Presented By:Ankit A. Modi (23)Bhavya Patel (90)Fahad Ramporia (46)Neha Pandya (83)Prashant Malvaniya (21)

“An In – Depth Study Of DTH Industry In INDIA”

IntroductionDefinition “A digital satellite service that provides television services direct to subscribers anywhere in the country. Since it makes use of wireless technology, programs are sent to the subscriber's television direct from the satellite, eliminating the need for cables and any cable infrastructure.

Product History•Concept of satellite television started 64 years ago in the mind of Arthur C. Clark.

•HBO moved first to satellite delivery of programming.

•DTH Satellite receivers were developed in the Early 1980.

•In 1981-85 dish fever grows faster in the world.

•In India STAR TV initiated for DTH plans in 1997.

Substitutes of the product

1. Cable Operator

2. IPTV(live television, time-shifted programming, and content on demand )

Product Technology and service processing

Television receive-only Direct to home television• Programming • Broadcasting centers • Transmission• The Dish• The Receiver

Industry Life CycleYear

Subscribers(In million)

2003 0.00

2005 1.00

2007 4.00

2009 18.70Source :TV VEOPAR JOURNAL/ April 2009/ Page No:40

Global ScenarioRegion/Country Players   The United States 11Canada 5Japan 2Europe 23 France 4 Germany 1 U.K. 5 Italy 1 Spain 1 Rest of Europe 11Asia-Pacific (Excluding Japan) 28Middle East 2Latin America 8Africa 1Total 80

Source: http://www.strategyr.com

/DTH_Satellite_TV_Services_Market_Report.aspx

Indian DTH IndustryPermitted in 2000, Started in 2001.Private Players entered in 2003 (Dish

TV).Current 7 players (1 Govt. + 6 Private).

Source : Business Standards, 9-11-2009.

Company's NameSubscribers (In Million) Market Share

Dish TV 5.92 31.62%Tata Sky 4.50 24.04%Sun Direct 4.30 22.97%

Airtel Digital TV 2.00 10.68%

Reliance Big TV 2.00 10.68%Videocon d2h NA NADD Direct+ NA NATotal 18.72 100.00%

Revenue StructureRevenue Drivers

Percentage (%)

Sales 1.29%Subscription income 79.94%Processing Charges/Service Income 1.80%Other Operational Income 16.96%Total 100.00%

Source : ACCEQUITY

Cost StructureCost Drivers

Percentage (%)

Raw Material Consumed 1.42%Power & Fuel Cost 0.24%Employee Cost 4.33%Production Expenses 57.03%General and Administration Expenses 4.90%Selling and Distribution Expenses 29.03%Miscellaneous Expenses 3.05%  100.00%

Source : ACCEQUITY

Political FactorsFactors Unfavorabl

eNeutr

alFavorabl

ePolitical Parties √Regulatory Role of Government

√

Rules for licensing √Trade Restrictions And Tariffs √FDI cap √Government Stability √(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (2*1+4*3)/ 6 =2.33

Thus the overall effect of Political factors on this industry is Favorable.

Economic Factors

(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (1*1+5*3)/ 6 = 2.67

Thus the overall effect of economic factors on this industry is Favorable.

Factors Unfavorable

Neutral

Favorable

Currency Stability √Gross Domestic Product

√

Inflation Rate √GDP based on PPP √Interest Rate √Budget Impact √

Social Factors

(Here, Unfavorable-1 & Favorable-3)(Here, Unfavorable-1 & Favorable-3)Weighted Average = (1*2+5*3)/ 6 = 2.83

Thus the overall effect of Social factors on this industry is Favorable.

Factors Unfavorable

Neutral

Favorable

Consumer attitudes and opinions

√

Brand, company, technology image

√

Buying access and trends √Age distribution and lifestyle trend

√

Family form and Population shift

√

Cultural implications of DTH √

Technological Factors

(Here, Unfavorable-1 & Favorable-3)Weighted Average = (1*2+6*3)/ 7 = 2.86Thus the overall effect of Social factors on this industry is Favorable.

Factors Unfavorable

Neutral

Favorable

Technology √Govt. course of action towards Technology

√

Technology Initiative √Rate of Technological Change

√

Industry R&D Spend √Technology Push √Productivity Improvements √

Five Force Model

Threats of New Entrants (Moderate to Low)

Factors Low Moderate To Low

Moderate

Moderate To High

High

Access to Distribution network (High)

√

Advertising & Marketing Activity (High)

√

Regulation & norms (Moderate To High)

√

Capital Requirement (High)

√

Cost Design (Moderate to Low)

√

Industry Growth (High)

√

Government Policy (Liberal)

√

Threats of Substitute Products (Moderate to High)

Factors Low Moderate To Low

Moderate

Moderate To High

High

Determinants of substitution threat (Low)

√

Costs of switching to substitutes (Low)

√

Availability of substitutes (Moderate To High)

√

Bargaining Power of Supplier (Moderate to Low)

Factors Low Moderate To Low

Moderate

Moderate To High

High

Backward Integration (High)

√

Supplier Switching Cost (Low)

√

Forward integration(Low)

√

Bargaining Power of Buyers (Moderate to High)

Factors Low Moderate To Low

Moderate

Moderate To High

High

Buyer Switching Costs (Low)

√

Brands Awareness (High)

√

Availability of Substitute Products (High)

√

PurchaseFrequency (High)

√

Innovative Services (High)

√

Inter Firm Rivalry (High)Factors Low Moderat

e To Low Moderat

eModerat

e To High

High

Competition between Companies (High)

√

Switching costs (Low)

√

Demand Growth (High)

√

Untapped Market (High)

√

Promotional Activities(Moderate to High)

√

Exit barrier (High) √

BCG Matrix

Industry Growth Rate = 30%.Source: Business Standards, 9-11-2009.

Company's Name

Subscribers (In Million)

Market Share

Relative Market Share

Dish TV 5.92 31.62% 1.32Tata Sky 4.50 24.04% 0.76Sun Direct 4.30 22.97% 0.73Airtel Digital TV 2.00 10.68% 0.34Reliance Big TV 2.00 10.68% 0.34Videocon d2h NA NA -Total 18.72 100.00%  

Continue…

GE 9 CELL MatrixBusiness Strength Weight Dish TV Tata Sky Sun Direct

Airtel Digital Big TV

Videocon D2h

  Rating Score Rating Score Rating Score Rating Score Rating Score Rating ScoreMarket Share 0.25 9.00 2.25 7.50 1.88 7.50 1.88 5.00 1.25 5.00 1.25 2.00 0.50Financial Resources 0.20 7.00 1.40 8.50 1.70 8.00 1.60 7.50 1.50 7.50 1.50 4.00 0.80Brand Reputation 0.15 7.50 1.13 7.50 1.13 6.50 0.98 7.00 1.05 7.50 1.13 6.00 0.90Distribution Capacity 0.12 8.00 0.96 7.00 0.84 6.50 0.78 6.50 0.78 7.00 0.84 5.50 0.66Advertising Capabilities 0.15 8.50 1.28 7.50 1.13 7.00 1.05 7.00 1.05 6.50 0.98 4.00 0.60Ability to Compete with Rivals 0.13 8.00 1.04 7.00 0.91 7.50 0.98 7.00 0.91 7.00 0.91 5.00 0.65  1.00 8.05 7.58 7.26 6.54 6.60 4.11

DTH Service Industry

Industry Attractiveness Weight Rating ScoreCurrent Market Size 0.20 8.00 1.60Regulatory Environment 0.15 7.00 1.05No. of Competitors 0.12 6.50 0.78Barriers To Entry 0.10 7.00 0.70Market Growth Rate 0.13 7.50 0.98Industry Profitability 0.15 8.00 1.20Technology Change 0.15 7.50 1.13  1.00   7.43

Continue…

ADL (Arthur D. Little) Matrix

Driving ForcesInternet technology applications

Long term industry growth

Product innovations

Technological changes

Regulatory influence

Changing societal concerns, attitude & lifestyles

Key Success FactorsInnovative Services

Innovative Marketing

Distribution

Technology

Strategic FactorsExploit Bottlenecks

Move First

Exploit Market Niche

Diamond Model

VALUE CHAIN ANALYSIS

OT AnalysisOpportunities :

Huge Untapped market Govt. in favors of industry New products comes in the market Company have own cable subscriber Technology development and Innovative

Services Market developments Geographical, export, import Industry or lifestyle trends

Continue…Threats:

switching cost Government policy/regulations IT developments Competitor intentions Seasonality, weather effects Lack of possibility of growth

Conclusion

THANK YOU………..