1.1 INTRODUCTION TO DTH SERVICES

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

programmed with a personal dish in an individual home. DTH does away with the need

for the local cable operator and puts the broadcaster directly in touch with the consumer.

Only cable operators can receive satellite programmed and they then distribute them to

individual homes.

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

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

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

Broadcasting was about to launch its DTH services in India. Finally in 2000, DTH was

allowed. The new policy requires all operators to set up earth stations in India within 12

months of getting a license. DTH licenses in India will cost $2.14 million and will be

valid for 10 years. The companies offering DTH service will have to have an Indian chief

and foreign equity has been capped at 49 per cent. There is no limit on the number of

companies that can apply for the DTH license. 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 “Head end-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 Head end in the satellite. With the average Indian getting younger, and

hence more likely to spend on non essentials, 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.

1.2 INTRODUCTION TO CABLE SERVICES

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 liberalized

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 cable wallahs 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 digitization of broadcast was also possible. CAS was

rolled out in 2003 staring from Chennai and later to parts of Delhi, Mumbai and Kolkata.

2.REVIEW OF LITERATURE

Their report, " Indian DTH Market Forecast to 2012”, provides thorough analysis of

the current market performance and the future outlook of DTH services market in India.

It gives detailed analysis of the success factors and also helps in determining what all are

the issues or the hurdles in front of the burgeoning DTH services market in the country.

The study also explains the reason for why all the incumbent players have been investing

huge amounts into the promotion and marketing of DTH services in the country, despite

the current economic slowdown.

This research provides extensive research and rational analysis of the DTH market in

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

Indian television industry. Various factors which will drive the future growth of the DTH

market in India have been thoroughly analyzed in the report. The report will also help in

gaining insight into the prevailing key trends and developments that are contributing

positively towards the growth of the market.

Sandeep Varma and Doris John published a Case study: “DTH vs. Cable TV: sky

Wars in India” in the year 2006. Home entertainment in India had come a long way

from the days when there was only one national channel, Doordarshan, to the age of

satellite television and, now, the latest development called DTH (Direct to Home)

technology. With the Government of India having set the end of 2006 as the deadline to

introduce CAS (Conditional Access System), in selected metros and later all over India,

the scene would become more competitive. Cable operators have started pressurizing the

Indian Government to speed up the process of changing the analog technology to digital.

Once cable is digitized, cable operators would also be in a position to provide programs

in high quality as like DTH.

Apart from DTH, new emerging technological advancements in TV viewing like Internet

Protocol Television (IPTV) and Cell Phone TV would also compete among themselves to

get their share of the market in the Indian home entertainment industry. The Indian

customer would have more options in terms of TV entertainment and the main deciding

factor would be service support.

Sivasundaram Empathy published his literature „industry analysis- DTH industry in

India ‟ in 2007. In this paper he analyzed the challenges and opportunities present for the

DTH industry within the Indian contest. We would look at the history of Indian

broadcasting followed by looking at the current DTH market. An environment analysis

done using the Potter’s five forces model and the various challenges faced by the industry

identified. Finally we look at the possible suggestions taking a long term view. With the

existing regulatory restrictions, Increasing content cost and lack of transponders, DTH

terrain too steps to climb. With content differentiation not happening

in the near future, companies have to differentiate only the service and cost levels. The

increasing consumer awareness and expectations also make it difficult to satisfy the

consumer. Today s consumer is sensitive to price as well as the quality. Apart from the‟

volumes business, a prudent DTH operator should also take a serious look at the

substitutes and complements. He should diversify and create his presence in the entire

spectrum of broadcasting and telecommunication services. The final winner cannot be a

pure DTH player but a convergent player who offers all in one to the value-conscious,

price sensitive Indian consumer.

Researchers from Gartner [2007] believes that IPTV will struggle in India for

following reasons:-

Cable TV users pay almost half of what digital subscribers pay

Low broadband penetration will inhibit IPTV uptake;

2007 is a critical year for pay TV, with CAS being mandated in a phased manner, and

more players are moving into DTH, which is growing.

IPTV will be priced at the same price as digital cable or DTH, so no price

differentiation

As the numbers of broadband users are increasing in urban and semi urban cities

IPTV can pose serious threat to DTH player in long run.

Indian Readership Survey 2008 R2‟ findings have shown that the Dish TV is the

largest player with over 3.1 million subscribers, followed by DD Direct, Tata Sky and

Sun Direct, which has a predominance in the southern zone.

“Indian entertainment and media outlook 2009” published in 2009 where they

discussed about all the entertainment industry.In 2008, there is a significant churn of

subscribers from cable in favour of DTH, as the latter subsidizes hardware, reduces

installation costs and introduces value packs. Aggressive marketing and promotions also

helped DTH lap up subscribers in 2008 which reached ~11.5 million at the end of the

year from ~3.5 million in the beginning of 2008. 2008 also witnessed a „technology-war‟

amongst DTH players. With new players Bharti Airtel s Digital TV and Reliance s DTH‟ ‟

service Big TV launched in 2008, a technology war erupted between these new players

and the older players, Dish TV and Tata Sky use of technology in the set-top-boxes. The

older DTH players claimed that the latest MPEG-4 technology, as used by the new DTH

players, violates existing guidelines for DTH operations citing reasons of inter

operability. In the view of the older DTH players, the new DTH players are required to

offer commercial inter-operability with the existing MPEG-2 set top boxes being used by

the older DTH players. The matter is currently under dispute with BIS.

RNCOS industry Research Solutions published new report as “Indian DTH

Market Forecast to 2012” in 2009.

In their report they said that the DTH service market in India has emerged as one of the

most lucrative markets which have successfully resisted the impacts of the current

economic slowdown. The slowdown has certainly proved a boon for the Indian DTH

industry as people have now started to cut on their entertainment expenditure and instead

of viewing movies at theatres, they are preferring to stay at home with their television

sets. The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009

and the numbers are forecasted to surge further at a CAGR of around 30% through 2012.

"With over 130 Million TV homes, India offers large room for growth in DTH services as

the technology can be used to offer DTH services in remote location, where setting up of

cable networks seems impossible, or is highly expensive", says a Sr. analyst at RNCOS.

Myilsamy (2010) in his research study consumer brand preference towards using DTH

services has found that majority of the respondents were using DTH services because of

more channels. He has found the majority of them were using Big TV because of 900

service. He has suggested that DTH providers have to increase various awareness

programmers to create brand image through attractive advertisement.

Rakshantha (2012) Indian DTH market forecast as per their new research report the

number of DTH subscribes is Forecasted to grow at a CAGR of around 25% during

2009-2012. This research provides Extensive research and ration analysis of the DTH

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

services in the Indian television industry. The report will also help in gaining insight into

the prevailing key trends and development that are contributing positively towards the

growth of the market.

3.1 NEED OF THE STUDY

Every human being is changing time to time according to the changing trends in every

day’s life. The biggest changes occurred in consumer products, new and innovative

technology has used to satisfy the consumers. In this content the study is taken up with

the various DTH services which have considerable share in the market. Consumers and

buyers play a vital role in the market. Some of the problems faced by the DTH users are

less quality of dish and are, not providing more free channels, less clarity, high

subscription amount and unable to see the local channels and so on. So this study helps to

find out the consumer attitude towards DTH users

3.2 SCOPE OF THE STUDY:

The present study helps to analyze the competition exist in the market regarding DTH

services. The scope of the study also covers the key factors which influences the

customer to take decisions to buy DTH connection against cable services for television.

The study is focused on the four kinds of DTH services namely, Sun direct, TATA sky,

Dish TV, Big TV. The task of the study is to know the preference of the users in Punjab

Region among these various services.

3.3 OBJECTIVES OF THE STUDY:

To study the reasons behind the switching over of multi TV channel users from

cable TV to DTH services.

1 To analyze the factors which influence these switching over from cable TV to DTH

services in Punjab region.

To analyze the position of substitutes of DTH services with respect to DTH

services in the market.

To analyze the opportunities of Indian DTH services

.

4 .RESEARCH METHODOLOGY

“Methodology” implies more than simply the methods you intend to use to collect data. It

is often necessary to include a consideration of the concepts and theories which underlie

the methods. For instance, if you intend to highlight a specific feature of a sociological

theory or test an algorithm for some aspect of information retrieval, or test the validity of

a particular system, you have to show that you understand the underlying concepts of the

methodology. There are many different ways to approach the research that fulfils the

requirements of a dissertation. These may vary both within and between disciplines. It is

important to consider the expectations and possibilities concerning research in your own

field. You can do this by talking to your tutors and looking at dissertations written by

former students on your course.

4.1 SAMPLE & POPULATION:

The sample size is , which is sufficient to do the analysis more effectively. As a general

rule of thumb 300 data is more enough to analyze, however in the present study the total

sample size is .The target population of the survey constitutes the TV households in

Punjab region. I take the Punjab area to collect the primary data from households as this

is the most growing area in NCR region.

4.2 DATA:

Here mainly primary data collected from the TV households in Punjab region by filled up

the questionnaire.

4.3 QUESTIONNAIRE

The questionnaire is well designed and close ended type, so that people easily filled the

questionnaire according to their perception. People always flexible to give their answer

objectively. So here open ended question is more effective as the target population is

households.

4.4 TOOLS & TECHNIQUES:

Descriptive statistics used here to analyze frequency of the DTH TV satellite and cable

TV and have used Factor analysis also to analyze the various influencing factors of DTH

TV services which influenced people to switch over from DTH TV to Cable TV.

4.5 LIMITATION OF THE STUDY:

Only Punjab region will consider as research area.

Only Punjab region 4 cities not sufficient enough to analyze the market of DTH satellite

services, there we should also consider the other region for this analysis. Punjab is now

growing area in in India but there is rural area, small cities which we have to consider to

getting back effective result from the analysis.

There are various payment systems of cable TV operators in various areas. Depending on

area whether it is big town or small city or any industrial area or any rural area there are

various payment system of cable TV operators. So here we can t consider all these‟

system so that we analyze effectively. People are more sensitive towards price which they

have to pay monthly so that plays an important role here for the buying behavior of the

customer. So by considering only one region payment system we can t say anything more‟

about the buying behavior of the consumer.

5. DATA ANAYLSIS AND INTREPRETATION

5.1 DEMOGRAPHIC CHARECTERISTIC:

This project has been done with the help of primary data that has been collected from the

households of Punjab region. The purchasing behavior mainly depends on the full family’s

perception. Now a day’s TV is the main entertainer of a family, every household take it as

necessary item. There is no difference between perceptions of a middle class family and a

high class family towards TV network regarding their income. As the study is regarding the

comparison between Cable TV & DTH TV so here we neglect the perception towards

consumption of lower class family. Form this study I come to know that people need multi-

channel TV network rather than terrestrial TV network.

5.2 DTH AT PRESENT IN YOUR HOME TABLE NO 1

DTH SERVICE NO. OF PERCENTAGE MEAN S.D.RESPONDENT (%)

Sun direct 182 60.7 2.19 0.735

Big TV 53 17.7 2.34 0.678Digital TV 24 8.0 2.50 0.511Dish TV 29 9.7 2.21 0.774

Tata sky 6 2.0 3.00 0.000Others 6 2.0 1.00 0.000

Total 300 100.0 2.23 0.731

INTREPRETATION

The table states that 60.7 per cent of the respondents having sun direct in their homes,

with the mean and standard deviation of 2.19 and 0.735, 17.7 per cent of the respondents

having BIG TV with the mean and standard deviation of 2.34 and 0.678,8 per cent of the

respondents having DIGITAL TV with the mean and standard deviation of 2.50 and

0.511,9.7 per cent of the respondents having DISH TV with the mean and standard

deviation of 2.21 and 0.774, and only 2 per cent of the respondents having TATA SKY in

their homes with the mean value of 3.Majority of the respondents (60.7%) having sun

direct in their homes.

5.3 TYPE OF PACKAGE

TABLE NO 2 TYPE OF PACKAGE

S.NO. TYPE OF NO. OF PERCENTAGEPACKAGE RESPONDENTS (%)

1 Family pack 213 71.0

2 South value pack 42 14.03 South started 12 4.0

4 Super saver 28 9.35 Others 5 1.7

Total 300 100.0

INTREPRETATION

The above table shows that 71 per cent of the respondents prefer family pack, 14 per

cent of them prefer south value pack, 4 per cent of them prefer south started pack, 9.3

of them prefer super saver pack and 1.7 per cent of them prefer others. Majority (71%)

of the respondents prefer family pack.

5.4 SATISFICATION OF BRAND

TABLE NO 3SATISFACTION OF BRAND

S.NO. SATISFACTIO NO. OF PERCENTAGEN RESPONDENTS (%)

1 Highly satisfied 123 412 Moderate 18 63 Satisfied 159 53

Total 300 100

INTREPRETATIONThe table implies that 41 per cent of the respondents highly satisfied with the brand, 6 per

cent of them are moderately satisfied, and 53 per cent of them are satisfied with the usage

of brand. Majority (53%) of them are satisfied with the usage of brand.

5.5 GARRETT RANKING TECHNIQUES TABLE NO 4 GARRETT RANKING TECHNIQUES

S.FACTORS TOTAL SCORE MEAN SCORE RANK

NO.1 PRICE 1702. 4 5. 67 I2 CLARITY 1690. 2 5. 63 II3 CHANNELS 1557. 5 5. 19 III4 OFFERS 1311. 9 4. 37 V5 SOUND CLARITY 1323. 5 4. 41 IV

REASONS BEHIND SELECTING THE DTH SERVICES

INTREPRETATIONThe table 4 reveals the reasons for selecting the DTH. “Variety of DTH Services” was

ranked first by the selected sample respondents with the total score of 1702.4 and mean

score of 5.67. “Price” was ranked first with the total score of 1702.4 and mean score of

5.67. “Clarity” occupied second position with the total score of 1690.2 and mean score of

5.63. “Channels” was ranked third with the total score of 1557.5 and mean score of 5.19.

“Offers” occupied fifth position with the total score of 1311.9 and mean score of 4.37.

“Sound clarity” occupied fourth with the total score of 1323.5 and mean score of 4.41

5.6 RELATIONSHIP BETWEEN AGE AND LEVEL OF SATISFACTION ABOUT CHANNELS TABLE NO 5

CHI SQUARE TEST

Chi Cal. Value Df P. value S/NSNull

hypothesissquare

48. 880 9 0. 000* S RejectedS -Significant Ns-Not Significant *P<0.001

INTREPRETATION

It is clear that the P value is less than 0.05(P<0.000) at 5% level of significance. Hence,

the null hypothesis is rejected. So there is a relationship between age and channels of

DTH and also statistically significant.

5.7 ANALYSIS OF MEAN, SD & VARIENCE Table no 6

5.8 RELATIONSHIP BETWEEN GENDER AND LEVEL OF SATISFACTION ABOUT CHANNELS

TABLE NO 7CHI SQUARE TEST

Chi Cal. value Df P. value S/NSNull hypothesis

square27. 252 3 0. 000* S Rejected

S-Significant Ns-Not Significant *P<0. 001

INTREPRETATION

It is clear that the P value is less than 0.05(P<0. 000) at 5% level of significance. Hence

the null hypothesis is rejected. So there is a relationship between gender and channels of

DTH and also statistically significant.

5.9RELATIONSHIP BETWEEN GENDER AND LEVEL OF

SATISFACTION ABOUT CUSTOMERCARE

TABLE NO 8

CHI SQUARE TEST

Chi Cal. Value Df P. value S/NS Null hypothesissquare 22. 309 4 0. 000** S Rejected

S-

Significant

Ns-Not

Significant *P<0. 001

INTREPRETATION

It is clear that the P value is less than 0. 05(P<0. 000) at 5% level of significance. Hence,

the null hypothesis is rejected. So there is a relationship between gender and customer

care of DTH and also statistically significant.

5.10 RELIABILITY TABLE

TABLE NO 9 RELIABILITY TABLE

S. NO. FACTORS MEAN

STD SCALE MEAN ALPHA IF ITEM

DEV

ITEM

DELETED DELETED1 PRICE 4.2433 . 7656 28. 1933 . 79922 CLARITY 4.3433 . 7879 28. 0933 . 81023 CHANNELS 4.1167 . 8788 28. 3200 . 7761

4

CUSTOMER

CARE 3.8133 1. 0142 28. 6233 . 75835 PLANS 3.9400 0. 9197 28. 4967 . 75026 OFFERS 3.8633 0. 9314 28. 5733 . 77257 SUB CHARGE 3.8800 0. 9843 28. 5567 . 77268 RECHARGE TIME 4.2367 0. 9436 28. 2000 . 7853

NO. OF CASE 300MEAN 32. 4367STD DEV 4. 6932VARIANC

E 22. 0261ALPHA VALUE 0. 8014

INTREPRETATION

From the above table it was clear that, the reliability of scales used in this study was

calculated by Cronbach's coefficient alpha. The coefficient alpha values exceed the

minimum standard of .70. It’s provides good estimates of internal consistency reliability.

As shown in the table, coefficient alpha values ranged from .750 to .810 for all the

constructs indicating that the scales used in this study were reliable. It should also be

noted that an alpha of .8014 is probably a reasonable goal.

6. FINDINGS OF THE STUDY

In this study I found that out of 329 respondent 49.2% are cable TV network user and

46.5% DTH satellite TV network user and only 4.3% terrestrial customer which

indicate that if we compare it with all over Indian market then there are only 12%

DTH customer. So here we say that in Ghaziabad region the DTH satellite TV market

is rapidly growing, we can say not only in Ghaziabad it arises in full NCR region.

Here the new players in this market like Videocon d2h, Airtel digital TV also rapidly

increases their market share day by day as we see from the analysis Videocon has

5.9% market which came in the market few months ago where as Airtel has 15%

which also show rapid growing market share. Which is totally different result from the

market analysis of RNCOS Industry Research Solution survey where they showed

different market analysis.

Maximum DTH customers are switched over customer from cable TV network. Those

cable TV customers who still not change their network they said about the high price of

combo pack of DTH services as a reason for not switch over. That means maximum

people want to consume all type of entertainment from all channels.

Out of 329 respondent only 19 are using alternatives out of which 68.4% iptv & 31.6%

cell phone TV. This shows that in future this kind of alternative will create a big

challenge. Now a day s people are crazier about internet & cell phone so they always‟

take advantage of that kind of TV. So DTH players should make a good strategy in

future for that challenge.

In this study we find that 30.2% cable TV customers were not satisfied with their

services where as 13.1% DTH customers also not satisfied with their DTH services. So

there is a big market for DTH players to capture the dissatisfied cable TV customers &

terrestrial customers also.

7.CONCLUSION AND RECOMMODIATIONS

7.1 CONCLUSION

On the basis of the data collected and the tests conducted I have arrived at the following

conclusions:

With the help of frequency table I was able to find the market share cable TV, DTH

satellite TV, terrestrial TV networks and also market share of various DTH players in

DTH market. Such as 49.2% market share cable TV, 46.5% of DTH TV and 4.3% of

terrestrial TV.

Cross tabulation between network connection and overall satisfaction showed that there

were lots of dissatisfied customers of cable TV rather than DTH services. Also cross

tabulation between DTH players and overall satisfaction showed that Reliance &

Videocon suffers from customer dissatisfaction factor most than other players.

There is high association between network provider and satisfaction of the services they

get from network provider. The most important factor came out is to be picture quality

and no disturbance of services.

There is also high association between switch over and various influencing factors.

Picture quality, no disturbance of services, channel packaging are more affective here.

In factor analysis I found out 4 factors which mainly have an impact on consumer buying

behavior or influence customer to switch over from cable TV to DTH TV or buy first TV

network service.

I also found out the market position of various alternatives of DTH TV players. They are

growing now.

7.2 RECOMMODIATIONS

There are lots of customers who dissatisfied with DTH satellite TV services. The

maim sufferer is Reliance Big TV & Videocon d2h the percentage is 31.6% and

33.3% respectively. They should satisfy the customer first which is very common in

the current business scenario.

DTH satellite players should focus on cable TV customer to increase their market

share as there are lots of cable TV market share which is not satisfied with their

network services. This market is larger in urban & semi urban area than Ghaziabad

region. So there are lots of opportunities of DTH players in future.

The main reason behind not switching over is the high price of combo pack that

means people always want to entertain by seeing all channels not limited channels. So

DTH players make the pricing strategy in such a manner so that all the monthly

charge of combo pack reduced.

Now a day s people are crazier about the internet & Cell phone, so IPTV & Cell‟

Phone TV will play an important role in future. Now 6.1% customer using this type of

alternatives along with original one. But in future it will be a big threat to DTH

services. So DTH players should take advanced technology to provide services.