Internship @ Videocon, Dth Industry

Industry Overview History:

The history of Indian Television dates back to the launch of Doordarshan, the country‟s national television network in 1959 when the transmission was in black & white. The 9th Asian games which were held in 1982 in the country‟s capital New Delhi heralded the mark of colour television broadcast in India.

In 1991, Indian economy was liberalised from the license raj and major initiatives like inviting FDI, deregulation of domestic businesses emerged. This led to the influx of foreign channels like Star TV and creation of domestic satellite channels like Sun TV and Zee TV. This virtually destroyed the monopoly held by Doordarshan.

In 1992, the cable TV industry started which changed the way the average Indian watches the television. Every city in India had a new breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in charge of distribution. Since this was a disorganized sector carrying new channels on the existing infrastructure required new investments which the operators were reluctant to make. This led to the emergence of a new breed of firms called as Multi System Operators (MSO) who had heavy financial muscles to make capital investments and liaised between the cable operators and the channels. MSOs provide the feed to the local operators for a fee.

In 1995, government felt the need of regulation in Cable TV and passed the Cable TV network (Regulation) Act. This was also the time when the state owned Doordarshan and All India Radio came under a new holding called as Prasar Bharati to give them enough autonomy. The LCOs reported a lower number of connections where as the broadcasters demanded a higher rate. MSOs were finding it difficult to operate under

these

conditions.

This

led

to

an

amendment

of

the

Cable

TV

networks(Regulation)Act in 2002 to provide Conditional Access System (CAS). With CAS, the last mile distribution could be addressable with accuracy and digitalization of

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broadcast was also possible. CAS was rolled out in 2003 staring from Chennai and later to parts of Delhi, Mumbai and Kolkata. On the DTH front, TRAI issued the guidelines for operating DTH. Country‟s first DTH license was awarded to Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product DD-Direct+

In 2007, TRAI proposed a new initiative by name “Headend-In-The-Sky (HITS)” model as an alternative to the existing cable distribution. Instead of the MSOs providing the bundle, there will be a single HITS operator who will prepare the bundle of channels and beam it to the Headend in the satellite. With the average Indian getting younger, and hence more likely to spend on nonessentials, the entertainment industry has the potential to grow explosively in the future. Now the industry is ready to enter a second stage of growth powered by the twin engines of technology (availability of quality infrastructure and the accelerated penetration of digital connectivity) and an enabling regulatory environment.

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Current Scenario:

In the current context of the global financial meltdown, the Direct to Home (DTH) industry in India is in the throes of multifarious challenges and opportunities. The „big game‟ is all about shaping up grandiose plans to master the winning rules to garner as much portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes „big value‟, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets for improving the subscription base, popular bouquet of channels, set top boxes with superior quality of videos, improving content, etc as a desperate means to entice the Indian viewer. A neat 20 per cent annual growth is being witnessed in the DTH sector in India with over 16 million households having digital pay-TV. According to Harsh Bijoor, a brand consultant, “Since Dish TV, the biggest market player on the Indian soil, has not scraped even five per cent of the pie, there is plenty left for other players to eat.” In the early 2008, five major players, Zee‟s Dish TV, Tata Sky, Reliance ADAG, Sun Direct and Bharti Telemedia formed an umbrella body – DTH Operators Association of India (DOAI). Dish TV is the largest DTH provider with a subscriber base of around 5 million, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert Murdoch) and the Tata Group (20:80), now has around 3.4 million connections and the forecast for 2012 is that it will further increase to eight million, Sun Direct, the 80:20 JV between the Maran family and the Astro Group of Malaysia, over 2.3 million, Big Tv about 1.2 million and Airtel Digital Tv about 0.3 million subscribers (Source: Business Standard, May 1, 2009). According to sources, DD Direct Plus has a subscriber base of about 3-4 million subscribers, mostly in the remote corners of the country not connected by terrestrial or cable television.

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DTH operations in India could be enhanced if the dearth of satellite capacity is removed by increasing the number of available Ku-band transponders that at present is 12 on Insat 4A, which in turn would mean more channels for viewing.

Tax burdens on DTH are another area of complaint for operators. Around 40 per cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for services imposed by the Central government. Apart from this, there are entertainment taxes that differ from state to state.

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Company Overview About Videocon

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Product Portfolio:

Home Appliances

Refrigerators Washing Machines Air conditioners Air coolers Mixers, toasters, irons Microwave ovens Vacuum cleaners Water Purifiers

Consumer Electronics

CRT TV Plasma TV LCD TV Home Entertainment Systems Audio/Video products

Displays

CPT Plasma panel LCD panel

Components

Glass Panels Funnels Compressors Motors Plastic Mouldings Packing

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Manufacturing Facilities

INDIA (7)

CHINA (2)

ITALY

MEXICO

POLAND

OMAN

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

Introduction to Bharat Business Channel Limited (BBCL):

Videocon Group is launching Direct To Home services & Mobile Handsets in India under the banner of BBCL (Bharat Business Channel Limited) with brand name of Videocon d2h.

DTH stands for Direct To Home which is a direct mode of transmission between „Broadcaster‟ and „Subscriber‟ through satellite.

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Broadcast centre collects the signals from different programming sources (like Sony, Zee, and Star). It processes the Signals and beams it to the Satellite. Satellite will reprocess the signals and retransmits the signal to the subscribers.

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Objectives of the project: Porter‟s analysis of DTH industry. A study of TRAI rules pertaining to DTH industry. To keep a weekly track on various channels and their ratings based on TAM ratings. Do a comparative study of the various DTH players on their interactive services. To conduct marketing research regarding 

the interactive services



cable TV consumers

Reviews on DTH players from various blogs. To do perceptual mapping of DTH players.

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Porter’s Analysis of DTH industry: 1. Threat of substitutes:

DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry estimates, there are 130 million TV homes of which 85 million are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission.

Indian Broadcasting DTH 12% Terrestrial 22% Cable 66%

 Terrestrial Television: Doordarshan is the world‟s largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of India‟s geographical area. Covering the remaining 12% area required substantial capital investments which does not outweigh the benefits. The transmission was done originally in Analog mode but beginning from 2002, Doordarshan has partnered with BBC resources – the consulting wing of BBC, in offering digital terrestrial TV. The transmission could be received using a low cost Yagi antenna. However, due to lack of attractive content it does not seem to be a formidable threat for DTH.

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 Cable TV: Cable TV currently operates in 2 modes viz. through CAS covering cities like Chennai, Delhi, Mumbai and Kolkatta, and through non-addressable system in the rest of the country. As seen from the above diagram Cable TV enjoys the maximum share as compared to other medium. In case of CAS controlled areas, the subscriber has to buy Set Top Box (STB) to see the pay channels. On the other hand, in areas where non-addressable system is used, nearly all the channels are available without the need of any separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on the place. Due to phenomenal reach of Cable TV, it poses a serious threat to the growth of DTH industry.  Internet Protocol Television (IPTV): IPTV is a service where television signals are digitally sent over the telecommunications line. It is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data (Broadband Internet) services. With widespread adoption of broadband in the country and the growing techno savvy population, IPTV has a potential to become a huge success. IPTV takes the interactivity to a newer level. In regular mediums, all the channels are pushed to the consumer regardless of his preference. IPTV encourages a two-way request response model where the consumer chooses the programs he wants to view. Right now thos medium is totally unregulated and cable companies are urging the TRAI to issue a consultation paper process to include IPTV under the aegis of Cable TV act. IPTV is a considerable threat to DTH in urban and semi urban areas where broadband has made its mark.

2. Bargaining power of suppliers: DTH industry relies on three major supplies: Customer Premise Equipment (CPE) comprising of the satellite dish, Set Top Box with the necessary Access card, the Ku band transponders in the orbiting satellites and content. With India overtaking Japan

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as Asia‟s largest DTH, the bargaining power of Indian DTH operators with CPE supplies have increased. However, the availability of transponders is increasingly becoming difficult. The Ku band transponder is generally provided by Astrix, the commercial wing of ISRO either through its own satellites or by leasing transponders from suppliers. With only two domestic satellite launches between 2007 and 2010 an d increasing DTH players, Astrix is in a better position to use DTH as its cash cow for the next 5 to 10 years. Also the crash of INSAT 4C and NSS-8 has worsened the situation of DTH players. As there is not much of regulation particularly in terms of channel pricing, acquiring content from the broadcasters is also difficult. DTH vendors are at the mercy of the broadcasters.

3. Bargaining power of buyers: With enough options to choose both from the pont of alternate mediums like Cable, IPTV and Terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will to decide. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity

4. Inter firm rivalry: With 6 operational players, the inter firm rivalry is quite high. The competition from state owned DD-Direct to private players is negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DDDirect does not charge any monthly subscription fee which poses a threat to the private players. Between Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount schemes offered to new connections. Being the first mover, Dish TV has price advantage in both the STB as well as procuring the transponders. On the other hand, Tata Sky claims its STB having superior DVD quality video. Other than price wars and intense competition in increasing customer base, there is also a competition at acquiring the content. Dish TV, Tata Sky and Sun Direct are part

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of big groups that also have popular bouquet of channels like Zee, Star and Sun respectively. The channels indirectly refuse content for DTH operators by charging exorbitantly or mandating that all the channels of their bouquet to be transmitted when the vendor is already capacity constraint.

5. Threat of new entrants: With already 6 players in the DTH space, threat of new entrants is relatively low. There is already enough competition which will discourage new firms to enter this business. While getting a license is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the required transponders.

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TRAI Rules The Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007, were issued on 31st August, 2007. These regulations were issued to lay down the standards of quality of direct to home services and to protect the interests of direct to home subscribers. At the time of issue of these regulations, only two direct to home operators apart from Doordarshan were providing direct to home services in the country. Since then, three new direct to home operators have started commercial operations. With the evolution of the direct to home segment and the increase in the number of direct to home subscribers, new issues relating to quality of direct to home service have arisen. In order to address these issues the Authority has decided to amend the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007.

Rationale for making amendment to the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007:

The Authority noted that a large number of complaints have been received from the Direct to Home subscribers regarding dropping of channels from subscription packages offered by DTH operators. In case of subscription to DTH services, a subscriber subscribes to the service on the basis of specific channels included in the subscription package. If any channel is taken out of a subscription package and it is replaced by another channel then the DTH subscriber may be getting the same number of channels as earlier, but will be deprived of viewing the particular channel which has been removed. In case the channel which is removed is offered to the subscriber as an add-on package then the subscriber ends up paying more for viewing that channel which was earlier included in his subscription package. This subverts the tariff protection provided to DTH subscribers by Regulation 9 of the Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007. This calls for DTH subscribers to know about the following new rules.

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

TRAI: The DTH operators have been prohibited from charging any fee towards visiting charges or repair and maintenance charges of DTH Consumer Premises Equipment during the period of warranty for such DTH Consumer Premises Equipment acquired on outright purchase basis.

2. The DTH operators cannot alter the subscription package during the first 6 months, or till validity expiry, of a subscriber's enrollment.

TRAI: The DTH operators have been prohibited from changing the composition of their subscription packages during first six months of enrolment to the subscription package or during the period of validity of a prepaid subscription package, whichever is longer.

3. In case a channel is removed from a subscription package in the first 6 months of enrollment, the DTH operator must reduce the price proportionately, or replace the removed channel with one of the same genre and language.

TRAI: The DTH operators have been mandated to proportionately reduce the subscription charges for a package from which any channel is removed for first six months of enrolment or during the period of validity of a prepaid subscription package, whichever is longer or to replace the channel with a channel of same genre and language.

4. The option of choosing the package with reduced charges or the package with replaced channel has been given to the subscriber.

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

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TRAI: Option to select the channel of the same genre and language in a subscription package to replace a channel which has become unavailable on the DTH platform, has been given to the DTH operator.

6. Your DTH operator needs to give a prior notice of fifteen days to you before changing the composition of any subscription package.

7. Subscribers are allowed to request their DTH operator to suspend their services for up to 3 months. However, this suspension period should not comprise the same calendar month.

TRAI: DTH operators have been mandated to entertain requests of DTH subscribers for suspension of services if requested period of suspension does not exceed three calendar months and does not comprise part of a calendar month

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

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Television Audience Measure (TAM) Report Media planning is all about being able to communicate efficiently and effectively with your potential consumers. Not only selection of media vehicle but content, timing, and placement of the ads can be aptly mapped to reach out to the potential Target Group, making them an invaluable part of any campaign. In view of that, TAM ratings become the backbone and one of the most vital variable for any media plan.TAM is Television Audience Measure that keeps track of the ratings of different channels on weekly basis that provides a good platform for advertisers to decide on the channel to advertise.

Observations:

Hindi GEC:

star week

plus

Zee colors

Tv

NDTV SET

Imagine

19.9

21.4

20.3

8

8.9

wk 23

20.7

22.7

19.8

7.6

8.9

wk 24

22.9

20

19

7

5

20.7

20.6

19.4

8.4

8.9

TVRs Genre

Channel

000's

Hai

Serials

Star Plus

7215

Bidayi

Serials

Star Plus

5912

Yeh

Rishta

Kya

Kehlata

Featur

8.9

wk 25

Top Programes

wk 22

Week 23

Hff Ghajini

e Films

Colors

5455

Balika Vadhu

Serials

Colors

5286

Chhoti Bahu

Serials

Zee TV

4946

17

Hindi GEC 25 20 15

wk 22 wk 23

10

wk 24 wk 25

5 0 star plus

colors

Zee Tv

SET

NDTV Imagine

Analysis:

Star Plus, Colors and Zee TV fared almost equally well during the period from week 22 to 25. Their viewership was comprehensively higher than SET and NDTV Imagine. For reaching to maximum viewers, the company would like to advertise their product on Star Plus and Colors channel.

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Hindi & Subtitle Movies:

SET

Zee

Star

week MAX Cinema Gold

UTV

Week 23

Movies Filmy

Top

5

Programmes

wk 22

39.5

27.7

13.9

4.4

3.8

Hum

Genre

Saath

Saath Hain

wk 23

31.5

32

17.7

5.4

3.6

wk 24

29.2

33.2

17.7

6

3.9

wk 25

30.2

30.9

19

6.2

4.3

TVRs Channel

000's

Zee N/A

Cinema

2978

vansham

N/A

MAX

2240

Chakde India

N/A

MAX

1751

Singh Is Kinng

N/A

MAX

1711

N/A

MAX

1638

Soorya

Meri

Jung

One

Man

Army

Hindi and Subtitle Movies 40 35 30 25

wk 22

20

wk 23

15

wk 24

10

wk 25

5 0 SET MAX

Zee Cinema

Star Gold

UTV Movies

Filmy

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Analysis:

In Hindi and Subtitle Movies sector, SET MAX and ZEE Cinema share the maximum pie from this category though Star Gold is also faring well as compared to UTV Movies and Filmy channel. Looking at the top five viewed programmes Zee Cinema has the highest viewership as compared to SET Max in the 23rd week. This being a movie channel the reach to the population is comparatively higher than any other category of channels. The viewership to some extent also depends upon the movie being shown on the channel.

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Cartoon/Animation/Child Prog:

Week 23

HunCartoon

Nickel

gama

week Pogo Network odeon TV

Disney

Top

Channel

Program mes

wk 22

22.8

21.5

20.7

18

8.8

23.4

23.5

20.7

16.3

8

wk 24

21.9

20.5

23.1

18.6

8

wk 25

21.9

22.1

17.2

7.5

Genre

Channel

000's

Cartoon

POGO

900

my friend Feature Ganesha

Films

CN

671

mr Bean

Cartoon

POGO

617

tom 22.9

TVRs

chhota Bheem

wk 23

5

&

Jerry

Feature

Tales

Films

CN

587

Cartoon

POGO

484

Stuart Little Series

Cartoon/Animation/Child Prog 25 20 wk 22

15

wk 23 10

wk 24 wk 25

5 0 Pogo

Cartoon Network

Nickelodeon

Hungama TV

Disney Channel

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Analysis:

There is high viewership of this category of channels due to the fact of being a children programme. POGO, Cartoon Network, Nickelodeon, Hungama Tv share almost equitable viewership. An advertiser may select any of these channels for his product advertisement to reach the target population. Popular shows being Chhota Bheem, Mr Bean and Tom & Jerry series.

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Hindi News: Aaj week Tak

India Star

NDTV

Week 23

TV

India

Top

News IBN 7

wk

5

Programm

22

18.3 15.1

13.8

9.8

9.5

wk 23

18.7 16.8

14.9

9.4

8.4

wk

es

Genre

18.3 17.7

15.6

7.7

8.3

wk 17.5 17.2

15.3

8.3

9.1

el

000's

Star

Aur Saazish

News

383

IBN 7

334

Presentation

Ki Reviews/Rep

Chote Par India

25

TVRs

Saas Bahu Channel

Danke

24

Chann

orts

Tv News

News

India

Bulletin

TV

Aap

Ke Religious/De

Aaj

Tare

votional

Tak

Khabar Din News

Star

Bhar

News

Bulletin

304

261

246

Hindi news 20 18 16 14 12 10 8 6 4 2 0

wk 22 wk 23 wk 24 wk 25

Aaj Tak

India TV

Star News

IBN 7

NDTV India

23

Analysis:

The news channel too fare a high viewership as compared to other categories of channels. The viewers of this category are mostly adult and matured and therefore we observe that there are hardly any advertisements for kids on such channels. Aaj Tak and India TV fare the maximum proportion with Star News too sharing a decent proportion of viewership. The viewership of such channels have increased due to telecasting of sensational and mythological programs which has created a buzz among the viewers.

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Sports:

Ten

Star

Star

Week 23

Neo

week Sports Cricket Sports Cricket ESPN

Top

wk

Programm

22

50.4

25.7

9.5

5.5

es

5.4

ICC

wk 23

8.1

78.2

4.6

1.3

ICC 4

92.1

1.2

0.6

ICC 8.4

86.7

1

0.6

T20 Match T20

WC-09

1.3

wk 25

Genre

WC-09

6.1

wk 24

5

ICC

T20

ICC

T20

000's

Star

1222

Cricket

1

Cricket

5919

Cricket

5610

Star Match

T20

WC-09

el

Star Match

WC-09

TVRs

Star Match

WC-09

2.5

Chann

Cricket

5564

Star Match

Cricket

3832

Sports 100 90 80 70

wk 22

60 50

wk 23

40

wk 24

30

wk 25

20 10 0 Ten Sports

Star Cricket

Star Sports

Neo Cricket

ESPN

25

Analysis:

ICC T20 World Cup has given the maximum viewership to Star Cricket as compared to Ten Sports, ESPN and Neo Cricket. Similar high viewership was observed during IPL cricket matches telecasted on SET Max. During such events the advertisements rates touches new heights due to the fact of tremendous viewership.

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Recommendations:  Videocon being an established brand in consumer durables, it has wide network of distribution across the country which could be tactfully used for its DTH product.  From the above observations, it could be concluded that Hindi GEC category has the maximum viewership among the various type of channels. Therefore Videocon can advertise their product on this category of channels and specifically on Star Plus and Colors channels. Some of the popular shows on this channels are „Yeh Rishta Kya Kehta Hai‟, „Bidayi‟, „Balika Vadhu‟ which will result in maximum reach to the population.  It was observed that the TVR‟s of the Sports channels go high during the telecast of Indian cricket matches on this channels. A creative advertisement like Vodafone‟s Zoo-Zoo being shown during IPL matches will leave high product awareness among the masses. Therefore Videocon should look for sponsoring of cricket series particularly of India and Pakistan and then advertising in such channels.  The viewership of Hindi and Subtitle movies is also high particularly for SET Max and Zee Cinema. An advertisement in any of those channels will help in achieving high reach of masses.  The viewers of Cartoon/Animation/Child Prog are mostly children who also play a part in deciding which company DTH should be purchased. An advertisement in POGO, Cartoon Network can spread the awareness about the product.

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

Observation: Interactive Services Shopping

Tata Sky Active Mall

Children learning Stories Games

Active Wizkids, Active Learning, Active topper in association with iLearn by 24x7guru.com 24x7guru.com Active Feature Active Stories Active Games Game Zone Games

Travel

Active Darshan (Mythology) in partnership with Star News iTravel

Sports

Active Sports

Matrimony

Active Matrimony (bharat matrimony.com) Active Cooking (masters chefs)

Cooking

Active Astrology Astrology (Bejan Daruwala) News Active Star News Movies Showcase City Information Book Movie Tickets Banking Reminders Child lock

Extras

Airtel digital tv iShop

iSports

Dish Tv

Big tv

iGames

Bhakti Acitve (Mytho) Active Feature with camera angle, match highlights, player statistics, multiple languages commentary

iCooking iAstro iNet, iNews Airtel live

Astroactive with Pandit Ajay Bhambi iAstro Active Feature iNews iCinema

iCity iMatinee ICICI ACTIVE Alert Available Widgets, Quick Electronic View, iPizza Programming Guide

Reminders available Electronic Programming Guide

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Findings:  Tata Sky is in the numero uno position with respect to provision of interactive services as compared to other players like Airtel Digital TV, Dish TV and Big TV.  Airtel Digital TV is in the second position only after Tata Sky with respect to the variety of interactive services been provided.  Dish TV is the only DTH player among the above players that does not provide gaming option. Rest all the players are well equipped with the gaming feature.  Astrology and news are the only features which are provided by all the DTH players.  One of the distinguishing features of Dish TV is the banking facility known as ICICI ACTIVE which no other players provide in any format.  Some of the common services which are found in most of the DTH players are children learning programmes, games, travel, cooking, astrology and movies.

Recommendations:  It is recommended for Videocon to include those common services which other DTH players provide since most of them are highly viewed by the population.  Videocon should come up with innovative services like „instant Travel Booking‟, „Weather report of the city‟, „Video Songs on demand‟ for having an edge over its competitors.  Videocon may come up with a service that gives information about rates of house rent, lease, purchase, selling of land property of Tier II cities which no other DTH company has brought forward.  It may come up with an idea of storing photos or videos in its DTH Share folder which could be shared with friends and distant families.

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Market Survey on Interactive Services and Cable consumers RESEARCH METHODOLOGY/ DESIGN The methodology adopted for eliciting the data required for the study was survey method. It is the overall pattern or framework of the project that will dictate as to what information is to be collected, from which sources and by what procedures.

RESEARCH METHOD Research methodology must be classified on the basis of the major purpose of the investigation. In this problem, description studies have been undertaken, as the objective of the project is to conduct the market survey about the interactive services of DTH players and study of Cable consumers.

DATA COLLECTION The information needed to further proceed in the project had been collected through primary data and secondary data.

PRIMARY DATA Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and all the retail outlets sellers using different brands and their competitors were contacted. Survey research is the approach best suited gathering description.

SECONDARY DATA The secondary data consists of information that already exists somewhere, having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data includes the information available with the company. It may be the findings of research previously done in the field. Secondary data can also be collected from magazines, newspapers, other surveys conducted by known research agencies etc.

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RESEARCH METHODOLOGY The respondents are consumers of various DTH. The survey was carried in the city of Mumbai with the sample size of 100. The survey was carried out with the help of a structured questionnaire, which helps in accomplishing the research objectives. The respondents by means of personal interview administer this structured ended questionnaire.

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Following are the observations and recommendations of market survey done on interactive services. Observation:

Share of DTH players Sun Direct Big TV 3% 7%

Others 10% Tata Sky 40%

Dish Tv 25% Airtel Digital TV 15%

 In the survey it was found that Tata Sky had the maximum share of subscribers among the five prominent DTH players. This is attributed to the fact of better service provision with prompt reply and wide variety of interactive services.  Dish TV and Airtel Digital TV are the next players after Tata Sky to grab the subscribers market. Dish TV being the oldest player in the DTH sector has gradually lost its grip to Tata Sky, Airtel Digital TV being new in the sector has readily caught the market in a fast pace.  Big TV and Sun Direct have low market share. Sun direct is not catching up with other players due to lack of attractive features and high concentration of south Indian channels.  Others include player like Hathway which has caught the market before arrival of many DTH players like Tata Sky, Airtel Digital TV.

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Active Services

Travel 9%

News 8%

Movies 28%

Astrology 13%

Cooking 7%

Games 35%

 The survey indicated that the customers preferred the Gaming feature more than any other interactive service which indicates that children interest too play significant part in selecting the DTH.  The Movie was the second preferred segment of the customers.  It was not surprising to see Astrology catching the customers interest with famous astrologers like Bejan Daruwala, Pandit Ajay Bhambi hosting the shows in the channel.  Travel, News and Cooking showed neck to neck competition. With middle income group growing in India, it is predicted that there will be increase in tourism which will ultimately increase the need of portals giving travel services.

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Remote control operation Complicated 11%

Easy 89%

 When asked to the customers about the ease of operating the remote control to find the interactive services then about 89% agreed to be it as easy while 11% found it difficult to operate.  The operation of remote control was found to be easiest in Tata Sky than any other DTH remote. This was due to the fact of having being written the function of each and every button than mere symbols which some other DTH remote do have.  Generally senior citizens and children aged less than 4 years find it difficult to operate the remote.

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Favourite advertisement

Commercials seen

Big TV 11%

Sun Direct 8%

Dish Tv 15%

Tata Sky 32%

Dish Tv 24%

Tata Sky 55% Airtel Digital TV 25%

Airtel Digital TV 30%

 Tata Sky seems to be successful in its aggressive marketing plan where it is seen as the most widely viewed advertisement. Tata Sky was also voted as their favourite advertisement featuring Aamir Khan and Gul Panag.  Airtel Digital TV and Dish TV are the next most viewed advertisements after Tata Sky.  The brand advertisements of Tata Sky, Dish TV and Airtel Digital TV are Aamir Khan, Shah Rukh Khan and Saif Ali Khan & Kareena Kapoor respectively.  Heavy advertisements results in better brand recall which results in higher sales of the product as could be seen in case of Tata Sky.

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View about watching Cricket from different angles

Not useful 25% Interesting 46%

Very Innovative 29%

 The most viewed game in our country i.e. Cricket was found to be interesting in viewing from different camera angles by 46% of the population interviewed.  29% of population voted this feature to be innovative.  25% of population did not find it worth improving the experience in watching Cricket.

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Does Interactive services increase the value of DTH package?

No 29%

Yes 71%

 Almost three fourth of the population been interviewed felt that the Interactive services increase the value of DTH package.  Interactive services like shopping, travel earns revenue for the DTH company if properly executed.

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Recommendations:  Since Videocon is launching its new DTH – „d2h‟, it should follow aggressive advertising plans to create awareness about the product. As Videocon is the 6th private player in the market it will be a Herculean task to grab the market share from well established players like Tata Sky, Dish TV etc. However placing itself in the niche segment of iDTV with STB will earn fortunes for itself.  Providing the apt Interactive services is the key for the success of any DTH as could be seen from the survey. In addition to common services like games, movies, astrology, cooking, travel it should have some innovative service like the one of record+rewind+play of Tata Sky +  Operation of remote should be user friendly with functions written on button rather than symbols which can complicate the understanding of remote. Also the shape of the remote should be innovative like of Tata Sky, Big TV with use of attractive colours on remote.  Videocon should advertise about the interactive features that it is going to provide because it was observed from the survey that many customers were not aware of Dish TV‟s banking facility of ICICI Direct, Big TV‟s 32 Cinema hall feature.  Selection of a proper brand ambassador is also important as it conveys a lot about the product. It should have a brand ambassador which is an icon of style, reliability and trustworthiness.

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Following are the observations and recommendations on market survey done on consumers of Cable.

Observation:

Monthly Cable Subscription Rs326-400 10%

upto 150 20%

Rs 226-325 50%

Rs151-225 20%

 The survey showed that the majority of the cable consumers paid a monthly subscription in the range of Rs 226 to 325. Upto 20% each paid in the range of Rs upto 150 and Rs 151 to 225.  It also indicates that majority of the consumers are ready to pay in the range of Rs 226 to 325 and so the DTH players should cast their monthly subscription in this range only.  The price range of Rs 151 to 225 is also a lucrative one since the consumers would be readily willing to pay in this range.

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When the consumers were asked about the reasons given by their cable operators for not providing their required channels, following were their comments:  May be because other DTH players are paying more than them.  As some are paid channels they are not able to receive it.  As some are paid channels the cable operators demand extra fee for the particular channel to be provided  Some cable operators do not reply to the consumers or avoid giving answers to them.  Those channels are not available in their area.  The particular channel is available on particular bandwidth which is not available with the consumers.  The channels are been provided however the consumer television is not able to receive it due to technical problems.

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Awareness of DTH operators

Sun Direct 13%

Tata Sky 27%

Reliance Big tv 13%

Airtel Digital Tv 20%

Dish Tv 27%

 Tata Sky and Dish Tv share equal platform in terms of popularity among the cable TV consumers. This is because of popular celebrities like Aamir Khan and Shah Rukh Khan endorsing for the products.  The Airtel Digital Tv gained popularity by advertising during IPL matches 2009 on SET Max. The result is within a short period after its launch it spread its awareness.  Sun Direct followed an extension advertisement of Bajaj Exceed which had become very popular. This achieved wide popularity for Sun Direct.  Reliance Big Tv gained awareness in about 13% of the population interviewed.

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Intent to change from cable to DTH

Preferred DTH operator to change from Cable

Relianc e Big tv 14%

No 30%

Sun Direct 7%

Tata Sky 36%

Yes 70% Airtel Digital Tv 18%

Dish Tv 25%

Factors causing change to a particular DTH Easy availability 11%

Schemes & packages 33%

Brand Image 45%

Referrals from relatives & friends 11%

 With the population interviewed, about 70% showed the intention to change from cable to DTH.  Tata Sky was the most preferred player among the consumers to change from cable.  Sun Direct was the least preferred among the consumers because of the heavy regional content.  Brand Image of the DTH was the most influencing factor among the consumers for changing to a particular DTH.  Schemes & packages was the next factor of consideration for rational consumers

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Reasons for not changing to DTH

Feel suitable package is not available 23%

others 5%

Don’t understand the schemes 15%

High cost ofDTH 21%

Satisfied with Cable 31%

More than one TV 5%

 Most consumers were satisfied with their existing customers and do not intent to switch to any DTH player.  High initial cost of DTH including the STB was one of the inhibitions to change to DTH player.  Some consumers were not satisfied with the existing package offered by the DTH players and some did not understand the schemes of the DTH players.  Peculiar problems like having more than one TV also restricted the consumers to go for DTH.

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Recommendations:  The consumers will be very happy to pay in the price range of Rs 151 to 225 as a monthly subscription since most of the cable consumers pay more than Rs 225 to existing cable operators.  Many a times cable consumers are fooled by their operators about the unavailability of particular channels which Videocon can make aware to the masses.  Tata Sky and Dish TV are most popular among the masses due to their distinct brand ambassadors. Videocon should be very particular in choosing their brand ambassador for d2h product since that will decide in gaining the mileage.  Videocon has an established brand image in consumer durables which could be definitely used as a leverage to launch its d2h. Since the survey showed that brand image is the most influencing factor for change, its reputation as a king for consumer durables would be an advantage.  Around 40% of the population interviewed do not understand the DTH schemes or are not satisfied with the existing schemes. Videocon should design their schemes and packages keeping the understanding level of common people.

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Reviews about various DTH players  Tata Sky by Devilhead satish from forums.techarena

Audio The audio is nothing short of amazing. All the frequencies are reproduced quite brilliantly, and the better the speaker system you have, the better your experience.

Showcase Tata gives you the option of watching certain movies of their choice and a lot of times of the day. You select, pay 75 bucks through phone or SMS, get the popcorn and watch the whole movie with just a single ad break. Neat, I say.

Active Content This is the real fun part and what makes Tata Sky better than the competition. Active Content, is their way of offering a range of interactive content and keeping everyone happy.

Verdict DTH is nothing short of an eye-opening experience and Tata Sky makes it all the more better. If you're still stuck with cable TV, you're genuinely missing something. No, a lot more, actually. Go, get it, quick!! The idiot box is dead, the smart box is here.

Radhaiyer from forums.techarena I am using a tata sky connection for a while now and have faced no problems till date. I have made changes to my packages almost 3 times in last 6 months and whenever i have made any requests, they have been very prompt to revert and handle my issues. Their service quality is what impresses me the most. From what I have gathered, in comparison to other dth operators, TS has the best customer care service!

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 Dish TV by Dr V.Gupta on indiatdh.com

They sell cards in the market with lot of instructions in small words which are not easily readable. Even if you are lucky to read that you will not be able to get the work done. Their user manual mentions different formats on different pages for the same thing. At least the card should contain the latest instructions/formats.

There is no warranty/guarantee, you manage the things yourself. You should abide by the T&Cs so that there is no financial loss to the company. Company can't take care of you because you have already paid to the company.

You have to be sharp in understanding 'English'. You should be intelligent enough to arrive at conclusion that "16 digit pin no." as mentioned in the instructions for sending SMS is actually: 'Account No. + Password'.

One more thing the card does not mention is that there should be a gap between account no. and password in the SMS. There are no marks for this correct guess.

By the time you know the correct method; you have also wasted 15-30 minutes in the process of listening to the steps at call centre, waiting with music and finally in listening to the 'expert advice' of the BPO advisor. Thus, you waste not only precious time but also another 50-100 rupees on calls and SMSes. The telephone network becomes busy on account of avoidable inconvenience.

Moral of the story:

No body from DISHTV will tell you the correct thing instantly, you go on calling call centre then only you will know it. This is because they are themselves not having consensus which is the correct method even for sending a simple SMS.

You complain to customer care you don't get a proper reply. The things go like this only

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because you are santusht with them. Where is that SRK now?? He has got his money for advertising for them; he will not be seen now.

I recharged my DISHTV but it is not working even after 14 hours, should I go on wasting my money calling customer care? Who will listen to this?

We know that DTH is new to India and company is not experienced, it experiments but at whose cost? The customer, The Nation.

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

K.Mohan on indiadth.com

Although Mr. Sachin promised to instal in first week of August, no progress was made and he was not responding to our calls. We had to run from pillar to post for 5 weeks . when we called your executive Mr. Vivek Mishra given in you web site (Ph 9324256888) he directed us to Mr. Sekar( Ph 9920023467 ) who after several days being not effective, gave his superior‟s no Mr. Eric Samuel ( Ph. 9820179326)

After continuous follow up with your executives after paying money in advance, finally it was installed and activated from first week of September 2008. We thought our agony will end there, however it is only start of our never ending problem

When we saw on TV suddenly our validity period being reduced to 15 June 2009 from our original date of 7 September 2009, we contacted your call centre. We were told that money is deducted for movies. Since the call centre was callous in not responding to our pleas, we contacted Mr. Eric Samuel and as advised by him sent the e mail dt 13 Nov. 2008. We are totally disappointed and anguished at the arbitrary and intensive callousness of your billing section.

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 Airtel Digital TV by Dinesh Kumar on indiadth.com: You must have seen the ads on TV – Airtel has launched its DTH service called Digital TV. I buy one, from Saak Communication, SCO 279, Sector 32-D, Chandigarh (Phone: 0172-461995, 4616655) for Rs 2000. I am told that activation is very easy, I have to call a toll-free number: 1800 102 8080. It seems that the number can only be connected from Airtel phones, which was not told to me. I try for two days, and then approach Saak Communications, who tell me that it is not possible. See they can get the number anytime! (Translation: the customer is a fool or a liar).

The number for Chandigarh, 0172-467 0021 is either not functional or is overwhelmed by complaints. They just do not answer the phone. So much for the call center number and the nodal center! If they are not answering the phone now, what will they do if my system develops a snag? I go to another Airtel dealer, who tells me that the number cannot be dialed from any other phone apart from Airtel phones. He also tells me that the price of Digital TV is Rs 1699 and I have been overcharged by Rs 301 by Saak Communications.

So buy the Airtel Digital TV only if you have an Airtel phone. But then if you have an Airtel phone, you probably know about Airtel service, in which case you are better off with some other service provider!

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 Big TV by Ganesh Iyer on bigtvdth.com:

I ordered for South Smart pack (Rs. 2990/-) and South Premium Pack along with Tamil regional pack. But to my surprise I got Popular Pack and our favourite Sun channels missing. I am complaining to the toll free number where they talk very sweetly but people sitting there don't know anything about Big TV packages. One even said that Sun TV is available only in South India and not in North India! Very funny! Foolish people! They never pass on my problems to their superiors. Every time I have to explain my problem to the person who receive the phone. Just they talk sweetly and end with "aap ka din subh ho". Till now, there is no solution to my problem.

Only on Saturday (20th September 08), one operator was kind enough and gave me a complaint number. There has been no reply to E-Mails sent to them. Big TV is providing very pathetic and very horrible service. I can't believe it!

I am in such a position that I am ready to forfeit Rs. 3000/- which I have incurred in the purchase of Big TV and switch over to Tata Sky whose services are far better than Big TV. I will just feel that someone has cut my pocket and took away my purse with Rs. 3000/- in it. That‟s all. It is not a big amount. Let it go.

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 Sun Direct on consumer.admanya.com:

TERRIBLE, HORRIBLE, WORST, PATHETIC, WIERD...I am not finding words to abuse SunDirect Customer Care Service. This is worst service I have ever experienced in my life, Probably never in future too... I have been trying from a month, to recharge my plan, Both customer care numbers: toll free # 18002007575, 044-39407575 are always busy, the second number a couple of times i got connected with an automated voice said, waiting time will be 1 hour...Worst... Can not they setup enough number of phone lines and tel.reps while they are charging good amount of money from the customers. I would never suggest to this service to any one.

SUN Direct is a piece of CRAP!!!,

I have subscribed to Sun Direct DTH at NOIDA on 23/02/2009 with 5 months free 105 channels - as advertised by SunDirect. 105 channels included COLOURS channel. From 1/4/2009 Colours was withdrawn from free channels and they are charging Rs 25/- per month.

SunDirect company is cheating the customer by advertising something else and not providing the promised service.

Is there any regulator or Customer Interest protector in India who can protect interest on customer and protect the customer from such frauds?

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Perceptual Mapping A perceptual mapping of the five strong players in the DTH market was carried out to produce a picture of the competitive landscape from a customer‟s point of view identifying the aspects or factors that customers use to conceptualise their choices. In this research technique, a questionnaire was designed and responses were collected from 80 customers surveyed which were put into statistical package of SPSS known as Multi Dimensional Scaling (MDS). Following are the observations obtained from MDS – Data OptionsNumber of Rows (Observations/Matrix). Number of Columns (Variables) . . . Number of Matrices . . . . . . Measurement Level . . . . . . . Data Matrix Shape . . . . . . . Type . . . . . . . . . . . Approach to Ties . . . . . . . Conditionality . . . . . . . . Data Cutoff at . . . . . . . .

5 5 1 Interval Symmetric Dissimilarity Leave Tied Matrix .000000

Model OptionsModel . . . . . . Maximum Dimensionality Minimum Dimensionality Negative Weights . .

. . . .

. . . .

. . . .

. . . .

. . . .

Euclid 2 2 Not Permitted

Maximum Iterations . . Convergence Criterion . Minimum S-stress . . . Missing Data Estimated by

. . . .

. . . .

. . . .

. . . .

30 .00100 .00500 Ulbounds

Algorithmic Options-

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Iteration history for the 2 dimensional solution (in squared distances) Young's S-stress formula 1 is used. Iteration 1 2 3

S-stress .06111 .05111 .05031

Improvement .01000 .00079

Iterations stopped because S-stress improvement is less than

.001000

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In the above perceptual mapping there are two dimensions along which the mapping was done. Dimension 1 indicates „Customer Service‟ ranging from Poor to Excellent, whereas Dimension 2 indicates „Emotions‟ ranging from Rational to Emotional. Following were the conclusions drawn –  Tata Sky was rated as the best player with respect to provision of Customer Service.  Big TV was rated as a poor player in terms of Customer Service.  Sun Direct was considered to be rational in terms of its schemes and packages, Set Top Box (STB) and monthly subscription.  Customers appeared to be more emotionally attached with Dish TV, being the oldest player in the DTH market and endorsement of its brand ambassador i.e. Shah Rukh Khan.  Small distance between Airtel Digital TV and Dish TV indicate that they are more or less perceived similar by the customers. It also indicate a close competition between the two players.  The other brands viz. Tata Sky, Sun Direct and Big TV have distinct images in the customers mind.

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Annexure 1

Questionnaire on DTH Interactive Services

1. Which DTH brand service do you use? TataSky,

Dish tv,

Airtel digital tv,

Big tv,

Sundirect

2. Since how long have you been using DTH service? Less than 6 months,

6 months to 1 year,

1 to 2 year,

2 to 3 year,

more than 3 years

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

No

4. Which active service do you use frequently? Games,

Movies,

cooking,

Astrology,

Others (please

specify)____________

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

Easy

6. Does the interactive service offered by the DTH companies influence your decision of purchasing a particular DTH? Yes

No

7. Do you find the interactive service helpful in your daily needs for example cooking, learning etc Yes

No

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8. Are you willing to purchase your existing DTH without any interactive services being offered, though with reduced price? Yes

No

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

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

Dish tv

Airtel digital tv

Reliance Big

Sun direct

11. Which is your favourite commercial among the DTH players? TataSky(Aamir Khan & Gul Panag, Hrithik Roshan, Paresh Rawal) Dish tv(Shah Rukh Khan) Airtel digital tv(A.R Rehman, Saif & Kareena) Reliance Big tv Sun direct

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

No

Don‟t remember

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

No

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

No

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15. Which interactive service have you purchased recently?

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

No

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

No

18. What do you feel about the feature of watching cricket from different angles as provided by TataSky and Dish tv? Very innovative

Interesting

not useful

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

No

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Annexure 2

Questionnaire for Consumers of Cable tv

1. Since how long you have been using cable tv? Past 6 months

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

2. How much do you pay for monthly cable? Upto Rs 150 Rs 151-Rs 225

Rs 226-Rs 325

Rs 326-Rs 400

Above

Rs 400

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

No

4. If answer to Q3 is no, then what reason does your cable operator gives for not providing the required channel?

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

Dish tv

Airtel Digital tv

Big tv

SunDirect

others(then

specify)_____________

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

No

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

No

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

Dish tv

Airtel Digital tv

Big tv

SunDirect

others(then

specify)_____________

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9. Your choice of the DTH player is due to Schemes & packages,

Referrals from relatives & friends,

Easy

Brand Image, availability,

others(thenspecify)_________________________________________________

10. What difficulty you see in changing from cable to DTH? High cost of DTH,

satisfied with

not aware of DTH,

the existing cable,

not suitable package available

other reason(specify)______________________________________________

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

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

Normal,

Idea will not work

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Annexure 3

Questionnaire for Perceptual Mapping Q1 – Give your ratings regarding the redressal of complaints for the DTH companies? 1 denotes Excellent and 5 is Poor

1

2

3

4

5

Tata Sky Dish TV Airtel Digital TV Big TV Sun Direct TV

Q2 - Give your ratings for the promptness of response from the DTH companies? 1 denotes Excellent and 5 is Poor

1

2

3

4

5

Tata Sky Dish TV Airtel Digital TV Big TV Sun Direct TV

Q3 – Rate the given below DTH companies according to the overall customer service provided by them? 1 denotes Excellent and 5 is Poor 1

2

3

4

5

Tata Sky Dish TV Airtel Digital TV Big TV Sun Direct TV

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Q4 – Give your ratings for the economy of the schemes and packages of the various DTH players? 1 denotes Excellent and 5 is Poor 1

2

3

4

5

Tata Sky Dish TV Airtel Digital TV Big TV Sun Direct TV

Q5 – Give your ratings according to the emotional impact of the advertisements of the DTH companies? 1 denotes Excellent and 5 is Poor 1

2

3

4

5

Tata Sky Dish TV Airtel Digital TV Big TV Sun Direct TV

Q6 – Give your ratings according to the overall entertainment level provided by the DTH companies? 1 denotes Excellent and 5 is Poor 1

2

3

4

5

Tata Sky Dish TV Airtel Digital TV Big TV Sun Direct TV

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References

About TAM from exchangeformedia.com

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

TELECOM REGULATORY AUTHORITY OF INDIA. NOTIFICATION. New Delhi www.dot.gov.in/Acts/legislation

Industry analysis from www.sivasundaram.com

Information on DTH industry from www.merinews.com

Information on schemes and packages of various DTH players was collected from the advertisement materials and brochures of the company.

www.saveondish.com

www.indiatelevision.com

www.tamindia.com

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