Mobile TV Print

Mobile TV- Modern Way of Distributing Television

Content

Dissertation submitted in partial fulfillment of the award of the

Degree of Master of Business Administration in

Media and Entertainment

By

R PRAVEEN REDDY

102516089

Manipal University in association with Whistling Woods International

June 2012

Mobile TV- Modern Ways of distributing Television Content

MBA (MEDIA & ENTERTAINMENT) MANIPAL UNIVERSITY-WHISTLINGWOODS INTERNATIONAL P a g e | 1

Declaration

I hereby declare that this dissertation titled Mobile TV- Modern Way of Distributing

Television Content. Submitted in partial fulfillment of the requirements of the Degree of

Master of Business Administration in Media and entertainment Of Manipal University

Bangalore Campus in association with Whistling Woods International, Mumbai has been

written by me under the guidance and supervision of Mr. Chaitanya Chinchlikar. This

Dissertation or any part thereof has not been submitted for any purpose to any other University.

Date:

Mumbai Signature and Name of Scholar

Endorsement of Guide Endorsement of Dean



Certificate

This is to certify that this dissertation titled Mobile TV- Modern Way of Distributing

Television Content submitted by R Praveen Reddy in partial fulfillment of the degree of

Master of Business Administration in Media and Entertainment of Manipal University

Bangalore Campus in association with Whistling Woods International is based on the

results of the research work carried out under my guidance and supervision. This Dissertation

or any part thereof has not been submitted for any purpose to any other University.

Date:

Mumbai Signature and Name of Guide



ACKNOWLEDGEMENTS

I take immense pleasure in thanking Dr. Sharon Thomas, Dean Academics, for having

permitted me to carry out this project work.

I wish to express my deep sense of gratitude to my Faculty Mentor, Mr. Chaitanya

Chinchlikar for his able guidance and useful suggestions, which helped me in completing the

project work, in time.

Finally, yet importantly, I would like to express my heartfelt thanks to Mr. Shabbir Mommin

(Zenga TV, CEO) who spared his valuable time amidst their busy schedules help for their help

and wishes for the successful completion of this project.

R Praveen Reddy



INDEX

INDEX ....................................................................................................................................................... 4

Chapter 1: Introduction .............................................................................................................................. 6

Benefits of study: ................................................................................................................................... 8

Objectives: .............................................................................................................................................. 8

Limitations of Study:............................................................................................................................... 8

Chapter 2: Literature Review: .................................................................................................................... 9

Smartphone Usage pattern .................................................................................................................... 9

3G Users in India ............................................................................................................................... 10

Mobile TV Importance & implications.............................................................................................. 11

Ditto TV ................................................................................................................................................. 11

Zenga TV: .............................................................................................................................................. 12

Chapter 3: Conceptual framework........................................................................................................... 15

Methods to distribute Television content to Mobile: .......................................................................... 15

Mobile Television through Telecommunications Network: ............................................................. 15

Mobile Television through Broadcasting Technologies ................................................................... 18

Mobile Television through hybrid technologies: .............................................................................. 21

Mobile TV value chain: ......................................................................................................................... 22

Content Provider: ............................................................................................................................. 23

Content Aggregator: ......................................................................................................................... 23

Application and Service Provider: .................................................................................................... 24

Portal Operator ................................................................................................................................ 24

Datacast Service Provider: ................................................................................................................ 25

Broadcast Network Operator: .......................................................................................................... 25

Mobile Network Operator: ............................................................................................................... 25

Payment agent: ................................................................................................................................ 26

Pricing Models: ..................................................................................................................................... 26

Pay per View: .................................................................................................................................... 27

Subscription: ..................................................................................................................................... 28

One Time Fee: .................................................................................................................................. 29

Mobile ‘Free-TV’: .............................................................................................................................. 30

Existing Business models in Mobile TV:................................................................................................ 30

Lead business model: ....................................................................................................................... 30



Bypass business model: .................................................................................................................... 30

Consortium business model: ............................................................................................................ 31

Chapter 4: Research Methodology: .......................................................................................................... 32

Qualitative Methods ............................................................................................................................. 32

Objective 1: ...................................................................................................................................... 32

Objective 2: ...................................................................................................................................... 33

Data from Online Interviews: ........................................................................................................... 34

Personal Interviews: ......................................................................................................................... 34

Published/ Written documents ........................................................................................................ 34

Chapter 5: Data analysis ........................................................................................................................... 35

Objective 1: Market potential for Mobile TV in India: ......................................................................... 35

Mobile Subscriptions: ....................................................................................................................... 36

3G Subscriptions: .............................................................................................................................. 40

Mobile Value Added Services: .......................................................................................................... 41

Objective 2: Study on Ditto TV in comparison with Zenga TV: ............................................................ 45

Business Model: ............................................................................................................................... 46

Technology Used: ............................................................................................................................. 53

Current Viewership & Reach: ........................................................................................................... 53

Chapter 6: Research findings, recommendations and Conclusion ........................................................... 55

Findings: ............................................................................................................................................... 55

Recommendations: .............................................................................................................................. 56

Conclusion: ........................................................................................................................................... 57

Bibliography: ............................................................................................................................................ 58



Chapter 1: Introduction

Television in India has come long way from the day of its start. Today television consumption

has reached to the great peaks with new technology falling in place. On the other side India has

also seen a great progress in the telecom industry only to become world second largest mobile

market in terms of number of subscribers. Today both these industries have come together to

provide Mobile TV- an integration between broadcast and telecom industries.

Mobile TV is a new distribution platform which uses mobile devices as a screen to replace the

traditional television set and internet as a medium of distribution of television content. India is

a nation where it requires a mobile device like smart phone/ Tablet Pc/ Laptops etc. connected

with an internet connected to it. India has the world's second-largest mobile phone user base

with over 919 million users as of March 2012. It has the world's third-largest Internet users

with over 121 million as of December 2011. In recent times India has become the world's most

competitive and one of the fastest growing telecom markets

Usually across the world mobile phones are considered as fourth screen. But in India for many

users mobile phones have become first screen due to their affordability compared to other

screens. Due to the affordability of the mobile phones and other screens being expensive

mobile phone had become first screen for many of the users today..

In the last few years life style of Indians have been changed enormously. Earlier there were

very few means of entertainment so he use to heavily dependent on the traditional television

box. But today with multiple options available and lot of times away from home he certainly is

finding news means of entertainment. Mobile phones today have become most important

gadget in any individual’s life. Unlike earlier days where mobiles were used for voice and

SMS, today they are heavily used for entertainment and web browsing. Television being one

http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use

http://en.wikipedia.org/wiki/List_of_Internet_users_by_country

http://en.wikipedia.org/wiki/Communications_in_India#cite_note-IWS-2



of the primary medium in the Media and entertainment sector is identifying new ways of

distributing their content in order to reach out the audiences who are on move.

In last few years on international level television world has seen the development of several

new initiatives such as Apple TV, the Roku Player, Boxee box and Google TV, that connect the

television to an internet enabled interface also providing access to online content platforms

such as Netflix and YouTube. India being the world’s second largest mobile market it

represents a unique opportunity in direct mobility and revenues through Voice and SMS

reaching its peak telecom companies are looking for new ways of revenue and realised Mobile

TV has the capability to push the 3G services launched recently. Amongst the many value

added services, Mobile Television is unique because it combines two screens on a single device

– television & mobile. The penetration rate of mobile TV is currently very low. While

technology in terms of suitability of mobile device has limited its spread to a certain extent, the

problem looks set to be resolved within the next 36 months as mobile manufacturers are poised

to provide sufficiently technologically advanced phones - thereby eliminating the challenge

posed by the incompatibility of the mobile device. A more fundamental problem lies in the

consumer choosing to view television on a mobile – the rigidity in not doing so poses the

biggest challenge to future growth of the market.

Traditionally, service providers have approached the mobile TV market by pushing all

available content to the customers and allowing the customers to create their own bundles in

line with their choices.

In such way mobile phones have become a point of convergence for Television and Telecom

industries. Each industry is utilising the services provided by other to provide better service for

consumers. By looking at the development of the television as a domestic mass medium to



more personal medium, and with rise in portable devices and internet platforms like Youtube,

facebook etc. are holding consumers to stick onto devices which support entertainment via

internet. On the other side Indian television also has went through great technological changes

in distribution of content starting with analogue mode of content distribution and followed by

Cable, satellite, CAS, DTH, IPTV, Pay per View, Video on demand.

Benefits of study:

1. A detailed report on Mobile TV market, Ditto TV and its competitors.

2. Availability of report which Ditto TV can use to improvise its strategies to come ahead

in market.

3. A report which provides information on business potential of Mobile TV market.

This research can be useful for following associates of Mobile TV:

1. Ditto TV

2. Content Providers

3. Advertisers

4. Mobile application Programmers (To create software applications for Mobile TV).

Objectives:

To study market potential for Mobile Television in India.

To identify effective business model for mobile television.

Limitations of Study:

1. Due to limitations in factors like time and money, second objective of research is

restricted to comparative study between Ditto TV and Zenga TV (who owns 60-65% of market

share in smart phone).

2. Keeping in mind the scale of project consumer direct opinion on mobile television is not

considered and had to heavily depend on industry expert’s views, TRAI and Nielsen reports.



Chapter 2: Literature Review:

http://trak.in/tags/business/2011/09/06/smartphone-usage-india-overview-numbers/

Mobile television is a distribution platform that delivers video and audio, via the

internet, directly to user(s) connected devices. It allows access to services anywhere, anytime

and on any device like smart phones, Laptops, tablet PC’s, connected PC’s.

According to survey conducted by Nielsen in collaboration with Informate Mobile

Intelligence there are 25-30 million smart phone users available in Indian market. However

Sunil Bharti Mittal, chairman and managing director of Bharti Airtel while addressing at World

Mobile Congress held on 28-February 2012, has told there are 600 million mobile users and 30

million smartphone users existing in India. He also indicated with other facilities like mobile

banking etc., the numbers of smart phone users are going to be increased rapidly.

With almost close to 30 million smartphones available in India it is imperative for various

groups to understand the behaviour of India’s smartphone users. When Nielsen has conducted a

research in collaboration with Informate Mobile intelligence following results has come out

On an average Indian smartphone users spend 2 hours and 30 minutes with smartphones and

72% of that time goes into gaming, entertainment, and Internet. Traditional voice calls and text

messaging take a mere 28% of the time.

Smartphone Usage pattern


http://trak.in/tags/business/2011/05/24/smartphone-users-work-infographic/



The younger Indians prefer to spend most of their time browsing the internet on their

smartphones with little time spent for SMS. Casual browsing of the phone like searching for

contacts and setting alarms take 30 mins of the time for 15-24 year olds.

31+ year old Indians with smartphone have slightly different preferences. They spend less time

browsing and texting when compared to 15-24 year olds, 31+ year olds spend more time on

contact search and alarms.

http://www.lightreading.in/document.asp?doc_id=220772

The growing adoption of smartphones is expected to give a strong fillip to the growth of the

mobile television penetration worldwide. According to a recent study by Juniper Research

Ltd. , the number of streamed mobile TV users on smartphones will reach 240 million by 2014.

Besides smartphone adoption, factors like TV-on-demand and a change in consumer

preferences (watching television on PCs and mobiles) to view the content will also aid the

boom.

While India may still be way behind in the mobile TV popularity, the roll-out of new

technologies like 3G and 4G is expected to accelerate the trend. Some significant challenges

such as non-attractive price plans and lack of quality smartphones, however, will make the case

weak for mobile TV adoption in the markets like India.

The research did not specify which markets will drive the revenues, but it says that by 2016,

around 10 percent of the mobile-TV revenue will be generated on the tablets and subscriptions

will make up the vast majority of this revenue.

3G Users in India

By February, 2012 according to TRAI (Telecom Regulatory Authority of India) market

estimates suggest that the total number of 3G subscribers in India is just about 2% of the total

number of 893.8 million cell phone users.

http://www.lightreading.in/document.asp?doc_id=220772



http://www.soros.org/sites/default/files/mapping-digital-media-mobile-tv-20110627.pdf

Mobile TV Importance & implications

Number of key reasons can be found as to why mobile TV will have such a major impact on

the whole Media industry:-

It is a key enabler of “Personalisation of TV‟ where relevant content and services can

be tailored to consumers

Users will be able to access services anywhere, anytime and on a variety of devices as

content becomes fully personalised and portable

New players from both inside and outside the industry will challenge the existing

operators as subscribers are offered a greater choice. Content will however remain king.

New service and business models will emerge facilitated by the integration of products

and technologies in the area of digital rights management and device interconnection.

Users will have the ability to build a la carte personalised content portals from a variety

of different content providers including the main studios, broadcasters, content

aggregators and micro broadcasters

It will change the basis of competition for consumer spends on content.

http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRNLzIwMTAvMDEvMjkjQXIwMjMwMQ

==&Mode=HTML&Locale=english-skin-custom

Ditto TV

Zee Entertainment, a pioneer in the entertainment and content business has stretched its

operations to Mobile TV. Zee has launched Ditto TV, which aims to offer Television channels

and on-Demand video content to consumers on their mobile phone, tablets, laptops, desktops,

entertainment boxes and connected TV’s. The service can be accessed through desktop apps for

Mac and Windows, and mobile apps for IOS, Android and BlackBerry. The desktop apps are

http://www.soros.org/sites/default/files/mapping-digital-media-mobile-tv-20110627.pdf

http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRNLzIwMTAvMDEvMjkjQXIwMjMwMQ==&Mode=HTML&Locale=english-skin-custom

http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRNLzIwMTAvMDEvMjkjQXIwMjMwMQ==&Mode=HTML&Locale=english-skin-custom



based on Adobe Air. The platform is powered by Siemens Communication and Media

Technology and according to the company, offers adaptive streaming that ensures an optimal

feed basis the available bandwidth strength. Mobile Television has created great market in

other countries like US.

Ditto TV, as an application, is available on leading application stores viz. Apple App Store,

Android Market, & BlackBerry Application World; Ditto TV’s prepaid cards will be retailed at

high footfall outlets like Chroma and Vijay Sales with whom Ditto TV has entered a

distribution alliance.

Zenga TV:

Zenga TV is one of the mobile TV providers, which has seen a massive growth in terms

of viewership in India. It is owned by two individuals Shabir Momin and Vikramjiet Roy. It

started its operations in the year 2009. It started free live television and VOD on web in the

year 2011.Zenga Tv owns a unique technology which works on delivering the best possible

mobile TV experience optimized for the type of the device and the kind of network being used.

Zenga TV occupies 60-65% of total mobile TV market in India. For Zenga TV there is

no limitation of speed for its users to watch TV online, as they offer uninterrupted services on

2G speed. Low 3G penetration rate has greatly contributed to Zenga TV growth.

According to Shabbir Momin, CEO of Zenga TV "At the launch of 3G, operators and

handset manufacturer were talking about providing live video on handsets over internet; hence

lot of awareness was created. But, the 3G services didn't meet the expectations

and Zenga TV being available on 2G become boon for the company,"

Launch of 3G services led to the price reduction in 2G data plans, which allowed

consumers to watch TV at lower prices. However, if 3G services improve then, the company

will be benefitted, as they will be able to offer TV content in better quality.



Zenga TV has got out from the mobile app concept and offers content through a free

and open platform, where there is no need to install any software to view any content. The

company dropped the mobile app and moves on the server part because it consumes lot of R&D

effort, as it needs to make compatible apps for every newly launched handset. Last year, the

company achieved 6.5 million per month on an average and grabbed 55 million unique users

per month. This year, the company has already crossed 7 million unique viewers per month.

Zenga TV announced that it achieved a phenomenal 421 million video views across

different channels compared to less than 150 million video views in 2010.Zenga TV has been

profitable since its inception. Last year the company earned revenue of $3 million and this year

the company is expecting around $15 million in terms of revenue.

The company has introduced its website in 2011, which offers web TV and it is also

looking to add more content. The company has already crossed 100 channels now and looking

to cross 200-250 channels by the end of this year.

Zenga TV has also introduced its news channel, in collaboration with Newzstreet.com

for its website and mobile TV services. Newzstreet specifically generate content

for Zenga TV.

In terms of business model, the CEO affirmed that the company has no competition as

such. It works directly from B2C. It has the capability of injecting ads into the content just like

broadcasters do on traditional technology. The Live Television is free for users however

premium content like movies is charged. The revenue earned is equally distributed in the form

of licensing fee between mobile manufactures and Zenga TV.

In terms of video viewing it is competing with all the service providers and at

technology aspect Mimobi TV (Apalya) is the competitor of the company.



http://ideasmarkit.blogspot.in/2011/07/trai-internet-penetration-in-india-2011.html

Telecom Regulatory Authority of India(TRAI) has released a detailed report on number of

internet connections in India. Points to note

1. These are internet connections and offices and cybercafes have many users accessing a

connection so actual number of users in India is significantly greater than these number.

2. There are 19.67 million Internet subscribers in March 2011 a yearly growth of 21.59 %

w.r.t March 2010

3. Broadband users(>256 Kbps) are growing at 35.49% and were upto 11.89 Million at

March 2011

4. Dial Up and Narrow band users (<256 Kbps) are growing at 5.12% and were upto 7.79

Million at March 2011

5. Maharashtra is having largest Internet (<256 Kbps) and Broadband (>=256 Kbps)

subscriber base in the country. Tamil Nadu is at second place in internet and broadband

subscriber base.

http://ideasmarkit.blogspot.in/2011/07/trai-internet-penetration-in-india-2011.html



Chapter 3: Conceptual framework

Indian television has undergone through many technological advancements starting with B/W

television sets to reach much smaller and portable platforms like smart phones. It started with

analog way of transmitting signals to television sets and today it has reached to a stage where

internet is used to view television on portable devices on move. Technical advancements in

Indian television has from

1. Analog to digital distribution.

a. Analog

b. Cable and satellite

c. MSO’s

d. Direct to Home

e. IPTV

f. Mobile TV

g. Pay Per view

2. Black and white TV sets to Mobile handsets.

Methods to distribute Television content to Mobile:

Technically, there are two main ways of delivering television content to mobile devices. The

television content could be provided via the mobile telecommunications networks or

by using the broadcasting technologies. Both the methodologies are being used by different

service providers across the world. Both have their inherent advantages and disadvantages.

Mobile Television through Telecommunications Network:

A mobile telecommunication network subscriber has a two way communication link

with the network. This telecom link is used for carrying voice (and very often data) to and

from the subscriber. The telecom link is also used for delivery of video content to the



subscriber in this methodology. Higher data transfer requirement associated with video

implies that 3G mobile telecommunications networks, capable of supporting broadband

wireless data, are better suited for mobile television services as compared to 2G or 2.5G

mobile telecommunications networks.

In its simplest form, a mobile phone user can access the video content stored on the

server of the Service Provider on demand. This liberates the subscriber from the program

schedules. Moreover, it is also possible to deliver and store the video content in the mobile

hand set or the portable device (in the memory chip on the handset/ device). The subscriber

can view the content at his convenience even when there is no network coverage.

Some of the telecom players l i k e V o d a f o n e , A i r t e l are offering TV content

on mobile using unicast mode. The mobile service providers are using the allotted spectrum

for offering these high-data rate services.

Technologies in Mobile Telecommunications Network for Mobile TV

The mobile telecommunication networks are being used in many countries for

provision of mobile television services. Mobile television services using mobile

telecommunication networks are provided in unicast mode (one source to one destination, like

from a server to one mobile handset). However, the unicast technology is sufficient in many

cases, especially since mobile users prefer to access content on-demand, rather than following a

fixed schedule.

In its most common form, mobile television is being made available on the 2.5G or

3G mobile telecommunications network in the form of video-on-demand/ video

streaming. The main reasons for widespread adoption of this technology are:-

a. Infrastructure in place: Very little additional infrastructure related capital expenditure is

required for roll out of mobile television services by the service providers using the existing

mobile telecommunication networks. However, this is true for 3G networks only because of



higher data transmission capacity.

b. No additional spectrum requirement: Theoretically, no additional spectrum is required for

roll out of the mobile television services as the content is carried by the mobile

telecommunications network on the existing spectrum allocated to it. However, in practice,

the need for additional spectrum would be linked to subscriber base being serviced by the

mobile network.

c. Handsets available off the shelf: Most of the existing handsets can be used for viewing

mobile television services and no new/ separate handsets are required by subscribers of 3G

mobile telecommunications networks.

d. Pay per download possible: Use of this technology is based on delivery of content as

data download by the subscriber and accordingly, billing by way of pay per download is

possible.

The 3G technologies are well suited for delivery of user specific and personalized

content utilizing the interactivity. So far as India is concerned, the roll out of 3G networks has

begun last year, roll out of mobile television services riding on a 3G network is delivering

commendable video quality. Moreover, even the existing +2.5G/ 2.75 G networks are also

providing quality of service standards and it is cited by the service providers that additional

spectrum availability would improve quality of service.

A new technology, known as Multimedia Broadcast Multicast Service (MBMS),

which is an extension of Universal Mobile Telecommunications System (UMTS), has been

designed to operate over the 3G platform. This technology allows a traffic channel which

will be shared by all the users that are simultaneously watching the same program in the same

area.

The unif ied access service licensees and cellular mobile telephone service



licensees in India are allowed to deliver video over their network as per their license

conditions. The launch of 3G services in the nation has provided the platform for high quality

television viewing experience over mobile handset will be available to the viewers.

Mobile Television through Broadcasting Technologies

A one way broadcast network can also provide the mobile television services. In

such a scenario, the display screen of the mobile handset is used for viewing the

television programs. However, delivery of content does not use the mobile

telecommunications network and its related spectrum. The method of content delivery here

is very similar to the FM radio tuner provided in many mobile telephone handsets. A mobile

telephone subscriber listening to the FM radio on a mobile telephone handset uses the battery

and speakers of the telephone, but the content is carried on the FM broadcast spectrum.

Similarly, the handset can be used for viewing mobile television by using television

broadcasting frequencies.

This methodology has the advantage of efficient use of spectrum. The video

content is delivered using one-to-many distribution topology. Thus, different viewers do not

require dedicated channels for delivery of video content to them. Increase in number of

subscribers does not place any additional burden on the system. This is very similar to

traditional broadcasting services and the subscriber can view the television programmes as

per the schedule of broadcast. However, the subscriber cannot personalize his television

viewing and is only able to access the content being broadcast at a given point of time.

Moreover, the broadcasting t e ch n o l o g i e s require separate a l l oca t io n of spectrum for

carriage of broadcasting content. It is also possible to have encrypted signals and pay

television services using broadcasting technologies. The encryption system for broadcasting

has to be integrated with the subscriber management system of the mobile



telecommunications network fo r billing and customer-care. The billing system would

normally bill a subscriber for access to content rather than for utilization of the same

because a unidirectional broadcast system cannot keep track of what a subscriber watches

and for how long.

Technologies in Broadcasting Method for Mobile TV:

There are a number of technologies in the broadcasting method being tried for

mobile television services i n d i f f e r e n t p a r t s o f t h e w o r l d . While D i g i t a l V i d e o

Broadcasting–Handheld (DVB-H) is more popular in Europe, Media Forward Link Only

(Media FLO) has been widely deployed in the United States. Closer home, Korea has

adopted Terrest r ial -Digital Mult imedia Broadcast ing (T-DMB) and Satel l i te-

Digital Multimedia B r o a d c a s t i n g (S-DMB) as against O n e S e g m e n t Broadcasting

(OSB) introduced in Japan. The use of broadcasting technologies for mobile television

services delivers better picture quality as compared to 3G video streaming. However, these

technologies deliver live programming with little interactivity or personalization.

Digital Video Broadcasting–Handheld (DVB-H) is an extension of Digital Video

Broadcasting–Terrestrial (DVB-T) standard with features designed for significant power

saving in the receiver (due to limited battery life of mobile devices) and for good

performance in a cellular environment. The main technique used for power saving is time-

slicing in which signals of different television services are transmitted in bursts. This allows

the receiver to go into sleep mode and it wakes up only when the signals of the service to

which it is tuned are transmitted.

With specific reference to India, it may be noted that UHF spectrum is not being utilized in a

big way for analog terrestrial television transmission as only one or two channels are being

broadcast terrestrially at any given location in the country. DVB-T transmitters were set up



by Doordarshan in the four metros of Delhi, Mumbai, Kolkata and Chennai. Doordarshan has

been carrying out trials of DVB-H system using the DVB-T transmitter in Delhi.

Digital Multimedia Broadcasting (DMB) is a technology based on the Eureka 147 system for

Digital Audio Broadcasting. There are two versions of DMB, namely T-DMB and S-DMB. T-

DMB is the terrestrial mode of DMB as against S-DMB, which refers to satellite based

DMB. DMB employs time division multiplexing, which allows the receiver to be

shut down in between sampling intervals to save power.

The main advantages of DMB are:-

It is an open standard and has been deployed commercially;

It is relatively immune to interference;

Transmission power required for T-DMB is low;

Channel switching time is less as compared to DVB-H;

Existing Digital Audio Broadcasting (DAB) networks based on Eureka 147

technology, which are no longer being used can be utilized for T-DMB;

VHF and L band spectrum set apart for DAB can be utilized for DMB

applications.

The main disadvantages of DMB are:

The number of television channels that can be provided is less than the number

that can be provided by DVB-H;

Additional spectrum is required if a larger number of channels are to be carried;

A large number of transmitters are required to provide adequate coverage.

In the context of India, it is important to remember that there are no DAB networks or

spectrum allocations for DAB in India.



Media Forward Link Only (Media FLO) is a mobile television technology developed

by M/s. Qualcomm and standardized by FLO Forum. Currently, several specifications are

available via Telecommunications Industry Association (TIA) and process is underway to

publish these standards via other organizations. MediaFLO has good Carrier to Noise (C/N)

performance and better link margins and works with various transmission powers. Due to

better link margins, it can provide much better coverage. The major disadvantage of

MediaFLO is that it is a late starter and wider ecosystem is still evolving.

One Segment Broadcasting (OSB) has been developed in Japan as an extension of the

Integrated Services Digital Broadcasting-Terrestrial (ISDB-T) system. This system utilizes one

of the thirteen segments in the ISDB-T signal for provision of mobile television

services. Brazil is the only other country which has gone in for the ISDB-T system. The

advantage of the system is that the roll out utilizes the existing terrestrial broadcasting network

in Japan. The disadvantage is that only a very limited capacity is available for mobile

television services.

Mobile Television through hybrid technologies:

Apart from the two major technologies mentioned above, there are some hybrid

technologies also which are coming up. These technologies use one-to-many distribution

topology over mobile telecommunications networks such that they allow a traffic-channel to be

shared by all the users that are simultaneously watching the same program in the same area.

These technologies support higher throughput of video content in dense areas and ensure more

efficient network utilization. However, these result in limiting the number of channels

available at any given point of time.

It is also too early to say which technology emerges as the clear winner since majority of

the networks across the world are in trial stages and most of network players are trying

multiple technologies in their networks.



Source: ALCATEL

Mobile TV value chain:

Offering mobile television services to the customer requires several different competencies

provided by one single company. There are two slightly different value chains:

1. For providing the service over a cellular network

2. For providing the service over a broadcasting network.

Below diagram shows both value chains which only differ in the two players i.e. :

Application -----> Service provider

Replaced with

Datacast Provider ----> Broadcast Network operator

Value chain for mobile TV over cellular networks:

Value chain for mobile TV over broadcast networks

Source: Own illustration based on visiongain

Content provider

Content Aggregator

Application & service Provider

Portal Operator

Mobile Network Operator

Payment agent

END USER

Content provider

Content Aggregator

Data Cast service Provider

Broadcast network Operator

Mobile Network Operator

Payment agent

END USER



For nearly every player in the value chain, partnerships with a number of other players are very

important to overcome the complexity of providing a complete end-to-end solution, requiring

many complementary competencies. Some partnerships are also necessary because of

interoperability / standardization issues and access to essential proprietary assets.

In the above value chains vendors who sell handsets to users, network equipment to operators

as they do not represent the integral part of core competency for delivering mobile TV services.

Nevertheless, the technological advances driven by device and equipment manufacturers will

also be of great importance for the importance for the further development of these services.

Content Provider:

A content provider offers original content or a popular brand or personality that is suitable for

mobile TV. A popular brand for example could be MTV or Coca cola. Content Providers do

not necessarily create all content themselves; they also buy or subcontract content from content

producers and act as agents for content owners. (Vision gain, p. 140).

Content providers for mobile TV could be the existing TV broadcasters or movie production

houses or new companies that have specialized on content for the mobile channel and popular

brands.

Content Aggregator:

Content aggregators select and package content from different sources into convenient and

attractive bundles and sell these to service operators, directly to consumers or other third

parties. They distribute the content through various channels depending on their distribution

rights. A TV broadcaster is a content aggregator in the ordinary TV landscape and they could

also perform this activity in the mobile TV value chain (Vision gain, p. 141)



Application and Service Provider:

Application and service providers develop implement or operate mobile entertainment

platforms. These players exist only in the value chain for mobile TV over cellular networks.

They could develop a mobile TV application or operate the mobile TV platform and be

accountable for service access and operation. This role can be adopted partly by the content

provider /aggregator for development of TV services or the mobile operator for delivering the

service via its network. However, third parties could also fulfil this service.

Portal Operator

This player offers mobile TV content and services on its mobile portal in the cellular

broadcasting value chain. The portal can be owned and operated either by the mobile network

operator or by any other third party, for example a famous brand or a TV broadcaster. Mobile

portals are built by accumulating applications and content from many different sources with the

objective of becoming the customer’s premier choice for obtaining web-based information and

entertainment (Müller-Veerse, p.16).

For example, Vodafone live, is the portal from the global network operator Vodafone. In

general, a portal offers information and entertainment services for users, ex: the latest news

downloads of games and ringtones, location-based services such as a restaurant finder and

much more. Mobile TV is a new service, which extends the service offering of such a portal.

Vodafone currently offers mobile TV service, which shows the Times Now, NDTV, Zoom,

AAJTAK, National Geographic, Discovery, SONY TV, SAB TV, STAR ONE, STAR TV and

Cartoon Network. (Vodafone website).



Datacast Service Provider:

This player is needed in the broadcasting via TV networks value chain to control the

distribution capacity available on the broadcasting network that is used for the delivery of

mobile TV in comparison to the cellular phone network that is used in the other value chain.

The data cast service provider, also named IPDC service operator, has arrangements with

content providers and aggregators and sells either a fixed amount of raw network capacity to

them for a certain time period or delivers particular content for them at agreed times, including

additional services, such as content protection or billing. The IPDC service operator can market

the service directly to consumers based upon monthly or event-based subscriptions and handle

billing, customer support and other services. A special service offered by the provider is the

‘Electronic Service Guide’ which is transmitted over the network, in parallel to the content and

contains information about the available services / programs and the scheduling times.

(Visiongain, p. 141).

Broadcast Network Operator:

The Broadcast network operator is the owner and carrier of the digital broadcast infrastructure

including transmitters, mast sites and necessary connections to the site. It has agreements with

several data cast service providers and sells broadcast capacity and coverage to them. If a

license is necessary for broad-casting and using an assigned frequency, which is the case in

Germany, then the broadcast network operator would be the frequency license holder. (Vision-

gain, p. 142)

Mobile Network Operator:

The mobile network operator owns and operates the cellular network and holds the necessary

frequency licenses (Visiongain, 2004, p. 142). Currently India is flooded with mobile network

operators with few available nationwide and few players are existing in few limited states.

There are close to 18 networks out of which 6 operators exist nationwide.



However the role of mobile network operator changes with each value chain. In the value chain

for mobile TV over broadcasting networks, this value chain activity is only necessary for

providing a feedback channel for interactive TV services via the cellular network. In the value

chain for mobile TV over cellular networks, all TV content and services are delivered over the

mobile network, mainly using the 3G (but not only on 3G) networks because of their higher

bandwidths. In this case the cellular operator is best positioned, because it controls the delivery

of the content to the customer. Due to the already existing billing relationship with the mobile

user, it can charge for the TV services and collect the revenues.

Payment agent:

The payment agent is necessary to bill customers for mobile services and to collect the money.

This player is also needed for mobile TV services unless they are not offered for free, ex: when

they are purely financed through advertisements like Zenga TV.

Pricing Models:

The price for the mobile TV service and the costs for specially equipped hand-sets in the case

of broadcast mobile TV are two crucial factors in meeting thedemand of interested consumers.

Tech-savvy users would be willing to pay more for a mobile TV experience than the average

customer (visiongain, p. 161).

The right strategy of revenue generation and pricing is important for determining demand,

usage and finally the success of the mobile TV service (visiongain, p. 160) next to attractive

content / programs and good marketing. For fast service penetration the pricing should be

aligned with the targeted user groups of the mobile TV service. For example, the consumer

market is typically more price sensitive than business and enterprise segments.



There are many ways to generate revenues with mobile TV, but not all are equally suited,

especially with regard to maximizing revenues. While some pricing models are better suited for

broadcast mobile TV, others are better applicable for the cellular version.

Overview of Pricing Models of Mobile TV

Source: Own Chart.

Pay per View:

The idea behind pay per view is that when a customer consumes information he pays only for

what he views or downloads (Arnold, 2000, p. 18). This payment form is available in the TV

world as a special form of Pay TV where the user pays only for what he has actually viewed on

TV. For mobile TV this means that the user only gets charged for the actual usage of the mobile

TV service either based on the time he views a TV-program, the data-volume being transferred

during a TV-session or a single event, such as a cricket match that is watched or a news-clip

that is downloaded.

Pricing Models

Payper view

Time based

Volume based

Per event

Subscription One time fee For Free/ad

based

Advertisements

Sponsoring



Subscription:

By entering a subscription, users have to pay upfront for access to a certain service or content,

mainly on a monthly basis. Most Pay-Tv offers today sell their services for a monthly

subscription fee, which often includes a package of channels. The subscription model is already

adopted by some mobile network operators for their mobile TV offerings. For example:

Vodafone TV, a mobile television product by Vodafone provides following packages as a part

of subscription:

Category Price

All Channel Pack Rs. 7/day

All Channel Pack Rs. 150/month

All Channel Pack Rs. 50/week

STAR Bouquet Pack Rs. 30/week

STAR Bouquet Pack Rs. 90/month

Source: Vodafone India Website



Pay-Tv channels such as Ditto TV (zee enterprises) offer different bundles of their TV-content

for different prices.

Package Description Monthly

Mega Ditto Entertainment gets complete with all our

channels on the move. (Sports included) Rs.199.00

15 Ditto

Entertainment goes mega with 15

channels of your selection. (Sports

excluded)

Rs.149.00

12 Ditto + Entertainment now comes in size dozen

of your choice. (Sports channel included) Rs.149.00

10 Ditto Top-Ten entertainment of your choice.

(Sports channels excluded) Rs.99.00

7 Ditto + Choose your 7 wonders from

entertainment (Sports channels included) Rs.99.00

4 Ditto Pick your fabulous four

entertainers. (Sports channels excluded) Rs. 49.00

3 Ditto + Channels of your choice that make a

podium finish. (Sports channels included) Rs.49.00

Source: Ditto TV website

One Time Fee:

A onetime fee can be either a direct fee that is payable to the service provider when accessing a

new service for the first time or it can be an indirect fee hid-den in the price for new hardware

and thus sometimes invisible for the customer. The onetime fee could also come in the form of

an additional activation fee similar to an admission fee which often becomes due when joining

a club as a new member.



Mobile ‘Free-TV’:

Mobile ‘Free TV’ is offering television for free of cost to subscribers. Instead of charging

subscribers for the subscription charges they make subscribers come on board for free of cost

and sell the slots for advertisers to reach audiences.

Audience are already charged by telecom operators for the usage of their bandwidth for

consumption of data. In such scenario “Mobile Free TV” makes audience feel relief from

paying fee for watching TV.

Existing Business models in Mobile TV:

The roles of the different players depend on the business model envisaged for mobile

broadcasting. Several models can be considered:

Lead business model:

In this model, the mobile network operator is the driver. It acts as Service Provider and

Interactivity Provider, too, since it has partial or total control over the content aggregator. It

brands the service. In this model, broadcasters and other content aggregators may find

themselves in a situation of losing control of the end user.

Bypass business model:

In this case, the mobile operator is virtually left out of the value chain. Other parties control the

content aggregation and service provisioning stages. The mobile operator may still provide a

“transparent” point to point uplink connection for interactivity. In this model, the limited

interactivity will reduce the service offering, which together with a more difficult access to the

cellular customer base will diminish revenue potential. However, because of its simplicity, it

could well be the first model to be implemented.



Consortium business model:

The mobile operator offers the service in cooperation with a content aggregator (Ex: a TV

broadcaster). It may or may not brand the services itself but in any case performs some

customer management functions, such as charging, security key delivery, update of location

information, etc. The consortium model takes advantage of the complementary nature of

cellular and broadcast – mobile operators and broadcasters, along with other interested parties,

partner to share the cost and operations of offering a wide range of services in a converged

broadcast and cellular environment.



Chapter 4: Research Methodology:

Qualitative Methods

Qualitative research is a method of inquiry appropriated in many different academic

disciplines, traditionally in the social sciences, but also in market research and further contexts.

The ultimate aim of qualitative research is to offer a perspective of a situation and provide well-

written research reports that reflect the researcher's ability to illustrate or describe the

corresponding phenomenon. One of the greatest strengths of the qualitative approach is the

richness and depth of explorations and descriptions.

Qualitative research uses different methods like structured interviews, semi-structured

interviews, unstructured interviews, analysis of documents and materials, etc.

Qualitative data is extremely varied in nature. It includes virtually any information that can be

captured that is not numerical in nature.

This project require a great amount of study on current market scenario of mobile devices like

Smart phones, Tablet Pc’s, Connected TV’s , laptops and traditional television, internet speeds

existing in India. Secondary content can be sourced from bodies like TRAI, FICCI and from

various online sources like mashable.com, mxmindia.com and exchange4media.com etc.

Following are the key steps which will be followed to meet the objectives listed:

Objective 1:

To understand market potential for mobile television in India, .

1. A brief understanding is required on following points.

a. Current number of smart phones available in the country and their future predictions.

b. Amount of 3G, 2G and Wireless usage in the country.

c. Mobile Value added services.



Fair amount of information is extracted from sources like TRAI and Nielsen reports. Expert

views are included to meet the objective.

Objective 2:

To identify effective business model for mobile Ditto TV, a latest offering from Zee

Entertainment Enterprise Limited (ZEEL) is compared Zenga TV business model.

a) Business Model

a. Customer Segments

b. Value Proposition

c. Channels

d. Customer Relationships

e. Revenue Streams

f. Key Resources

g. Key Partnerships

b) Technology used.

c) Current viewership and reach

Identify advantages and disadvantages of Ditto TV and Zenga TV.

Primary information is sourced from the Ditto TV (Mumbai Based company) and its

competitor Zenga TV (Delhi based Company). Secondary information is extracted through

online interviews and blogs written by company sources.

Following are few Industry experts listed to approach in order to source information either

through personal interviews or through interviews which they already given at various

situations.



Data from Online Interviews:

Data is collected from online interviews which are given by following industry experts in

various occasions:

1. Punith goenka, CEO of Zee Entertainment Enterprises Limited.

2. Manoj Padmanabhan, Vice President- Marketing (Digital), Zee Entertainment

Enterprises Limited.

3. Shabbir Mommin, CEO of Zenga TV.

Personal Interviews:

Few personal interviews will be conducted by approaching people directly or through phone.

The main purpose of personal interviews is to study the second objective mentioned above. All

the questions which were asked were based on second objective.

1. Shabbir Mommin, CEO of Zenga TV.

2. Bhavin Gandecha, Sr. Manager- Product & Marketing, Zee Entertainment Enterprises

Limited.

Published/ Written documents

A lot of data will be collected from already existing documents (as opposed transcripts of

interviews conducted for the research). It can include newspapers, magazines, books, websites,

memos, transcripts of conversations, annual reports, and so on. Usually written documents are

analyzed with some form of content analysis.



Chapter 5: Data analysis

Data analysis process has been conducted on step wise pattern like mentioned in the research

methodology.

Objective 1: Market potential for Mobile TV in India:

For the first objective a detailed study has been done on the current mobile market, Internet

speeds. Various facts and figures have been gathered from various sources.

Following are few facts and figures which are sourced from various sources.

Total number of Telephone subscribers 951.34 Millions (wireless+wire)

Total number of Mobile subscribers 913 million (wireless)

Total number of urban subscribers 596 Million (64% of total wireless market

Total number of Rural subscribers 317 Million(36% of total wireless market)

Source: Own table based on TRAI report of March, 2012

Subject Detail Source

Total number of active mobile subscriber’s 500million

subscribers

(IMRB report)

Total number of Television sets in India 143 Million FICCI KPMG 2012)

Total number of television viewers In India 539 million FICCI KPMG 2012

Total Number of Internet users in India 121 million Morgan Stanley report

Total number of Mobile Internet users 60 million

TRAI Report

Total number of Active mobile Internet

Users

48 million March 2012, Morgan Stanley

Total number of Smart Phones in India 24 million FICCI 2012

Total number of 3G subscribers in India 20 million Evalueserve

% of Internet penetration in India over

global Market

7 %

Morgan Stanley

% of Mobile Internet users using mobile as

Primary device to access internet

72% In MobiMobile Media

consumption survey

Mobile Internet Users % of time spent on

mobile to Consume Media

33% In mobile Media, Media

Cosumption Survey



Mob

ile P

en

etr

atio

n (

in p

ercen

t)

Mob

ile S

ub

scrib

ers (

in b

illion

)

Mobile Subscriptions:

When an attempt was made to understand the penetration of mobiles in India, the above

mentioned figures in addition with detailed data acquired from “Evalue Serve” it’s clearly

evident that India is one of best telecom markets globally. If the above facts mentioned in

various sources are to be believed true today number of mobile phone subscribers are almost 6

times higher compared to television set. This clearly explains that mobile screen is great

personal screen compared to television and consumer is much closely attached with mobile

phone compared to television.

India’s Mobile Subscriber Base Forecast

1.8 10% CAGR 140%

1.6

1.4

1.2

1.0

120% 100% 80%

0.8

60%

0.6

0.4

0.2

40% 20%

0.0 0%

2011 2012 2013 2014 2015 2016

Subscriber Forecasts Teledensity

Source: Own Illustration based on Evalueserve



Following illustration explains the domination of urban market over rural mobile market :

Source: Own illustration based on TRAI report

Above illustration clearly explains that mobile phones are penetrated deep into India. Even

though a huge difference can be seen between the rural market, its increasing at good pace to

catch up with urban markets. The share of urban subscriber has decreased from 65.20% to

64.83% whereas share of Rural Subscribers has increased from 34.80% to 35.17%.

911 919

594 595

317 325

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Feb-12 Mar-12

Rural

Urban

Total Mobile Subscribers



The below illustration explains that year after year the number of smartphones are

increasing rapidly. Slowly feature phone users are getting converted into smart phone

users. Number of smartphones had a 100 % growth from 2010 shipments to 2011

shipments. It is expected to grow to 264 million smartphone users by 2016 which means

mobiles are going to play a key screen in the media consumption.

Source: FICCI FRAMES 2012

According to FICCI KPMG 2012 report a consumer is spending atleast 150 min on an

average on his smart phone out of which 26%of his time he is spending on

entertainment which includes streaming movies, TV shows, watching repeat match

telecast, Playing games etc. , With further reduction of 3G charges and introduction of

4G will increase the amount of time spent on internet connected device like mobile.

Further every traditional media has to be available on mobile platform to have better

reach.

Source: FICCI FRAMES 2012

4.5 10 24

58

105

166

264

0

50

100

150

200

250

300

2009 2010 2011 2012 2014P 2015P 2016P

Smartphones(in millions)

Smartphones(inmillions)



In India there are about 121 million users out of which 60 million users use mobile as their

primary medium to use internet. According to Statcount in India Mobile internet usage has

equaled the Desktop internet usage and further mobile internet is expected rise much

higher. Global scenario is completely different where desktop usage for internet is very

high comparatively which means most of the Indians who are using internet on mobile are

only on Mobile Itself.

However when compared with the total population of the nation India ranks very low with

7% of internet penetration which is 17% of urban population. It is way less than world

average internet penetration i.e 31%. This indicates that most of the Indians are still away

from the internet connection even today



3G

Pen

etr

atio

n (

in p

ercen

t) 3

G S

ub

scrib

ers (

in m

illi

on

)

3G Subscriptions:

3G services in India have produced satisfactory number of subscription in the early stage

of launch irrespective of lack of speed or expensive. Today according to “Evalue Serve”

there are close to 20 million 3G subscribers and it is expected to be raised at close to

250% growth rate. Further the increase is expected to rise at 30 % CAGR till it reaches its

saturation stage before 4G start taking over 3G subscribers.

India’s 3G Subscriber Base Forecast

250.0 Growth Phase Maturity Phase

20.0%

200.0

15.0%

150.0

100.0

10.0%

50.0 5.0%

0.0%

2011 2012 2013 2014 2015 2016

3G subscribers 3G Penetration

Source: Own Illustration based on EvalueServe Analysis



India is ranked 8th

place worldwide with 4% penetration of 3G services with a

promising Year on year growth of 841 %. All these stats show a promising future for

better internet speeds in India.

Mobile Value Added Services:

At present, the mobile business is saturating, as far as the financial returns of operators

are concerned. MVAS has the potential to improve this situation by monetizing 3G

services on small-screen devices. Evalueserve expects the active MVAS subscriber base

to grow at a compound annual growth rate of 28% and reach nearly 430 million by

2016.

(ctd..)



Mobile VAS subscriber forecast

Source: Own illustration based on Evalue serve analysis

Today telecom networks have reached to the saturated point and came to a situation where

they can earn very little with voice and SMS calls. Due to this reason they are pushing 3G

services to monetize over data and building various business models around it. They have

invested hugely on 3G to create new services in the form of Value added services. They are

aiming at selling products like Mobile TV/streaming videos, mobile banking, gaming etc.,

all these products require better bandwidths speeds to have an uninterrupted service.

India enjoys television viewers spending an average of 77 hours a month



watching TV. In comparison, users in India spent 7.6 hours per user per month

watching videos online in 2011. (source KPMG, 2012)

Source:FICCI KPMG

Star network has launched a star player application to showcase content from its

channels and has seen an increase of 80 % in viewership in the last 6 months with 70%

of viewers returning. (Source: KPMG in discussion with STAR).

All above mentioned analysis creates an impression of having a great scope for mobile

television but when the other side of coin says something else.

Mobile TV is still in its infant stage, which is struggling to identify right business

model. Mobile television in current scenario involves high expenditure for technology

but returns are not really great for broadcasters due to the involvement of many players

in the eco system.

"Mobile TV or any form of video on mobile is at a very early

stage in India as of now. The market now is more for very small

or short video clips, maybe thirty-sixty seconds. As the network

supports and costs come down, it will evolve," says Jai

Maroo,Director of Shemaroo Entertainment

There is a huge conflict between Telecom Operator Vs. Content Creator. Due to

improper business plan or business tieups between members of value chain so many

conflicts are arising which is leading to drop down of quality content on mobile. The

8

77

0 20 40 60 80 100

Online Video

Television



main issue between both parties is on revenue split. Currently 92:8 is the revenue share

between Telecom operator and content creator respectively. This unhappy situation for

content creator is stopping him from going on mobile television tying up with mobile

Operator. Following statements from two industries explains the whole scenario.

"If telecom companies want to operate mobile TV or IPTV, they should adhere to the

rules and regulations governing the broadcasting sector or the government should

create a level playing field between telecom operators and broadcasters and cable

companies." Says Jawahar Goel, Managing Director of Dish TV

V/S

"When broadcasters/content providers talk about a level playing field on revenue split

with the telecom operator, they should first understand the entire value chain of service

delivery. Telecom operators provide the technology platform, billing service, customer

relationship and servicing. CP delivers the content to the customer. Creation of content

is one element in the ecosystem. A level playing field has to be evolved on ownership of

service and delivery value chain to justify for the same on the revenue platform," says

Sunzay Passari, executive vice president, telecom & VAS, Loop Mobile.

http://voicendata.ciol.com/content/ContributoryArticles/210011101.asp



Objective 2: Study on Ditto TV in comparison with Zenga TV:

A brief introduction about companies (Please refer chapter 2 for detailed description of

company).

Ditto TV: Ditto TV is the latest offering from the digital arm of Zee Entertainment Enterprises

Limited (ZEE), Zee New Media. It is a newly launched India’s first and only over-the-top

(OTT) TV distribution platform offering LIVE TV and On Demand Content to end consumers

on their mobile phones, tablets, laptops, desktops, entertainment boxes and connected TVs.

Zenga TV: Zenga TV is one of the mobile TV providers, which has seen a massive growth in

terms of viewership in India. It is owned by two individuals Shabir Momin and Vikramjiet

Roy. It started its operations in the year 2009. It started free live television and VOD on web in

the year 2011.Zenga TV owns a unique technology which works on delivering the best possible

mobile TV experience optimized for the type of the device and the kind of network being used.

Zenga’s mission is to bring Interactive, Collaborative, On Demand, and Informative

Entertainment into the hands of mobile users in an optimized and cost effective way.

Ditto TV and Zenga TV works on different technology with different business models.

Analysing both these companies will result in identifying strengths and weakness of both these

companies. Following are few steps used to compare these companies:



Business Model:

A business model describes the rationale of how an organization creates, delivers, and captures

value.

Customer Segments:

The Customer Segments Building Block defines the different groups of people or

organizations an enterprise aims to reach and serve.

o Ditto TV: Ditto TV aims at the customers who owns a smartphones which

supports 3G, broadband and Wifi. It targets the audience who own high end

devices like Tablet PC’s, 3G enabled smartphones, Connected TV’s. In brief

Ditto TV aims at urban audience who are regularly on move. It also aimed at

NRI’s who wish to watch Indian content on move.

o Zenga TV: Zenga TV aims at the customers who are on 2.5G, 2.75G Edge and

also 3G enabled mobile phones. It taps every audience who has a browser

enabled in his device. It targets primarily the Tier 1 and Tier II cities. It also

aimed at NRI’s who wish to watch Indian content on move.

Zenga TV being open for availability on all platforms makes it convenient for mass

audience who doesn’t own 3G enabled mobiles. However with rapid shift happening

from featured phones to smartphones can eventually help Ditto TV to acquire

quality customers who wouldn’t mind paying for good content.

Value Proposition:

The Value Propositions Building Block describes the bundle of products and services

that create value for a specific customer Segment. The Value Proposition is the reason

why customers turn to one company over another.



o Ditto TV: Ditto TV provides a new experience to audience using their Over the

top technology which allows user to switch on to any device from smartphone/

Tablet PC/ Connected TV’s. He can watch television on any of the device using

the same user id (Mobile phone number) if the Ditto TV application is installed.

A very innovative Electronic Programming guide gives feel good approach to

the viewer. He can learn about different programs on different channels while

watching a show. Viewer can enjoy a smooth video viewing due its availability

on only high networks.

o Zenga TV: Zenga TV provides a very good video quality streaming even on 2.5

G mobiles. India being a nation with very higher number of non 3G mobiles gets

an experience to watch Mobile TV on their mobile Screens. Zenga TV’s own

technology allows viewers to experience Television on their mobile screen at

free of cost.

Ditto TV provides quality experience with its handsome SWIPE technology, owned by

Siemens whereas Zenga TV provides cheaper but best experience due to its free option yet

quality video streaming on 2.5G mobiles too.

Channels:

The channels Building block describes how the company communicates with and reach its

Customer Segments to deliver a Value Proposition. Communication, distribution, and sales

Channels comprise a company's interface with customers.

o Ditto TV:

Awareness: Ditto TV had a huge marketing campaign to create

awareness of product amongst viewers. They advertised a full



Cover page ad on major newspapers along with magazines as the ATL

activity. A huge PR campaign has been canvased at various events like

FICCI FRAMES to promote the channel as part of BTL activity. They

published coffee table books as a part of BTL.

Evaluation: To start up with it allows free trial to view channels from

Zee bouquet. It gives user an experience before purchasing product.

Purchase: To purchase Ditto customer can purchase monthly

subscription cards from Chroma stores or he can directly pay online

where he will be delivered receipt on his mobile.

Delivery: Consumer has to scratch the card which he purchased from

Chroma and enter it Top up wallet page on Ditto TV website. If

customer wants to pay online he can do it directly by going to TOP UP

Wallet page on prompted by Ditto TV website. Customer can watch

television on Smartphones, Laptops, Connected TV’s, Desktop PC’s, and

Tablet PC’s.

After Sales: If any problem arises after purchase customer can complaint

in support section on Website.

o Zenga TV:

Awareness: Zenga TV believes in word of mouth with “Share to friend”

option available on mobile phones. Zenga TV CEO says ”In current

scenario where applications are created awareness through word of

mouth and happens automatically if product is good and streams video

successfully at different bandwidth speeds. It’s a wise thing to invest

promotional money on improving technology.”



Evaluation: Consumer can download application directly and start

browsing his favourite channels from available list of channels. If he is

not satisfied with the service he can uninstall application.

Delivery: Consumer can download application from various application

stores and start using the product on mobile. Any device which has a

browser supported with flash player can directly open Zenga TV website

and start watching their favourite channel.

After Sales: It’s a free service where service is provided by contacting

the Zenga Media through official website service Section.

Ditto TV’s availability easy to access platform makes consumer feel good about product. Ditto

TV spent huge money in creating awareness about product amongst consumers and it helps it in

brand building where as zenga TV no promotional stand might have no problem until their

service is good enough on 2.5 and 2.75G mobiles. But with competition rising brand building is

quite important.

Customer Relationships:

The Customer Relationships Building Block describes the types of relationships a company

establishes with specific Customer Segments.

o Ditto TV: Ditto TV regularly maintains its customer relationship through their

facebook and twitter page. They regular keep in touch with its fans and

followers through regular updates on various shows and events around Indian

television and Film industry.

o Zenga TV: Zenga TV is has a fan page on Facebook but it doesn’t get updated.

The other ways of staying in touch with customers is unknown.



Ditto TV being a premium service maintaining its premium customers with additional services

being provided to customers in the form of regular updates. Zenga TV being a free channel

believes quality of service itself retains customers.

Revenue Streams:

The Revenue Streams Building Block represents the cash a company generates from each

Customer Segment. If customers comprise the heart of a business model, Revenue Streams are

its arteries.

o Ditto TV: Ditto TV streams revenues through subscription charges. It has

provided a 7 packages with different channels bundled into each package. Apart

from subscription charges for Live Channels, it also earn revenues through the

VOD service available on interface. They priced packages as below:

Package Description Monthly

Mega Ditto Entertainment gets complete with all our

channels on the move. (Sports included) Rs.199.00

15 Ditto

Entertainment goes mega with 15

channels of your selection. (Sports

excluded)

Rs.149.00

12 Ditto + Entertainment now comes in size dozen

of your choice. (Sports channel included) Rs.149.00

10 Ditto Top-Ten entertainment of your choice.

(Sports channels excluded) Rs.99.00

7 Ditto + Choose your 7 wonders from

entertainment (Sports channels included) Rs.99.00

4 Ditto Pick your fabulous four

entertainers. (Sports channels excluded) Rs. 49.00

3 Ditto + Channels of your choice that make a Rs.49.00



podium finish. (Sports channels included)

o Zenga TV: Zenga TV is available for free where as it generates revenues

through selling advertising slots on screen. However their major revenue comes

through the OEM manufacturers (handset manufacturers) for integrating their

cut through technological application on to handset where they earn handsome

revenues. Zenga TV is the only company in the industry which achieved break

even and running in profits enjoying 60 % of overall Mobile Television market.

Key Resources:

The Key Resources Building Block describes the most important assets required to make a

business model work. These resources allow an enterprise to create and offers a Value

Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues.

o Ditto TV: Very limited information is available on the resources of Ditto TV.

Ditto TV being part of Essel Group lot of resources are utilised over their other

products like Zee entertainment enterprises limited.

o Zenga TV:

Zenga group has the human resources of 250 people working for various

products of Zenga Group, Out of which 120 people work on delivering

Zenga TV.

Most of the work happens on computers. They spend majority of time in

developing their own Encoders.



Key Partnerships:

The Key Partnerships Building Block describes the network of suppliers and partners that make

the business model work Companies forge partnerships for many reasons, and partnerships are

becoming a cornerstone of many business models. Companies create alliances to optimize their

business models, reduce risk, or acquire resources.

o Ditto TV: Ditto TV has tied up with other companies for technology and

content. Following are few companies it has tied up with:

Siemens- For Swipe Technology.

MSM (SONY TELEVISION)- For content

BBC – For Content.

o Zenga TV: Zenga TV has tie ups with companies for content, distribution.

Following are few companies which it has tied up with:

UTV-for content

Times Network- For Content

Doordarshan- For content

Sahara- For content

E24 etc., - For content.

Nokia, Samsung, Micromax etc (for distribution)

The number of channels that Zenga TV is higher than Ditto TV, whereas Ditto TV has the

whole Zee network, Sony network channels. Ditto TV has a tieup with Seimens for utilising

their streaming technology whereas Zenga TV develops their own technology which supports

mobile streaming. Instead they have tie ups with almost all Original Equipment Manufacturers

(OEM’S) like Nokia, Micromax and Samsung.



Technology Used:

o Ditto TV: Ditto TV uses the Over the top technology provided by SIEMENS

Source: Ditto TV Hand book

Zee has acquired the technology from Siemens in order to provide an experience of Over the

Top television.

o Zenga TV: Zenga TV owns its technology in order to transfer content from head

end projector till it reaches Consumer device. Unlike Ditto TV Zenga TV

promotes its product on 2.5 G and 2.75 G and the technology is developed

accordingly. Zenga TV operates major operations over Cloud, whereas Ditto TV

operates from ground which increases expenditure.

Current Viewership & Reach:

o Ditto TV : Ditto Tv is aiming at the viewership of 1 million by the end of this

financial year. Currently it has a subscriber base of 0.5 million viewers .with an

average viewership of 3-4 minutes.



o Zenga TV: Zenga TV has a subscriber base of 7 million viewers with an average

viewership of 8-12 minutes. Amongst them 40 percent of viewers come from

tier 1 and 5% from tier 2.



Chapter 6: Research findings, recommendations and Conclusion

Findings:

1. Mobile Television in India is still in infant stage and can see a great future

before reaching saturation period.

2. Undoubtedly India has a huge market for monetising content over Mobile

Platform. However India is not yet ready to take up mobile screen as one of the

major screens for watching TV. The Internet speeds and other content on mobile

is currently a great distraction for audience from watching TV on Mobile.

3. With rapid growth of mobile subscriptions and shift from featured phones to

smart phones make India a good viable market.

4. With majority of mobile subscriptions being from urban areas out of which

many are activated to Internet future looks bright for Mobile TV among people

who are on move very often.

5. Majority of Indians who use Internet on mobile use mobile as the first screen of

content consumption. So being available on mobile platform is an added

advantage for broadcasters.

6. With 3G still in growing stage and prices expected to fall in future Mobile TV

can be a key resource for broadcasters.

7. In current revenue sharing model Content Providers/Broadcasters are not in

great profits instead making telecom operators earn money over their content.

8. Customer retention is a great task for the Mobile TV companies. With new

things coming up over internet a viewer might try application like Ditto TV but

converting him into regular viewer is tough.



9. In current scenario gaining profits from Mobile is tough especially when

technology and content belong to third party. Sticking to this finding Zenga TV

business model looks more efficient and beneficial.

10. While consumers are paying money to telecom operators in the form of data

charges they are not keen to pay again in the form of subscription charges. This

is the key reason why Zenga TV is the only company to be in profits in Mobile

TV market. However things might change in near future with affordable &

unlimited 3G plans coming up.

11. With limited screens in house and increase in channels and viewers Mobile

Television can be a great personal TV.

Recommendations:

1. For effective implementation of Mobile Television TRAI should provide

separate space for Mobile TV over spectrum.

2. A shorter version of the content would work effectively over the lengthy shows.

3. A separate data packages should be designed for Mobile television users.

4. Special content should be created for mobile platform.

5. To make mobile television more affordable OEM’s should step forward to install

the receivers with in device. So that end consumer can start watching television

just like he listens to radio. This can be a better option for reduction of

expenditure on data charges.

6. Ditto TV, in current scenario when majority of subscribers are not ready to pay

subscription charges (after already paying for home TV) has to provide it for

Free and monetise over advertisements.



7. To tap the audience over mobile television content should be heavily

personalised.

Conclusion:

Mobile TV in India has a great market potential considering the reach of the mobile phones.

With an increase in the data consumption over year’s mobile phones have become perfect

screens for entertainment, browsing etc .With 3G penetration in India, fall in prices and change

in consumer’s nature of content consumption mobile Television can see a bright future.

However there are few obstacles which had to be cleared for the better market and better future

for mobile market. All the players in ecosystem should push Mobile Television before trying to

monetise over it.



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www.mib.nic.in

http://mobithinking.com

http://trak.in/

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http://www.lightreading.in/

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http://www.articlesbase.com/

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http://www.indiatelecomonline.com/india-telecom-subscriber-statistics-january-2012/

http://ideasmarkit.blogspot.in/

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http://www.lightreading.in/

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http://insightvas.com/

https://www.cee.siemens.com/

http://www.gemalto.com/

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