium. Since DTH TV industry is currently in growth phase, it is expected to attract a large number of subscribers in near future. As per our new research report Indian 10

DTH Market Forecast to 2012, the number of DTH subscribers is projected to grow at a CAGR of around 18% during 2010-2013 to 39 Million by 2013. In 2008, the DTH subscribers accounted for only a small proportion (less than 10%) of total number of TV households in India, which were 119 Million, representing a huge future growth potential.

11

CURRENT SCENARIO
Currently, the Indian DTH market is being served by six private players - Dish TV, Tata Sky, Sun Direct, Big TV, Airtel Digital TV and Videocon D2H. For the purpose of research, we have not included Doordarshan which is a free DTH service provider. The report contains comprehensive information about all the DTH service providers in India, with focus on in-depth analysis of their strengths and weaknesses. It also explains the reason why all the incumbent players have been investing huge amounts in the promotion and marketing of DTH services in the country. In the early 2008, five major players, Zees 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). According to sources, DD Direct Plus has a subscriber base of about 3-4 million subscribers, mostly in the remote corners of the country not connected by terrestrial or cable television. DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would mean more channels for viewing. Tax burdens on DTH are another area of complaint for operators. Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for

12

services imposed by the Central government. Apart from this, there are entertainment taxes that differ from state to state. DTH stands for Direct to Home which is a direct mode of transmission between Broadcaster and Subscriber through satellite. Broadcast centre collects the signals from different programming sources (like Sony, Zee, and Star). It processes the Signals and beams it to the Satellite. (16.1) The first commercial DTH service, Sky Television plc (now BSkyB), was launched in 1989. Sky TV started as a four-channel free-to-air analogue service on the Astra 1A satellite, serving the United Kingdom and Republic of Ireland. By 1991, Sky had changed to a conditional access pay model, and launched a digital service, Sky Digital, in 1998, with analogue transmission ceasing in 2001. Since the DTH nomenclature is rarely used in the UK or Ireland, the popularity of Sky's service has caused the terms "minidish" and "digibox" to be applied to products other than Sky's hardware. BSkyB is controlled by News Corporation. PrimeStar began transmitting an analog service to North America in 1991, and was joined by DirecTV Group's DirecTV, in 1994. At the time, DirecTV's introduction was the most successful consumer electronics debut in American history. Although PrimeStar transitioned to a digital system in 1994, it was ultimately unable to compete with DirecTV, which required a smaller satellite dish and could deliver more programming. DirecTV eventually purchased PrimeStar in 1999 and migrated all PrimeStar subscribers to DirecTV equipment. In 2003, News Corporation purchased a controlling interest in DirecTV's parent company, Hughes Electronics, and renamed the company DirecTV Group.

13

In 1996, EchoStar's Dish Network went online in the United States and, as DirecTV's primary competitor, achieved similar success. AlphaStar also launched but soon went under. Dominion Video Satellite Inc.'s Sky Angel also went online in the United States in 1996 with its DTH service geared toward the faith and family market. It has since grown from six to 36 TV and radio channels of family entertainment, Christianinspirational programming and 24-hour news. Dominion, under its former corporate name Video Satellite Systems Inc., was actually the second from among the first nine companies to apply to the FCC for a high-power DTH license in 1981 and is the sole surviving DBS pioneer from that first round of forward-thinking applicants. Sky Angel, although a separate and independent DTH service, uses the satellites, transmission facilities, & receiving equipment used for Dish Network through an agreement with Echostar. Because of this, Sky Angel subscribers also have the option of subscribing to Dish Network's channels as well.

How it works
Direct to home technology is quite a sea change from what the cable network offers. Heres a step-by-step guide to the new system, including some potential snag you are likely to encounter.

Satellite
Satellite beams the channels to the mini dish fixed in your balcony, outside the window or on the terrace.

14

Service provider
Service provider uplinks all channels to its dedicated satellite.

Apartments
For apartment blocks, the entire building can use a single big dish and carry connections to different set top boxes on individual TVs. Dish size depends on distance between it and the TV; 60 cm dishes are most common. For Delhi, you need to align it in south east direction.

Set Top Box

Mini dish relays the channels to your set top box, where they are decrypted and sent to you TV.

Viewing Card
Viewing card like a mobile sim card carries you unique ID number with your subscription details. You can access DTH only when this credit card sized card is inserted in the set top box. You can watch DTH without disturbing you cable connection if you choose to, with cable feed in normal TV mode and DTH in AV mode.

Remote Control
Your remote comes with the DTH kit. It interacts with the set-top box instead of the TV. If you plan to install DTH, get ready for handling complex options on your remote like multi-lingual choices etc

15

Payment
You pay your subscription in advance (like a pre-paid cell connection) through credit cards, smartcards, cheques or cash. Your viewing card is updated automatically. Dth in India have three major competitors basically: TATA SKY DISH TV AIRTEL

16

1.5 PORTERS ANALYSIS OF DTH INDUSTRY

1.5.1 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.

Terrestrial Television
Doordarshan is the worlds largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of Indias geographical area. Covering the remaining 12% area required substantial capital investments which does not outweigh the benefits. The transmission was done originally in Analog mode but beginning from 2002, 17

Doordarshan has partnered with BBC resources the consulting wing of BBC, in offering digital terrestrial TV. The transmission could be received using a low cost Yagi antenna. However, due to lack of attractive content it does not seem to be a formidable threat for DTH.

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.

1.5.2 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 Asias largest DTH, the bargaining power of Indian DTH operators with CPE supplies have increased.

18

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 an d increasing DTH players, Astrix is in a better position to use DTH as its cash cow for the next 5 to 10 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.

1.5.3. BARGAINING POWER OF BUYERS:

With enough options to choose both from the pont 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

1.5.4. 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. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new 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 Sunrespectively. The channels indirectly refuse content 19

fexorbitantly or mandating that all the channels of their bouquet to be transmitted when the vendor is already capacity constraint.

1.5.5. THREAT OF NEW ENTRANTS:

With already 6 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 connections. Being the first mover, Dish TV has price.

20

1.6 VARIOUS DTH SERVICE PROVIDERS IN INDIA

1.6.1 TATA SKY Inception and Heritage

Incorporated in 2004, Tata Sky is an 80:20 JV between TATA and STAR. Tata Sky endeavors to offer Indian viewers a world-class television viewing experience through its Satellite Television service.

TATA Brand
The Tata Group is one of India's largest and most respected business conglomerates. It comprises 93 operating companies in seven business sectors: 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 their 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 a measure few business houses anywhere in the world can match.

SKY Brand
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 BSkyB, 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

21

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

Revolutionize television viewing

Tata Sky is set to revolutionize television viewing in India through its superior digital quality picture and sound. The service aims to empower the Indian viewer with Choice, Control and Convenience through its wide array of programming and interactive features. Tata Sky offers viewers a variety of channels ranging from entertainment, sports, movies and music to news and documentaries in DVD picture quality and CD quality sound.

Extensive Customer Service Network

Tata Sky has established an extensive customer service network across the country. It has engaged a field force of approximately 3000 service engineers, who will be complemented by high-end 24x7 call centers, manned by multi-lingual customer service associates, trained to solve all customer problems. Tata Sky takes direct responsibility for hardware installation at subscribers homes, as well as for providing after-sales service.

Tata Sky will also retail its hardware and prepaid recharge vouchers through popular consumer electronic stores to enhance customer convenience.

Partners
Tata Sky has invested in state-of-the-art digital infrastructure and has partnered with global leaders in digital technology for the pay television market.

22

Satellite
Tata Sky has leased all 12 Ku-Band transponders on ISROs Indian satellite, INSAT 4A, which is the most advanced and high-powered KU-Band communication satellite in the region and is developed keeping in mind local requirements. The satellite enables Tata Sky to offer superior picture and sound quality with a wider range of channels.

Business Support Software

Siebel: Tata Sky has selected Siebel, leaders in Customer Relationship Management (CRM) software, to support operations across the areas of call centre and field service operations, customer order management and product configuration. Kenan: Comverses Kenan FX billing software has been selected to support billing for all residential, institutional and commercial customers. The Kenan software has been enhanced specifically for Tata Sky, to support a first in industry pre-paid billing capability which will provide customers with the ability to pay as you go.

SAP: SAP the leading Enterprise Resource Planning (ERP) application suite, has been selected by Tata Sky to support the companys materials management, sales and distribution, finance and control and human resources requirements.

IT: Sun Microsystems: Tata Sky has selected Sun Microsystems to provide world-class technology infrastructure, which helps the company to deliver high-level service standards for its Satellite Television service. The servers ensure maximum up-time, fault recovery and load management. Sun has also provided Tata Sky with installation, engineering expertise and support.

Dig comp: Tata Sky has partnered with Thomson and Hum ax, world leaders in digital broadcast terminology, for building top-of-the line dig comps, customized specifically for the 23

Indian markets. The technologys feature rich design will enable Tata Sky to deliver multiple programming, pricing packages and interactive services to its customers.

Our Offering: In addition to new channels and exciting interactive features, Tata Sky offers all popular television channels, thus becoming a one-stop shop for all the television entertainment needs of customers.

Vision: Tata Sky plans to launch its Satellite Television service with top-of-the-line infrastructure. It aims to revolutionize Indian entertainment by offering superior DVD quality picture and CD quality sound.

Channels offered:

Star World Star Utsav (Hindi) Star Movies Star Gold Star Plus Star News (Hindi) Star Vijay (Tamil) Star Sports Star One (Hindi) DD Bangla DD Malayalam DD 8 Telugu DD Sports DD 5 Tamil DD Marathi

ESPN Channel V MTV National Geographic AXN Ten Sports History Channel Sony

Hungama TV Aastha Jaya TV (Tamil) Aaj Tak (Hindi) Headlines Today NDTV Profit NDTV 24x7

Entertainment NDTV India (Hindi) DD News Times Now Asianet (Malayalam) Asianet news (Malayalam) Kairali (Malayalam) DD 1 and

Television (Hindi) SAB TV (Hindi) Sony PIX SET MAX Animal Planet Discovery Channel Discovery Living Sahara one Sahara filmy MH1 Travel

24

1.6.2 DISH TV

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.

Dish Tv is an Essel Group venture. Essel Group has a vast range of national and global business interests that include media programming, broadcasting & distribution, packaging, entertainment, online gaming and telecom, in close synergies with ventures active in the areas of content, distribution and infrastructure.

Essel Group has always been a pioneer - Zee TV the first Indian satellite channel, Siticable the first MSO, Esselworld the first theme park, Play win the first online lottery, Essel Propack, which is the worlds No. 1 in packaging - were all revolutionary concepts in their respective fields.

25

Continuing with the same path-breaking tradition, the group now brings to you a new era of digital quality TV viewing. Dishtv uses NSS-6 (communication satellite) to broadcast its programmes. NSS-6 was launched on 17th December, 2002 by European-based satellite provider, New Skies (one of the only four fixed satellite communications companies with truly global satellite coverage)

Dishtv - India's first KU-band DTH entertainment service, hopped on to NSS-6 at 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.

Going the DTH way has a lot of benefits. You are automatically upgraded to a host of world class features that makes television viewing a pleasurable experience. Have a look at some of the key add on benefits that DISH TV brings to your home.

Digital Picture Quality

The exceptional digital and direct-to-home transmission ensures you watch all your favorite programmes in true DVD quality.

Stereophonic Sound
The Direct-to-Home satellite transmission treats your ears to a true theatre experience by providing awesome stereophonic sound.

Geographic Mobility

26

No matter which part of the country you are in or moving to, DISH TV with its all India coverage ensures direct signals where ever you are.

Uninterrupted Viewing
With DISH TV at your home, as long as your equipment is connected to a power source you can enjoy uninterrupted transmission of your favorite programmes.

Capacity up to 400 Channels

DISH TV can offer you up to 400 entertaining channels. And that's not all, every month more channels will be added to provide complete entertainment to your family.

MARKET POSITION
Dish TV Indias first DTH service provider launched in October 2003 is the market leaderwith 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 650distributors 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. Dish TV 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.

27

1.6.3 AIRTEL DIGITAL TV

Airtel digital TVs standard definition broadcasts are in MPEG-4 with Interactive Service (it) and 7-day EPG (electronic programme guide). Interactive Service (it) 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 TV was 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

28

1.6.4 RELIANCE BIG TV

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 iStock, 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 outstripped 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.

29

1.6.5 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 on14th February; 1991.The Company received a fresh certificate of incorporation from the Registrar of Companies, Gujarat at Ahmadabad on 14thFebruary, 1991. Videocon d2h launched May 1, 2009. it came with a very good strategy for selling both of its electronic products like TVs DVDs 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 output

30

1.6.6 APNA DTH

General:
Doordarshan is the world's largest terrestrial broadcaster with over 1400 terrestrial TV transmitters located throughout the country covering approx. 88% of India's geographical area.

Doordarshan has setup a DTH platform to carry 33 FTA TV channels and 12 All India Radio channels on its DTH platform which can be received throughout India on Free-to Air (FTA) basis by consumers. The number of TV channels will be increased to 50 and All India radio channels to 40 in due course of time as per 'A Doordarshan press release'.

NSS-6 India Subcontinent KU Band Spot Beam

Satellite & Coverage

Doordarshan is using New Skies Satellite (NSS) series NSS-6 Ku-band high power satellite with a footprint covering India and neighboring region and located at 95 E.

Doordarshan's DTH Bouquet

DTH platform is known as DD Direct Plus. This bouquet comprise of following:

31

TV channels:
DD CHANNELS 1. DD - NATIONAL 2. DD - NEWS 3. DD - SPORTS 4. DD - BHARTI 5. DD - INDIA 6. DD - MALAYALAM 7. DD - BENGALI 8. DD - ORIYA 9. DD - GUJARATI 10. DD - PUNJABI PRIVATE CHANNELS 1. KAIRALI 2. SUN TV 3. ETC PUNJABI 4. AAKASH BANGLA 5. JAIN TV 6. AAJ TAK 7. HEADLINES TODAY EDUCATIONAL CHANNEL 1. GYANDARSHAN

11. DD - NORTH EAST 12. DD - PODHIGAL 13. DD - SAPTHAGIRI 14. DD - CHANDANA

8. STAR UTSAV 9. TV 9 10. BBC WORLD 11. ZEE MUSIC

15. DD - SAHYADRI 16. DD - KASHIR 17. DD - RAJYASABHA

12. SMILE TV 13. MH 1 - Music Channel 18. DD - LOKSABHA

RADIO 1. AIR VBS 2. AIR MARATHI 3. AIR GUJARATI 4. AIR BANGLA 5. AIR NE 6. AIR TELUGU 7. AIR TAMIL 8. AIR KANNADA 9. AIR HINDI 10. AIR PUNJABI 11. FM RAINBOW 12. FM GOLD

32

Initially, it provides 33 channels and will add 20 more channels after 4-6 months. The formal launch of Doordarshan's DTH has been made by Dr. Manmohan Singh, Prime minister of India.

Ground Network Doordarshan has deployed 10,000 DTH terminals comprising 120 cms, 90 cms and 60 cm antenna and associated hardware.

1.7 MARKET SEGMENTATION

1.7.1 Geographic segmentation

In terms of geographical location, North India and Western India together contribute over 8million 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.

1.7.1.1 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,

33

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.

1.7.1.2 Region and States:

DTH service providers give special offers where regional and sports channels are viewed the most. 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.

1.7.2 Demographic segmentation

1.7.2.1 AGE and GENDER:

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 dont 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. Example- Dish TV recently launched Children Films

34

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.

1.7.2.2 INCOME:

DTH service provider gives various recharge options to consumer according to the income like silver pack, golden pack, diamond pack etc.

1.7.3 Behavioural Segmentation

1.7.3.1 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.

35

1.8 RESEARCH METHODOLOGY

It basically refers to the way in which a specific task or research is carried out and the general principles guiding an investigation respectively.

1.8.1 RESEARCH DESIGN Research design as such is a framework within which research is conducted and contains a blueprint for collection, measurement and analysis of data. The design, which is basically followed by my research, is DESCRIPTIVE RESEARCH DESIGN. Descriptive research studies are those studies in which a researcher is able to define clearly what he intends to do along with a clear definition of the population he wants to study. My research follows descriptive research design because of the following reasons mentioned: It specifies the objective with sufficient precision to ensure that the data collected is relevant. The technique used for collection of data is questionnaire method. It specifies the sample size being used. Lastly the data is processed and analyzed to give results.

36

1.8.2TYPE OF RESEARCH Primary research: The research methodology for this topic involves survey methods thus type of research can be defined as primary.

Primary research is also called field research which involves the collection of data that already does not exist. This method is almost used as first technique which may further lead to other methods. Various ways of conducting a primary research may involve observation, experiment, surveys and consumer panel methods.

Popularity and its methods for any field can be researched using primary method at any time of year. The plus point in DTH is that it is rather a new field and needs research to be conducted before it can be accepted as source of entertainment.

This research is not utilizing any case study or earlier researches conducted on the topic rather the research gathers the data from general public, analyze it, and gives a conclusion based on that analysis.

The results of the data may not give the real picture of the story but a hypothesis is generated which leads to further research problems and scope. The data generated from this research will prove as secondary data for upcoming researches.

Secondary research: is also carried out on the concept of DTH and the Govt. policies about the Cable operators and CAS, secondary research is also form an essential part of the thesis as various newspaper and magazines are used to validate the data given by the researcher. 37

1.8.3 RESEARCH APPROACH

Why Research Approach? Adopting a valid research philosophy is important for at least two reasons: 1. Different approaches may give different answers not all of which maybe correct i.e. using an inappropriate technique may give false results. 2. On a pragmatic level most researchers invest a lot of time, money and effort in their work and desire that the results of their research be accepted as valid e.g. to pass examination; to obtain a postgraduate award or to have their work accepted for publication or judged a valid by their peer group.

Qualitative approach: It is concerned with the subjective assessment of attitude, behavior and opinion. In such a type of research, a researcher goes into insights and impressions. Such an approach to research generates results either in non- quantitative form or in the form which are not subjected to rigorous quantitative analysis.

Generally the techniques of focus group interviews, projective techniques and depth interviews are used.

1.8.4 RESEARCH METHOD

Exploratory Research method: The topic has to be deeply explored in the research as the problem is not clearly defined. Before deciding the tool for data collection the researcher should first gain ample amount of knowledge about the field and the system running it all. 38

In this research researcher needs to go through the minds of people using DTH and what are the reasons of using or not using it as a source of entertainment. And then further data can be collected to gain insight into the peoples opinion more precisely and generate a conclusion for the report.

1.8.5 TOOLS OF DATA COLLECTION

Individuals and organizations collect data because the information is needed, they may want information to keep records for administrative purposes, make decisions about important issues or they may be required to pass information onto others. Whatever be the specific reason, data has to be collected to provide information.

1.8.5.1 Primary Data Collection The research being the primary in nature involves primary methods of data collection for analysis. Out of the various methods available Questionnaire method is selected for collecting the data.

Primary data collection is necessary when a researcher cannot find a data needed is secondary sources. Researchers are interested in primary data about demographic socio economic characteristics, attitudes or interest or opinions, awareness or knowledge, intentions, motivations, or behavior.

39

In primary data collection, to collect the data yourself using methods such as interviews and questionnaire, the key point here is that the data you collect is unique to you and your research and until you publish it no one has access to it.

There are many methods of collecting primary data: Observation Survey Experiment Questionnaire Interviews Focused group interviews Case study method

Primary Data Collection:

Research Approach Survey

Contact Method

Sampling Plan

Research Instrument

Personal

Probabilistic

Questionnaires

40

QUESTIONNAIRE METHOD

Questionnaire are an inexpensive way to gather data from a potentially large number of respondents, often they are the only feasible way to reach a number of reviewer large enough to allow statistical analysis of the research. A well designed questionnaire that is used effectively can gather information on both, the overall performance of the test system as well as information on specific components of the system.

It is important to remember that a questionnaire should be viewed as a multistage process beginning with definition or the aspect to be examined and ending with interpretation of the result.

Questionnaire is a good method if

(a) The problem is well defined (perhaps as a hypothesis) and it will not be modified during the project, (b) All the questions to be answered are known in advance, resp. additional clarifying questions are not necessary. (c) The range of possible answers is known in advance, (d) The questions involve mostly facts, quantities or easily definable physical matters, (e) There are questions that some respondents might prefer to answer anonymously and (f) You are keen on numerical analysis.

41

UNIVERSE OF STUDY

The whole group from which the sample is to be selected is technically called universe or population of study. Thus in order to draw the sample we must first of all have a clear idea of the universe from which the sample is to be drawn.

The universe of study of our research comprises of all the residents of Flag staff road, civil lines.

SAMPLE SIZE
The size of the sample is an important problem to be decided. This is because the size has direct bearing upon accuracy, time, cost and administration of the survey. An optimum sample size is one, which fulfils the requirements of efficiency, representativeness, reliability and flexibility. The sample size of our research comprises of 50 houses of Flag staff road, civil lines.

SAMPLE UNIT

SAMPLE SIZE

Sample unit comprised of the people from Sample size used for the project is as all the Spheres: It included: Students Housewives Working Employee 10 22 18 follows:

42

TYPE OF SAMPLING

Sampling technique plays an important part in determining the size of the sample. The main reasons why samples are taken are as follows: How accurate must the final results be in order to make the type of decision required in the particular situation? What is the cost to the organization if the wrong decision is made? How much more information must be added to reach that level of accuracy? What kinds of data are needed? How much does it cost to acquire data? Can we afford the extra cost.?

If the purpose of your research is to draw conclusions or make predictions affecting the population as a whole then you must use a Probabilistic sampling approach, on the other hand if you are only interested in seeing how a small group or a representative group is doing for purposes of illustration or explanation then you can use a Non- Probabilistic sampling approach

The type of sampling used in this research is Probability sampling. This is so because in this type of sampling procedure the items for the sample are selected randomly by the researcher i.e. his choice concerning the items is not supreme. In this research we have randomly chosen 50 houses in our sample size which justifies that the sampling technique of this research is Probabilistic in nature.

43

44

2.1 DATA PRESENTATON

1. Your Full Name = .. 2. How many T.V sets are there at your home? 2 3 4 More than 4 2 3 4 More than 4 30 12 4 4

no.of T.V sets

2 3 4 more than 4

8% 24%

8%

60%

INTERPRETATION

Out of All the people who were questioned mostly 60% have 2 T.V sets. Only few said they 3 sets at their home. 45

3. Which type of T.V sets you use? Normal CPT television LCD Television LED Television Others

Normal CPTV

LCD

LED

OTHERS

24

10

Type of T.V sets

normal CPTV LCD LED OTHERS

9% 17% 52% 22%

INTERPRETATION
52% of people have normal CPTV sets, 22% people have LCD sets, and 17% people have LED sets while 9% have other sets like 3-D

46

4. Do you watch Television using DTH or Local cable connection? DTH LOCAL CABLE

DTH 34

LOCAL CABLE 16

DTH or local cable

DTH CABLE TV 0% 0% 32%

68%

Interpretation
68% of viewers view television using DTH, while 32% of them watch using Cable. More than half a population has shifted towards DTH, which is a large share.

47

5. If you have a DTH connection, which among you use? * Dish TV Tata Sky Airtel Others

DISH TV

TATASKY

AIRTEL

OTHERS

16

24

DTH CONNECTION
TATA SKY DISH TV AIRTEL OTHERS

8% 12% 32%

48%

INTERPRETATION:DISH TV is the market leader with 48% of market share, followed by TATA SKY and Airtel respectively

48

6. If you get a chance to buy another/new DTH connection which one will you choose? * Dish TV Tata Sky Airtel Reliance Big Other DISH TV AIRTEL RELIANCE BIG 20 24 4 1 1 OTHER

TATA SKY

NEW DTH CONNECTION

TATA SKY DISH TV AIRTEL 2% 2% 8% 40% RELIANCE BIG OTHERS

48%

INTERPRETATION:-

Out of All the people who were questioned mostly said if given the chance to buy new DTH they will opt for DISH TV because of its promotional strategies n new schemes, followed by TATA SKY, followed by Airtel, reliance and others 49

7. Why you

choose DTH over Local Cable?

Because of the Picture quality You want more channels with clarity Connection problem with Local cables/ Cost is Less Other MORE CHANNELS WITH CLARITY CONNECTION PROBLEM WITH LOCAL CABLES 18 16 16 0 OTHERS

PICTURE QUALITY

DTH over Local Cable

PICTURE QUALITY CONNECTION PROBLEM WITH LOCAL CABLES 0% 32% 36% MORE CHANNELS WITH CLARITY OTHERS

32%

INTERPRETATION:36% respondents choose DTH because of better picture quality, 32% gave reason of more channels, while 32% choose because of connection problem with local cables.

50

8. Why you choose Local Cable over DTH? * Because price is less in Cable You need Local News content which is missing in DTH Too many choices in DTH Other You need Local News content which is missing in DTH 28 4 10 4 Too many choices in DTH Others

price is less in Cable

local cable over DTH

price is less in Cable You need Local News content which is missing in DTH Too many choices in DTH others 9% 22% 61% 8%

INTERPRETATION:61% respondents choose Local cable because of fewer prices, 22% gave reason of more channels in DTH which make it confusing for some people, 08% told need of local news content which is missing in DTH, 9% said others

51

9. What is the price you currently pay to your cable operator (Monthly)? If you are DTH user kindly jump to Next Question/ 100-200 200-300 300-400 Other

100-200 9

200-300 16

300-400 20

other 5

Price given to cable operator

100-200 200-300 300-400 other

10%

18%

40%

32%

INTERPRETATION Out of All the people who were questioned mostly pay 300-400rs to their cable operator, while others pay less than 300.

52

10. What is the price you currently pay to your DTH operator (Monthly) * 100-200 200-300 300-400 Other 200-300 23 300-400 8 other 7

100-200 12

Price given to DTH

100-200 200-300 300-400 OTHER

14% 16%

24%

46%

INTERPRETATION Out of All the people who were questioned mostly pay 200-300rs to their DTH operator, only few pay above 300.

11. Your Age*

Contact Number=

53

54

DATA ANALYSIS
The data so collected by questionnaires and from secondary sources like newspapers and websites are analyzed on the basis of SWOT analysis, which means:

Strengths Weakness Opportunity Threat

The DTH and the Cable TV markets are analyzed by knowing customers responses in favor of them and against them. The customers perceptions about the products helped in devising the SWOT analysis.

The society where the survey is conducted for analysis is:

ALL THE RESIDENTS OF FLAG STAFF ROAD, CIVIL LINES, NEW DELHI.

55

SWOT ANALYSIS: DTH INDUSTRY

Strength

Weaknesses product Less of value added service The content offered is the same when compared to cablewallahs and even less. The product is costly ,and penetration would be difficult as cable has already made its entry long ago Heavy rain and snowfall can disrupt the signals for a Dth Local cable channels cannot be watched by viewers

Right products, quality and reliability.

Superior

performance vs. competitors.

24 hrs after sales service Direct delivery capability. Product ongoing. innovations

Better product quality and reception

The viewers are empowered as they control what they watch and how much they watch.

Management is committed and confident.

Requires very low volts of electricity

Various new content from west would be added for the viewers

56

Threats Opportunities

Could bring in more value added services with the Legislation could impact adversely making the scenario for MSOS even worse. Could distract from the core business The emergence of IPTV and WIFI TV can be mar in the growth of DTH The cablewallahs can indulge in malpractices and can cause damage to the wires and even the dish No barriers to the new entrants in the market can be a serious threat to the DTH operators

coming of 3G and could build the internet through the

infrastructure same network

Profit margins will be good. End-users respond to new ideas.

People are fed up with the service and quality of cable so that could be on factor for the success of DTH

57

SWOT ANALYSIS: CABLE TV INDUSTRY

STRENGTHS Technology for the mass No hardware costs

WEAKNESSES Old technology Less no. of channels in view

Very low and affordable monthly Cost of upgrading the current network expenses Customized local content being offered to broadband is very high Loss of revenue to service providers Unable to provide value added services. OPPORTUNITIES THREATS

Big market which is expected to grow DTH technology biggest threat in further Presence of a huge middle class population future.

58

WHAT GIVES DTH THE CUTTING EDGE

PICTURES & SOUND

DTH signals are digital and beamed directly to your home via satellite. Hence, picture quality is excellent and the sound stereophonic. By contrast, the cable feed is analog (though they plan to go digital soon) which cant match DTHs picture and sound quality even in ideal conditions

INTERACTIVITY

With DTH, you get programme listings for up to a week on your screen. Providers are offering interactive news channels that let you choose between hard news and feature programmes. You also have the option of watching four news channels simultaneously in the Tata Sky package

MOVIES ON DEMAND

This paid feature allows you to watch a movie at the time of your choosing. The films are listed for a couple of days on dedicated channels with staggered starts, typically of 45 minutes. If you wish to see the flick, just inform the provider through SMS, internet or phone and you get access to the next show. Costs Rs 30-40 per movie

HINDI OR ENGLISH

Does watching Nat Geo or Discovery in Hindi get your goat? DTH gives you the choice of watching these and other multilingual channels in your preferred language. The language option doesnt stop there. For instance, Dish TV will be giving the option of watching the forthcoming one-day cricket series in Malaysia in five languages

59

GAMING

Both Tata Sky and Dish TV buy a digital video recorder you can download games from the internet and play it on TV after transferring it to the DVR using a USB port

PLAY-PAUSE TV

If you never again want to miss the climax of a cricket match or a movie, record them in a digital video recorder. An 80 GB DVR costs around Rs 16,000 and has enough memory to record about 35 movies. With a DVR, you can record programmes in six other channels even as you watch TV. You can also pause a programme and watch the rest later or watch two channels simultaneously using picture-in-picture. DTHs digital feed enables the use of DVDs

60

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 losing existing ones to Tata Sky, Big TV and other new entrants. MARKET LEADER: Dish TV Indias 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 profitprovided those who seek to capture it can move quickly enough. TATA wanted to capitalize on this opportunity as there was 61

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 demandswhich 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.

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.

62

63

RECOMMENDATIONS
Repackage: In a market like India, all a DTH player may need to do is repackage existing channels that are not universally available. In sports, some players have won an advantage through long-term rights purchases. Broadcasting rights to cricket in India, for example, belongs to ESPN for the next five years. Content: The movies, news channels, sporting events, and/or general entertainment features that constitute an offer to consumers. Move First: In the DTH industry, a credible and well managed first-mover service has a tremendous advantage over others. In India, a first mover may effectively shut out competition. Exploit Market Niche: In some markets, the segment of consumers who desire highly specific content may be large enough to form the core subscriber ship of a DTH service. An example of this could be again cricket in our country. Build an appropriate content offer: This is the single most crucial choice a DTH company will make. In a remote town with no access to television, for example, even a DTH bouquet of just two channels might seem attractive. Standardized the price plans and avoid frequency changing: Frequent changes in price and offers is proving no good for Dish TV as it is in way frustrates the customers with changes in offers without being informed about it. So Dish TV needs to watch out for this and should pre inform the customers about the offers and changes well in advance. This in a way, I feel would create more brand loyalty and preference.

64

FINDINGS
More than half a population has shifted towards DTH, which is a large share.

Dish TV is the market leader with more market share, followed by TATA SKY and Airtel respectively.

Out of All the people who were questioned mostly said if given the chance to buy new DTH they will opt for Dish TV because of its promotional strategies n new schemes, followed by Tata sky , followed by Airtel, reliance and others

36% respondents choose DTH because of better picture quality, 32% gave reason of more channels, while 32% choose because of connection problem with local cables.

Customer care service is considered to be very poor as dealers often complain of problems in recharge process managed by DTH.

Many persons 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.

65

CONCLUSION

DTH VS CABLE
Over the years many adjectives have been prefixed to this breed arrogant and unprofessional to name cable wallah. Missing out on a major football match or being unable to watch the slog over of an important cricket international has often resulted in loud curses and abuses. And, yet there is often an overwhelming sense of helplessness. The cable guy is irreplaceable; he controls the remote of entertainment in our lives

In the wake of the opening up of the earth and skies (literally) to private operators, India is all set to see a "war of the accesses". With very few large players, a widespread geography and an extremely rowdy and unorganized cable operator setup, the options between DTH and Cable as access modes are both set to woo the ever increasingly discerning Indian consumer. Finally, theres life without the intermediary. In millions of homes across the country, home entertainment is getting redefined and revolutionized as DTH (direct to-home) companies move into top gear.

The DTH technology has been available in India since Dish TV started offering its service back in October, 2003. But the scene warmed up early with the coming of Tata Sky on August 8. Now with regulations on channel sharing gradually falling in place, size of the bouquet (number of channels on offer) has grown huge making DTH an attractive proposition for the consumer.

66

Many players like AIRTEL digital TV, Dish TV (Essel Group) and Tata Sky (a joint venture between Tata and Star) etc is making a bold pitch for the 110 million television homes: 63 million cables and 47 million terrestrial. Other DTH aspirants include the Anil Ambani group and Sun TV, both planning to enter the fray.

With 7 operational players, the segment rivalry is quite high. The competition from state owned DD-Direct to private players is negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not charge any monthly subscription fee which poses a threat to the private players. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new connections.

Being the first mover, Dish TV has price advantage in both the STB as well as procuring the transponders. On the other hand, Tata Sky claims its STB having superior DVD quality video. There is also a competition at acquiring the content The private players are offering a lip-smacking fare. Apart from the much sharper picture quality you got to see it to believe it theres stereophonic sound, interactive television, gaming, break-free cinema, multi-audio programming. You can also store a programme and watch it later. Tata Sky has also engaged 3,000 engineers to cater to customer problems.

However, the truth is that there are more choices before the consumer than ever before. Healthy competition between the two technologies will ensure that cable operators, including those in the final mile, improve their quality of service. The customer finally has the option to think beyond the cable guy.

67

The DTH system of broadcasting scores over its cable counterpart in the following areas: Higher subscriber accountability since the system eliminates the cable service provider in the distribution chain. Thus there would be no under-reporting of subscribers as is prevalent in the current cable system.

Premium quality service can be made available through the DTH system. The quality of transmission in the case of DTH system is much better than that of the conventional cable system.

DTH would be more accessible in remote areas where the cable's excessive length may make the system expensive or technically un-acceptable.

DTH is good news for smaller channels because the digital technology allows a provider to compress between eight and 10 channels on a single transponder. So most big broadcasters are likely to be left with plenty of unutilized transponder space.

68

SUMMARY
Over the last seven years, the direct-to-home (DTH) satellite industry has come on strongly worldwide. It has grown from a niche delivery mechanism into a mainstream business. The spread of subscription-based DTH satellite TV promises to enhance choices for many households in developing countries. With the Government throwing open the DTH sector in the country, a handful of players have come up with grandiose plans to enter the market. Given the stiff level of competition this premium services will face from the existing multi-channel cable network, possible entrants need to clearly grasp a few of the winning rules of the game. Direct to home (DTH) television service, more popularly known as direct broadcast satellite service, is coming to India after a government ordained delay of three years.

The other advantage of DTH is the availability of satellite broadcast in rural and semiurban areas where cable is difficult to install. Due to digital compression techniques, many more niche channels are available than can be provided by cable operators. The services are more reliable vis--vis repeated breakdowns that can occur in cable transmissions as against satellite broadcast. One of the great advantages of the cable industry has been the ability to provide local channels, but this handicap has been overcome by many DTH providers using other local channels or local feeds. DTH also offers digital quality signals which do not degrade the picture or sound quality. It also offers interactive channels and program guides with customers having the choice to block out programming which they consider undesirable.

69

BIBLIOGRAPHY

BOOKS:
Kothari C.R., Research Methodology Methods & Techniques, New Delhi, WISHWA Publications, Second Edition (reprint) 2004 Mcnabb David E., Research Methods of Political Sciences, New Delhi, Prentice Hall of India, 2005 Buddenbuan Judeth M. Applied Communication Research, New Delhi, Surjeet Publications.

WEBSITES: www.google.com www.humanlinks.com http://www.nrf.ac.za/yenza/research/resmeth.htm http://www.fhvorarlberg.ac.at/res/weitere/phd/methodology_programme.pdf http://polish.krakow.usconsulate.gov/krakow-pl/online.html http://www.firstmonday.org/issues/issue6_10/deuze/

MAGAZINES

INDIA TODAY BUSINESS TODAY FRONTLINE THE OUTLOOK

70

71

QUESTIONNIARE
It included questions as follows:Respected Sir/Madam, I am conducting a research on DTH and Cable connection. Please give your opinions regarding the same Thank You Regards 1. Your Full Name = .. 2. How many T.V sets are there at your home? 2 3 4 More than 4

3. Which type of T.V sets you use? Normal CPT television LCD Television LED Television Others

4. Do you watch Television using DTH or Local cable connection? DTH LOCAL CABLE

5. If you have a DTH connection, which among you use? * Dish TV Tata Sky Airtel Others 72

6. If you get a chance to buy another/new DTH connection which one will you choose? * Dish TV Tata Sky Airtel Reliance Big Other choose DTH over Local Cable?

7. Why you

Because of the Picture quality You want more channels with clarity Connection problem with Local cables/ Cost is Less Other

8. Why you choose Local Cable over DTH? * Because price is less in Cable You need Local News content which is missing in DTH Too many choices in DTH Other

9. What is the price you currently pay to your cable operator (Monthly)? If you are DTH user kindly jump to Next Question/ 100-200 200-300 300-400 Other

73

10. What is the price you currently pay to your DTH operator (Monthly) * 100-200 200-300 300-400 Other

11. Your Age*

Contact Number=

74