View
221
Download
0
Category
Preview:
Citation preview
8/8/2019 Xlri- Dth- Case Study
1/14
DTH
Current and future market scenario
Marketing Case Study
By
Soumya Prasanna Mishra
8/8/2019 Xlri- Dth- Case Study
2/14
DTH stands
for Direct-To-Home television.
A wireless digital audio / video
service is delivered through satellite.
8/8/2019 Xlri- Dth- Case Study
3/14
History
1992- Cable TV started. Distribution was done by Local Cable Operators.
2003/2004- Due to monopoly of cable TV operators and less discipline
amendment of the Cable TV networks(Regulation)Act to provide
Conditional Access System (CAS) was formed to address the mile
distribution and broadcast with accuracy and digitalization . CAS got
started in Chennai, Delhi, Mumbai and Kolkata.
2004 DTH was started . 1st DTH licence was provided to Dish TV(ZEE
group). Simultaneously Prasar Bharti also started DTH named DD Direct+.
8/8/2019 Xlri- Dth- Case Study
4/14
DTH Market Overview The DTH industry is a high tech industry and it require lot of capital investment.
High initial setup cost of satellite, transponder, Set Top Box cost (Rs.2500.00) and other high
tech equipment :
DTH is a low margin and high volume industry:
competitive pricing versus cable industry:
Differentiation through content i.e. channels :
Customer Service: Good quality service required by customers i.e better than Local Cable
operators.
Multicultural & Multilingual Geography: Local language channels and penetration
Long gestation and break even period:
High Cost of content:
8/8/2019 Xlri- Dth- Case Study
5/14
Current Scenario
Target -homes to convert from Cable & Satellite connection to DTH.
5 active players in the market and 2 new are trying to get in.
Price wars, discount schemes, procurement of transponders, bouquet of channels,set top boxes with superior quality of videos etc have been witnessed in themarket to catch up the space.
The DTH Industry revenue is expected to grow at 80% compounded per annumover the next 5 years and will be in the range of Rs.100 billion in 2011.
Total TV Population Distribution in million
Total TV Homes 120 50%Cable & Satellite
Connection
80 33%
DTH Connection 14 6%
No cable or DTH 26 11%
8/8/2019 Xlri- Dth- Case Study
6/14
Current Players and Market Share
DTH Industry Market Share 2008*
Brand Promoter Subscriber base
Million
Market Share
Dish TV Zee group 5 53%
TataSky Tata Sons & Star TV 3 30%
Big TV Anil Dhirubhai Abani
Group
1 15%
Others (Sun Direct,
AirTel Digital
Sun by SUN TV and
Airtel by Bharti
3 2%
8/8/2019 Xlri- Dth- Case Study
7/14
Contd.Dish TV Tata Sky Big TV Sun Airtel
2004 2006 2008 2007 2008
Subscribers 3.6million 2.6million 1.2million 1.4millionMarket positions 2
nd3rd 4th
Technology MPEG-2,
7transponders
MPEG-2 , 3
transponders,
Premium STB
power pause
/record online
MPEG-4, 12
Satellite
transponders
MPEG-4 , rent
for transponders
MPEG-4 DVB
S2
Channels 180 140 250 40 140
Value added Movie on
demand, Astro,
News, Sports,
Multilingual other
active services
Interactive
services,
ACTIVE
SCHOOL, KIDS,
Matrimonial etc
16 on demand
movies, niche
foreign channels
for high end
customers, 1st to
introduce a-la-
carte package
Pricing Rs. 4290( incl of STB , Dish and
Installation) ,
monthly package
200-300.01
Rs. 3000( incl ofSTB , Dish and
Installation) ,
monthly package
200-300.00
Rs.1000.00 forinstallation(incl .of
STB),cheapest
package-
Rs.100.00,spl -
200-300.00
Rs.1999.00 (10months
subscription incl
of dish and
STB)+Rs.100.00
for installation.
Minimum package
for package
3months.
Rs. 2500( incl ofSTB , Dish and
Installation) ,
monthly package
200-300.00
Outlets 35000 35000 2 lakh 1Lakh
8/8/2019 Xlri- Dth- Case Study
8/14
Contd.Dish TV Tata Sky Big TV Mon Airtel
Strengths 1st service
provider to have
got large
customer base
and known brand
name
Interactive
services and new
STB
Large mobile
phone and
customer base
through out India
66000 SUNTV
Cable TV
customer base,
strong brand in
South India
Large mobile
custoner base
throutgh out India
Strategy low entry price ,
reach no cable
area, language
packages,
encourage to
subscribe other
packages &VAS,focus brand
Value added
services like
interactive
programs ACTIVE
Low entry price,
Reach customers,
exploit existing
ADAG clients,
support through
ADAG Outlets
Low entry price ,
minm price minm
package.
Reach customers,
eploit existing
Aairtel mobile
clients, support
through AIRTEL
Outlets
Future Strategy 14 transponders,
own satellite,400
channels
2600 crores
investement for
technology, New
Interactive
services,
High defination
content,more
channels , mor
interactive
serivices
Entry into other
regions of the
country.
Investment in
technology.
High definition
content, more
channels , more
interactive
services
8/8/2019 Xlri- Dth- Case Study
9/14
Summary
All players are trying to offer less price initial and monthly subscription
charges for get a new customer.
All are making loss because of offer price, cost of accusation of a customer
is Rs.4000 (incl STB-Rs.2500). More volume/ roping more subscribers at a
lesser time is the Mantra for survival. The target break even period minimum 5years and customer base
>5million.
Apart from giving low price , amongst themselves players are building
edge over others by means of offering Interactive services, exclusive
channels, language channels, digital quality etc. Customer acquisition, retention and service are the criteria's of DTH
industry.
8/8/2019 Xlri- Dth- Case Study
10/14
Future
Television households are estimated to grow to 165 million in2011, The DTH industry is currently pegged at 2.6 millionsubscribers.
The DTH Industry revenue is expected to grow at 80%compounded per annum over the next 5 years and will be inthe range of Rs.100 billion in 2011.
with increase penetration of TVs, it will give a boost to thedemand for better quality products like DTH. DTH subscribersare expected to touch 27 million in 2011 and 61 million in2015.
8/8/2019 Xlri- Dth- Case Study
11/14
Conclusion
Increasing content costs and less
transponders,DTH market is difficult game.
Customer is sensitive to price companies haveto differentiate in terms of service and price.
We will see consolidation of players, out of 7
players 3or 4 may remain in the long run.
8/8/2019 Xlri- Dth- Case Study
12/14
Questions and Answers
1.What are the challenges before Dish TV when it pioneered the market?
Answer: DTH was introduced for the 1st time in the market. The challenges Dish TV faced
were consumer awareness of the technology, shifting from conventional cable TV to a newworld of viewing with 1st time investment in hardware.
2.How has Tata Sky performed?
Answer: Tata Sky performed very well. They could manage to grab customers by their
interactive programs (others do not have).
3. With the entry of Airtel Digital and Big TV how do you think the market dynamics would
change? What are the factors that would help these two new entrants and what are the
challenges?
Answer: Better price offers and more choice of channels, interactive services,better
customer care will be available in the market.
Factors that will help these two new entrants 1. Existing customer base and outlets 2.
Existing brand names
Challenges Initial Price and monthly subscription charges( customer wants less charges with
more channels and interactive services), reach to customers ( geographically),Both DishTVand Tata Sky have MPEG 2 format whereas Airtel and BigTV are MPEG 4 ready.
8/8/2019 Xlri- Dth- Case Study
13/14
4.What are the challenges before DTH TV and TataSky.
Answer: New technology MPEG4 gives beter picture quality and sound
effects. Both the old players will have upgrade to the new technology to
compete with new players.
5.How is Videocon d2h placed in the market?
Answer: Placed as a new entrant i.e 6th player in the market. They will
have a tough time to get customers roped in because of competition from
existing players and there subscribers. Their only plus point is their
distribution network throughout the country.
6.What should Sun Direct do for expansion?
Answer- Sun direct needs to add more of other language channels like,
Hindi, Marathi, Gujrati etc. They need to invest in technology.
8/8/2019 Xlri- Dth- Case Study
14/14
7.. What is the branding strategy of each of the players?
Answer: Dish TV- They want the customers not be happy with existing
cable TV but go for new satisfaction with DTH. Brand Ambassador
Shahrukh Khan, Brand Ambassador Amir Khan Tata Sky- More Interactive services and pause and record facility. Brand
Ambassador Amir Khan.
Big TV- More channels, better quality. Brand Ambassador Abhisekh
Bhachan.
Airtel Digital- same as their cellular services.
8. What are the key issues that you think are important in this Industry for
future success?
Answer: 1.due to long gestation period break-even will be a problem for
all players. 2. customer retention and customer service
Recommended