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Transcript of CAR Report Group10 DivF
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Harneet Ahuja F007
Shashank Yadav F059
Sanil Jain F023
Mayank Agrawal F005
Sumit Majumdar F030
Nirmal Baruah F061
DISH TVAnalysis of declining share of Dish TV by
conducting market research on D2H usage
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Table of Contents
An Introduction to the Indian Television Industry ........................................................................................ 3
Satellite Television (Direct to Home Service) ............................................................................................ 3
Dish TV ...................................................................................................................................................... 3
Distribution ............................................................................................................................................... 4
Porters Five Competitive forces: Direct to Home ........................................................................................ 5
Buyers: Bargaining power of buyers ......................................................................................................... 6
Suppliers: Bargaining power of suppliers ................................................................................................. 6
Potential Entrants: Threat of new entrants .............................................................................................. 7
Substitutes: Threat of substitutes ............................................................................................................. 7
Inter firm rivalry ........................................................................................................................................ 7
SWOT Analysis............................................................................................................................................... 8
Strengths ................................................................................................................................................... 8
Weaknesses .............................................................................................................................................. 8
Opportunities ............................................................................................................................................ 9
Threats ...................................................................................................................................................... 9
Research Methodology ................................................................................................................................. 9
Research Design ........................................................................................................................................ 9
Sources of Data ........................................................................................................................................... 10
Primary Data ........................................................................................................................................... 10
Data collection method........................................................................................................................... 10
Sample Size ............................................................................................................................................. 10
Data Analysis and Interpretation ................................................................................................................ 10
Findings of the Research ............................................................................................................................. 15
Conclusion ................................................................................................................................................... 16
Appendix ..................................................................................................................................................... 17
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An Introduction to the Indian Television Industry
In earlier days there was only one TV channel in Indian- Doordarshan. Channel Doordarshan
was owned and operated by the government of India. In this era, every home which had a TV set
used to have its own antenna to capture the signals. By the late 1980s more and more people
started to own television sets. Though there was a single channel, television programming had
reached saturation. Since the Cable Television Ordinance Law, January 1995, cable operators
were able to feed channels and later on private companies were allowed to air their own
channels. This led to the explosive growth in number of TV channels and number of cable
operators. By1995 TV in India covered more than 70 million homes giving a viewing populationof more than 400 million individuals through more than 100 channels.
There are at least five basic types of television in India: broadcast, or "over-the-air" television,
unencrypted satellite or "free-to-air", Direct Broadcast Satellite, cable television,
and IPTV (internet protocol television).
Satellite Television (Direct to Home Service)
As of 2012, over 500 TV Satellite television channels are broadcast in India. This includes
channels from the state-owned Doordarshan, News Corporation owned STAR
TV, Sony owned Sony Entertainment Television, Zee TV, Sun Networkand Asianet. Direct To
Home service is provided by Airtel Digital Tv, BIG TV owned by Reliance, DD Direct
Plus, Dish TV, Sun Direct DTH, Tata Sky and Videocon D2H. Dish TV was the first one to
come up in Indian Market, others came only years later.
These services are provided by locally built satellites from ISRO such as INSAT 4CR, INSAT4A, INSAT-2E, INSAT-3C and INSAT-3E as well as private satellites such as the Dutch-based
SES, Global-owned NSS 6, Thaicom-2 and Telstar 10. DTH is defined as the reception of
satellite programmes with a personal dish in an individual home. As of May 2012, India had
roughly 45 million DTH subscribers.
Dish TV
Dish TV is the first private DTH satellite television provider in India, using MPEG-2 digital
compression technology, transmitting using NSS Satellite. Mr. Subhash Chandra is the
Chairman of Dish TV. Dish TV is a division of Zee Network Enterprise (Essel Group Venture).
DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Zee
Entertainment Enterprises. Dish TV is on the same satellite where DD Direct+ was. DD Direct+
shifted to Insat 4B which is adjacent to NSS-6.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Terrestrial_televisionhttp://en.wikipedia.org/wiki/Free-to-airhttp://en.wikipedia.org/wiki/Direct_Broadcast_Satellitehttp://en.wikipedia.org/wiki/Cable_televisionhttp://en.wikipedia.org/wiki/IPTVhttp://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/wiki/News_Corporationhttp://en.wikipedia.org/wiki/STAR_TVhttp://en.wikipedia.org/wiki/STAR_TVhttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Sony_Entertainment_Television_(India)http://en.wikipedia.org/wiki/Zee_TVhttp://en.wikipedia.org/wiki/Sun_Networkhttp://en.wikipedia.org/wiki/Asianethttp://en.wikipedia.org/wiki/Airtel_Digital_Tvhttp://en.wikipedia.org/wiki/BIG_TVhttp://en.wikipedia.org/wiki/DD_Direct_Plushttp://en.wikipedia.org/wiki/DD_Direct_Plushttp://en.wikipedia.org/wiki/Sun_Direct_DTHhttp://en.wikipedia.org/wiki/Tata_Skyhttp://en.wikipedia.org/wiki/ISROhttp://en.wikipedia.org/wiki/NSS_6http://en.wikipedia.org/wiki/Direct-broadcast_satellitehttp://en.wikipedia.org/wiki/Direct-broadcast_satellitehttp://en.wikipedia.org/wiki/NSS_6http://en.wikipedia.org/wiki/ISROhttp://en.wikipedia.org/wiki/Tata_Skyhttp://en.wikipedia.org/wiki/Sun_Direct_DTHhttp://en.wikipedia.org/wiki/DD_Direct_Plushttp://en.wikipedia.org/wiki/DD_Direct_Plushttp://en.wikipedia.org/wiki/BIG_TVhttp://en.wikipedia.org/wiki/Airtel_Digital_Tvhttp://en.wikipedia.org/wiki/Asianethttp://en.wikipedia.org/wiki/Sun_Networkhttp://en.wikipedia.org/wiki/Zee_TVhttp://en.wikipedia.org/wiki/Sony_Entertainment_Television_(India)http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/STAR_TVhttp://en.wikipedia.org/wiki/STAR_TVhttp://en.wikipedia.org/wiki/News_Corporationhttp://en.wikipedia.org/wiki/Doordarshanhttp://en.wikipedia.org/wiki/IPTVhttp://en.wikipedia.org/wiki/Cable_televisionhttp://en.wikipedia.org/wiki/Direct_Broadcast_Satellitehttp://en.wikipedia.org/wiki/Free-to-airhttp://en.wikipedia.org/wiki/Terrestrial_televisionhttp://en.wikipedia.org/wiki/India -
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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. In October 2010 Dish TV added the long awaited Neo Sports and Neo
Cricket on its platform.
Essel Group Venture has national and global presence with business interests in media
programming, broadcasting & distribution, speciality packaging and entertainment. Zee Network
incorporated Dish TV to modernize TV viewing. By digitalizing Indian entertainment, this
enterprise brought best television viewing technology to the living room. It not only transmits
high quality programmes through satellite; but also gives a complete control of selecting
channels and paying for them.
Dish TV imparts DVD quality picture and stereophonic sound effects to the customers.
It promises to change the experience of TV viewing with its uninterrupted transmission service.
The endeavour enters next level of entertainment with futuristic features, such as EPG
(Electronic Programme Guide), parental lock, games, 400 channels, interactive TV and movie on
demand. Dish TV also brings exclusive national and international channels for the first time in
India. Dish TV has various futuristic features like radio channels, Electronic Programme Guide,
Parental Lock, Capacity up to 400 channels, Interactive TV, that act as value enhancement.
Furthermore viewers can enjoy Break-free Cinema with three exclusive channels Zee Premier,
Zee Classic and Zee Action - showing the hottest Bollywood blockbusters with only one
commercial break. The Multi-Audio Feed feature of Dish TV allows its consumers to enjoy
channels in the language of their own choice.
Distribution
Over the years Dish TV has continued to strengthen its infrastructure, service and CRM
(Customer Relationship Management) in anticipation of a huge surge in demand. Dish TV now
has a very deep distribution in both rural and urban areas, reaching over 80,000 retail outlets for
STBs (Set Top Boxes) and over 200,000 outlets for recharge availability. Unique tie-ups with
companies like FINO have helped to penetrate deep into the rural segment. The company has
extended its direct service network to 96 cities and has plans to increase its network to over 200
cities in the near future. Dish TV currently has the capability of handling and servicing over 3
million queries and customer calls every month.
Dish TV has 24X 7 call centres with 1600 seats at 4 different locations in 11 different languages
across the country to take care of subscriber requirements any point of time. Dish TV has set up
a commendable service infrastructure backend by a mammoth pan India team of over 25,000
direct and indirect service personnel. 350 Dish Care Centres (DCC) and service franchises are
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operational in the top 120+ cities of the country, each manned by trained field and backend staff,
as well as infrastructure facilities as per strict company guidelines.
As of 27th
March 2012, Dish TV had announced a tie up with SVR Payment Solutions, one of
the national distributors for recharge distribution for major companies like BSNL, Indian
Railways, India Post and school and college canteens. Dish TVs current base would now extendto the SVR payment solutions distribution network which has 15000 outlets across India. SVR
Payment Solutions has a strong presence in the eastern states (West Bengal, Orissa, Assam,
Bihar and Jharkhand). SVR provides a one stop solution through the mobile payment
arrangement that allow the transactions accessible from anywhere at any time.
Stiff challenge from digital cable operators has forced India's biggest direct to home (DTH)
television company, Dish TV, to tie up with neighbourhood cable operators, opening up a new
front in the war between the DTH and cable industries.
Dish TV chief executive RC Venkateish said the company has launched a pilot project in Delhiand he expects to grab 1-1.5 million subscribers across cities in the short term through tie-ups
with the cable operators. These operators have been given the option to take up distribution and
installation of Dish TV connections to customers and push Dish TV set-top boxes in cable
households with the first phase of cable digitalisation. Currently, the company has agreements
with about thirty cable operators, but expects to roll out this scheme in the country and rope in
about 3,000 local cable operators in the next two months.
This scheme aims to open a new distribution channel and establish a personal contact with the
customers. The last-mile operators will install these boxes, service the connections as well as
collect bills. These last mile operators will be paid commissions on the installation of set topboxes as well as a 15-20% commission every time the customer serviced by them recharges his
subscription.
Cable companies still dominate in the big metros and roping in the last-mile cable operators
would help Dish TV increase their subscriber base in the metros. Currently several local cable
operators have access to television feed from several multi system operators besides being an
exclusive last-mile operator for at least one MSO.
Porters Five Competitive forces: Direct to Home
Porters model is based on the insight that a corporate strategy should meet the opportunities
and threats in the organizations external environment. Especially, competitive strategy
should be based on an understanding of industry structures and the way they change. Porter
has identified five competitive forces that shape every industry and every market. These
forces determine the intensity of competition and hence the profitability and attractiveness of
an industry.
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The Five Competitive Forces as applied to Direct to Home industry are described as follows:
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 ofthe 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. 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
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and 2010 and 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.
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.
Inter firm rivalry
With 7 operational players, the segment rivalry is quite high. The competition from state owned
DD-Direct to private players is negligible 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. Tata Sky has been quite aggressive
in the past by giving 1 million connections within 12 months where as Dish TV nearly took 20
months to do the same. There is a competition at acquiring the content is also. Dish TV, Tata Sky
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and Sun Direct are part of big groups that also have popular bouquet of channels like Zee, Star
and Sun respectively and channels indirectly refuse content for DTH operators by charging
exorbitantly or mandating that all the channels of their bouquet to be transmitted.
SWOT Analysis
Strengths
Dish TV was the first entrant in the DTH category and has thus become synonymous with the
satellite TV broadcasting business in India. Leveraging its lineage with the Zee group, Dish TV
has built a commendable brand and relevant product that answers the consumer needs for quality
entertainment. Some of the inherent strengths stem from a strong presence all across the
geography of India, consumer friendly and pocket friendly multi-tiered and customizable
regional packages, abundant transponder capacity to support its widest basket, a very strong and
diversified content offering addressing consumers with diverse needs of genres and languages,
an extremely cost conscious structure and a superior technology for the entire gamut of services.
The technological edge and differentiation with respect to other brands stands exemplified
through its unique offerings of mobile dish with presence in aircrafts (Kingfisher), navy
warships, mobile vans and selected railway saloons.
Weaknesses
The subscriber acquisition is still very high. However, compared to the current industry
benchmarks, it stands at the lowest by far. The cost towards acquiring consumers is under
constant scrutiny in an endeavour to bring it down. In a market trend of consumers down sliding
on the packaging tiers, due to more value being packaged at the lowest packs, Dish TV has
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exhibited a growth in ARPU. However, ARPU continues to be an area of concern with the
constant endeavour to monitor, upgrade and enhance the revenues.
Opportunities
Indias 127 million television owning households, which define the potential depth for the DTH
category, will act as a low hanging fruit for adoption. The further roll out of CAS by the newGovernment, into more towns will impact the growth rate of the DTH category and trigger
consumers to make a decision between digital cable and DTH, thereby aiding faster expansion of
the digital entertainment world.
Enrichment of Value Added Services (VAS) basket with gaming and a host of active services,
some going pay, will continue to be opportunity areas for revenue enhancement. An eventful
sporting calendar with the ensuing Commonwealth games and a series of cricketing tournaments
will act as a catalyst for this category too. The recent stabilization and a revived hope for
bouncing back of the economy as early as the second half of this year will facilitate faster
adoption of this category. Emergence and growth of traffic at the organized retail chains like BigBazaar, Next, The Mobile Store, Reliance digital etc. will also add more visibility leading to
better acceptance of the product.
Threats
DTH is currently a hugely competitive market. Price cuts and reduced margins, spurred by
severe competition, can pose a threat to revenue enhancement. Improved quality of services by
digital cable and IPTV players are potential threats. Churn management and retention cost scan
negatively impact bottom-lines unless constant attention and strategy is deployed to manage and
control the subscribers base.
Research Methodology
Research is the discovery of facts, development of facts and verification of facts. Research is the
process which involves defining and redefining problems, hypothesis and conclusion after
careful testing. The methodology used for eliciting the data required for the study was the survey
method. It is the overall pattern of the project that will dictate as to what information is to be
collected, from which sources and by what procedures.
Research Design
Descriptive method is used in the research. A sufficient though has been given in framing thequestionnaire and deciding the types of data to be collected and the procedure to be used.
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Sources of Data
Primary Data
Questionnaire has been used to collect the data. It contains closed ended and scaling techniques.
Please refer theAppendix-Ifor the questionnaire used in the survey.
Data collection method
Online Survey method have been used for collecting the data.
Sample Size
A sample size of 125 people was taken for our research.
Data Analysis and Interpretation
1. Usage of various TV services among the consumers
Interpretation: Among the users surveyed, 32.80% are currently using cable TV services.
Among all the DTH providers Dish TV users account to 6.60% only.
32.80%
23.60%
28.50%
6.60%
2.00%
6.60%
Cable
Airtel
Tata sky
Dish TvReliance big
Videcon
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2. Monthly expenditure on the TV services
Interpretation: 72.1% of all the users are paying in between Rs 200-400 per month on
Cable/Dish.
3. Type of channel packages used by the consumer
Interpretation: 70% of the users are offering fewer than 150 channels.
13.1
39.3
32.8
14.8
0
10
20
30
40
50
Less than 200 200-300 300-400 400+
Monthly Expenditure on TV
Services
6.1
36.4
27.330.3
0
10
20
30
40
less than 50 50-100 100-150 150+
Channel Packages
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4. Satisfaction level of their service provider in terms of value for money
Interpretation: 80.3% users choose their service provider as economical whereas 10.6% believe
that they are paying more.
5. Satisfaction level of the consumers overall with the service
Interpretation: Users are highly satisfied with the service they are currently using.
0
20
40
60
80
100
9.1
80.3
10.6
Value for Money
Value for Money
0
20
40
60
80
100
Unsatisfied people Satisfied people
9
91
Overall Satisfaction Level
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6. Preference for the various DTH service providers
Interpretation: Among the DTH users, Tata Sky and Airtel are the most preferred providers
with 55.2% and 31.6% share. Dish TV is the third most preferred provider with 8.6% share.
7. Criteria on which consumers selects the DTH provider
Interpretation: Low Initial cost, Low Monthly cost and Good Video and Audio clarity are
among the factors that favours the buying decision criteria.
31.6
55.2
8.6
1.8 4.1 1
DTH Preference
Airtel
Tata Sky
Dish Tv
Reliance Big
Videocon
Others
0
10
20
30
40
50 36
5 312
20
45
15
Buying Criteria
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8. Awareness of Dish TV through different media
Interpretation: Maximum number of people is aware of Dish TV through television and Word
of Mouth media.
9. No of consumer switched from Dish TV
Interpretation: 25.8% users have switched from Dish TV to other DTH service provider
0
10
20
30
40
50
6056
27
10 8
30
2 1
Awareness of Dish Tv
25.8
74.2
Switched from Dish Tv
Yes
No
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10.Reasons for not using Dish TV anymore
Interpretation: Picture clarity and Set Top Box issues was found to be the most important
reasons for switching from Dish TV.
Findings of the Research
1. In this study we found that 49.2% are cable TV network users and 46.5% DTH satelliteTV network users. Among the DTH providers, Tata Sky and Airtel digital TV are rapidly
increasing their market share day by day as we see from the analysis. According the
survey Dish TV is the third most preferred choice for a DTH service provider.
2. Among all the cable network users who are not ready to switch to DTH providers saidabout the high installation cost and high price of combo pack of DTH services as a reason
for not switch over. In the market most of the customers are using cable because of the
low cost of installation and easy accessibility in the regions
3. As the market is rigid so customers are not ready to easily adopt the DTH service, asmost of them are satisfied with the service provider with the service provided by cable
operators or their current DTH provider.
4. Among all the DTH service providers from the survey it is found out that the bigcompetitors of Dish TV are Tata Sky and Airtel. They are well establish and recognisebrands among all the service providers and hence have a major markets share
5. Maintenance and fast services is the area which Dish TV is lacking and needs to improve.6. In the analysis we found that maximum customers of DTH were strongly influenced by
low monthly cost and audio and video quality (58.8% strongly influenced) . Apart from
0
5
10
15
20
Clarity
problem
Network
problem
Set Top box
problem
Channels
problem
16
11
15
8
Reasons for Switching
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that channel Packaging, value added services (record, pause, load) attribute influenced
consumer buying behaviour towards DTH TV network
Conclusion
On the basis of the data collected and the test conducted we have arrived at the followingconclusions.
Among the DTH providers, the most preferred providers are Tata Sky and Airtel followed by
Dish Tv. There is high association between network provider and satisfaction of the services they
get from network provider.
There is also high association between switch over and various influencing factors. Picture
quality, no disturbance of services, channel packaging are more affective here. The major factors
for switching from Dish Tv to other providers were found to be clarity of picture and the issue
with set top boxes.
With the growing demand of DTH, Dish Tv needs to focus on improving their service quality
and provide more value added services in order to regain their lost market share.
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Appendix
Questionnaire on Consumer behaviour of Dish TV
1. Which TV service you use at your home?
o Cableo Airtelo Tata Skyo Dish Tvo Reliance Bigo Videocon
2. What is the rental you pay for your services?
o Less than 200o
200-300o 300-400o 400+
3. How many channels you get in the package?
o Less than 50o 50-100o 100-150o 150+
4. Rate your service provider in terms of value for money?
o Cheapo Economicalo Expensive
5. Rate your satisfaction with the overall service you are getting.
o V.Bado Bado Oko Goodo V.Good
6. Rank the following DTH service providers according to your usage or preference?
o Airtelo Tata Sky
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o Dish Tvo Reliance Bigo Videocono Others (if mentioned)
7. Which factors are influenced you to buy the DTH service?
o Low initial priceo Packageso Brand Imageo Value Added Serviceso Good Video and Audio Clarityo Low monthly Costo Easy access to Dealer
8. Have you ever used Dish TV as your service provider?
o Yeso No
9. Through which of the following mediums have you heard about Dish Tv?
o TVo Newspapers/magazineso Social Mediao Radioo Word of Moutho Never heard of ito Others, please specify
10. What are the possible reasons for switching from Dish Tv?
o Clarity problemo Network problemo Set top box problemo Channels problemo Others, please specify