AJAY TIWARI MRP

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major research projectOn

‘‘

A Comparative Analysis Of DTH VersusSingle Cable Network services with special refrainsto Indore city’’

Submitted in partial fulfillment of the requirements of the course

MASTER OF BUSINESS ADMINISTRATION(Session: 2009-2011)

Project Guide Submitted ByProf. Ankita Neema Mr. Ajay TiwariFaculty VIMR, Indore MBA IV Semeste

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCHINDORE (M.P.)

Submitted To

DEVI AHILYA VISHWAVIDYALAYA, INDORE

2011

1



Certificate of Faculty Guide

This is to certify that Mr Ajay Tiwari student of MBA Program, Batch 2009-

2011, Enrolment No. D09MBA2480018 has completed his/her Major Research

Project entitled “A Comparative Analysis Of DTH Versus

Single Cable Network with special refrains to Indore city” under

my guidance.

He carried this project with full sincerity and dedication.

Date

: 00/08/11Faculty Guide

Prof.Ankita NeemaFaculty VIMR, Indore

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STUDENT’S DECLARATION

I hereby declare that the project report entitled “A Comparative Analysis

Of DTH Versus Single Cable Network with special refrains to

Indore city” submitted by me to Devi Ahilya Vishwavidyalay, Indore

through Vindhya Institute of Management And Research(VIMR), Indore for

consideration of the award of Master of Business Administration (MBA)

represents my own work except for the guidance and/or suggestions received,

which have been suitably acknowledged.

I further state that this work does not form part of my or any other report

submitted to this or any other University/Institution for the award of any degree

or diploma.

Date: 00/08/11

Place:Indore

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TABLE OF CONTENTS PageNo.

• Chapter-1INTRODUCTION

Conceptual Framework 05-18

Review of Literature 19-31

Rationale Of the Study 32-33

Objective of Study 34-35

• Chapter-2

METHODOLOGY

The Research Design 36-39

The Sample 40-41

The Tools 42-44

For Data Collection

For Data Analysis

• Chapter-3

DATA ANALYSIS & DISCUSSIONS 45-53

• Chapter-4

CONCLUSION 54-55

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• Chapter-5

LIMITATIONS 56-57

• Chapter-6

SUGGESTIONS AND IMPLICATIONS OF STUDY 58-59

• Chapter-7

REFERENCES 60-61

•

Chapter-8APPENDICES 62-64

Questionnaire

Data Sheet

Chapter -1

INTRODUCTION

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Introduction

DTH& Cable TV :-

The way DTH reaches a consumer's home is different from the way cable TV does. In DTH,

TV channels would be transmitted from the satellite to a small dish antenna mounted on thewindow or rooftop of the subscriber's home. So the broadcaster directly connects to the user.

The middlemen like local cable operators are not there in the picture.

DTH can also reach the remotest of areas since it does away with the intermediate step of a

cable operator and the wires (cables) that come from the cable operator to your house. As we

explained above, in DTH signals directly come from the satellite to your DTH dish.

Also, with DTH, a user can scan nearly 700 channels!

DTH offers better quality picture than cable TV. This is because cable TV in India is analog.

Despite digital transmission and reception, the cable transmission is still analog. DTH offers

stereophonic sound effects. It can also reach remote areas where terrestrial transmission and

cable TV have failed to...

From slums to high rises, interior villages to the swankiest locations, one consumer electronic

appliance that you’ll see in Indian homes is the TV. A report from a market research firm

pegs TV sales at 1.87 corer units in 2011, with a growth rate of 9 per cent per annum.

In the mid 80s, after the Asian Games had kicked off the television revolution in

India, the content provider was the state channel Doordarshan. There were no fights

over the remote because apart from the fact that most TVs didn’t come with a remote,

there was only one channel to watch. The typical Indian family gathered to cry with

soaps, watch mythological series in wonder and awe and entertain themselves with an

odd movie or two each week.

The situation changed in the 90s as the skies opened and private operators were

allowed to beam content into Indian homes. Other factors like TV sets getting better

and cheaper and economic liberalization enabling a whole lot of people to stop

6



worrying about basic necessities led to the boom. Soon there were channels for just

about every topic under the sun with a new bunch launched each week or two.

The usual mode of delivery of these channels was cable. The system worked in this

way—channel operators scrambled their channels and uploaded them to a satellite,

usually a geostationary one. This satellite beamed content to dish antennas, installed in

individual homes or a cable operator’s office. They are unscrambled, converted from

digital to analogue and then piped to individual homes using a network of previously

laid coaxial cables. Subscribers plugged this cable to their TV.

Though it seems simple enough in practice there were plenty of hurdles. The channels

had no direct contact with the viewer and they had no idea how many people they

were reaching out to. Viewers complained about lousy picture quality and suddenly

absent channels. The cable operator replaced the crooked shopkeeper as the

neighborhood villain. Besides they were largely fragmented and in a particular area

each operated as a monopoly. Also there were some obvious problems like cables and

infrastructure that would always be an impediment to cable TV becoming ubiquitous.

Enter Direct To Home (DTH) television. This new technology cuts out the cable

operator from the entire viewing chain and gets the viewers all the goodness of clear

crisp television without any annoying cables and disturbances in between. The

viewers install small dish antennae on their premises. These antennae get the

scrambled digital feed from the satellites which is unscrambled by the set top box,

converted into analogue and then displayed on the TV.

Another new technology that is catching the fancy of big corporates, content providers

and viewers is something called IPTV. An acronym for Internet Protocol Television,

television programmers’ are delivered through broadband cables that are snaking

slowly across many Indian cities. There is also digital cable where the cable operator

is still involved but features high-resolution pictures and better sound through use of

superior encoding techniques like MPEG-4.

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All these digital distribution platforms will see exponential growth in the coming

years. According to Ernst and Young by 2010, 28 per cent of India’s 10 crore pay TV

households would switch to such platforms with DTH garnering the lion’s share.

India is a market with 80 million pay-TV connections. Pay-TV revenue leakage

touched USD 985

million in 2007. India is a dynamic market. Ten years ago, 20 per cent of Indian

homes could receive only government services broadcast on one channel operated by

Doordarshan, the national, state owned television operator. By 1997 there were 50

private satellite channels and 19 different services from a revitalized Doordarshan.

Today, one-third of the homes have television and about 10 per cent of these subscribe

to cable. Comprehending the needs of the Indian market,

NDS, back in the year 2000, committed to the development of a locally run R&D

centre in Bangalore which was started with 30 highly qualified engineers. Around this

time, NDS was awarded a key contract and became the exclusive supplier of digital

conditional access systems to Doordarshan.The first digital encryption of a

Doordarshan broadcast signal was, DD Sports; broadcasting live to 6,000 head ends

on September 14, 2000,it reinforced NDS as the world’s leading conditional access

system (CAS) supplier. At the dawn of 2008, it is evident the television sector in India

is reveling in the developments of the years gone by and looking forward to further,

rapid, progress in the times ahead. Eight years on, the NDS Bangalore R&D centre

now employs more than 750local skilled engineers developing revolutionary

technologies for the Indian and global markets. NDS now also runs management and

support centers in Mumbai and Delhi and is committed to further investment in India

to support the needs of the rapidly developing Pay TV industry.

8



What is DTH?

DTH stands for Direct-To-Home television. DTH is defined as the reception of

satellite programmers’ with a personal dish in an individual home.

DTH does away with the need for the local cable operator and puts the broadcaster

directly in touch with the consumer. Only cable operators can receive satellite

programmers’ and they then distribute them to individual homes. First Indian DTH

service began by Doordarshan as Doordarshan Direct Plus which is a free

Service in 16th Dec, 2004

9



How does DTH work?

A DTH network consists of a broadcasting centre, satellites, encoders, multiplexers,

modulators and DTH receivers.

A DTH service provider has to lease Ku-band transponders from the satellite. The

encoder converts the audio, video and data signals into the digital format and the

multiplexer mixes these signals. At the user end, there will be a small dish antenna

and set-top boxes to decode and view numerous channels. On the user's end, receiving

dishes can be as small as 45 cm in diameter.

DTH is an encrypted transmission that travels to the consumer directly through a

satellite. DTH transmission is received directly by the consumer at his end through the

small dish antenna. A set-top box, unlike the regular cable connection, decodes the

encrypted transmission.

What is cable-TV

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Cable television is a system of providing television to consumers via radio frequency

signals transmitted to televisions through fixed optical fibers or coaxial cables as

opposed to the over-the-air method used in traditional television broadcasting (via

radio waves) in which a television antenna is required. FM radio programming, high-

speed Internet, telephony, and similar non-television services may also be provided.

The abbreviation CATV is often used to mean "Cable TV". It originally stood for

Community Antenna Television, from cable television's origins in 1948: in areas

where over-the-air reception was limited by mountainous terrain, large "community

antennas" were constructed, and cable was run from them to individual homes.

The cable TV industry is developing under the direction of pay-TV broadcasters,

MSOs and independent cable operators. The industry is clearly divided into CAS-

ready networks, non CAS-ready networks, semi-urban networks, urbanized rural

networks and rural networks. The challenge for cable exists in rural areas where

installation and application are extremely cost prohibitive; nearly three quarters of

India is designated rural territory.This has created an opportunity for DTH, which

serves an immediate threat to the cable networks. Despite DTH’s suitability for

remote Clusters, high initial costs limit entry into semi urban and rural homes.

Anticipating the need for a cost-effective solution in India, NDS introduced Video

Guard Express in October 2007. Video-Guard Express is a cost-effective CA solution

for smaller operators migrating from analog to digital broadcasting. By offering a

standard configuration pre-integrated to a set top box (STB),

11

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

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

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

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

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

http://en.wikipedia.org/wiki/High-speed_Internet


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

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

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

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

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

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



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



NDS’s Video Guard Express is able to reduce both the cost and time required to

deploy a digital pay-TV system, delivering content and service protection to ensure

steady cash flow without piracy.

12



Details of company

MAJOR PLAYER OF DTH SERVICE

There are six major & private players in Indore market, Dish TV, Tata Sky, Sun

Direct, Big TV, Airtel Digital TV and Videocon D2H.

Dish TV :- Dish TV - Zee group Dish TV is a venture by the Essel Group and was

launched in 2004. Dish TV is India’s first private player in DTH industry with a

presence in 19 states. It has a subscriber base of 5.07 million (March2009).

TATA Sky :- TATA Sky Joint venture between Tata Group and UK- based British

Sky Tata Sky was incorporated in 2004. TATA is one of India's largest and most

respected business conglomerates and the SKY brand, owned by the UK-based British

Sky Broadcasting Group has over 20 years of experience in satellite broadcasting. It

launched its service span-India in August 2006. Within a short span of time itgarnered a subscriber base of nearly 4 million (Aug 2009)

Sun Direct:- Sun Direct is a DTH service in India headquartered in Chennai, Tamil.

Sun Direct is an joint venture between the Maran family and Astro Group of

Malaysia. With 170+ TV channels and 31 Radio channels, Sun Direct has a subscriber

base of 3 million (April 2009)

Big TV:- Reliance BIG TV Limited a part of Reliance Anil Dhirubhai Ambani

Group. Reliance Communication a more recent entrant in the DTH space has the

brand name ‘Big TV’. It has

Aggressively priced packages as low as Rs. 1490 with an offering of 64 channels and

a three

month free subscription in addition to 20 video-on-demand movie channels. Within a

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short span

of time it garnered a subscriber base of nearly 1.8 million ( Aug2009)

Airtel Digital TV :- Airtel DTH - Bharti Airtel Limited The recent and much talked

about player in the market is Bharti- Airtel. A teaser campaign ‘See you at home’ was

followed up by a multi- starrer campaign with celebrities like Saif Ali Khan and

Kareena, Vidya Balan and Madhavan and Indian cricketers Gautam Gambhir etc.It

has a subscriber base of 1 million (June 2009)

Videocon D2H :- Videocon D2H Videocon the big Indian consumer durable player

launched itself in the DTH market in June 2009 through its media arm Bharat

Business Channel (BBCL). Right now it has offered services in Punjab, J&K,

Chandigarh, Haryana and Himachal Pradesh with packages as low as 150 per month.

Advantage over other players is that Videocon already makes analog set top box

hence they are likely to manufacture Set Top Box for their DTH service as well.

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a) BACKGROUND- Asia and the Pacific

Broadcasting in Asia continues to grow by leaps and bounds. Penetration is

consistently on the rise with DTH and cable penetration currently reaching one in five

TV households and estimated to reach one in three households by 2005. In 1991, the

first subscription DTH service was launched which led the way in the Asian satellite

revolution.

In earlier days there was only one TV channel in India the Doordarshan Channel

doordarshan was owned and operated by government of India. In that era every home

which had a TV set used to have its own antenna to capture the signals. The 9th Asian

games which were held in 1982 in the country’s capital New Delhi heralded the mark

of color TV broadcasting in India. In 1991, Indian economy was liberalized from the

License Raj and major initiatives like inviting foreign direct investments, deregulation

of domestic business emerged. This lead 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 lead to revolution. Every city in the India had a complex web of

co-axial cables running through the streets with a new breed of entrepreneurs called

as cable wallahs or Local Cable Operators (LCO) taking in charge of distribution.

The film industry was shocked by this sudden growth and there were even organized

protests for calling off the Cable TV industry. There were simply too many

cable operators in the country and the channels had a difficult time in getting its returns

as the existing system was a non-addressable and the operators could simply give

a reduced number of subscribers to amass profit. This lead to the emergency of a new

breed of firms called as Multi System Operators (MSO) who had heavy financial

muscles to make capital investments. The MSO industry became highly monopolistic

which warrants government participation to ensure competition.

The Cable Television Ordinance Law was paased in January 1995. This enabled cable

operators to feed channels and later on private companies were allowed to air their own

channels and this led to the explosive growth in number of TV channels and number of

15



cable operators. The growth of TV channels & cable operator s created a big industry

and market opportunities. Untill few years back there were as many as 1,00,000 cable

operators across India. However the services provided by cable operators were poor.

The strikes, increase in tariff plan, selective broadcast and poor services were major

cause of dissatisfaction among the customers. This has created an opportunity for

DTH, which serves an immediate threat to the high-end cable networks. Some of the

key players in the industry are Dish TV by Zee group, Tata Sky joint venture of Tata &

Star TV, Big TV by Anil Dhirubhai Ambani Group, Digital TV by Bharati Telemedia,

SUN Direct from the promoters of Sun TV. There is an immense opportunity for DTH

in the Indian market. The opportunity in India almost 10 times that in developed

countries like the US and Europe. For every channel there is a scope for broadcasting it

in at least ten different languages. So every channel multiplied by ten, that is the kind

of scope for DTH in the country.

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b) HISTORY –

DTH services were first proposed in India in 1996. But they did not pass approval

because there were concerns over national security and a cultural invasion. In 1997,

the government even imposed a ban when the Rupert Murdoch-owned Indian Sky

Broadcasting (ISkyB) was about to launch its DTH services in India.

Finally in 2000, DTH was allowed. The new policy requires all operators to set up

earth stations in India within 12 months of getting a license. DTH licenses in India

will cost $2.14 million and will be valid for 10 years. The companies offering DTH

service will have to have an Indian chief and foreign equity has been capped at 49 per

cent. There is no limit on the number of companies that can apply for the DTH

license.

The history of dth services in India dates back to 1996. But, the proposal couldn’t get

through policy hurdles because of concern over national security. It was finally

allowed in July 2006. As of now, number of total customers stand at 14 million

whereas total cable TV households number is 75 million . That reflects the huge

potential of this industry in the long run.

Major Indian DTH players are; Dish TV which is also the largest private dth player.

DD direct, Tata Sky, Sun Direct, Big Digital TV etc are other major players. New

entrants are Airtel Digital TV and Videocon. Old and established players like Dish TV

and Tata Sky employ MPEG-2 technology while majority of other players use MPEG-

4 technology. MPEG-4 technology is more efficient in broadcasting superb quality

video and more channels as well. India is a market with 80 million pay-TV

connections. Pay-TV revenue leakage touched USD 985 million in 2007. India is a

dynamic market.

Ten years ago, 20 per cent of Indian homes could receive only government services

broadcast on one channel operated by Doordarshan, the national, state owned

television operator. By 1997 there were 50 private satellite channels and 19 different

services from a revitalized Doordarshan. Today, one-third of the homes have

17



television and about 10 per cent of these subscribe to cable. Comprehending the needs

of the Indian market,

NDS, back in the year 2000, committed to the development of a locally run R&D

centre in Bangalore which was started with 30 highly qualified engineers. Around this

time, NDS was awarded a key contract and became the exclusive supplier of digital

conditional access systems.

CAS-ready networks, semi-urban networks, urbanized rural networks and rural

networks. The challenge for cable exists in rural areas where installation and

application are extremely cost prohibitive; nearly three quarters of India is designated

rural territory. This has created an opportunity for DTH, The direct-to-home (DTH)

TV sector in India continues to expand rapidly, attracting large investments from new

and existing players over the past few months and is showing no signs of slowing

down due to economic recession. The DTH market which began commercial

operations in 2003 has been able to acquire over 12 Million subscribers during the

past five years. The number of DTH subscribers has nearly tripled in 2008 compared

to the previous year, driven by the entry of two new players.

In India the number of DTH subscribers is forecasted to grow at a CAGR of around

25% during 2009-2012.

Currently, the Indian DTH market is being served by five private players, Dish TV,

Tata Sky, Sun Direct, Big TV and Airtel’ Digital TV, with one more planning to roll

out its commercial services soon in the country. For the purpose of this report, we

have not included Doordarshan in our research as this is a free DTH service channel.

Given the superior quality of DTH services in terms of viewing and interactivity, the

number of DTH subscribers has been soaring. However, the current number of DTH

subscribers constitutes only a meager proportion of the total number of TV

households, indicating vast future growth potential.

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Chapter -2

REVIEW OF LITERATURE

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REVIEW OF LITERATURE

1. Wednesday,Nov17,2010,

Place: New Delhi |

Dish TV, part of the Essel Zee group, which partly owns DNA, announced it has cross

the 9 million subscriber mark — making it Asia’s largest DTH firm, according to the

company.

Continuing its subscriber acquisition spree, Dish TV added 1 million subscriber

additions in less than three months. Having reached the momentous 8 million

subscribers mark in the last week of August 2010, the 9

million number implies an almost two-fold increase over its average subscriber

addition run-rate off late.

Having already added 2.1 million subscribers since April 2010, Dish TV is gunning

for 3 million subscriber acquisition target for the current fiscal.

RC Venkateish, CEO, Dish TV, said, “Just like 8 million, the 9 million subscribers

target has also been achieved ahead of our estimates.

With more festivals round the corner and thrust coming in from a cricket heavy season

in the fourth quarter, the growth momentum is firmly in favor of DTH in the pay TV

market.”

Late last year, Dish had inked fixed-pay contracts with channel-owners, allowing the

firm to increase subscribers without worrying about added outgo in terms of

subscription revenues paid to channel-owners.

2. January 15, 1986 The DTH World Changes Forever

January 15, 1986 began like any other day in America. The lines were long at satellite

dealerships, and sales were good. As the day wore on, suddenly the video on HBO

was replaced by unrecognizable lines and the audio was gone. At that very moment,

the hardware-based DTH industry transitioned into one which would be driven by the

sale of software - programming. The effect of scrambling one service out of many

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dozens -- albeit a high profile service such as HBO -- should have been a short-term

manageable market development, especially in light of the fact that decoders (then

manufactured by MA/COM, later to become part of GI) for the signal were available,

and HBO stood ready to sell the service to any DTH consumer. This was not to be

however, as the news of scrambling hit the national media with a message that, "....the

skies have gone dark for disowners." This highly inaccurate message was then

reinforced by large scale negative advertising campaigns by cable operators which

depicted satellite dishes as expensive and ugly contraptions which now at best would

make for Olympic-sized birdbaths. The first thing to happen was the wholesale

defection of retailers who had entered the business in 1985 in searchof the easy sale.

This was followed by a bitter internal industry battle over scrambling which soon saw

existingDTH system owners drawn into the fight to preserve the free airwaves. Worse

yet, the industry allowed thisbattle to spread to new consumers as they entered dealer

showrooms to consider the purchase of a dish. It evengave birth to three nightly

satellite-delivered talk radio networks dedicated to discussing/debating the

changingindustry. The political fireworks generated by these shows demonstrated the

fact that the industry wasapproaching a meltdown.The impact on sales of new DTH

systems was dramatic. From 735,000 systems in 1985, the industry plummetedto

225,000 units. An estimated 60 percent of all retailers in the industry on January 1,

1986 were gone as theyear came to a close. Fire sales dominated the marketplace as

hardware manufacturers and distributors eitherleft the business or fought to generate

sufficient cash flow to hang on. Clearly, the DTH industry was rapidlyapproaching a

fork in the road on the way to survival or oblivion

3 By Mr. Channel on January 21, 2011

If you’ve been a regular cable TV user for a while and have been looking to switch to

Dish TV (or any DTH), and you’re confused to switch your cable TV to dish TV, this

article will help you to decide. Here are some advantages of Dish TV comparing with

Cable TV .

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• More Channels, Picture Quality, Availability, Digital Video Recording (DVR),

High Definition Television experience., Mobility, Multi recording/live pause,

International channels, Communication and Service:

Overall, we can conclude this article by saying that Direct to Home systems like Dish

TV, Tata Sky etc. are far more convenient, comprehensive and better in just about

everything as compared to their Cable counterparts.

So don’t think twice! Go Dish! If there are any more benefits you’d like to list, please

comment in the comments area people!

4.By Rashi jain on march 2009 in noida…

If we look at the reports of late, it will be realized at once that the DTH service in

India is getting popular with the passing of each week almost. Now the question

remains what does DTH stand for. In accordance with experts, DTH does symbolize

direct to home services. Perhaps this is not enough for you. We, in that case, must get

more specific. DTH home TV, to put it briefly, did bring satellite television cable

system in the sphere of Nepal for the first time. Nevertheless, in India the need of

DTH is greater than in any country and the reason is quite obvious. The population in

India does outshine any other country easily and hence, the demand of DTH service is

also very high. You may not believe but the rate of growth of DTH service in India

(from 2009 to 2012) has been no less than 38.9 percent, if not more.

India has become a great market for the DTH satellite television services. The launch

of the airtel digital television to place in three years back by bhartiya airtel. At the

same time, the huge television brand from the company reliance was launched as well.

These two companies promised the world level consumer support service that upset

the balance of presnt DTH service providers in India.

22



What is DTH? Why is DTH Different from Cable TV?

In DTH, TV channels will be transmitted from the satellite to a small dish antenna

mounted on the window or rooftop of the subscriber's home. So the broadcaster

directly connects to the user

DTH can also reach the remotest of areas since it does away with the intermediate step

of cable and wires (cables) that come to your home.

DTH offer digital superior quality picture against cable tv today which is most

analog .

<storng>How is DTH (Direct to Home) service different from existing cable TV

service?</storng>

DTH is an encrypted transmission that travels to the consumer directly through a

satellite. DTH transmission is received directly by the consumer at his end through a

small dish antenna. The encrypted transmission is decoded by an individual STB at

your home.

The other advantage of DTH is the availability of satellite broadcast in rural and semi-

urban areas laying of cable is difficult.

Due to digital compression techniques, many more niche channels are available than

cannot be provided by cable operators.

DTH also offers digital quality signals which do not degrade the picture or sound

23

5. 19 Jun 2009,

14:41



quality. It also offers interactive channels and program guides with customers having

the choice to block out programming which they consider undesirable.

6. Written by Mr. sushubh on October 25, 2008

When DTH arrived in the Indian market, we all felt much much better. Finally we had

an alternative to kick the ass of the cable guy. After a year or so… we are now

realizing that DTH is a complete ripoff. A scheme planned to loot the Indian

customer. It promised the world. It delivered a dud. We were told that we would have

choices. Well, we had choices but they all suck. We buy a DTH connection. We do

not get portability. We are stuck to a single company. That company decides to

increase the price? We are fooked. That company decides to close down its call

center? We are fooked.

A media group decides to increase the price of their channels? We look for ways to

make sure we get them. At an inflated price.

Another thing. We now pay more for each channel while they throw at us same

amount (if not more) of advertising. And I thought the concept of paid channels was to

end up getting a better service with less interference. If only the cable guy was a saner

person with a less devil personality. DTH would have never dared to arrive.

7.By pro. Ramesh shing on 2 April 2010

Since its inception in 2003, the Indian Direct-To-Home (DTH) TV industry has been

growing at a rapid pace. This growth has been supported by huge investments by the

existing and new players. Defying the global trend of economic crisis, DTH industry

posted significant growth in 2008 and 2009.

24



The DTH market acquired around 16 Million subscribers by the end of 2009, an

increase of approximately 44% over the 2008 levels. With the entry of new players in

the Indian DTH industry, competition is getting intense. Due to this intensifying

competition, installation prices are declining and subscribers have a wide range of

options to make choices.

8. On 25 Dec.2009 in Delhi

Market comparison of DTH and cable TV

The cable system is well entrenched in India and is showing quite rapid growth. If

DTH had come to India in

1

996-97 (like Star had originally attempted), then it could have made significant

breakthrough. Europe is an example of this. DTH developed there before cable and

now controls nearly

80 per cent of the total satellite television subscriber base. But in US, cable rules

because it came before DTH .

DTH will definitely cut into the existing cable user base. It will make the local cable

operator less important and take business away from him. It will give consumers

greater choice. But it is likely to be an up market premium product and most middle

class households will stick to cable tv.

9.KARACHI Market survey for DTH service

A market survey evaluating the possible application of direct-to-home (DTH) telecom

service is being conducted to determine the number of licences which will be issued,

Mushtaq Malik, the chairman of the Pakistan Electronic Media Regulatory Authority

(PEMRA), informed Pakistan Today on Wednesday.

DTH is a digital satellite service that provides television services direct to subscribers.

25



"DTH is the requirement of the market now, and we support the introduction of this

technology. It appears that the market's small size can only sustain one such service

provider in the country; the regulator can expect heavy pressure from potential

providers to issue more licenses."

There is currently no DTH service in Pakistan, while there are seven DTH operators in

India alone. Malik said that in 2003, a bid was issued for DTH service, two TV

channels applied. "They were supposed to pay a fee of Rs 250 million in a single lump

sum, but they went to the Sindh High Court to gain permission to pay in installments,"

he said, adding that if installments had been originally stipulated, more bidders would

have been invited," he added in frustration.

The two channels paid Rs 120.5 million and Rs 60.5 million, respectively, to PEMRA

and both are now determined to seek a DTH licence. "Two or three cheques that one

of these channels gave to the regulator have bounced, and we are still awaiting full

payment."

Recently, a representative of General Satellite Corporation of Russia, Dolgopolsky,

announced during a visit to the Federation of Pakistan Chambers of Commerce and

Industries that his company is interested in collaborating with Pakistani channels for

DTH service provision in Pakistan.

He also claimed that his company was ready to bear half of the total cost of the

project. "The average cost of these types of projects is around $20 million but the cost

will vary according to model and services launched," said Malik.

According to experts, DTH technology is capable of transmitting audio/video signals

to subscriber's premises by using geo-stationary satellites, the small dish antennas are

used to receive signals by using set top box with a higher quality audio and video

signal than is currently available in the domestic market.

Cable TV currently generates high revenue with DTH posing a threat to existing

analog and digital cable TV systems, especially due to its proximity and low-cost

penetration in rural areas, experts opined.

The emergence of DTH could potentially, contract the revenue earned by cable

operators A thorny issue is also the restriction placed on any potential licensee to use

PAKSAT designation for the DTH service which is to be formally launched in the

26



third quarter of 2012.

On the other hand, as indicated by PEMRA's annual report, infrastructure for a new

digital cable system is simply not in place. It has been indicated that the first phase is

incomplete and will be finished only by December, 2011 and that too, only for certain

urban localities.

The district-level penetration of digital cable TV system was meant to be launched in

January 2010 and completed by the end of December 2015. Experts said that if

PEMRA completes the digital cable TV penetration in Pakistan at both metropolitan

and district levels in five years as planned and launched the DTH service; it would

generate intense competition between both segments.

10. By Shilpa Jamkhandikar

Thursday, July 29, 2010

MUMBAI, INDIA: The Indian Direct-to-home (DTH) broadcast market is witnessing

a flood of premium and add-on services like HD (high definition) and gaming

features, but cost remains a stumbling block in efforts to woo customers, industry

players say.

In the last six months, major players like Dish TV, Tata Sky and Airtel have launched

high-end services like HD and PVR (personal video recording) in efforts to diversify

their product in an increasingly crowded DTH broadcast industry, but the jury is still

out on whether traditionally cost-sensitive subscribers will take the bait.

"This market will grow, but slowly. There is growth in value added services like

games, banking services or matrimony, but when it comes to premium services like

HD or PVR's, that will all depend on the cost of these services," says Salil Kapoor of

Dish TV, which was the first to introduce HD in the Indian market.

Others are more confident that quality will triumph over cost in a market which is

still dominated by cable operators, who provide cheaper service.

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http://www.ciol.com/News/News-Reports/DTH-customers-hit-by-Insat-4B-power-glitch/138674/0/




"15 to 20 per cent of our new acquisitions have been on the back of HD sets, so we

are seeing a response from Sec A and B centers", says Ajai Puri, Director and CEO,

DTH, Bharti Airtel.

While the flood of added features are a bonanza for consumers, for DTH companies,

already battling competition from local cable operators and MSO's (multi system

operators), it also means a higher cost of acquiring subscribers.

A report by consulting firm Price water house Coopers says DTH players are

bleeding Rs 5 billion annually largely due to increased competition.

Players are facing challenges by having a very high subscriber acquisition cost. This

cost is around Rs 2,500 to Rs 5,000 per customer for a few operators and this

scenario is likely to continue, the report says.

The DTH market in India is currently at around 20 million subscribers and poised to

grow, especially in rural areas, where penetration is presently at 64 per cent as

compared to 34 per cent in 2008.

11. By Sathish on Sep 27, 2010 .

Despite fierce competition among direct to home (DTH) companies, consumers are

unlikely to see any further reduction in prices of new connections. Reducing costs

would mean incurring more costs for the DTH players, who are yet to achieve a break-

even.

Tata Sky recently came out with new pricing of Rs 999, under which it offers only theequipment (set-top-box). The consumer is now free to choose the content package. “It

is an unconditional offer, with no strings attached,” Mr Vikram Mehra, CMO, Tata

Sky said.

Rivals Dish TV, Sun Direct, Airtel Digital and Reliance Big TV claimed they were

already in the same price band of around Rs 900 if the cost of hardware is considered

on a standalone basis. As they bundle content with new connection, the package costs

range between Rs 1,399 and Rs 1,599 for various players. “We don’t have any plans

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to bring down our prices,” said Mr Sanjay Behl, CEO of Reliance Big TV. “In fact,

we command a premium of around 20 per cent in the market place, which we want to

maintain,” Mr Behl added.

Instead of focusing on costs, Reliance plans to invest in strengthening its product

offering. “We plan to add 12 more channels in next two weeks,” Mr Behl said.

Reliance currently offers 254 channels.

Dish TV, the market leader with over 8 million subscribers, has no plans to repackage

its costs in response to Tata Sky’s move. “We have no confirmed plans as of now,”

said Mr Salil Kapur, COO, Dish TV.

Acquisition cost

Aided by growing volumes and reducing hardware costs, Dish TV has seen a gradual

decline in its subscriber acquisition costs (SAC) in the past few quarters. Dish TV’s

SAC currently stands at Rs 2,147 in the latest quarter, against Rs 2,487 a year ago.

“Any festival offers that we plan would be worked out keeping in mind our subscriber

acquisition costs. We don’t want to incur any extra costs,” Mr Kapur said.

Industry analysts said any further subsidization of customer acquisition would delay

the profitability of these companies. “It (subsidizing) may spoil the consumer habit

and may not be good for the industry in the long-term,” an analyst said.

12. As per our new research report “Indian DTH Market Forecast to 2012”, the

number of DTH subscribers is forecasted to grow at a CAGR of around 25% during

2009-2012. This research provides extensive research and rational analysis of the

DTH market in India. It will help clients to understand the underlying potential of

DTH services in the Indian television industry. Various factors which will drive the

future growth of the DTH market in India have been thoroughly analyzed in the

report. The report will also help in gaining insight into the prevailing key trends and

developments that are contributing positively towards the growth of the market. Our

29



report helps to understand the current market landscape while highlighting the future

market potential for each of the player studied. The study also explains the reason for

why all the incumbent players have been investing huge amounts in the promotion and

marketing of DTH services in the country. We foresee immense growth potential of

DTH services across remote locations where the reach of cable operators is very

limited.

13. Since its inception in 2003, the Indian Direct-To-Home (DTH) TV industry has

been growing at a rapid pace. This growth has been supported by huge investments by

the existing and new players. Defying the global trend of economic crisis, DTH

industry posted significant growth in 2008 and 2009. The DTH market acquired

around 16 Million subscribers by the end of 2009, an increase of approximately 44%

over the 2008 levels. With the entry of new players in the Indian DTH industry,

competition is getting intense. Due to this intensifying competition, installation prices

are declining and subscribers have a wide range of options to make choices. The

reason for high growth in DTH subscriber base can be attributed to the fact that

quality of service delivered by DTH is superior as compared to cable or any other

medium. Since DTH TV industry is currently in growth phase, it is expected to attract

a large number of subscribers in near future. As per our new research report “Indian

DTH Market Forecast to 2012”, the number of DTH subscribers is projected to grow

at a CAGR of around 18% during 2010-2013 to 39 Million by 2013. In 2008, the

DTH subscribers accounted for only a small proportion (less than 10%) of total

number of TV households in India, which were 119 Million, representing a huge

future growth potential. The report contains comprehensive information about all the

DTH service providers in India, with focus on in-depth analysis of their strengths and

weaknesses. It also explains the reason why all the incumbent players have been

investing huge amounts in the promotion and marketing of DTH services in the

country. The report highlights certain key marketing strategies along with the current

industry trends. These marketing strategies could serve as a benchmark for the

anticipated future growth in the Indian DTH market. Apart from this, the report will

help clients to recognize/identify the factors that will drive the country’s DTH market

30



in coming years. The report also studies the Indian consumer behavior and elaborates

various factors which will enable people to switch to DTH in near future.

31



Chapter -3

RATIONALE OF THE

STUDY

32



RATIONALE OF THE STUDY:

Our main purpose of research is to compare the quality of direct to home service

and cable-TV also to study the consumer’s preference between direct to home

service and cable-TV and TRP of channels in Indore city. .

Our another purpose of this major research project is

to find out the scope of D2H service in Indore region & major service provider

in Indore. I can also get the knowledge about the Cost effectiveness of D2H

service in Indore.

Chapter - 4

33



OBJECTIVES

OBJECTIVE OF RESEARCH

The research has following Objective

To identify the factors which make dth/single cable favorable or unfavorable

To compare the singlr cable with dth

34



To study of the customer preference towards D2H service.

To compare the cost effectiveness of local cable & D2H service.

Factor affecting preference of D2H v/s single cable operator.

35



Chapter-5

RESEARCH

METHODOLOGY

36



Research Methodology

The study of research methods provides with the knowledge and skills one

needs to solve the problems and meet the challenges of the fast paced

decision making environment, three factors stimulate an interest in scientific

approach to decision making:

37

The Study

Business ObjectiveResearch

Objectives

Research Design

Sample Design

The Tools

Data Collection Data Analysis

Conclusion



a) Research Design

Exploratory Research

Exploratory research would be carried out to get Qualitative data in order to

gain a qualitative understanding of the underlying study.

Desk Research

Desk Research would be carried out to obtain Secondary Data. The Internet

would be used to gather the required data to carry on the study.

Descriptive Research

Descriptive research would be carried out to meet the objectives of the research

and generalize the results from the samples collected from the investors. The

survey method involving a structured questionnaire would be used to elicit

specific information from the investors.

Personal interviews would be conducted in order to gather the required

information.

.

38



b) Defining variables to use

1. Cost effectiveness.

2. Services of D2H.

3. Picture quality.

4. Preference of customers.

c) Sample Design

39



Sample Methods - Random Simple Sampling

Sample size - 100 (Taken within Indore city)

Primary data - Questionnaire

- Interview

SAMPLE

While deciding about the sample of research, it is required from the Researcher’s

point to pay attention to these under mentioned points:

I. Sample Units: The sample design being chosen for this research is Judgment

sampling. Judgment sampling is that sampling in which element from the population are purposively selected. That’s why ;Judgment sampling is also called purposively sampling.

The size of the sample is 100

The sample size of research is taken from various area of city which are asfollows :

• Bhanwarkua (30 questionnaire fill this area)

• Palasia(20 questionnaire fill this area)

• Rajendra nagar(25 questionnaire fill this area)

• Jaora compound(25 questionnaire fill this area)

.

II. Sampling size: This refers to the no. of items to be selected from the universe

to constitute a sample. This is a major problem before the researcher. The size of

sample should neither be excessively large not too small, it should be optimum.

This size of population must be kept in view for this also limits the sample size

.Sample size in this research is 100.

40



The research design is Descriptive studies. It is the simplest type of research.

Descriptive studies are well structured, . Data are collected by using one or more

appropriate methods like observation, interviewing and mail questionnaire.

Descriptive studies are undertaken in many circumstances:

d )Tool for data collection

There will be two sources of data collection:

• Primary source

41



The primary data will be collected by surveying people working in

R&D in Indore, using a semi- structured questionnaire.

• Secondary source

The secondary data is collected from books, news paper,

advertisement, media, journals and internet related to knowledge

management.

e) Tools for data analysis

42



To know the response, I have used the questionnaire method in sample survey. If one

wishes to find what people think or know, the logical procedure is to ask them. This

has led researchers to use the questionnaire technique for collecting data more than

any other method.

In this method questionnaire were distributed to the respondents and they were asked

to answer questions in the questionnaire. The questionnaires were structured non-

disguised questionnaire because the questions, which the questionnaire contained,

were arranged in a specific order besides every questions asked were logical for the

study, no question can be termed as irrelevant.

The questionnaire, were non-disguised because the questionnaire were constructed so

that the objective is clear to the respondent. The respondents were aware of the

objective. They knew why they were asked to fill the questionnaire.

Appropriate statistical tools will used for data analysis like mean, factor analysis,

ranking method, Pie chart etc..

1. Mean and Standard deviation will be used to evaluate the consistency of the

D2H services.

2. Factor analysis will help in evaluate the preferences and attitudes of the

customer toward D2H services.

3. D2H services will be analysis percentage bases.

4. Also use pie chart, bar gaff.

Data analysis

43



COMPARISION BETWEEN DTH AND CABLE-TV (based on secondary data)

Following is the comparison between Cable TV-CAS& DTH Cable TV-CAS DTH

Cable TV-CAS DTH

Technology In addition to satellite downlinking being analog, last mileconnection still remains analog inmany cases. The set top boxes can

be digital or analog depending onsubscriber preference. Thereforequality of reception may beinferior compared to DTH.

DTH transponder down linkingis digital and the set top boxesare also digital. Quality of reception may be superior compared to Cable TV-CAS

Independent of LCO No YesConsumer redressalfacility for poor servicequality

Will be available (TRAI regulationmakes it mandatory for the MSOsto set 24 hours customer servicecells)

It is upto the individual service providers to provide thisservice(No TRAI regulation)

Set Top Box The set top box can be either ‘purchased’ or taken on ‘rental’scheme. At present there are tworental schemes, (1) digital set top

box will be provided at a monthly

rental of Rs30 / month plusrefundable deposit of Rs.999 witha deduction of Rs.12.50/month, (2)set top box will be provided at arent of Rs.23 (for analog) or Rs.45(for digital) plus refundabledeposit of Rs.250 with a deductionof Rs.3/month.

No rental scheme is availablefor set top box. The viewer buysa set top box (viewer is theowner of the set top box) whilethe antenna is provided by the

service provider. For all theapartments in the same building,a single antenna can be used.

Number of STB for multiple TV household

Per TV one set top box & adifferent cable connection

Per TV one set top box but noseparate antenna will berequired.

Mobility from one MSOto another

New Set top box has to be taken if the MSO changes.

New antenna as well as set top box has to be taken if the service provider changes.

Audio-Video Quality Depends on the kind of set top box. If it is digital set top box thenhigh quality Audio-Video possible

High as digital set top box isused.

Advertisement time <=12min/hour (TRAI regulation).This will reduce the advertisement

clutter,

Not controlled (No TRAIregulation yet)

44



making television viewing more pleasant.

Channel charges As per TRAI regulation,Rs77/month for FTA (minimum30 channels) and 5/channel/monthfor pay channels (viewers would

be anxious to know ‘how long willit be before TRAI raises this cap

The charges have not been fixed by TRAI. The broadcasters arefree to determine the charges for their pay channels. The monthlysubscription charges are lower if more than one set top

Which satellite system are mostly using in indore ?

45



Option Dth Single cable

operator

Both Total

NO. of user 35 60 5 100

Interpretation:

According to my survey 60 % people prefer DTH service , 30 % are prefer

single cable operator. And 5% people are using both service…

Which service mostly using in indore?

Option Response

Dish TV 10

46



Tata sky 15

sun direct 5

Big TV 12

airtel digital TV 17

Videocon d2h 18

cable TV 33

Total 100

Interpretation:

Videocon d2h is leading the market with 18%, followed by Airtel

Digital TV with 17% Tata sky 15% Reliance Big TV 12%, Sun DTH 14%,

and cable tv are mostly using indore region 33%...

How long have you been using DTH service ?

Below A. 1 year B. 1 – 3 year C. 3 – 5 year D. Above 5 years

47



TABLE – 3 :

Options Users Percentage

Below 1 year 49 49%

1-3 years 34 34 %

3-5 years 17 17%

Above 5 years 0 0

Interpretation:

According to my survey the users of d2h service below 1 year is 49 % which

is higher than the user of 1-3 year 34 % and the percentage of 3-5 years is 17 % and

above 5years is 0 % .

48



Who is the best picture quality provider

S.NO PARTICULARS NUMBER OFRESPONDENT

PERCENTAGE

1. DTH 65 65

2. SINGLE CABLEOPERATOR

35 35

TOTAL 100 100

Interpretation:

According to my survey the users of d2h service says dth provide

best picture quality comparison to single cable operator. 65% people says Dth

provide best picture quality.

49



Which service is easy to subscribe?

Interpretation:

According to my survey 60% people they can easy to subscribe

cable operator and 30% says Dth and 10% says both of them.

Problem is facing in current service.

50

Option Result

Dth 30

Cable operater 60

Both 10



Interpretation:

According to my survey- problem f acing in current service-

51

Option Cost clarity Total

channels

Other

DTH 25 10 45 5

Cable

operator

28 56 43 8



How did you come to know about various DTH services available in Indore ?

1. Media 2. Friends 3. Relatives 4. Neighbours

TABLE –

Options Users Percentage

Media 73 48.67

Friends 16 10.66

Relatives 28 18.67

Neighbours 33 22

Interpretation:

According to my survey 48.67 % people know about d2h services throw

Media, 22 % throw Neighbuors, 18.67 % throw Relative, & 10.67 % throw friends so

here we can say that media play very important role for awareness of D2H services.

52



Suggestion for better service .

Interpretation:

Option DTh

a) cost should be reduce 28%

b) More channels should be provider 21%

c) Quick customer service 12%

d) All 39%

53



Chapter -8

COUNCLUSION

54



Conclusion;

it has now been over a decade since DTH satellite broadcasting began to show

promise as a new technology capable of widespread distribution of programs and

services. In those early days, the prime concern of many governments was that the

spread of DTH satellite would result in mass Americanization and a decline in the

cultural values and ideas of their people. The solution that has to be found is to

maintain some form of national control, ranging from outright ban on ownership of

satellite signal receiving equipment, to introducing licensing regimes, prescribing

guidelines for program content and placing limits on foreign ownership of

broadcasting licenses or ventures. The present DTH policy drawn addresses some of

these issues which effectively strikes a balance between the economic benefits of

introducing new services, the consumer demand for change and the government'soverriding interest in maintaining control over broadcasting. It remains to be seen how

India will strike a final balance in the structuring of its laws and regulatory scheme to

maximize the benefits of the new technologies, whilst ensuring that the national and

public interests in the control and content of those services are protected.

55



Chapter -

limitation

56



limitation

Reliability of data from people are less. Most of the people not participating in research.Wehave trust on seconry data available through internet which some times one sided or fake

because of promotional activity.

57



Chapter- 7

SUGGESTIONS

58



There are some suggestions for DTH and single cable service..

• Improve Digital Picture quality

• Dolby Audio. Cable TV does not even come near

• Information Bar showing current and future program details

• Special features

• Advanced payment options (online).

• Always Available (as long as there is electricity in your house and the set top

box is working and there is no rain)

• Easy to subscribe

• Quality of the customer service

• Toll-free helpline

• Channel packaging• Obviously, Cost

• Set-top box Quality

• User-friendliness of the EPG

• Language options (if you are not comfortable with English)

• Interactive applications (if you want more than channel surfing)

Hidden costs (maintenance, installation and other charges

59



Chapter-7

REFERENCES

60



Bibliography

Following are the references are taken to get secondary data required in the

survey as well as analysis of the report :

• William G. Zikmund, “Business Research Report”,Orlando: Dryden

Press.

• Kotler Philip, (2008.) “Marketing Management – Text and Cases”,

Pearson Education a south Asian perspective, 13th Edition

• Gordon Lewis, “Direct Marketing Strategies and Tactics”, New

Delhi, Vision Book, 1995. .

• Sharma, D.D (2002):”Marketing Research” Sultan Chand Sons, New

Delh

61



Webliography

www.ansewr.com

www.businessdictionary.com

www.advanced-television.tv

www.webtvonline.com

www.research-tv.com

Chapter-8

62

http://www.ansewr.com/

http://www.businessdictionary.com/

http://www.advanced-television.tv/

http://www.webtvonline.com/

http://www.research-tv.com/

http://www.ansewr.com/

http://www.businessdictionary.com/

http://www.advanced-television.tv/

http://www.webtvonline.com/

http://www.research-tv.com/



APPENDICES

Questionnaire

COMPARATIVE ANALYSIS OF DIRECT TO HOME SERVICE AND CABLE-

TV .

Please fill in your details and answer the questions.

Sir/Madam,

NAME: _____________________________________.

OCCUPATION: ______________________________.

GENDER: M F

ADDRESS: __________________________________.

1. Which satellite system you are using?

Dth single cable operator

2. Which DTH service do you use?

Dish Tv Tata sky Sun Direct Big TV Airtel Digital TV Videocon

D2H Cable TV

Any other please specify _____________________________________________

3.How long have you been using DTH service?

Below 1 year 1 – 3 year 3 – 5 year Above 5 years

63



4. Who provide you better customer service?

Direct to home Single cable network

5. What is the main reason for shifting from previous satellite system to present service?Reasonable price Clarity of channels Extra service Good reputation

Poor signal at rainy time worst ever customer care

6. Who is the best picture quality provider among the two?


7. Who is the best Channels clarity provider?


8. Which cable operator is easy to subscribe?


9. Which is more cost effectiveness? Direct to home Single cable network

10. Problem you are facing with your current service?

Cost clarity total channels other

11. According to you who provide maximum number of channels with reasonable price

and quality?


12. Suggestions for better service for your network?

Cost should be reduced more channels should be provided

Quick customer services all

13. Would you like to switch your current service provider?

64



Yes No

14. If yes what is the problem?

Cost clarity total channels other

15. Are you satisfied with your DTH service?

Yes No If no, which DTH service do you prefer?

Dish Tv Tata sky Sun Direct Big TV Airtel Digital TV Videocon D2H

Any other pleasespecify________________________________________________________

Documents

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