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MARKET analysis
India has a total television population of close to 135 million, out of which 80% have access to cable and satellite (i.e. 108 million). The total DTH subscribers are close to 22 million. Thus the DTH has a market share of approximately 20%. The subscriber base for DTH in 2006 was meagre 1 million. Now for an industry which is just 5 years old, it is a great achievement. Lets have a look at how the DTH industry has grown in these 5 years. In 2005 Dish TV was the only player in the DTH industry and was registering subscriber growth mainly in the areas where cable TV was not available. The subscribers were not ready for the cost of set top box. In 2007 CAS mandate was introduced in selected metro cities, where users had to invest in a set top box. Though the initiative was not very successful, it gave a wider acceptance to the DTH and consumer became ready to pay for the set top box. Spotting the opportunity Sun Direct launched its services in 2007 with a drastically low one time cost involved for DTH subscriber. Followed by this Reliance, Big TV and Air-Tel and Videocon launched their services. The market became competitive. Every player came with innovative offerings, Dish TV offered Movie on Demand free worth the cost of set top box, Air-Tel and Big TV offered free subscription for first few months etc. All these things were coupled with aggressive marketing campaigns. Tata Sky gained the maximum subscribers during this period. Today the market shares of various players are as follows

DishTV : 30% Sun Direct: 25% Tata Sky: 22% BIG TV : 13%
Airtel : 8% D2H : 2% So where is the real growth happening for the DTH industry. Is it the urban areas or rural? Though DTH is comparatively expensive than cable service, the growth is coming from the rural area. If we see statistics the growth for the digital segment in rural areas were 34%, 49% and 64% in the past three years.(source:- TAM Annual Universe Update 2010). The growth in the rural segment can be attributed to frequent power cuts in the rural areas. DTH platform gives the rural consumer access to their favorite programs, with the help of generator/ invertors, which is not possible with the cable service in most of the areas. Though DTH has certain advantages such as better picture/ sound quality, better customer service. It also has a disadvantage of price. The DTH player have to pay various taxes such as Adjusted gross receipts @ 10%, service tax @ 12.36%,VAT @ 12.5%,CST@3%,corporate tax, Excise duty@ 16%, Customs duty, CVD ,customs duty etc. Whereas the local cable operators easily get away with government taxes by underreporting the subscriber base. Thus gaining a clear cost advantage. The regulator should take a note for the same and provide regulations for the same.
At the same time in Indian market One size fits all strategy doesnt work for long. So, the DTH players have to design packages suitable for rural consumer enable them to enjoy the digital content (For eg. Levis jeans had enabled consumers to buy their jeans with an EMI scheme). The DTH industry is expected to grow at a CAGR of close to 24% .The future of DTH industry will largely depend on innovative marketing tactics adopted by the DTH players. The stage is all set for DTH industry.
TRENDS
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PARTNERSHIP with movie distributors Tech innovations Combined retail of LCD and DTH Shift from price war to offering exclusive VAS connections
Competitor Analysis
Drivers
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The most important strength of DTH is the clarity of signal and thus the image compared to households that access channels from a cable operator. DTH is showing a huge growth potential in rural India where it has increased its penetration to 64% in 2010 compared to the 49% in 2009 and 34% in 2008. However, 2010 also saw DTH growth in urban India, especially the bigger metro markets with DTH growing among the lower social economic segments led by the subsidies, reduced costs, free Set Top Boxes etc. offered by the DTH players. Some DTH operator like Airtel and Tata Sky followed a TRAI directive to allow customer to select and pay only for the channels they choose to watch instead of bundled packages. Another important reason for the growth in DTH subscriber base has been the decreasing gap between consumer expectation and delivery. Despite paying more to their local cable operators, the quality of service in India has not been up to the mark. With the entry cost of DTH reducing considerably and the monthly bill between the cable operator and DTH becoming almost the same, customers feel comfortable in migrating to DTH over which they have control. Also the cost of high end HD TV sets is decreasing drastically, leading to further increase in demand for DTH. The growing middle-class and rising disposable income Increasing television penetration and sale of LCD monitors Price war and different package options attracting consumers Advantage over traditional cable operators
Challenges
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To bring new customer is a challenge as still public believe that DTH cost very high as compared to conventional cable operators. TRAIs content guidelines Elder people find it difficult to use. Skilled labour Satellite technology
Positioning analysis
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High level clarity Uninterrupted services More number of channels Interactive services as games, educational features, aestro, darshan, kissan learning Movie on demand
Different positioning
Convenient services - customized channel selection, post paid service
Internal Analysis
Target segment
Middle class and high middle class. In the early stages we would target urban areas and then would be targeting rural segment.
Customer Expectation
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High level clarity Uninterrupted services Value for money Easy To Use Remote Most of us ignore to check whether the remote control is easily understandable. If the remote control is used by all family members of all ages, the control navigation should be as easy as a childs play. (Bharti DTH remote is viewed as one of the simple one) Simple On Screen Navigation This part is as same as easy remote control. The on screen display is very important while surfing the channels. Unlike television channels, satellite television displays the program list and upcoming programs. These navigations should be displayed without disturbing the ongoing program. Bharti DTH has the most simple and easy navigation system. Easy Rechargeable Options The preferred option for subscription is 1 month. Since this facility is not available on satellite television services, the payments are made up to 12 months in advance. You should be able to make payment online, offline, check drop, and other facilities as well. Customer Service This is the most important of all. Customer service is very critical for longer customer relationship. No customer will be happy with average service and
good customer service means long lasting business for the providers and healthy experience for the buyer.

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