Internship @ Videocon, DTH Industry

8/14/2019 Internship @ Videocon, DTH Industry

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Industry Overview

History:

The history of Indian Television dates back to the launch of Doordarshan, the

country s national television network in 1959 when the transmission was in black &

white. The 9 th Asian games which were held in 1982 in the country s capital New Delhi

heralded the mark of colour television broadcast in India.

In 1991, Indian economy was liberalised from the license raj and major initiatives

like inviting FDI, deregulation of domestic businesses emerged. This led to the influx of

foreign channels like Star TV and creation of domestic satellite channels like Sun TV

and Zee TV. This virtually destroyed the monopoly held by Doordarshan.

In 1992, the cable TV industry started which changed the way the average Indian

watches the television. Every city in India had a new breed of entrepreneurs called as

cablewallahs or Local Cable Operators (LCO) taking in charge of distribution. Since this

was a disorganized sector carrying new channels on the existing infrastructure required

new investments which the operators were reluctant to make. This led to the emergenceof a new breed of firms called as Multi System Operators (MSO) who had heavy

financial muscles to make capital investments and liaised between the cable operators

and the channels. MSOs provide the feed to the local operators for a fee.

In 1995, government felt the need of regulation in Cable TV and passed the

Cable TV network (Regulation) Act. This was also the time when the state owned

Doordarshan and All India Radio came under a new holding called as Prasar Bharati togive them enough autonomy. The LCOs reported a lower number of connections where

as the broadcasters demanded a higher rate. MSOs were finding it difficult to operate

under these conditions. This led to an amendment of the Cable TV

networks(Regulation)Act in 2002 to provide Conditional Access System (CAS). With

CAS, the last mile distribution could be addressable with accuracy and digitalization of


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broadcast was also possible. CAS was rolled out in 2003 staring from Chennai and later

to parts of Delhi, Mumbai and Kolkata. On the DTH front, TRAI issued the guidelines for

operating DTH. Country s first DTH license was awarded to Dish TV in 2003 which

started operations in 2004. Prasar Bharati also started its product DD-Direct+

In 2007, TRAI proposed a new initiative by name Headend -In-The- Sky (HITS)

model as an alternative to the existing cable distribution. Instead of the MSOs providing

the bundle, there will be a single HITS operator who will prepare the bundle of channels

and beam it to the Headend in the satellite. With the average Indian getting younger,

and hence more likely to spend on nonessentials, the entertainment industry has the

potential to grow explosively in the future. Now the industry is ready to enter a second

stage of growth powered by the twin engines of technology (availability of quality

infrastructure and the accelerated penetration of digital connectivity) and an enabling

regulatory environment.


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Current Scenario:

In the current context of the global financial meltdown, the Direct to Home (DTH)

industry in India is in the throes of multifarious challenges and opportunities.

The big game is all about shaping up grandiose plans to master the winning rules to

garner as much portion of the Indian DTH pie as possible by a handful of players.

Since the DTH space denotes big value , akin to the space occupied by television and

telephony, inter-firm rivalries have thrown up price wars, discount schemes,

procurement of transponders, ambitious targets for improving the subscription base,

popular bouquet of channels, set top boxes with superior quality of videos, improving

content, etc as a desperate means to entice the Indian viewer. A neat 20 per cent

annual growth is being witnessed in the DTH sector in India with over 16 million

households having digital pay-TV.

According to Harsh Bijoor, a brand consultant, Since Dish TV, the biggest

market player on the Indian soil, has not scraped even five per cent of the pie, there is

plenty left for other players to eat.

In the early 2008, five major players, Zee s Dish TV, Tata Sky, Reliance ADAG,

Sun Direct and Bharti Telemedia formed an umbrella body DTH OperatorsAssociation 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.


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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 services imposed by the Central government. Apart from this, there are

entertainment taxes that differ from state to state.


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Company Overview

About Videocon


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Product Portfolio:

Home Appliances ConsumerElectronics

Displays Components

RefrigeratorsWashingMachines

Air conditionersAir coolersMixers, toasters,ironsMicrowaveovensVacuum cleanersWater Purifiers

CRT TVPlasma TVLCD TV

HomeEntertainmentSystemsAudio/Videoproducts

CPTPlasma panelLCD panel

GlassPanelsFunnels

CompressorsMotorsPlasticMouldingsPacking


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Manufacturing Facilities

INDIA (7) CHINA (2) ITALY MEXICO POLAND OMAN

Figure in bracket indicate the number of manufacturing facilities in that country.

Introduction to Bharat Business Channel Limited (BBCL):

Videocon Group is launching Direct To Home services & Mobile Handsets in India

under the banner of BBCL (Bharat Business Channel Limited) with brand name of

Videocon d2h.

DTH stands for Direct To Home which is a direct mode of transmission between

Broadcaster and Subscriber through satellite.


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Broadcast centre collects the signals from different programming sources (like Sony,

Zee, and Star). It processes the Signals and beams it to the Satellite. Satellite will

reprocess the signals and retransmits the signal to the subscribers.


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Objectives of the project:

Porter s analysis of DTH industry.

A study of TRAI rules pertaining to DTH industry.To keep a weekly track on various channels and their ratings based on TAM

ratings.

Do a comparative study of the various DTH players on their interactive services.

To conduct marketing research regarding -

the interactive services

cable TV consumers

Reviews on DTH players from various blogs.

To do perceptual mapping of DTH players.


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Porters Analysis of DTH industry:

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 world s largest terrestrial broadcaster with over 1400

terrestrial TV transmitters. The reach provided by this route is phenomenal with

Doordarshan covering 88% of India s geographical area. Covering the remaini ng 12%

area required substantial capital investments which does not outweigh the benefits. The

transmission was done originally in Analog mode but beginning from 2002,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.

Cable66%

Terrestrial22%

DTH

12%

Indian Broadcasting


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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.

Internet Protocol Television (IPTV):

IPTV is a service where television signals are digitally sent over the

telecommunications line. It is often presented as a bouquet of Video (IPTV), Audio

(Telephone) and Data (Broadband Internet) services. With widespread adoption of

broadband in the country and the growing techno savvy population, IPTV has a

potential to become a huge success.

IPTV takes the interactivity to a newer level. In regular mediums, all the channels arepushed to the consumer regardless of his preference. IPTV encourages a two-way

request response model where the consumer chooses the programs he wants to view.

Right now thos medium is totally unregulated and cable companies are urging the TRAI

to issue a consultation paper process to include IPTV under the aegis of Cable TV act.

IPTV is a considerable threat to DTH in urban and semi urban areas where broadband

has made its mark.

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


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as Asia s largest DTH, the bargaining power of Indian DTH operators with CPE supplies

have increased.

However, the availability of transponders is increasingly becoming difficult. The Ku band

transponder is generally provided by Astrix, the commercial wing of ISRO either through

its own satellites or by leasing transponders from suppliers. With only two domestic

satellite launches between 2007 and 2010 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.

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

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 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.

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


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of big groups that also have popular bouquet of channels like Zee, Star and Sun

respectively. The channels indirectly refuse content for DTH operators by charging

exorbitantly or mandating that all the channels of their bouquet to be transmitted when

the vendor is already capacity constraint.

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 required transponders.


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TRAI Rules

The Direct to Home Broadcasting Services (Standards of Quality of Service and

Redressal of Grievances) Regulations, 2007, were issued on 31st

August, 2007. Theseregulations were issued to lay down the standards of quality of direct to home services

and to protect the interests of direct to home subscribers. At the time of issue of these

regulations, only two direct to home operators apart from Doordarshan were providing

direct to home services in the country. Since then, three new direct to home operators

have started commercial operations. With the evolution of the direct to home segment

and the increase in the number of direct to home subscribers, new issues relating to

quality of direct to home service have arisen. In order to address these issues the

Authority has decided to amend the Direct to Home Broadcasting Services (Standards

of Quality of Service and Redressal of Grievances) Regulations, 2007.

Rationale for making amendment to the Direct to Home Broadcasting Services

(Standards of Quality of Service and Redressal of Grievances) Regulations, 2007:

The Authority noted that a large number of complaints have been received from

the Direct to Home subscribers regarding dropping of channels from subscriptionpackages offered by DTH operators. In case of subscription to DTH services, a

subscriber subscribes to the service on the basis of specific channels included in the

subscription package. If any channel is taken out of a subscription package and it is

replaced by another channel then the DTH subscriber may be getting the same number

of channels as earlier, but will be deprived of viewing the particular channel which has

been removed. In case the channel which is removed is offered to the subscriber as an

add-on package then the subscriber ends up paying more for viewing that channel

which was earlier included in his subscription package. This subverts the tariff

protection provided to DTH subscribers by Regulation 9 of the Direct to Home

Broadcasting Services (Standards of Quality of Service and Redressal of Grievances)

Regulations, 2007. This calls for DTH subscribers to know about the following new

rules.


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1. No visiting or repair and maintenance charges of DTH equipment during warranty

period.

TRAI: The DTH operators have been prohibited from charging any fee towards visiting

charges or repair and maintenance charges of DTH Consumer Premises Equipment

during the period of warranty for such DTH Consumer Premises Equipment acquired on

outright purchase basis.

2. The DTH operators cannot alter the subscription package during the first 6 months, or

till validity expiry, of a subscriber's enrollment.

TRAI: The DTH operators have been prohibited from changing the composition of their

subscription packages during first six months of enrolment to the subscription package

or during the period of validity of a prepaid subscription package, whichever is longer.

3. In case a channel is removed from a subscription package in the first 6 months of

enrollment, the DTH operator must reduce the price proportionately, or replace the

removed channel with one of the same genre and language.

TRAI: The DTH operators have been mandated to proportionately reduce the

subscription charges for a package from which any channel is removed for first six

months of enrolment or during the period of validity of a prepaid subscription package,

whichever is longer or to replace the channel with a channel of same genre and

language.

4. The option of choosing the package with reduced charges or the package with

replaced channel has been given to the subscriber.

5. In case a removed channel needs to be replaced, the replacement option will be in

the hands of the DTH operator.


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TRAI: Option to select the channel of the same genre and language in a subscription

package to replace a channel which has become unavailable on the DTH platform, has

been given to the DTH operator.

6. Your DTH operator needs to give a prior notice of fifteen days to you before changing

the composition of any subscription package.

7. Subscribers are allowed to request their DTH operator to suspend their services for

up to 3 months. However, this suspension period should not comprise the same

calendar month.

TRAI: DTH operators have been mandated to entertain requests of DTH subscribers for

suspension of services if requested period of suspension does not exceed three

calendar months and does not comprise part of a calendar month

The above rules are compulsory for DTH operators to adhere to.


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Television Audience Measure (TAM) Report

Media planning is all about being able to communicate efficiently and effectively with

your potential consumers. Not only selection of media vehicle but content, timing, andplacement of the ads can be aptly mapped to reach out to the potential Target Group,

making them an invaluable part of any campaign. In view of that, TAM ratings become

the backbone and one of the most vital variable for any media plan.TAM is Television

Audience Measure that keeps track of the ratings of different channels on weekly basis

that provides a good platform for advertisers to decide on the channel to advertise.

Observations:

Hindi GEC:

Week 23

Top 5

Programes Genre Channel

TVRs

000's

Yeh RishtaKya Kehlata

Hai Serials Star Plus 7215

Bidayi Serials Star Plus 5912

Hff Ghajini

Featur

e Films Colors 5455

Balika Vadhu Serials Colors 5286

Chhoti Bahu Serials Zee TV 4946

week

star

plus colors

Zee

Tv SET

NDTV

Imagine

wk

22 19.9 21.4 20.3 8 8.9

wk

23 20.7 22.7 19.8 7.6 8.9

wk

24 22.9 20 19 7 8.9

wk

25 20.7 20.6 19.4 8.4 8.9


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Analysis:

Star Plus, Colors and Zee TV fared almost equally well during the period from week 22

to 25. Their viewership was comprehensively higher than SET and NDTV Imagine.

For reaching to maximum viewers, the company would like to advertise their product on

Star Plus and Colors channel.

0

5

10

15

20

25

star plus colors Zee Tv SET NDTVImagine

Hindi GEC

wk 22

wk 23

wk 24

wk 25


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Hindi & Subtitle Movies:

Week 23

Top 5

Programmes Genre Channel

TVRs

000's

Hum Saath

Saath Hain N/A

Zee

Cinema 2978

Soorya

vansham N/A MAX 2240

Chakde India N/A MAX 1751

Singh Is Kinng N/A MAX 1711

Meri Jung

One Man

Army N/A MAX 1638

0

5

10

15

20

25

30

35

40

SET MAX Zee Cinema Star Gold UTV Movies Filmy

Hindi and Subtitle Movies

wk 22

wk 23

wk 24

wk 25

week

SET

MAX

Zee

Cinema

Star

Gold

UTV

Movies Filmy

wk

22 39.5 27.7 13.9 4.4 3.8

wk

23 31.5 32 17.7 5.4 3.6

wk

24 29.2 33.2 17.7 6 3.9

wk

25 30.2 30.9 19 6.2 4.3


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Analysis:

In Hindi and Subtitle Movies sector, SET MAX and ZEE Cinema share the maximum pie

from this category though Star Gold is also faring well as compared to UTV Movies and

Filmy channel. Looking at the top five viewed programmes Zee Cinema has the highest

viewership as compared to SET Max in the 23 rd week. This being a movie channel the

reach to the population is comparatively higher than any other category of channels.

The viewership to some extent also depends upon the movie being shown on the

channel.


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Cartoon/Animation/Child Prog:

Week 23

Top 5

Program

mes Genre Channel

TVRs

000's

chhota

Bheem Cartoon POGO 900

my friend

Ganesha

Feature

Films CN 671

mr Bean Cartoon POGO 617

tom &

Jerry

Tales

Feature

Films CN 587

Stuart

Little

Series Cartoon POGO 484

0

5

10

15

20

25

Pogo CartoonNetwork

Nickelodeon Hungama TV DisneyChannel

Cartoon/Animation/Child Prog

wk 22

wk 23

wk 24

wk 25

week Pogo

Cartoon

Network

Nickel

odeon

Hun-

gama

TV

Disney

Channel

wk

22 22.8 21.5 20.7 18 8.8

wk

23 23.4 23.5 20.7 16.3 8

wk

24 21.9 20.5 23.1 18.6 8

wk

25 22.9 21.9 22.1 17.2 7.5


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Hindi News:

Week 23

Top 5

Programm

es Genre

Chann

el

TVRs

000's

Saas Bahu

Aur Saazish

Channel

Presentation

Star

News 383

Danke Ki

Chote Par

Reviews/Rep

orts IBN 7 334

India Tv

News

News

Bulletin

India

TV 304 Aap Ke

Tare

Religious/De

votional

Aaj

Tak 261

Khabar Din

Bhar

News

Bulletin

Star

News 246

0

2468

101214161820

Aaj Tak India TV Star News IBN 7 NDTV India

Hindi news

wk 22

wk 23

wk 24

wk 25

week

Aaj

Tak

India

TV

Star

News IBN 7

NDTV

India

wk

22 18.3 15.1 13.8 9.8 9.5

wk

23 18.7 16.8 14.9 9.4 8.4

wk

24 18.3 17.7 15.6 7.7 8.3

wk

25 17.5 17.2 15.3 8.3 9.1


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Analysis:

The news channel too fare a high viewership as compared to other categories of

channels. The viewers of this category are mostly adult and matured and therefore we

observe that there are hardly any advertisements for kids on such channels.

Aaj Tak and India TV fare the maximum proportion with Star News too sharing a decent

proportion of viewership. The viewership of such channels have increased due to

telecasting of sensational and mythological programs which has created a buzz among

the viewers.


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Sports:

Week 23

Top 5

Programm

es Genre

Chann

el

TVRs

000's

ICC T20

WC-09 Match

Star

Cricket

1222

1

ICC T20

WC-09 Match

Star

Cricket 5919 ICC T20

WC-09 Match

Star

Cricket 5610

ICC T20

WC-09 Match

Star

Cricket 5564

ICC T20

WC-09 Match

Star

Cricket 3832

0

10

20

3040

50

60

70

80

90

100

Ten Sports Star Cricket Star Sports Neo Cricket ESPN

Sports

wk 22

wk 23

wk 24wk 25

week

Ten

Sports

Star

Cricket

Star

Sports

Neo

Cricket ESPN

wk

22 50.4 25.7 9.5 5.5 5.4

wk

23 8.1 78.2 4.6 1.3 6.1

wk

24 4 92.1 1.2 0.6 1.3

wk

25 8.4 86.7 1 0.6 2.5


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Recommendations:

Videocon being an established brand in consumer durables, it has wide network of

distribution across the country which could be tactfully used for its DTH product.

From the above observations, it could be concluded that Hindi GEC category has

the maximum viewership among the various type of channels. Therefore Videocon

can advertise their product on this category of channels and specifically on Star Plus

and Colors channels. Some of the popular shows on this channels are Yeh Rishta

Kya Kehta Hai , Bidayi , Balika Vadhu which will result in maximum reach to the

population.

It was observed that the TVR s of the Sports channels go high during the telecast of

Indian cricket matches on this channels. A creative advertisement like Vodafone s

Zoo-Zoo being shown during IPL matches will leave high product awareness among

the masses. Therefore Videocon should look for sponsoring of cricket series

particularly of India and Pakistan and then advertising in such channels.

The viewership of Hindi and Subtitle movies is also high particularly for SET Maxand Zee Cinema. An advertisement in any of those channels will help in achieving

high reach of masses.

The viewers of Cartoon/Animation/Child Prog are mostly children who also play a

part in deciding which company DTH should be purchased. An advertisement in

POGO, Cartoon Network can spread the awareness about the product.


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A study was taken on comparison of interactive services of DTH players.

Observation:

InteractiveServices Tata Sky Airtel digital tv Dish Tv Big tv Shopping Active Mall iShop

Childrenlearning

Active Wizkids,Active Learning,Active topper inassociation with24x7guru.com

iLearn by24x7guru.com Active Feature

Stories Active Stories Games Active Games Game Zone Games iGames

Travel

Active Darshan(Mythology) inpartnership withStar News iTravel

Bhakti Acitve(Mytho)

Sports Active Sports iSports

Active Feature withcamera angle,match highlights,player statistics,multiple languagescommentary

Matrimony

Active Matrimony(bharatmatrimony.com)

Cooking Active Cooking(masters chefs) iCooking

Astrology Active Astrology(Bejan Daruwala) iAstro

Astroactive withPandit Ajay Bhambi iAstro

News Active Star News iNet, iNews Active Feature iNews Movies Showcase Airtel live iCinema CityInformation iCity Book Movie

Tickets iMatinee Banking ICICI ACTIVE Reminders Alert Reminders Child lock Available available

Extras Widgets, QuickView, iPizza

ElectronicProgramming Guide

ElectronicProgrammingGuide


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Findings:

Tata Sky is in the numero uno position with respect to provision of interactive

services as compared to other players like Airtel Digital TV, Dish TV and Big TV.

Airtel Digital TV is in the second position only after Tata Sky with respect to the

variety of interactive services been provided.

Dish TV is the only DTH player among the above players that does not provide

gaming option. Rest all the players are well equipped with the gaming feature.

Astrology and news are the only features which are provided by all the DTH

players.

One of the distinguishing features of Dish TV is the banking facility known as

ICICI ACTIVE which no other players provide in any format.

Some of the common services which are found in most of the DTH players are

children learning programmes, games, travel, cooking, astrology and movies.

Recommendations:

It is recommended for Videocon to include those common services which other

DTH players provide since most of them are highly viewed by the population. Videocon should come up with innovative services like instant Travel Booking ,

Weather report of the city , Video Songs on demand for having an edge over its

competitors.

Videocon may come up with a service that gives information about rates of house

rent, lease, purchase, selling of land property of Tier II cities which no other DTH

company has brought forward.

It may come up with an idea of storing photos or videos in its DTH Share folder

which could be shared with friends and distant families.


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Market Survey on Interactive Services and Cable consumers

RESEARCH METHODOLOGY/ DESIGN

The methodology adopted for eliciting the data required for the study was surveymethod. It is the overall pattern or framework of the project that will dictate as to what

information is to be collected, from which sources and by what procedures.

RESEARCH METHOD

Research methodology must be classified on the basis of the major purpose of the

investigation. In this problem, description studies have been undertaken, as the

objective of the project is to conduct the market survey about the interactive services of

DTH players and study of Cable consumers.

DATA COLLECTION

The information needed to further proceed in the project had been collected through

primary data and secondary data.

PRIMARY DATA

Primary data consists of information collected for the specific purpose at hand for thepurpose of collecting primary data, survey research was used and all the retail outlets

sellers using different brands and their competitors were contacted. Survey research is

the approach best suited gathering description.

SECONDARY DATA

The secondary data consists of information that already exists somewhere, having been

collected for another purpose. Any researcher begins the research work by first going

through the secondary data. Secondary data includes the information available with the

company. It may be the findings of research previously done in the field. Secondary

data can also be collected from magazines, newspapers, other surveys conducted by

known research agencies etc.


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RESEARCH METHODOLOGY

The respondents are consumers of various DTH. The survey was carried in the city of

Mumbai with the sample size of 100. The survey was carried out with the help of a

structured questionnaire, which helps in accomplishing the research objectives. The

respondents by means of personal interview administer this structured ended

questionnaire.


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The survey indicated that the customers preferred the Gaming feature more than

any other interactive service which indicates that children interest too play

significant part in selecting the DTH.

The Movie was the second preferred segment of the customers.

It was not surprising to see Astrology catching the customers interest with

famous astrologers like Bejan Daruwala, Pandit Ajay Bhambi hosting the shows

in the channel.

Travel, News and Cooking showed neck to neck competition. With middle

income group growing in India, it is predicted that there will be increase in

tourism which will ultimately increase the need of portals giving travel services.

Movies28%

Games35%Cooking

7%

Astrology13%

Travel9%

News8%

Active Services


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When asked to the customers about the ease of operating the remote control to

find the interactive services then about 89% agreed to be it as easy while 11%

found it difficult to operate.

The operation of remote control was found to be easiest in Tata Sky than any

other DTH remote. This was due to the fact of having being written the function of

each and every button than mere symbols which some other DTH remote do

have.

Generally senior citizens and children aged less than 4 years find it difficult to

operate the remote.

Easy89%

Complicated11%

Remote control operation


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Tata Sky seems to be successful in its aggressive marketing plan where it is

seen as the most widely viewed advertisement. Tata Sky was also voted as their

favourite advertisement featuring Aamir Khan and Gul Panag.

Airtel Digital TV and Dish TV are the next most viewed advertisements after Tata

Sky.

The brand advertisements of Tata Sky, Dish TV and Airtel Digital TV are Aamir

Khan, Shah Rukh Khan and Saif Ali Khan & Kareena Kapoor respectively.

Heavy advertisements results in better brand recall which results in higher sales

of the product as could be seen in case of Tata Sky.

Tata Sky55%

AirtelDigital

TV30%

Dish Tv15%

Favouriteadvertisement

Tata Sky32%

AirtelDigital

TV25%

Dish Tv24%

Big TV11%

Sun

Direct8%

Commercials seen


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Recommendations:

Since Videocon is launching its new DTH d2h , it should follow aggressive

advertising plans to create awareness about the product. As Videocon is the 6 th

private player in the market it will be a Herculean task to grab the market share

from well established players like Tata Sky, Dish TV etc. However placing itself in

the niche segment of iDTV with STB will earn fortunes for itself.

Providing the apt Interactive services is the key for the success of any DTH as

could be seen from the survey. In addition to common services like games,

movies, astrology, cooking, travel it should have some innovative service like the

one of record+rewind+play of Tata Sky +

Operation of remote should be user friendly with functions written on button

rather than symbols which can complicate the understanding of remote. Also the

shape of the remote should be innovative like of Tata Sky, Big TV with use of

attractive colours on remote.

Videocon should advertise about the interactive features that it is going to

provide because it was observed from the survey that many customers were not

aware of Dish TV s banking facility of ICICI Direct, Big TV s 32 Cinema hall

feature.Selection of a proper brand ambassador is also important as it conveys a lot

about the product. It should have a brand ambassador which is an icon of style,

reliability and trustworthiness.


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Following are the observations and recommendations on market survey done on

consumers of Cable.

Observation:

The survey showed that the majority of the cable consumers paid a monthly

subscription in the range of Rs 226 to 325. Upto 20% each paid in the range ofRs upto 150 and Rs 151 to 225.

It also indicates that majority of the consumers are ready to pay in the range of

Rs 226 to 325 and so the DTH players should cast their monthly subscription in

this range only.

The price range of Rs 151 to 225 is also a lucrative one since the consumers

would be readily willing to pay in this range.

Rs 226-32550%

Rs151-22520%

upto 15020%

Rs326-40010%

Monthly Cable Subscription


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When the consumers were asked about the reasons given by their cable operators for

not providing their required channels, following were their comments:

May be because other DTH players are paying more than them.

As some are paid channels they are not able to receive it.

As some are paid channels the cable operators demand extra fee for the

particular channel to be provided

Some cable operators do not reply to the consumers or avoid giving answers to

them.

Those channels are not available in their area.

The particular channel is available on particular bandwidth which is not available

with the consumers.

The channels are been provided however the consumer television is not able to

receive it due to technical problems.


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Tata Sky and Dish Tv share equal platform in terms of popularity among the

cable TV consumers. This is because of popular celebrities like Aamir Khan and

Shah Rukh Khan endorsing for the products.

The Airtel Digital Tv gained popularity by advertising during IPL matches 2009 onSET Max. The result is within a short period after its launch it spread its

awareness.

Sun Direct followed an extension advertisement of Bajaj Exceed which had

become very popular. This achieved wide popularity for Sun Direct.

Reliance Big Tv gained awareness in about 13% of the population interviewed.

Tata Sky27%

Dish Tv27%

Airtel Digital Tv20%

Reliance Big tv13%

Sun Direct13%

Awareness of DTH operators


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Most consumers were satisfied with their existing customers and do not intent to

switch to any DTH player.

High initial cost of DTH including the STB was one of the inhibitions to change to

DTH player.

Some consumers were not satisfied with the existing package offered by the

DTH players and some did not understand the schemes of the DTH players.

Peculiar problems like having more than one TV also restricted the consumers to

go for DTH.

High cost ofDTH21%

Satisfied withCable31%

Dont understand

the schemes15%

More than one

TV5%

Feel suitable

package is notavailable

23%

others

5%

Reasons for not changing to DTH


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Recommendations:

The consumers will be very happy to pay in the price range of Rs 151 to 225 as a

monthly subscription since most of the cable consumers pay more than Rs 225

to existing cable operators.

Many a times cable consumers are fooled by their operators about the

unavailability of particular channels which Videocon can make aware to the

masses.

Tata Sky and Dish TV are most popular among the masses due to their distinct

brand ambassadors. Videocon should be very particular in choosing their brand

ambassador for d2h product since that will decide in gaining the mileage.

Videocon has an established brand image in consumer durables which could be

definitely used as a leverage to launch its d2h. Since the survey showed that

brand image is the most influencing factor for change, its reputation as a king for

consumer durables would be an advantage.

Around 40% of the population interviewed do not understand the DTH schemes

or are not satisfied with the existing schemes. Videocon should design their

schemes and packages keeping the understanding level of common people.


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Reviews about various DTH players

Tata Sky by Devilhead satish from forums.techarena

Audio

The audio is nothing short of amazing. All the frequencies are reproduced quite

brilliantly, and the better the speaker system you have, the better your experience.

Showcase

Tata gives you the option of watching certain movies of their choice and a lot of times of

the day. You select, pay 75 bucks through phone or SMS, get the popcorn and watch

the whole movie with just a single ad break. Neat, I say.

Active Content

This is the real fun part and what makes Tata Sky better than the competition. Active

Content, is their way of offering a range of interactive content and keeping everyone

happy.

Verdict DTH is nothing short of an eye-opening experience and Tata Sky makes it all the more

better. If you're still stuck with cable TV, you're genuinely missing something. No, a lot

more, actually. Go, get it, quick!! The idiot box is dead, the smart box is here.

Radhaiyer from forums.techarena

I am using a tata sky connection for a while now and have faced no problems till

date . I have made changes to my packages almost 3 times in last 6 months and

whenever i have made any requests, they have been very prompt to revert and handle

my issues. Their service quality is what impresses me the most. From what I have

gathered, in comparison to other dth operators, TS has the best customer care service!


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because you are santusht with them. Where is that SRK now?? He has got his money

for advertising for them; he will not be seen now.

I recharged my DISHTV but it is not working even after 14 hours, should I go on wasting

my money calling customer care? Who will listen to this?

We know that DTH is new to India and company is not experienced, it experiments but

at whose cost? The customer, The Nation.

There is National wastage of money, electricity, resources and no body cares.

K.Mohan on indiadth.com

Although Mr. Sachin promised to instal in first week of August, no progress was made

and he was not responding to our calls. We had to run from pillar to post for 5 weeks .

when we called your executive Mr. Vivek Mishra given in you web site (Ph 9324256888)

he directed us to Mr. Sekar( Ph 9920023467 ) who after several days being not

effective, gave his superior s no Mr. Eric Samuel ( Ph. 9820179326)

After continuous follow up with your executives after paying money in advance, finally it

was installed and activated from first week of September 2008. We thought our agony

will end there, however it is only start of our never ending problem

When we saw on TV suddenly our validity period being reduced to 15 June 2009 from

our original date of 7 September 2009, we contacted your call centre. We were told that

money is deducted for movies. Since the call centre was callous in not responding to

our pleas, we contacted Mr. Eric Samuel and as advised by him sent the e mail dt 13

Nov. 2008.

We are totally disappointed and anguished at the arbitrary and intensive

callousness of your billing section.


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Big TV by Ganesh Iyer on bigtvdth.com:

I ordered for South Smart pack (Rs. 2990 /-) and South Premium Pack along with Tamil

regional pack . But to my surprise I got Popular Pack and our favourite Sun channels

missing. I am complaining to the toll free number where they talk very sweetly but

people sitting there don't know anything about Big TV packages. One even said that

Sun TV is available only in South India and not in North India! Very funny! Foolish

people! They never pass on my problems to their superiors. Every time I have to explain

my problem to the person who receive the phone. Just they talk sweetly and end with

"aap ka din subh ho". Till now, there is no solution to my problem.

Only on Saturday (20th September 08), one operator was kind enough and gave me a

complaint number. There has been no reply to E-Mails sent to them. Big TV is providing

very pathetic and very horrible service. I can't believe it!

I am in such a position that I am ready to forfeit Rs. 3000/- which I have incurred

in the purchase of Big TV and switch over to Tata Sky whose services are far

better than Big TV . I will just feel that someone has cut my pocket and took away my

purse with Rs. 3000/- in it. That s all. It is not a big amount. Let it go.


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Sun Direct on consumer.admanya.com:

TERRIBLE, HORRIBLE, WORST, PATHETIC, WIERD... I am not finding words to

abuse SunDirect Customer Care Service. This is worst service I have ever experienced

in my life, Probably never in future too...

I have been trying from a month, to recharge my plan, Both customer care numbers: toll

free # 18002007575, 044-39407575 are always busy, the second number a couple of

times i got connected with an automated voice said, waiting time will be 1 hour...Worst...

Can not they setup enough number of phone lines and tel.reps while they are charging

good amount of money from the customers.

I would never suggest to this service to any one.

SUN Direct is a piece of CRAP!!!,

I have subscribed to Sun Direct DTH at NOIDA on 23/02/2009 with 5 months free 105

channels - as advertised by SunDirect. 105 channels included COLOURS channel.

From 1/4/2009 Colours was withdrawn from free channels and they are charging Rs

25/- per month.

SunDirect company is cheating the customer by advertising something else and not

providing the promised service.

Is there any regulator or Customer Interest protector in India who can protect interest on

customer and protect the customer from such frauds?


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Perceptual Mapping

A perceptual mapping of the five strong players in the DTH market was carried out to

produce a picture of the competitive landscape from a customer s point of viewidentifying the aspects or factors that customers use to conceptualise their choices.

In this research technique, a questionnaire was designed and responses were

collected from 80 customers surveyed which were put into statistical package of SPSS

known as Multi Dimensional Scaling (MDS). Following are the observations obtained

from MDS

Data Options-

Number of Rows (Observations/Matrix). 5Number of Columns (Variables) . . . 5Number of Matrices . . . . . . 1Measurement Level . . . . . . . IntervalData Matrix Shape . . . . . . . SymmetricType . . . . . . . . . . . DissimilarityApproach to Ties . . . . . . . Leave TiedConditionality . . . . . . . . MatrixData Cutoff at . . . . . . . . .000000

Model Options-

Model . . . . . . . . . . . EuclidMaximum Dimensionality . . . . . 2Minimum Dimensionality . . . . . 2Negative Weights . . . . . . . Not Permitted

Algorithmic Options-

Maximum Iterations . . . . . . 30Convergence Criterion . . . . . .00100Minimum S-stress . . . . . . . .00500Missing Data Estimated by . . . . Ulbounds


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Iteration history for the 2 dimensional solution (in squared distances)

Young's S-stress formula 1 is used.

Iteration S-stress Improvement

1 .061112 .05111 .010003 .05031 .00079

Iterations stopped becauseS-stress improvement is less than .001000


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In the above perceptual mapping there are two dimensions along which the mapping

was done. Dimension 1 indicates Customer Service ranging from Poor to Excellent,

whereas Dimension 2 indicates Emotions ranging from Rational to Emotional.

Following were the conclusions drawn

Tata Sky was rated as the best player with respect to provision of Customer

Service.

Big TV was rated as a poor player in terms of Customer Service.

Sun Direct was considered to be rational in terms of its schemes and packages,

Set Top Box (STB) and monthly subscription.

Customers appeared to be more emotionally attached with Dish TV, being the

oldest player in the DTH market and endorsement of its brand ambassador i.e.

Shah Rukh Khan.

Small distance between Airtel Digital TV and Dish TV indicate that they are more

or less perceived similar by the customers. It also indicate a close competitionbetween the two players.

The other brands viz. Tata Sky, Sun Direct and Big TV have distinct images in

the customers mind.


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Annexure 1

Questionnaire on DTH Interactive Services

1. Which DTH brand service do you use?

TataSky, Dish tv, Airtel digital tv, Big tv, Sundirect

2. Since how long have you been using DTH service?

Less than 6 months, 6 months to 1 year, 1 to 2 year, 2 to 3 year,

more than 3 years

3. Are you aware of the interactive services offered by the various DTH players?

Yes No

4. Which active service do you use frequently?

Games, Movies, cooking, Astrology, Others (pleasespecify)____________

5. How do you find the interactive system to use?

Complicated, Easy

6. Does the interactive service offered by the DTH companies influence your

decision of purchasing a particular DTH?

Yes No

7. Do you find the interactive service helpful in your daily needs for example

cooking, learning etc

Yes No


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8. Are you willing to purchase your existing DTH without any interactive services

being offered, though with reduced price?

Yes No

9. Any other service which you would to have in the interactive package?

10. Which company DTH commercial have you seen so far on tv?

TataSky Dish tv Airtel digital tv Reliance Big

tv Sun direct

11. Which is your favourite commercial among the DTH players?

TataSky(Aamir Khan & Gul Panag, Hrithik Roshan, Paresh Rawal)

Dish tv(Shah Rukh Khan)

Airtel digital tv(A.R Rehman, Saif & Kareena)

Reliance Big tv

Sun direct

12. Are you aware of the add of Tata Active Learning featuring small school boys asEinstein?

Yes No Don t remember

13. Are you aware of Dish tv s service of banking facility with ICICI bank?

Yes No

14. Are you aware of Big tv s 32 cinema hall feature?

Yes No


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15. Which interactive service have you purchased recently?

16. Have you made use of the services like iPizza?

Yes No

17. Do you take part in the various contests held in the interactive channels ?

Yes No

18. What do you feel about the feature of watching cricket from different angles as

provided by TataSky and Dish tv?

Very innovative Interesting not useful

19. Overall , do you feel that the interactive services increase the value of the DTH

package?

Yes No


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Annexure 2

Questionnaire for Consumers of Cable tv

1. Since how long you have been using cable tv?

Past 6 months 6 months to 1 year 1 to 3 years more than 3 years

2. How much do you pay for monthly cable?

Upto Rs 150 Rs 151-Rs 225 Rs 226-Rs 325 Rs 326-Rs 400 Above

Rs 400

3. Do you get all your required channels from your cable operator?

Yes No

4. If answer to Q3 is no, then what reason does your cable operator gives for not

providing the required channel?

5. From the list provided below which DTH players are you aware of?

TataSky Dish tv Airtel Digital tv Big tv SunDirect others(thenspecify)_____________

6. Are you satisfied with the services of your cable operator?

Yes No

7. Would you like to change from your cable operator to any of DTH players?

Yes No

8. If answer to Q7 is Yes, then which DTH provider would you like to change?

TataSky Dish tv Airtel Digital tv Big tv SunDirect others(then

specify)_____________


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9. Your choice of the DTH player is due to

Schemes & packages, Referrals from relatives & friends, Brand Image,

Easy availability,

others(thenspecify)_________________________________________________

10. What difficulty you see in changing from cable to DTH?

High cost of DTH, satisfied with not aware of DTH, not suitable

the existing cable, package

available

other reason(specify)______________________________________________

11. What is it you feel that a DTH lacks but a cable tv has ?

12. How do you feel about the concept of having an inbuilt DTH in the tv itself?

Very innovative, Normal, Idea will not work


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Annexure 3

Questionnaire for Perceptual Mapping

Q1 Give your ratings regarding the redressal of complaints for the DTH companies?

1 denotes Excellent and 5 is Poor

1 2 3 4 5

Tata Sky

Dish TV

Airtel Digital TV

Big TV

Sun Direct TV

Q2 - Give your ratings for the promptness of response from the DTH companies?


1 2 3 4 5

Tata Sky

Dish TV

Airtel Digital TV

Big TV

Sun Direct TV

Q3 Rate the given below DTH companies according to the overall customer service

provided by them?


1 2 3 4 5

Tata Sky

Dish TV

Airtel Digital TV

Big TV

Sun Direct TV


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Q4 Give your ratings for the economy of the schemes and packages of the various

DTH players?


1 2 3 4 5

Tata Sky

Dish TV

Airtel Digital TV

Big TV

Sun Direct TV

Q5 Give your ratings according to the emotional impact of the advertisements of the

DTH companies?


1 2 3 4 5

Tata Sky

Dish TV

Airtel Digital TV

Big TV

Sun Direct TV

Q6 Give your ratings according to the overall entertainment level provided by the DTHcompanies?


1 2 3 4 5

Tata Sky

Dish TV

Airtel Digital TV

Big TV

Sun Direct TV


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References

About TAM from exchangeformedia.com

Reviews about DTH from forums.techarena, indiatdh.com, bigtvdth.com,

consumer.admanya.com

TELECOM REGULATORY AUTHORITY OF INDIA. NOTIFICATION. New Delhi

www.dot.gov.in/Acts/legislation

Industry analysis from www.sivasundaram.com

Information on DTH industry from www.merinews.com

Information on schemes and packages of various DTH players was collected

from the advertisement materials and brochures of the company.

www.saveondish.com

www.indiatelevision.com

www.tamindia.com

Documents

Internship @ Videocon, DTH Industry