project report on dish tv
TRANSCRIPT
It`s a thing of massive gratification for me to do my summer training in DISHTV and
present this project on topic To access the visibility ofDISH TV andscope for HD STB
in Bathinda and Mansa Districts.
Survey measure the visibility of the company product over the outlays of
retailers which insures the brand reach among customers and its market share.
Noticeably- About the scope ofHD STB in the markets of Bathinda andMansa. This
project attempts to find out present situation and reason behind thedrop and suggest
measures to overcome it
ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr. PREM PAUL THAKUR
MARKETING, DISH TV INDIA LTD, for his able guidance, continuous support and
cooperation throughout my project, without which the present work would not have
been possible.
I would also like to thank the dealers of Panchkula and Ambala Districts, for the
support and help in the successful completion of my project
Arun singh
signature
Table of Contents
1. Introduction
1 . 1 . DTH Industry
1 .2. Current Scenario
1 .3. Industry Porter`s Analysis
1 .4. Company Overview
1 .5. About Dish TV
1 .6. Product Life Cycle
1 .7. Types of Products and Services
1 .8. Organizational Chart
1 .9. Promoters
1 .1 . SWOT Analysis
1 .1 1 .Market Position
1 .1 2. Review About Various DTH Players
1 . 1 3.DTH Market Structure
2. Literature Review
2.1 Back Ground of the Company
2.2 Government Policy
3. Research Methodology
3.1 Objectives of the Project
3.2 Research Methodology
3.3 Research Design
3.4 Limitations
3.5 Market Visit
3.6 Analysis and Interpretation
3.7 Findings
3.8 Recommendations
4. Bibliography
5. Annexure
Synopsis
The development of the DTH (Direct to home) sector has experienced a majorprocess of
transformation in terms of its growth, technological content andmarket structure in the
last decade. Any company which is successful is becauseof its reach among customers
which is possible through the effective toolsthrough which a company communicates
and attracts its customer. Dish TV isthe most famous brand and have a sophisticated
place and market leaderposition in the mind of customer. This is due to its strongbrand
image.
The attempt behind this project was to find out the visibility of DISH TV as abrand over
the retail outlets and its competitors` position over these outlets, sothat company would be
able to find out its lagging area and can focus moreeffectively to target more and more
customer and to communicate them more easily.
An attempt has also been made in the project to access the scope of HD STB in
the concerned markets of Panchkula and Ambala
INTRODUCTION
1.1 Industry Overview
A fter a slow start, the DTH market in India is fuelled by fierce Competition
between the incumbentDish TV and challenger Tata Sky, plus several new
entrants, but pricing and exclusivity remain key Contentious issues.
History:
The history of Indian Television dates back to the launch of Doordarshan, thecountryµs
national television network in1 959 when the transmission was inblack & white. The 9th
Asian games which were held in1 982 in the countryµscapital New Delhi heralded the
mark of color television broadcast in India.
In1991, Indian economy was liberalized from the license raj and majorinitiatives like
inviting FDI, deregulation of domestic businesses emerged. Thisled to the influx of
foreign channels like Star TV and creation of domesticsatellite channels like Sun TV
and Zee TV. This virtually destroyed themonopoly held by Doordarshan.
In1 992, the cable TV industry started which changed the way the averageIndian
watches the television. Every city in India had a new breed ofentrepreneurs called as
cablewallahs or Local Cable Operators (LCO) taking incharge of distribution. Since this
was a disorganized sector carrying newchannels on the existing infrastructure required
new investments which theoperators were reluctant to make. This led to the emergence
of a new breed offirms called as Multi System Operators (MSO) who had heavy
financialmuscles to make capital investments and liaised between the cable operators
andthe channels. MSOs provide the feed to the local o perators for a fee.
In1 995, government felt the need of regulation in Cable TV and passed theCable TV
network (Regulation) Act. This was also the time when the stateowned 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
anamendment of the Cable TVnetworks (Regulation)Act in 20 0 2 to
provideConditional Access System (CAS). With CAS, the last mile distribution couldbe
addressable with accuracy and digitalization of broadcast was also possible.CAS was
rolled out in 20 0 3 staring from Chennai and later to parts of Delhi,Mumbai and
Kolkata. On the DTH front, TRAI issued the guidelines foroperating DTH.
Countryµs first DTH license was awarded to Dish TV in 20 0 3 which started
operations in 20 0 4. Prasar Bharati also started its product DD-Direct+.
In 20 0 7, TRAI proposed a new initiative by name Headend-In-The-Sky(HITS) model
as an alternative to the existing cable distribution. Instead of theMSOs providing the
bundle, there will be a single HITS operator who willprepare the bundle of channels and
beam it to the Headend in the satellite. Withthe average Indian getting younger, and hence
more likely to spend onnonessentials, the entertainment industry has the potential to grow
explosivelyin the future. Now the industry is ready to enter a second stage of
growthpowered by the twin engines of technology (availability of quality infrastructureand
the accelerated penetration of digital connectivity) and an enablingregulatory
environment.
1.2 Current Scenario:
In the current context of the global financialmeltdown, the Direct to Home(DTH)
industry in India is in the throes of multifarious challenges andopportunities. The big
game is all about shaping up grandiose plans to masterthe winning rules to garner as
much portion of the Indian DTH pie as possibleby a handful of players.
Since the DTH space denotes big value, akin to the space occupied bytelevision and
telephony, inter-firm rivalries have thrown up price wars,discount schemes, procurement
of transponders, ambitious targets for improvingthe subscription base, popular bouquet of
channels, set top boxes with superiorquality of videos, improving content, etc as a
desperate means to entice theIndian viewer. A neat 20 per cent annual growth is being
witnessed in the DTHsector in India with over16 million households having digital pay-
TV.According to Harsh Bijoor, a brand consultantSince Dish TV, the biggestmarket
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 20 0 8, five major players,Zee`s Dish TV, Tata Sky,
Reliance ADAG, Sun Direct and Bharti Telemediaformed an umbrella body ± DTH
Operators Association of India (DOAI). DishTV is the largest DTH provider with a
subscriber base of around 5million. TataSky, 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 theforecast for 20 1 2 is that it will further increase to eight million, Sun
Direct, the80 : 20 JV between the Maran family and the Astro Group of Malaysia, over
2.3million, Big Tv about1 .2 million and Airtel Digital Tv about0 .3 millionsubscribers
(Source: Business Standard, May1 , 20 0 9).
According to sources, DD Direct Plus has a subscriber base of about 3-4million
subscribers, mostly in the remote corners of the country not connectedby terrestrial or
cable television. DTH operations in India could be enhanced ifthe dearth of satellite
capacity is removed by increasing the number of availableKu-band transponders that at
present is1 2 on Insat 4A, which in turn wouldmean more channels for viewing.Tax
burdens on DTH are another area ofcomplaint for operators. Around 40 per cent of
revenues are siphoned off to paytaxes and license fee and another12 per cent for services
imposed by the Central government. Apart from this, there are entertainment taxes that
differ
from state to state.
DTH stands for Direct To Home which is a direct mode of transmission
between Broadcaster` and Subscriber` through satellite.
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.
1.3 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, here are 130 million TV homes of which 85 millions are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission.
Terrestrial television :
Doordarshan is the world’s largest terrestrial broadcaster with over 1400 terrestrial TV transmitters. The reach provided by this route is phenomenal with Doordarshan covering 88% of india’s geographical area. Covering the remaining 12% area required substantial capital investment 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.
Cable TV:
Cable TV currently operates in 2 modes viz. through CAS covering cities likeChennai,
Delhi, Mumbai and Kolkatta, and through non-addressable system inthe rest of the
country. As seen from the above diagram Cable TV enjoys themaximum 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 theother hand, in areas where non-
addressable system is used, nearly all thechannels are available without the need of any
separate receiver by payinganywhere between Rs1 0 0 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 thetelecommunications
line. It is often presented as a bouquet of Video (IPTV),Audio (Telephone) and Data
(Broadband Internet) services. With widespreadadoption 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 thechannels are
pushed to the consumer regardless of his preference. IPTVencourages a two-way
request response model where the consumer chooses theprograms he wants to view.
Right now thos medium is totally unregulated andcable companies are urging the TRAI
to issue a consultation paper process toinclude 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 Accesscard, the Ku band
transponders in the orbiting satellites and content. With Indiaovertaking Japan as Asiaµs
largest DTH, the bargaining power of Indian DTHoperators 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 wingof ISRO either
through its own satellites or by leasing transponders fromsuppliers. With only two
domestic satellite launches between 20 0 7 and 20 1 0 and increasing DTH players,
Astrix is in a better position to use DTH as its cashcow for the next 5 to 1 0 years. Also
the crash of INSAT 4C and NSS-8 hasworsened 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 themercy of the
broadcasters.
3. Bargaining power of buyers:
With enough options to choose both from the pont of alternate mediums likeCable,
IPTV and Terrestrial broadcast and from the point of increasing DTHoperators, 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 bettercontent and clarity.
4. Inter firm rivalry:
With 6 operational players, the inter firm rivalry is quite high. The competitionfrom state
owned DD-Direct to private players is negligible from the contentpoint of view as the
number of channels offered by DD-Direct is very limited.However, DD-Direct does not
charge any monthly subscription fee which posesa threat to the private players.
Between Dish TV and Tata Sky there is an intense rivalry exhibited by pricewars and
discount schemes offered to new connections. Being the first mover,Dish TV has price
advantage in both the STB as well as procuring thetransponders. On the other hand, Tata
Sky claims its STB having superior DVDquality 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 SunDirect are part of big
groups that also have popular bouquet of channels likeZee, Star and Sun respectively. The
channels indirectly refuse content for DTHoperators by charging exorbitantly or
mandating that all the channels of theirbouquet 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 relativelylow. There is
already enough competition which will discouragenew firms toenter this business. While
getting a license is relatively easy, the barriers toentry are high when it comes to pricing
of CPE and getting the requiredtransponders.
1.4 COMPANY OVERVIEW
ABOUT ESSEL GROUP
THE ESSEL PHILOSPHY
The Easel group strives to offer the best to the communities that it serves shareholders, customers, employees and vendors. ‘Faith in innovative and organized growth’ is the dictum that drives all business decisions. A multicultural organization with a strong customer focus, Essel group companies reach out every day millions of consumers across the globe.
Essel group is among India’s most prominent business houses with a diverse portfolio of assets in media, packaging, entertainment, technology enabled services, infrastructure development and education. The Group started businessin1 976 with a commodity
trading and export firm, Rama Associates Limited,and has since then metamorphosed into a conglomerate that is a symbol of theingenuity and power of Indian entrepreneurship, with worldwide operations anda workforce of nearly 8,0 0 0 dedicated employees.
MEDIA______________________________________________________
_____________ Zee Entertainment Enterprise Ltd- India's largest media and
general television entertainment network with a range of businessesencompassing the
content-to-consumer value chain. Zee News Ltd - a cluster ofnews and regional
entertainment channels touching the lives of millions ofIndians.DNA - an English
language newspaper in a joint venture with theDainik Bhaskar Group.
TECHNOLOGY___________________________________________
__________________ Dish TV - India's first direct-to-home (DTH)
entertainment service, brings the latest in digital technology to televisionviewers,
broadcasting high quality programmes straight from the satellite to theconsumer's
home. Wire & Wireless India Ltd - the largest cable distributionsystem in India,
present in 45 cities. Intrex India - a revolution in the financialservices industry with two
innovative businesses and unique paymentinstruments - the countryµs first ever cashless
/trade exchange and a multi-purpose stored value card.Procall - Indiaµs first and only
digital PTT telephonyservice, powered by Motorolaµs iDEN technology .Cyquator
Technologies
Limited ± an IT infrastructure outsourcing company that provides end-to-end
Internet Data center and high-end managed hosting services. Digital Media
Convergence Limited - personalized, entertaining and informative multimedia
and textual content.Cornershop - a wide range of mobile content andinteractivity
services, the first to launch reality-based TV interactivity for votingand polling.
PACKAGING______________________________________________
_________________ Essel Propack - the worldµs largest specialty packaging
company manufacturing laminated tubes for personal care, pharmaceutical, food
and industrial businesses.
ENTERTAINMENT______________________________________
_____________________ E-City Property Management Services - the first
organized corporate entity in the convergence of entertainment, retail andtechnology with
interests in realty development, mall-based propertymanagement, digital cinema solutions,
film distribution and syndication.ETC
Networks - among leading television networks in India with two channels -
ETC Hindi and ETC Punjabi.
Pan India Network Infravest Pvt Ltd ± Playwin, India's first and largest
online gaming company, provides infrastructure, data communication,
marketing support and service to facilitate a secure online lottery network.
Essel Sports ± pioneering sports initiatives with Indian Cricket League and
Mumbai Football Club to promote India in the global sports arena through an all
inclusive spirit of free and fair competition.
Suncity Projects ± a pioneer in conceiving and executing a profusion of urbane
real estate projects arraying from townships to group housing to luxury
apartments to shopping malls and office complexes.
Asian Sky Shop- Indiaµs first Direct Response Television Marketing venture.
E-City Bioscope Entertainment Pvt Ltd ± a chain of multiplex cinema±cum-
family activity centers across non-metro towns in India.
Fun Multiplex Pvt Ltd - With a leading position in the Indianmultiplex
market, Fun Multiplex Pvt Ltd operates 70 cinema screens in1 9 cities andtwenty three
locations ± Ahmedabad, Mumbai, Chandigarh, Hyderabad,Guwahati, Gwalior, Delhi,
Ghaziabad, Lucknow, Agra, Jaipur, Bangalore,Panipat, Ambala, Karnal, Hyderabad,
Gulbarga, Panjim and Margao.
E-City Digital Cinemas Pvt Ltd -The company was established in April 20 0 4,
and is committed to revolutionise the Indian movie business by implementingstate-of-
the-art digital technology, thereby eliminating print costs, curbingpiracy and offering
audiences globally benchmarked cinema-viewing with auniform audio-visual
experience. E-City Media Pvt Ltd - E-City Media has been incorporated to bring
synergies
and to leverage upon E-City Ventureµs media assets. The on-screen and off-screen
media opportunities at E-Cityµs Cinema & Malls have amassed tobecome an attractive
tool ofcommunication for advertisers.
INFRASTRUCTURE_____________________________________
_____________________ Essel Infraprojects Limited ± With Esselworld and
Water Kingdom, among the largest amusement theme parks, EIL is alsoengaged in the
development of roads, power plants, Sports complexes andSpecial Economic Zones.
E-City Real Estate Pvt. Ltd ± The Company behind the successful lifestyle
brand Fun Republic ± plans to develop and operate 20 million sq ft of retail real
estate by 20 1 1 .
E-City Property Management & Services (India) Pvt Ltd (EPMS)± An E-
City Venture company that provides the most comprehensive and reliablemall/property
management and retail services in India, including overalloperations, marketing,
consultancy, occupant management, retail leasingservices and advisory services.
EDUCATION_______________________________________________
________________ Zee Interactive Learning Systems - the education arm of
the group runs India's largest chain of preschool and high schools. Zee Instituteof
Media Arts provides training in media arts and technology while Zee Instituteof
Creative Arts is an animation training academy.