market research india - direct to home (dth) market in india 2009

7/31/2019 Market Research India - Direct to Home (DTH) Market in India 2009

1/38

December2009
http://www.netscribes.com/


2/38

ExecutiveSummary

Market

Market is valued at INR 15 bn in 200809 and projected to reach INR 30 bn in 200910

Estimated subscriber base of 15.17mn, expected to reach 36 mn in the next 5 years

Current overall share of DTH households among total TV households of India is pegged at 13%

Drivers:

Growingmiddle

class

and

rising

disposableincome

Drivers &

Challenges:

Gettingashare

of

the

cable

driven

market

and

facingthenewageIPTV

ofLCDmonitors

Pricewaranddifferentpackageoptions

attractingconsumers

Advantageovertraditionalcableoperators

Challenges

Demandsupplygapfortranspondersina7

playerbroadcastmarket

Capon

Foreign

Investments

Trends

Technological Innovations

Shift from price war to offering exclusive VAS

Competition

Dish TV, the first company to enter is the largest player, controlling ~32.5% market share

Steep competition has led to a surge in advertising spend to improve penetration

Partnerships with movie distributors

2DIRECTTOHOME(DTH)MARKET INDIA.PPT

Due to growing number of players in the market, Average Revenue Per User (APRU) will declineowing to price war and discounts


3/38

MarketOverview

Trends

Competition

KeyDevelopments



4/38

DirecttoHome(DTH)hastransformedthetelevisiontransmissioninIndia

TVchannelsaretransmittedfromthesatellite

toasmalldishantennamountedontherooftop

DTH

TheConcept Functioning

of

DTH

Kubandsatellite

ofthesubscriber'shome

ADTH

service

provider

has

to

lease

Ku

band

transpondersfromthesatellite

,

signalsintothedigitalformatandthe

multiplexermixesthesesignals

UnlikeCable

TV,

the

broadcaster

directly

Middlemenlikecableoperators

arenotinpicture

(DTH)network UplinkStationBroadcaster

2000 2006 20082002 2004

TVDishwithtransmissiondecoder

2001:BanonKUbandlifted.

GuidelinesbyTRAI

2003: Firstprivatelicensegrantedto

DishTV

2004: DTHbecameoperativealong

withDDDirect+

2006:DTHsubscriberbase

touched1mn

2008:15.17mnDTHsubscribers

reportedby5key



5/38

DTHindustryinIndiahaslookedupbeatinrecentyearsbutremainsanichesegment

EstimatedmarketvalueofINR15bnin2008;

expectedtoreachINR30bnattheendof2009

Overview SegmentedPay

TV

Subscriber

Base

DigitalCable

DTHSubscribersinmn

IntheIndianPayTVmarket,DTHpenetration

isonly

17.24% (June09), reaching15mnoutof87mnpaidsubscribers

2215

40

60

80

100

1

60

3

63

14

69

2

70

4

69

AnalogueCable

amongtotalTVhouseholdsofIndiaispegged

at13%

Themarket

has

6private

broadcasting

DistributionacrossTVHouseholds(HH)

0

20

2006 2007 2008 2009e 2010e

, ,

Direct,AirTelandVideoconandoneFreeto

Airoperator DoordarshanDirect

Newentrant:VideoconinMay200960

80

CableHH

DTHHH

HH(%age)

60%ofDTHsubscribersresideinruralareas

andtownswithapopulationunder1mnandis

largelydominatedbyfreetoairDoordarshan

Directservice

61 64 64 64 64

0

20

40

1 3 913 17


2006 2007 2008 2009e 2010e


6/38

DTHserviceshasestablisheditspresenceonapanIndiabasisandisdominatedbythenorthernandwesternregion

NorthIndiaandWesternIndiatogether

contributeover8mnDTHsubscribers,while

IndianDTH

Market Major

Geographical

Regions

Morethan48%ofDTHsubscribersthesouthernmarketcontributes3mn

Thestates

of

Maharashtra,

Goa,

Punjab,

Uttar

Pradesh,andRajasthanaretheleadersinDTH

subscri tion contributin over6.5mnDTH

Punjab

connectionstotheoverallbase

EasternIndiaisanuntappedmarketwith

consumerslooking

for

digital

picture

quality

RajasthanUttarPradesh

(CAS)overDTHduetoitspricing

TheDTHpotentialinIndiaispeggedat80mn

households,dividedbetweentheNorthand

Maharashtra

SunTVdominatingthe market in South



7/38

Subscriptionandleaserentalaremajorsourcesofrevenues;Playersarefocusingonsomekeyareastoincreaserevenues

RevenueModel

SubscriptionRevenue LeaseRental Advertisements

Advertisementrevenue

modelischanging

TataSkymovedfromflatfee

Earningsfromrentingoutset

top

boxes

(STB)

and

dishes

to

subscribers

Playershavebeenproviding

Revenuegeneratedfrom

subscribers

based

on

various

packagesoffereddiffering

fromoneanotheraccording

model

DishTVprovidesmatrimonial,

jobsand

payment

services

STBsatsubsidizedrates

towardsincreasingsubscriber

baseinthishighly

competitivemarket

tothechannelsbroadcasted

Includesrevenuesfrom

variousvalueaddedservices

suchasmovieondemand

A ro riateContent Exclusivit After

Sales

Service

Firstmover

Keyfocusareasforoperatorstoincreaserevenues

Offering

appropriate

packagesbasedon

Obtainingexclusive

rightsfor

broadcastinge.g.

Quickinstallation,

minimizingbilling

errorsandreduce

van age

Beingthefirstto

providenew

servicestowards


reg ona eman spor seven s s gna srup on c os ngcompe on


8/38

ProgrammingcostandsubscriberacquisitioncostarehighinDTHmarket

ProgrammingcostisthelargestcostforaDTH

operator

Overview SubscriberAcquisition

Cost

Parameter Cost(INR)

Determinedasaproportionofsubscriptionrevenuethat

theoperatorcollectsfromsubscribers

Growthin

subscriber

base

is

expected

to

lead

to

afall

inadvertisingexpenditureto4%ofoverallrevenues

b FY12

os o e op ox ,

CostofDish,Card,Wiring,Customs

duty,VAT 1,450

TotalCustomerPremise

Onanaverage,theoperatorswilltake78yearsto

breakeven

OperatorsCostStructure

EquipmentCost(CPEcost),

Installationcost 500

Dealercommission 400

Programming Cost20%

Dealer Commissions

TotalofOtherCostsEntailed 1,400

TotalCost 4,300

6%

13% Other O eratin Costs

Employee Cost

5%

Administrative Cost6%

Transponder Rentals

10%

SubscriberAcquisitionCost(SAC) 2,510

SACisbornebytheDTHplayersaffectingtheir


pro marg ns s u s a n a y


9/38

MarketOverview

Trends

Competition

KeyDevelopments



10/38

DriversandChallenges

Challenges

Gettingashare

of

the

cable

driven

marketandfacingthenewageIPTV

Drivers

Thegrowingmiddleclassandrising

disposableincome

TrappedinTRAIscontentguidelines

Demandsupplygapfortransponders

ina7playerbroadcastmarket

ncreas ng e ev s onpene ra onan

saleofLCDmonitors

Pricewaranddifferentpackage

optionsattractingconsumers

CaponForeignInvestments

DTHadvantageovertraditionalcable

operators



11/38

RisingmiddleincomesegmentwillbeakeydriverforsubscriptionacquisitionofDTHproviders

ThemiddleclasspopulationinIndiaisexpectedtoreachhalfabillionby2030andcurrently

comprisesabout64%oftotalpopulation

Thegrowing

middle

class

and

rising

disposable

income Impact

Riseindisposableincomeoftheworkingclasscoupledbythenewdigitalwavewilloverlookthe

pricefactorofDTHvisviscable

AggregateAnnualDisposable

Income INR tnTotalNo.ofHousehold mn

90

24%

Perhouseholdannual

income(INR000)

Coretarget

281

12%3%244

1%

23%

44

9%

15%

Strivers

Globals

consumer

groups

>1000

500

1000

34%

43%

23%207

44%

5% 1% 1%

2025

3%

15%

2015

9%

33%

34%

2005

24

23%

49%

13% 7%

9%

Deprived

Aspirers

Seekers 200500

90200


12/38

RapidlygrowingtelevisionmarketisexpectedtoboosttheDTHindustryinIndia

The television market, which is valued at INR 241 bn in 2008, is estimated to grow at 14.5 %

over 200813

Increasingtelevision

penetration

and

sale

of

LCD

monitors Impact

enum ero ouse o s s orecas e ogrowa . over

About65%TVHHshavecable/satelliteaccess

Theuntapped

35%

hold

ahuge

potential

for

DTH

services

UpgradetoLCD(LiquidCrystalDisplay)TVshasshiftedviewershiptrendtoDTH/digital

broadcast

OverJanApr2009,themarketforLCDandplasmaTVsgrewby81.6%overthesameperiodlastyear

FlatpanelTVswithDTHconnectionsarebeingretailedtogetherasapartofamarketing

strategyRisingTVHouseholds TVTechnologyMarketShare

142136129122

116110

150

mn +5%LCD

CRT

74

869396

100

%

0

50

10058 56

25

1373

0

20

40

60 4341


2010e2009e20082007200620052004 2012e2011e2010e2009e20082007

d l l l k


13/38

Increasedcompetitioninasixplayeroligopolisticmarketfuellinggrowth

SixprivatepayDTHplayersofwhichVideoconenteredinJuly2009makingcompetitionsteeper

Pricewarhasleadtodropinupfrontchargesandsubscriptionfees

Pricewar

and

different

package

options

attracting

consumers Impact

Widerchannelpackageoptionsarebeingpricedtosuitdifferentcustomersegments

Aggressivemarketing byDTHoperatorsisspreadingproductawarenessandpenetrationinTier

2andTier3cities

Promotionofvalueaddedserviceslikemoviesondemand,educationalcontent,travelbooking,

matrimonialetcalsoattractingsubscribers

FallinUpfrontCharges

INR

NumberofPackagesOffered

Increasingoptions

4,000

3,000

4,00033%

8

9

10

basedonvaried

demandpatterns

1,200

1,000

2,00044


Aug2006 Mar

2009 Sun Tata

Sky Dish

TV Reliance Airtel

i i i f h bl bl i


14/38

Limitationsof

the

cable

operators

cause

cable

viewers

to

switchbroadcastmedium

SatellitetransmissionnetworkinDTHenablesdigitalpicturequality

Unlikecableoperators,DTHoperatorsalsoprovidesinteractivevalueaddedserviceslikemovie

DTHadvantage

over

traditional

cable

operators Impact

requests,jobsearchenginesetc.

CableindustrydoesnothaveRightofWay(RoW)privileges,andispulledoverbuildingsand

treetops

unlike

dishes

leading

to

disruption

Disturbanceduetopowercutsatacableoperatorslocationisavoided

DTHservicesbeingsatelliteaidedreachremoteareaswherecable/wirescannotpenetrate

Mobilityatthetimeofshiftingresidenceispossible


Th f b i i h f h ll f d b DTH


15/38

Threatof

substitutes

is

the

foremost

challenge

faced

by

DTH

operators

Gettingashare

of

the

cable

driven

market

and

facing

the

new

age

IPTV

Impact

Cableoperatorshavetheadvantageofindustryestablishmentsince1992

,

DTHhigher

Whilecable

operators

pay

4%

revenue

as

taxes,

DTH

providers

pay

over

30%

Arecent5%importdutyonSTBshasaddedtothecostsofDTHoperators

Analogue Cable

Digitalcablewithasubscriberbaseover1mnisacheapersubstitute

AsignificantchallengeforDTHastheirofferingsaresimilar

Policyguidelines

approved

for

Headend

In

The

Sky

(HITS),

that

digitally

transmitschannelstothecableoperatorsviasatellite

Reliesonexistingcablenetworkswithnoextrainstallationsandthereforecomes

cheaper

HITSwilloperateonCbandaswellasKuBand(sofarusedbyDTH)

BetterpicturequalitylikelyasKuBandisvulnerabletorainwithweakenssignal

Digital Cable

HighBroadbandpenetrationmakesIPTVapotentialsuccess

Televisionsignalssentovertelecommunicationslineahasslefreeproposition

forenduserIPTV


Customercanchooseaprograminsteadoftakingagenericpackageincaseof

DTH

I bili id l i d li i d


16/38

Inabilityto

provide

exclusive

content

and

limited

transpondersaffectthecompetitiveedgeofproviders

CompetitioninglobalDTHmarketsthriveonprovidingnichecontent

TRAIprohibitsabroadcasterfromofferingcontentexclusivitytoaspecificplayer

Trappedin

TRAIs

content

guidelines Impact

Thecompetitionrestsonpricingstrategyalonewhichmightshrinktheindustry

Demandsupplygapfortranspondersinasevenplayerbroadcastmarket Impact

Atransponder(Transmitterresponder)canbeam1016channelsdependingonMPEG2or

MPEG4technology

Thedemand

for

new

channels

is

increasing

with

400

plus

channels

already

in

India

Therefore,eachDTHproviderwillneedabout1525transpondersanddedicatedsatellites

RegulationspermitoperatorstouseonlyIndiansatellitesorforeignsatellitesapprovedand

leasedbyIndianSpaceResearchOrganisation(ISRO)

In200809,ISROleasedonly36transponders

O eratorsfeel

that

to

meet

this

demand

su l

a

additional

72

trans onders

are

needed

b

2015

56777

1012

KubandTransponderUsagebyDTHPlayers


Sun DDDirectVideoconD2HBigTV AirtelDigitalTataSky DishTV

F i i t t li it d b T l R l t


17/38

Foreigninvestments

limited

by

Telecom

Regulatory

AuthorityofIndias(TRAI)stipulations

DTHisacapitalintensiveindustry

Hardware,CPEandcapacitybuildingaccountforthemajorityofthetotalinvestmentrequired

Capon

Foreign

Investments Impact

Ittakesabout67yearstobreakeven

Limiting foreigninvestmentpreventscashconstrainedoperatorstoexpandoperations

CurrentDTH

regulations

limit

FDI/NRI/OCB/FII

to

49%

in

which

FDI

cannot

exceed

20%

OntheotherhandHITS,thecompetingdigitaltechnologybroadcastplatform,enjoysFDIcapof

w c ma est ecompet t onuneven



18/38

Market

Overview

Trends

Competition

KeyDevelopments



19/38

KeyTrends

Partnerships

with

movie

distributors TechnologicalInnovations

Trends

CombinedretailofLCDsandDTHconnections

Shiftfrompricewarto

offeringexclusiveVAS


T h l i l d f h d t t i t h


20/38

Technologicalupgrades

for

enhanced

entertainment

has

beenakeyemergingtrendintheIndianDTHindustry

TechnologicalInnovations

Providingbetter MPEG4isacompressingandmultiplexingvideosolution ElectraencodersinMPEG4allow2225channelspertranspondercompared

costeffective

methods

to1517onMPEG2

Broadcastersthereforecanprovidegreaternumberofchannelswithasingle

transponder CompressionefficiencyproducesHighDefinitionpicturesatreducedenergy

consumption

AdoptionofMPEG4

Technology

, ,

DVRisanupgradeoftheexistingSTBwithaninbuiltstoragecapacityto

pause,record

and

replay

live

television

TataSkyplus,AirTelDigitalTVandHathawayDigitalcableofferthishighend

serv ce

Thepricingisabout4timesthatofthestandardDTHSTB

ExistingDVRownerswatchanaverageof1.3hoursofrecordedTVand2.9

hoursofbroadcastTV

Comprisesofupwardlymobilecustomersandisfastcatchingup

Recording(DVR)

Thisinteractiveserviceallowsviewerstoswitchbetweenvariousanglesof

cameracoverage,widelyusedinbroadcastingcricketmatches

Featuresincludechoiceoflanguageofcommentary,playerstats,ball

trajectoryinformationandhighlightsondemand

ThisserviceisofferedbyTataSky,DishTV,RelianceBigTV

MultipleAngleFeed


BigTV(Jun09)partneredwithESPNtoofferinteractivecricket,apaidserviceduring

T20world

cup

VAS pro ided b pla ers is e pected to de elop the market


21/38

VASprovided

by

players

is

expected

to

develop

the

market

intermsofinnovationandrevenuegeneration

CompetitioninDTHmarketisprimarilyintheformofpricewarwithnocontentexclusivity

VASofferedasseparatepaychannelsgivesDTHoperatorsacompetitiveedgeovertheother

Shiftfrom

price

war

to

offering

exclusive

VAS

Differentiatorin

Shiftfrom

price

war

to

offering

exclusive

VAS

CurrentshareofVASintotalsubscriptionrevenueisunder2%

SomeoftheserviceslikeBigTVsiGames,iCooking,iNewsandiAstroarebeingofferedfreefora

certaintenurebeforebeingconvertedtopaidservices

SimilarlyDishTVofferedabargainoffreeSTBsifthecustomerpaidfortheVAS

competitive

market

Operator Channel/Offering

DishTV Monster.com(MonsterJobs Activeforjobsearch);ICICIBank (ICICIActiveforbank

serviceinformation);

Shaadi.com (Shaadi

Active,a

matrimonial);

Yaatra.com

.

servicesanddownloads);ZeeSports (SportsActive);Zee News(NewsActive)

TataSky HungamaDigitalMedia (ActiveMallformobileshoppingexperience);Fernsn

Petals (Flowerdeliveryservice);24X7Guru.com (ActiveWizKids);NDTVGood

interactiveastroforecasts);StarNews (ActiveStarNewsforinteractivenews)

BigTV RelianceMoney (ISTOCKforportfoliomanagement);CNNIBN (iNEWS);ESPN

(Icricket)


DigitalTV Pizza

Hut (iPIZZA

ordering

pizza

on

DTH);

Makemytrip (iTravel);

ESPN (iSport)

Tie ups with TV manufacturers and movie distribution


22/38

Tieups

with

TV

manufacturers

and

movie

distribution

houseshasbeengrowing

DTHoperatorstiedupwithLCDmanufacturerstoofferattractiveschemestopromotesales

DishTVtiedupwithLGwherepurchaseoftheLCD,theDTHconnectioncamefree

Combinedretail

of

LCDs

and

DTH

connections

Combooffers

Combinedretail

of

LCDs

and

DTH

connections

TataSkyandSamsungofferedaschemeunderwhichthesize(ininches)oftheLCDpurchasewouldequal

thediscountgiven.Foreg:a21inchTVwouldbeeligiblefora21%discount

RelianceBig

TV

in

association

with

LG

electronics

offered

discount

on

LCD

sets

along

with

afree

3months

subscriptionofBigTVsLitepackorSouthDelightpackofchannels

positively

impactedsales

e ngcomp emen aryu es, esa eo s pus e esa eo connec ons

RelianceBig

Pictures,

Percept

Pictures,

UTV

Movies

and

Dharma

Productions

tie

up

with

DTH

providerstoreleasemoviesonDTHmedium

Partnershipswithmoviedistributors

Symbiotic

MainaurMrsKhanna premieredonDishTVandBigTV.OtherrecentmovieslaunchedincludeKaminey,RockOn,WakeUpSidetc

DishTVhasenteredinto50:50revenuesharedealwiththeproductionhouses

AfamilyoffourhavetospendasmuchasINR1,000toseeamovieinmultiplex.ButwithMovie

betweenplayers

anddistributors

on

eman

serv ceon

,

eycan

wa c

amov e

w n

wee s

o

sre ease

a

avery

e

price(INR50150permovie)

Currently,under5%subscribetomoviesondemandandaDTHoperatormakesaboutINR30mn

fromsubscriptionrevenueofanewfilm


,

100mn

of

revenue

from

movie

on

demand

ifeven

merely

5%

subscribe

to

it


23/38

Market

Overview

Trends

Competition

KeyDevelopments



24/38

KeyRegulations

Interoperabilityof

STB High

Taxation

Regulations

TariffRegulation CustomsandExciseDuty


DTH industry is one of the most highly taxed areas in media


25/38

DTHindustry

is

one

of

the

most

highly

taxed

areas

in

media

space

Cableoperators

pay

only

5%

of

their

revenues

as

taxes,

while

DTH

industry

is

heavily

taxed

LicenseFees:10%onadjustedgrossrevenue (expectedtobereducedto6% butisbeing

delayed)

ServiceTax:10.2% ongrosssubscriptionrevenue

EntertainmentTax:0 30% dependingonthestate/territory(30%taxinUttarPradesh

makesbusiness

unviable

)

ValueAddedTax(VAT):12% onthecostofhardware

HighTaxation

NewDirectTax:2% ofgrossassets

Apartfromthese,Octroi,corporatetaxetc.areadditionallylevied

Customsand

ExcisedutyonSTBswereexemptedin2003tofacilitateintroductionofconditionalaccess

system(CAS)inthecountry

IntheBudget2006,theexemptiononexcisedutywaswithdrawn,butcustomsdutywas

reducedfrom

15%

to

Nil.

However,

there

was

no

corres ondin

reduction

of

customs

dut

on

inputsusedinthemanufacturingofSTBs

Inbudgetforfiscal200910,governmentwithdrewthecustomdutyexemptiononSTB for

televisionbroadcastingandimposed5%customdutyonimportof STBandallowsimportof

inputsat5%


Lack of explicit tariff regulations will impact the industry


26/38

Lackof

explicit

tariff

regulations

will

impact

the

industry

growth

NoexplicittariffregulationhasbeenprovidedbytheTelecomRegulatorAuthorityofIndia

(TRAI)forDTHservices

chargedfromthelocalcableoperatorinNonCASareas

CASoperators

have

to

pay

INR

5to

the

broadcaster

per

channel

while

DTH

operators

pay

INR

2.5

per

channel

TRAI hasalsomandatedbroadcasterstooffertheirchannelsonanindividual(alacarte)basis

TariffRegulation

toDTHoperatorsandnotinsistontheentirebouquet

DTHoperatorsaredemandingfurtherreductionintariffongroundthat

CASandcableoperatorsareunderreportingtheirsubscriberbaseastheylacktransparency

CASandcableoperatorsdonothavetopayhugelicensefees

CurrentlyonlyMPEG2usersarecommerciallyandtechnicallyinteroperableaccordingto

ofSTBmandates

MPEG4userswhohavecostlierSTBshavenotyetreceivedguidelinesforinteroperability

LayingdownregulationscouldaffectthechurnrateandincreaseexpenditureofDTHoperators



27/38

Market

Overview

Trends

Competition

KeyDevelopments


Competition in the DTH market has grown with all six


28/38

Competitionin

the

DTH

market

has

grown

with

all

six

playersonasubscriberacquisitionspree

Oligopolisticmarketstructure

Overview MarketShare

by

Volumes

withsixprivateplayersandonefreetoair

providernamely

DD

Direct

Steepcompetitionhasledtoasurgein

6.7%

10.4%Big TV

AirTel Digital TV

advertisingspendtoimprovepenetration

Withgreaternumberofplayersinthemarket,

AverageRevenue

Per

User

(APRU)

will

decline

Sun Direct

.

Dish TV

24.5%

DDDirectPlusisplanningtomovetoapaid

modelincreasingcompetition

Plansonoffering144paychannels,4hidefinition

25.8%

Tata Skychannelsand50radiochannels

Thescopefornewentrantsislimitedasthe

challengeposedbyhighcostofCPEandthe


Analysis of the various DTH players in India their offerings


29/38

Analysisof

the

various

DTH

players

in

India,

their

offerings

andmarketpresence

Players

Subscribers(mn) 5.3 4.2 4.0 1.7 1.1 NA

Totalchannels 240 190 200+ 200+ 150+ 170

CPE+Installation1 790 2 599 1 250 1 490 1 750 1 790

ost

BasePackage(INR) 113 125 110 90 110 150

Channels

in

Base

Package 135 75 130 81 113 120

InteractiveFeatures 12 11 None 5 7 4

Compression

TechnologyMPEG2 MPEG2 MPEG4 MPEG4 MPEG4 MPEG4

n erna ona

PartnersDishTV(US) SKYTV

s ro

MalaysiaNone None None

GroupChannels ZEE Star Sun None None None



30/38

PlayersintheMarket(1/6)

CompanySnapshot:

Dish

TV

CorporateInformation PackagesOffered

o a

Established Oct2003

Financials FY09:Revenue INR7.4bn;Loss INR4.8bn

Silver(2) 113 135Channels

Gold(2) 190 155

Channels

Platinum(2) 283 185Channels

KeyPeople SubhashChandra Chairman

JawaharGoel MD

Child 150 204 Across28cities

Titanium 3617(p.a.) 188channels

BusinessHighlights InteractiveServicesOffered

MovieonDemand Watchmoviesanytimeondemand

ShaadiActiveandJobsActive Matrimonial&jobsearch

TravelActive PlanningtoursonTVviaYatra.com

MobileActive

Downloading

mobile

services

Offerslargestnumberofchannelswithfocusonstrong

regionalcontentinlinguisticzones

Itbeganprovidingupfrontsubsidyonsettopboxestoacquire

subscribers

ICICIActive TVbankingwithICICIBank

BhaktiActive Activeworship

AstroActive Astroforecastsandpredictions

Sports&NewsActive Interactiveexperienceofsports/news

providedemostoprospectiveusers(Jun09)andwidereach

to6,600townsand48,000dealers(Sep09)

ReceivedaPEinvestmentofINR4.6bnthroughGDRfrom

ApolloManagementinNov09


Multilingual

services

Address

regional

language

needs

highend

audio

video

quality

Note:Ratesareonamonthlybasis


31/38


CompanySnapshot:

Tata

Sky


Packa es Cost INR Descri tion

Established Aug2006

Financials FY09:Revenue INR8bn

SouthStarter/Value/

Saver/Jumbo

125/200/260

/27075/95/109/139channels

SuperHit 160 63channels

SuperValueKids 225 124channels

KeyPeople VikramKaushik CEO&MD


SuperSaver 275 124channels

AnnualMegaPack 5500(p.a.) 172channels,12movies

ActiveMall ShoppingonTV

ActiveWizkids/Learning/Topper Learningforkids

ActiveStories Storieson TV

ActiveGames

Interactive

games

Mostpopularserviceprovideramonghighincomehouseholds

ReceivedaPEinvestmentofINR2.5bnfromTemasek

Thecompany,tilldate,hasinvestedINR250mnon

promotionalactivities

ActiveDarshan 24X7darshanofShirdiSaiBaba,Mumbais

SiddhiVinayak, ISKCONandKashiVishwanath

ActiveCooking Recipesanytime

ActiveAstrology Dailyforecasts

C ange

itsa vertising

mo e

w ere

a vertisers

wi

pay

or

thenumberofconsumerswhohaveshowninterestintheir

products

ItisestimatedthatthecompanywillinvestINR40bntocreate

necessaryinfrastructuretosupportitsexpandingcustomer


ActiveStarNews Instantnews

Showcase Orderlatestmoviesandwatchmultipletimes



32/38


CompanySnapshot:

Sun

Direct


Packa es Cost INR Descri tion,

Established Dec2007

Financials NA

FreedomTamil990 for

9months440for

4months

130+channelsFreedom

Telegu

FreedomMalayalam

Freedom Kannada

KeyPeople KalanithiMaran Chairman&MD

TonyDSilva COO

BusinessHighlights

ShinePack925for7

months

525for

4months

NonsouthpackBengaliShinePack

OriyaShine

Pack

J&KShinePack

JumboPackNorth300

30channelswithactiveBase

packJumboPackSouth

ThefourstatesofTamilNadu,Kerala,KarnatakaandAndhra

Pradeshaccountfor70%ofitssubscribers

PlansonincreasingitsmarketingbudgetfromINR1.2bnto

INR1.5bninFY10

Itplansonconstantlyinvestingincustomerequipment,

hardwareandcapacitybuilding

Plansoncapitalizingonitsmajorstrengththatithasaccessto

lowcostcontentfromgroupcompanySunNetwork


investingINR

20

bn

on

the

development

of

infrastructure



33/38


CompanySnapshot:

Big

TV


Packa es Cost INR Descri tionew e , n a

Established Aug2008

Financials NA

ValuePack 90 81channels

Bronzepack 135 111

channels

Silver(2) 170/180 137forSI,123forRoI

KeyPeople ArunKapoor President


,

Diamond(2) 280/270 165forSI,152forRoI

Platinum(2) 340,315 169forSI,155forRoI

iSTOCK Informationonstockmarketwithfeatureslikestock

ticker,latestmutualfundupdatesetc.

iNEWS Instantaccesstonewsheadlines

iASTRO Comprehensivedailyandmonthlytarot,numerology

PlansonincreasingitsmarketingspendtoaboutINR1.61.8

bn

TiedupwithaWarnerBrotherchannelandKoreanand

Russianchannelsforglobalcontent

andzodiacpredictions

iCRICKET ActiveduringtheICCT20WorldCup2009

iGAMES FeaturingKurakku,TheivinMonkeys,BuzzWords,

JinjaNinja,Solitaire,TableFootball,HappyWordTimeand

Attractingcustomersbyreducingpriceofitsayperview(PPV)

pricesofpremiere(new)moviesby50%incomparisontoits

competitors


Note:Ratesareonamonthlybasis;SI:SouthIndia,RoI:RestofIndia


34/38


CompanySnapshot:

Airtel

Digital

TV


Packa es Cost INR Descri tionea quar ers urgaon, n a

Established Oct2008

Financials NA

SuperValue 127 110channels

New

Value 160 Super

Value

+

8

channels

Economy 221 NewValue+37channels

Me a 304 Econom + 22 channels

KeyPeople

AtulBindal President(Telemedia

Services)


Ultra 364 Mega+7channels

SouthPackages(6) 110400Rangeof186channelswiththe

optionofupto3southtopups

Plansonaddinganet1.6mnnewDTHsubscribersbyMarch

2010

Itisexpectedtotargettheruralmarketbecauseofitslarge

distributionnetworkcreatedbyitsdominantpresenceinthe

iAstro Dailyastroforecasts

iLearn Foryoungstudentstoreviseclassroomlessons

iMatinee BuyticketsonTVforlatestmoviesonmultiplex

iNet

Internet

experience

on

TVtelecomspace

iNews Viewallsectionsofnewsononescreen

iSports Watchingsportswithmatchdetails&playerstats

iTravel PlanningvacationsonTVthroughMakemytrip

iPizza OrderingpizzaattheclickoftheTVremote


iShop

Purchasing

a

variety

of

discounted

products

though

TV



35/38


CompanySnapshot:

Videocon

D2H


Packa es Cost INR Descri tionea quar ers um a , n a

Established May2009

Financials NA

Gold 150 120channelsforRoI

Diamond

275 160

channels

for

RoI

SouthGold 150 130channelsforSI

South Diamond 275 170 channels for SI

KeyPeople VenugopalDhoot Chairman

AnilKhera CEO


APGold 150130channelsforAndhra

Pradesh(AP)

APDiamond 275 170channelsforAP

DTHservicesareofferedthroughitssubsidiaryBharat

Business

PlanstoinvestINR10bnover20092011onmarketing

activities

ActiveDarshan Onlinereligiousvisitandaartiatholyplaces

ActiveTravel Travelplanning,ticketbookingand

accommodation

ActiveCooking Recipesandcookingtipsfrommasterchefs

ExpectstoboostitsDTHsubscriberbasevialargescale

televisionsalesbyofferingcombopacks(sellingDTHpackages

withtelevisionsets)

ActiveHealthandFitness Channelonfitnesstrainingand

yoga


Note:Ratesareonamonthlybasis;SI:SouthIndia,RoI:RestofIndia


36/38

Market

Overview

Trends

Competition

KeyDevelopments


l


37/38

KeyDevelopments

Date Development

Sep2009 EchoStarCorporation,aUSbasedcompanywhichsellssatellitetelevisionservicesundertheDishNetworkbrand,plansonenteringtheIndianmarketbypickingupastakeinanexistingDTHcompany.

Nov2009 RelianceCommunications,whichenteredthemarketwiththeirbrandBigTV,plansonexpandingtheirportfoliointhisspacebyofferinghighdefinition(HD)televisioncontenttocustomersapartfromlaunching

premiumIPTV

services

in

select

cities.

Jun2009 Videocon,whichhasrecentlyenteredtheDTHmarket,plansontargeting1.5mnsubscribersforitsdirect

.

crystallinedesigntelevisionsthatcandirectlyreceiveDTHsignalswithoutsettopboxes.

Apr2009 BIGTV,theDTHarmofRelianceADAGroup,launchedPremiumExpressServiceacrossIndia.Thisisan

uniqueafter

sales

service

initiative

from

BIG

TV

with

the

primary

objective

to

cut

down

market

response

time.Itistargetingonaddressingcustomerqueriesandresolvecustomerproblemswithin2hours.

Apr2009 TowardsexpandingitsproductportfolioDishTVIndiaisdevelopinganewtechnologytobeamchannelsinvehiclesforintracitytravelinmetrosatspecialsubscriptionrates.In2008,thefirmhadlaunchedDishTVmobile,whichairsallchannels,canbefittedinlargecarsandSUVsforintercitytravel.ThisishoweverbeingusedonlybyKingfisherAirlines,theRailwaysandIndianNavy.


Th k f i


38/38

ThankyouforyourtimeForanupdatedreportoranycustomizedresearchrequirements,pleasecontact:

GauravKumarEMail: [email protected];[email protected]

NetscribesServices:

Phone: +913340646214;+919830309715

InvestmentResearch

EnterpriseMarketResearch

PatentResearch

MarketMonitoring&Competitive

Intelligence

Sales&

Prospect

Intelligence

SocialMediaMarketing

MarcomSupportServices

ContentManagement

Services

yn ca e ar e esearc s en ng e a on or ng

BrandSurveillance

oo ac ag ng erv ces

Forfurtherdetails,visitusat:www.netscribes.com

AboutNetscribesNetscribessupportstheorganicandinorganicgrowthobjectivesofglobalcorporationsthroughacombinationofEnterpriseMarket,Investment&PatentResearch,Market&SalesIntelligence,SocialMediaMonitoring&ManagementandCustomPublishingsolution.

.however,Netscribes,Inc.orNetscribesisnotresponsibleforanylossordamagearisingfromuseofthisdocument.Thisdocumentisthesole

propertyofNetscribesandpriorpermissionisrequiredforguidelinesonreproduction.

market research india - direct to home (dth) market in india 2009

Documents