WAR IN SKY

DIRECT
TO
HOME
 By
Prashant Agrawal
 Outline
• Introduction to DTH
Industry
• Challenges faced by DTH

• DTH Industry-Porters five

forces of model
• Brief Competitors analysis
 DTH Industry
• DTH service is the one in which a large number
of channels are digitally compressed, encrypted
and beamed from very high power satellites.
• The programmes can be directly received at
homes.
• This mode of reception facilitates the use of
small receive dish antenna of 45 to 60 cm
diameter installed at convenient locations in
individual buildings without needing elaborate
foundation/space etc.
 DTH Industry(contd)
• Also, DTH transmission eliminates local cable
operator completely, since an individual user
is directly connected to the service providers.
 DTH Industry
• The ‘Indian Readership Survey 2008 R2’
findings have shown that the Dish TV is the
largest player with over 3.1 million
subscribers, followed by DD Direct, Tata Sky
and Sun Direct, which has a predominance in
the southern zone.
 Challenges faced by DTH

• Policy and Regulation

• Non-availability of
Transponders
• Weak Financials

• Quality of Service Issues

 DTH Industry- Porter’s Five Forces Model

Threat of New Entrants (High)

• DTH Market is already crowded with 7 Players
Bargaining Power of Suppliers (Very High)
• Transponders- Very High
• CPE Suppliers- Low
• Content- Very High
Inter Firm Rivalry (Very High)
• Price War Litigations
 DTH Industry- Porter’s Five Forces
Model(contd)
Bargaining Power of Buyers (Very High)
• Lots of options and Substitutes
• Price Sensitive Buyer
Threat of Substitutes (Very High)
• Cable TV- Very High
• IPTV- High
• IDTV-Low
• Terrestrial- Low
Rivals in DTH
 Dish TV
• Dishtv is India’s first direct to home entertainment
service that has digitalized Indian entertainment to
bring Indian home the best in television viewing
through the latest in digital technology.
• It not only broadcasts high quality programmes
straight from the satellite to home, but also gives
absolute and complete control of what viewers
watch and pay for.
• With dishtv Viewers can unleash the true potential
of their high-end television set and complete the
TV viewing experience with true DVD quality.
 Dish TV
• Dishtv takes television viewing to the next
level as it supports various futuristic features
like Electronic Programme Guide, Parental
Lock, Capacity up to 400 channels, Games,
Interactive TV, Movie on Demand etc.
• Dishtv was also the first dth service to bring
exclusive National and International channels
for the first time in India.
 Dish TV
• Going the DTH way has a lot of benefits.
Viewers are automatically upgraded to a host
of world class features that makes television
viewing a pleasurable experience.
Dish TV-Product & Services
 Dish TV-Services
• Digital Picture Quality-The exceptional digital
and direct-to-home transmission ensures that
viewers watch all their favourite programmes
in true DVD quality.
•  Stereophonic Sound-The Direct-to-Home
satellite transmission treats viewer’s ears to a
true theatre experience by providing
awesome stereophonic sound
• Capacity up to 400 Channels -dishtv  can offer
up to 400 entertaining channels.
 Dish TV-Services
• Geographic Mobility -No matter which part of
the country viewers are in or moving to,
dishtv with its all India coverage ensures
direct signals wherever they are.
•  Uninterrupted Viewing -With dishtv at home,
as long as the equipment is connected to a
power source people can enjoy uninterrupted
transmission of their favourite programmes.
 
 Strength
• Backing of Zee group with long standing presence
in entertainment & broadcasting industry
• Shahrukh Khan as brand ambassador
• 1st mover advantage in the market
• Widespread cable network
• Very strong penetration in rural India as well as
semi urban India.
• Very good consumer offers
 Weakness
• On MPEG 2 platform
• Lack of focus on tier 1 cities.
• Poor customer service
• Low memory STB
• User interface could be improved
 Opportunity

• Demographic Factor:

-More Nuclear Family trend

-Movement of youth ( for education or job)
-Increase in the average disposable income
• Booming satellite technology
 Threats

• SUN direst a strong regional player

• Tata Sky-Tata brand a trusted name within India
• Tata Sky-Star Plus a leading broadcaster in India

• Lots of options and Substitutes

• DTH Market is already crowded with 7 Players
• Threat of substitutes-IPTV
 TATA Sky
• Incorporated in 2004, Tata Sky is a JV between the
TATA Group and STAR. Tata Sky endeavours to
offer Indian viewers a world-class television
viewing experience through its satellite television
service.
• The TATA Group is one of India’s largest and most
respected business conglomerates. It comprises
diversified businesses in sectors such as materials,
engineering, services, energy, information systems
& communications, consumer products and
chemicals.
 Revolutionizing TV Viewing
 

• DVD Quality Picture & Sound -Enjoy over 170 TV channels

and services in DVD quality picture and CD quality sound

• Customer Service -24x7 help. Support in 11 languages.

• Guide -Get a 4-day listing of all programmes on television You
can also set reminders for your favourite programmes

• Parental Control -Regulate what your children watch on your

television by locking movies based on the ratings provided by
the channel or by locking the entire channel.

• Search & Scan Banner-Find out what’s playing on another

Since its launch, Tata Sky has served different
consumer segments by offering a variety of
packages based on their requirements. To
provide flexibility, Tata Sky allows consumer to
select the Base packages as well as Add-On
packages as per your requirement. You can also
choose from a variety of Annual and Semi-
Annual packages
 TATA sky-services
• Active Mall • Active Darshan
• Active • Active Sports
Wizkids • Active
• Active Stories: Matrimony
• Active • Active Cooking
Learning • Active Astrology
• Active Topper • Active STAR
• Active Games News:
• Showcase
Tata Sky+
• Tata Sky+ is a premium set-top box that used
the breakthrough Personal Video Recorder
technology that allows you to record up to 45
hours of live TV. Tata Sky+ gives you the power
to record one programme while watching
another, pause a live telecast and even rewind
a TV programme that you are watching.
 Strengths
• Tata brand a trusted name within India
• Sky has strong DTH operator & broadcaster
background
• Star Plus a leading broadcaster in India
• Aamir Khan as brand ambassador.
• 1st player to launch PVR/DVR STB in the market.
• Very high quality customer care & support
system
• Very user-friendly EPG & best of the active
services
 Weaknesses
• On MPEG2 platform
• Still Low market penetration in rural & semi
urban India
• Lack of region specific Bouquets
• Low memory footprint of STB leads to high
loading time for applications
• No consistency in the execution of the look &
feel for the Experience Zones
 Sun direct
• Sun Direct - India's youngest and most exciting state of
the art DTH Company.Sun Direct uses the latest MPEG-
4 based technology to increase broadcast capacity.
• Sun Direct confirms to 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,
enable powerful new service offerings and improve
visibility into customer information across services.
 Services
Video Quality
• The exceptional digital and DTH transmission ensures you; watch all your
favourite programmes in true DVD quality.
Sound quality
• The Sun Direct transmission treats your ears to a true theatre experience
by providing awesome CD quality sound.
Convenience
• You can watch all TV programs without any cable directly from Sun
Direct dish.
• With Sun Direct DTH Service at your home, as long as your equipment is
connected to a power source you can enjoy uninterrupted transmission
of viewer’s favourite programmes.
• Dedicated and committed distributor and dealer network.
• Strong installation franchises and customer care
Strengths of Sun Direct- Weaknesses of Sun
• Part of the SUN TV Direct-
Group • No consumer
• Strong regional player durables market
• Good regional content experience
• Access to Cable • Needs to create an
network infrastructure for
• Has made huge gains After Sales service
pan India since Dec 08
due to its aggressive
• No active services
advertising. • Operating on a
very low ARPU
 BIG tv
• Reliance Communications has established a pan-India,
next generation, integrated (wireless and wireline),
convergent (voice, data and video) digital network that is
capable of supporting best-of-class services spanning the
entire communications value chain, covering over 20,000
towns and 450,000 villages.
• Reliance Communications owns and operates the
world's largest next generation IP enabled connectivity
infrastructure, comprising over 175,000 kilometers of fibre
optic cable systems in India, USA, Europe, Middle East and
the Asia Pacific region.
 BIG tv -Services
• Features of Big Cinema- Favourites
TV- • Monthly • My Top Ten
• Guide Subscription • Parental Control
• Mini-Guide • Pay Per View • Reminders
• Order your • Services
• Cinema
Movie • My Account
• Select
• PackCinema • Remote
• Interactive • Set-Top-Box
Schedule
 Strengths of Big TV-
• Part of Reliance ADAG - A
large group with presence in
telecom
• Good databank of movies
• Network of Web worlds
• Great penetration all over
India
• Very good trade margins
• Huge initial investment in
terms of advertising &
promotions towards
building the brand
• Trying to build on the
uniform brand name “BIG’
Weaknesses of Big TV-
• No Consumer durable
experience
• Needs to create an
adequate infrastructure
for after sales service
• Marketing efforts at
times are inward driven
rather than consumer
focused
• User interface is not up
to the mark
 Airtel digital TV
• Bharti Airtel launched its Direct To Home (DTH)
Satellite TV Airtel Digital TV. Airtel digital TV
service is available to customers through
21,000 retail points including Airtel
Relationship Centres in 62 cities.
• Airtel digital TV uses the latest MPEG4
standard with DVB S2 technology. This latest
technology enables delivery of more complex
interactive content and is High Definition ready.
 AIRTEL Digital TV-Services
Airtel digital TV uses 20% larger dish antenna that offers better performance
during rain. It comes with a universal remote for both Set Top Box and TV that
offers enhanced viewer convenience Highest Set Top Box memory enabling more
interactive applications.

 World space Radio

• Interactive applications such as iMatinee (Book cinema tickets), iTravel (Browse
and book travel packages), iShop (Shop on TV for your favorite brands), iCity
(Get your city’s information) and Widgets (Update yourself on latest stock news).
8 screen iNews, 2 / 4 screen iSports.
• Games with high quality graphics, refreshed every 6 weeks
• Audio gain control for uniform audio levels across all channels
• Simple and intuitive search
• On screen account meter
• Last viewed channel in case of power disruption/switch off
• Low battery indicator on the screen
Strengths of Ai rtel Digital-
• Belongs to the Bharti Group -
Large telecom player & great
brand equity.
• Looking to gain advantage of
single brand strategy.
• Planning to bundle IPTV
along with DTH service
• Experience in Prepaid model
& distribution in place for
• recharge vouchers
• Deep penetration in the
markets they have launched.
• 12 Top brand ambassadors.
Weaknesses of Airtel
Digital-
No broadcasting
background
No Consumer durable
Experience
Late entrant in the market
Only 62 cities have been
tapped so far.
Currently they have very
little presence in rural
areas.
 
 D2h-Videocon
• d2h brings 21st century entertainment, directly to home,
via state of art satellites, which means Viewers no longer
have to tolerate all the hassles associated with Cable TV.
• No more frustrating disconnections right in the middle of
intense game. And whether viewers are watching a
Hollywood thriller or a desi block buster, d2h results in a
The End to all the unnecessary interruptions.
• This interactive Direct to Home Services d2h will be
available through IDTV as well as Beam Box (STB). d2h
offers a new-age satellite television platform that makes
use of the revolutionary MPEG4 with DVBS 2 technology.
 D2h-Videocon(contd)
• IDTV is integrated Television where the Beam Box (Set Top
Box) comes in - built with the television. It is available in
CRT, LCD segments. They are planning to come up with
many more exciting products like STB with DVD, Home
Theatre in this category.
• It will give a new experience to a world of awesome digital
entertainment, crystal clear pictures, ultra sharp sound
and state of art technology which uses the revolutionary
MPEG -4 format. This means viewers will be able to notice
the minutest of details on your favorite celebrity. And hear
every scream, every sound. Even if it were a faint sigh.
Customer Analys
 Customer Analysis
• According to the Customers Tata Sky and Dish
TV are considered as the favourites
• Price, Quality, Brand Name and Service matter
more when a customer looks for a DTH Service.
• Customers think Videocon as a good brand.
• Videocon’s image as a DTH Service Provider will
take some time to get adjust with the Indian
Consumers.
• Customers have a mixed response towards a
new technological break-through like IDTV.
 Customer Analysis(contd)
• Awareness regarding IDTV is essential for the Indian
Consumers.
• Customers will pay a premium price for a better service if he
gets fully convinced.
• The Scheme and the Pricing matters a lot when a customer
thinks of purchasing a DTH Service.
• Additional Services like Movie on Demand and Pay Per View
have better acknowledgement from the Customers whereas
services like Games are not appreciated up to that extent.
• According to the Indian Customers the most Preferred
Package price Per Month for them will be 150-249.
 Observations
• Customer base is end-customer
• Customer segments:
-Demographic Factors
 Age group- youth(sports)
 Gender-female(daily soaps)
 Income- increase in disposable income
-Behavioral factors
 Increase usage rate – increase in
introduction of channels, music channels
-Geographic factors-regional languages