Direct to Home Final

8/13/2019 Direct to Home Final

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DIRECT TO HOME INDUSTRY

DIRECT TO HOME

INDUSTRYMARKET ANALYSIS

9/25/2013

PRESENTED

BY

SAHIL SHARMA, 34RANBIR SINGH CHIMNI, 37

TO

DR CN SHYLAJAN


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CONTENTS

TELEVISION IN INDIA DTH INDUSTRY LIST OF DTH FIRMS MARKET SHARE CHANGE MARKET SHARE 2013 CONCENTRATION RATIO HERFENDHAL INDEX

EFFECTS OF INCREASE PLAYERS BARRIERS PRICE PRICING STRATEGIES NON PRICING STRATEGIES GENERIC STRATEGIES POTERS MODEL DISH TV TATA SKY SUNDIRECT BIG TV AIRTEL VIDEOCON PRICE LEADERSHIP FIRST MOVERS ADVANTAGE SEEKS GOVT INTERVENTION APPENDICES


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ACKNOWLEDGEMENT

It is a great pleasure and privilege for us to present this project on DIRECT TOHOME INDUSTRY . We express our sincere sense of gratitude towards our professor Dr. Shylajan, under whose fruitful guidance, encouragement and support the project was completed.

We would also like to thank Mr. Chaahat Khattar for providing us with the industrieslatest information.

DIRECT TO HOME : INDUSTRY

Television in India

The history of Indian television dates back to the launch of doordarshan, Indiasnational TV network in 1959. The transmission was in black & white. The 9 th Asiangames which were held in 1982 in the countrys capital New Delhi heralded the mark ofcolor TV broadcasting in India. In 1991, Indian economy was liberalized from theLicense Raj and major initiatives like inviting foreign direct investments, deregulation ofdomestic business emerged. This lead to the in flux of foreign channels like Star TV andcreation of domestic satellite channels like Sun TV and Zee TV. This virtually destroyedthe monopoly held by doordarshan. In 1992, the cable TV industry started which lead torevolution. Every city in the India had a complex web of co-axial cables running throughthe streets with a new breed of entrepreneurs called as cable wallahs or Local CableOperators(LCO) taking in charge of distribution. The film industry was shocked by this

sudden growth and there were even organized protests for calling off the Cable TVindustry. There were simply too many cable operators in the country and the channelshad a difficult time in getting its returns as the existing system was a non-addressableand the operators could simply give a reduced number of subscribers to amass profit.This lead to the emergency of a new breed of firms called as Multi System Operators(MSO) who had heavy financial muscles to make capital investments. . The MSO


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industry became highly monopolistic which warrants government participation toensure competition. Later on, the United Front Government had issued a ban on use ofku band transmission. After a change of government, the ban got lifted finally in 2001and TRAI issued the guidelines for operating DTH. Countrys first private DTH license was awarded to Dish TV in 2003 which started operations in 2004. Prasar Bharati alsostarted its product DD-Direct+.DTH Digital TV system receives signals directly fromsatellite through the dish, decodesit with the Set-Top Box and then sends stunninglyclear picture and sound to TV which is the business under taken by some companies byobserving the rate of growth and scope for business & opportunity in the Indian market which has 120 million viewers of TV

DTH Industry Overview:

The Indian Direct-To-Home (DTH) market is expected to see its annual revenue growover three times to more than $ 5 billion by 2020, as mandatory cable TV digitisation would help the DTH players expand their subscriber base, a study has said.

DTH industry revenues will reach $ 3.9 billion by 2017 and $ 5.3 billion by 2020.Revenue growth will be largely driven by increasing subscriber volumes, Hong Kong - based research firm Media Partners Asia has said in a new report on the Indian DTHmarket.The Indian DTH industry is estimated to have clocked a revenue of about $ 1.5 billion in 2012.Media Partners Asia (MPA), an independent provider of informationservices focusing on media, communications and entertainment industries, further said

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Industry

Industry


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that the active DTH subscriber base is estimated to grow from 32.4 million in 2012 to63.8 million by 2017 and 76.6 million by 2020.MPA, however, added that the IndianDTH market faces several cost challenges moving forward.

With conflicting growth forecasts between content aggregators and DTH operators overthe active subscriber base, most of the content renewals from now on will likely be basedon a cost per subscriber (CPS) basis, rather than on a fixed rate.This will reduce the benefits from operating leverage that the industry previously enjoyed. Marketing andstaff expenses will remain high as the larger phases of DAS (digitisation of cable signals)roll- out gets underway, it added.As per the report, Indias DTH players made acollective effort in 2012 to improve the per-subscriber economics of the industry, withlaunch of more DTH packages and entry-level pricing. The active subscriber additionsin 2012 stood at a mere 3.7 million. This is alarming as the gap between gross and activesubscriber bases has widened substantially.As of end -2012, the cumulative DTH activesubscriber base stood at 32.4 million subscribers versus 28.7 million subscribers in2011As per the report, Dish TV continued to lead with a market share of 27 per cent interms of gross additions, while Videocon d2h led in terms of incremental adds in2012.Tata Sky and Airtel Digital TV have 19 per cent and 18 per cent market share,respectively. These four players together accounted for 88 per cent of total grossadditions in 2012.


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LIST OF DTH PLAYERS 2013

MARKET SHARE CHANGE (2004 2013)

MONOPOLY 2004

DISH TV MARKETSHARE 2004

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Monopoly - Oligopoly Oligopoly2007 2010

Market Share 2013 ( oligopoly)

Dish Tv 27%

Tata Sky 19% S direct 13% Big tv 7% Airtel 19% Videocon 14%

27%

19%

13%

7%

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dish tv

tata sky

s direct

big tv

airtel

videocon


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CONCENTRATION RATIOConcentration ratio is a measure of the total output produced in an industry by a

given number of firms in the industry. The most common concentration ratios are theCR 4 and the CR 8, which means the market share of the four and the eight largest firms.Concentration ratios are usually used to show the extent of market control of the largestfirms in the industry and to illustrate the degree to which an industry is oligopolistic

CALCULATION DTH INDUSTRY 2013The concentration ratio is the percentage of market share held by the largest firms (m)in an industry.

CRm

= m

i=1 s

i

Therefore it can be expressed as:CR m = s 1 + s 2 + .... + s m where s i is the market share and m defines the i th firm

DTH CR = S1 + S2 + S3 + S427 + 19 + 19 + 1479

Medium concentration50% to 80%. An industry in this range is likely an oligopoly.

HERFINDHAL INDEX

Herfindahl index (also known as Herfindahl Hirschman Index , or HHI ) is ameasure of the size of firms in relation to the industry and an indicator of the amount ofcompetition among them. Named after economists Orris C. Herfindahl and Albert O.Hirschman, it is an economic concept widely applied in competition law, antitrust and

also technology management.It is defined as the sum of the squares of the marketShares of the 50 largest firms (or summed over all the firms if there are fewer than50)within the industry, where the market shares are expressed as fractions. The result isproportional to the average market share, weighted by market share. As such, it canrange from 0 to 1.0, moving from a huge number of very small firms to asingle monopolistic producer. Increases in the Herfindahl index generally indicate a


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decrease in competition and an increase of market power, whereas decreases indicatethe opposite. Alternatively, if whole percentages are used, the index ranges from 0 to10,000.

CALCULATION DTH INDUSTRY 2013

where s i is the market share of firm i in the market, and N is the number of firms

HHI = 27^2 + 19^2 +19^2 + 14^2 + 13^2 + 7^2 +1

HHI = 1866

A HHI index between 0.15 to 0.25 (or 1,500 to 2,500) indicates moderate concentration

EFFECT INCREASE OF PLAYERS

Each player is trying to overtake the other ( price, market share ,quality , tech) Market was monopoly in 2004, transited to oligopoly in 2010 Ultimate benefit to consumers

BARRIERS TO ENTRY AND EXIT

High setup cost The initial cost of setup for broadcaster is Hugh so this acts as a big entry barrier.

DTH is a low margin and high volume industry: DTH though is a lucrative business however it is a low margin and high volume

industry. For a new entrant to succeed it has to ensure that it builds customer base soon otherwise it will not be possible to make profit.

Cost of a set top boxes:


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The cost of setup box installed in a home is still very high and the cost of a set top box is a significant entry barrier. Higher number of subscriber can bring downthe cost incrementally.

Pricing has to be competitive versus cable: For a new entrant to be successful it is going be very difficult as they entrant willto compete with local cable operators as well as existing DTH service provider.There are already established players in the market and the price war has alreadystarted.

Differentiation through content: There are hundreds of TV channels in India and as per the industry reports thereare close to 150+ channels waiting for approval, this take the numbers to 400different TV channels. So providing the right content to the right consumer willalso play a critical role in success of new entrant, differentiation through contentis must

Customer Service: The quality of customer service will be a key differentiator. As Indian consumerare habitual of calling the cable walah whenever there is some issue .A newentrant will face challenges in two fronts; One to ensure that it is providing bettercustomer service than local cable operators and on the other hand it has toprovide better customer service than existing DTH service provider.

Multicultural & Multilingual Geography: India being a multicultural, multilingual society it is very important for the newentrant to ensure that it maintains a fine balance between the regional and nationflavour.

Long gestation and break even period: It takes lot of time to for a new entrant to stabilize and grow in this industry.Even achieving the break even period is comparatively high.

Government Regulation and Licensing

Policy and Regulation


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Being a nascent industry, there are lots of teething issues with the current policyframework and the way it is regulated in reality. Some of the notable challenges facedare as below

Lack of Exclusive ContentIn the global DTH market, competition is mostly on providing niche content. In IndiaTRAI does not allow broadcaster to offer content exclusively to a specific player. Hencecontent differentiation as USP is not possible currently in the Indian scenario. TRAI hasclearly indicated that exclusivity can be provided only when DTH market matures andthere is perfect competition in the market place. But DTH operators are feeling that without content differentiation, the competition can only be on price which may evencannibalize the industry.

The Rule of " Must Carry"DTH Operator is obliged to carry all the channels provided by every broadcaster on anon- discriminatory basis. However, with the capacity constraints in place, this is notfeasible. So in cases, where the operator is willing to broadcast only the popularchannels, the broadcasters either deny giving the entire bouquet or charge prices for thecomplete bouquet.

Interoperability issues.TRAI mandates an open architecture for STB's to ensure technical interoperability butin reality this is not being implemented.

POWER OF A FIRM OVER PRICE

Players are not perfectly price takers DTH industry is becoming more elastic Profit margins are decreasing

PRICING STRATEGIESThe Industry players are all incurring heavy losses in this fierce race for the subscribers.But they expect the numbers to swell before the revenues come up & comfort them. Inpresent spate of things the subscribers seem to be highly subsidized by the service


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providers. Service providers are first interested in customer acquisition & marketcreation than profits at this stage. Early players in the industry know it better &have seen how the industry has changed in the span of six years. Initial prices stoodaround 5000 Rs in 2006 for STB & service activation, from there it came down to 3500Rs, 2000 Rs, 1000 Rs & went even below this when the number of players increased in2010. The Festive prices offer in 2009 & in 2010 brought down the prices at Rs 999forthis service with Dish TV & Tata Sky both. All the companies had their price offers between Rs 890 to Rs 1200. Dish TV for example in 2010 was giving STB for Rs 990 +Rs 200 for installation extra, but giving recharge vouchers worth Rs 990 absolutely free,thus an offer that puts STB for free.Companies have gone even below this to acquire a customer. Videocon was offering STBat Rs 888. Sun Direct came with the most lucrative offer with STB at Rs 890 &offeredthe lowest base pack at Rs 99 which was most economical pack across board. When theydid so, the companies were virtually subsidizing the subscriber for about 2500 Rs, the basic cost of STB & Antennae doled almost for free, in hope of future earnings &revenues reporting the subscriber numbers by which they comforted themselves to alarge extent. With the level playing field introduced between LCO & DTH operators bydigital broadcast eventually negating underreporting, the things are expected to improvein favor of DTH operators .Transparency by way of regulation was needed for a longtime in this industry & things haves started moving in right direction. The pricing of bouquets also heats up the competition. Sun Direct has been an aggressive player onthat. It differentiates by offering the best value for money economical pack, while all

others had to struggle hard to come down. Dish TV in this competition brought down itsinitial bouquet at little above 100 Rs, giving a tough fight to LCO s. Tata Sky on theother hand had a tough time shedding its prestige & premium image. It came out with aspecial campaign in answer to this bouquet price war of competitors, where it had to setaside Amir Khan as brand endorser &had to make use of two young boys in Laurel &Hardy attire asking the vendor for the lowestprice bouquet in a campaign aptly called Poochne Mein Kya Jata Hai?

An image shedding which must have been felt as an important way to tackle priceadvantage all other players were counting on, compared to Tata Sky s premium image &

fine positioning as the best service provider. What is even more special is that the exercise was precisely an image shedding overtureor else the low price offers were always there with Tata Sky. What was felt emphatically was an urge to educate consumers about


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NON PRICING STRATEGIES

VALUE ADDED SERVICES

Matrimonial Services ,job search, travel plan, banking , astrology etc Movie on demand Offering free subscription for 1 st few months BIG TV TIE UP WITH UTV for movies Mobile active Gaming Sports active and multilingual services

INSTALLATION & CUSTOMER CARE SERVICES

TATA SKY promises 24 hrs installation SUN TV free dish TATA SKY affordable prices and attractive packages , services TATA SKY 6 HRS SERVICE

ADVERTISING CAMPAIGNS

Aggressive advertising Big brand ambassadors Increase sponsorship in events Lucrative festival offering


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GENERIC STRATEGIES

Cost leadership

In the case of media products, means they should be offered at a price lower than theircompetitors but with as good benefits, or, the unique benefits the media products offercan over-offset the premium.

Differentiation

Differentiation in DTH refers to when a organization provides unique benefits to theusers through product innovation. This is to increase the probability of the media usersto choose the product. A media organization with a target user loyalty can concentratemore on how to fully meet the target users needs rather than on product cost saving.

AIRTEL DIGITAL CLARITYBIG TV VASSUN DIRECT COST EFFICIENCY

VIDEOCON TECHNOLOGYTATA SKY CUSTOMER SERVICES

Focus Focus strategy is also known as a 'niche' strategy. The clutter of ads has now spilled outon the number of channel availability due to which people are spoilt for choice. ThusNiche channels are the only way to maintain viewer loyalty. TATA Sky Plus is moreniche oriented


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DISH TV

History

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1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46

Market share of Dish TV

% of Dish TV


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DTH service was launched in India back in 2004 with the launch of Dish TV byEssel Group's Zee Entertainment Enterprises.

Dish TV was the only DTH service provider in India to carry the two Turnerchannels: Turner Classic Movies and Boomerang.

Satellite link

Dish TV uses NSS-6 to broadcast its programmes.

NSS-6 was launched on 17 December, 2002 by European-based satellite provider,New Skies.

Dish TV hopped on to NSS-6 from an INSAT satellite in July 2004.

The change in the satellite was made to increase the channel offering as NSS 6offered more transponder capacity.

Dish TV is currently using 4 transponders on Asiasat 5.

Subscriber base

As of 31 October, 2012, Dish TV had about 13 million customers.

Dish TV is presently Asia's largest satellite television provider

Dish TV launched its high definition service called Dish truHD in the year 2010.

Competitor Analysis

Being Indias First DTH Entertainment Service , by digitalization this enterprise brought best viewing technology .It not only provides high quality programmethrough satellite but also give a complete control of selecting channels and paying forthem.

DISH TV has a vast distribution channel of about 1400 distributors and 55000dealers that spans around 6600 towns across the country.

It has 24*7 call centre with 1600 seats to attend calls in 11 different languages.


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TATA SKY

History

Is a joint venture between the Tata Sons, that owns 80% and STAR India thatowns a 20% stake.

Tata Sky was incorporated in 2004 but was launched only in 2006.

It currently offers close to 245 channels (as of May 2013); this count includessome numbers of HD channels offered by Tata Sky (as Tata Sky-HD) andinteractive services also.

In October 2008, Tata Sky announced launching of DVR service TataSky+ which allowed 90 hours of recording in a MPEG-4 compatible Set Top Box.

Tata Sky is a basic set-top-box offering picture and sound along with interactiveservices.

Tata Sky HD

Tata Sky HD was launched on June 14, 2010 and has channels in their nativeresolution of 1080i or 720p.

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Marker share T sky

%t sky


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The STB is compatible with 7.1 CH surround sound as well. The service currentlyoffers HD channels - MTunes HD, National Geographic Channel HD, DiscoveryHD World, STAR Movies HD, STAR Plus HD, STAR Cricket HD, STAR

World HD, STAR Gold HD, ESPN HD, Zee TV HD, Sony HD, Colors HD .

Tata Sky+ HD

Tata Sky have launched their HD DVR Set Top Box which comes with a 500 GBHard Disk. However

Video on Demand On December 25, 2011 Tata Sky launched Video on Demand(Vod) services for

their Tata Sky+ HD set-top boxes.

Subscriber Base

Tata Sky had a subscriber base of 11 million customers, as of 31 October 2012 .[6]

Competitor Analysis

The group and its enterprises have been steadfast and distinctive in theiradherence to business ethics and their commitment to corporate social

contribution .This is a legacy that has earned the trust of many millions ofstakeholders in measure of few business houses anywhere in the world canmatch.

In addition to dedicated call centre like that of DISH TV,TATA SKY hasnominated nodal officers for redressal of grievances of those subscribers who arenot satisfied with redressal at call centre level. Such subscribers can contact nodalofficers citing the docket number issued by the call centre.

Product Bundling

Tata Sky DTH connection Rs 2099

+standard installation

+2months grand sports pack

+2 showcase movies
http://en.wikipedia.org/wiki/Tata_Sky#cite_note-6http://en.wikipedia.org/wiki/Tata_Sky#cite_note-6http://en.wikipedia.org/wiki/Tata_Sky#cite_note-6http://en.wikipedia.org/wiki/Tata_Sky#cite_note-6


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SUN DIRECT

History

Sun Direct is a joint venture between the Maran's Sun Network family and the Astro Group of Malaysia.

Sun Direct TV was registered on February 16, 2005. Sun Direct offered subscribers a satellite dish and Set-top box for free and basic

monthly plan as low as 75(approximately). Currently basic monthly plancosts 143(approximately).

Sun Direct spread rapidly all over the country owing to lowest pricing of any DTHservices in India.

In April 2010 Sun Direct became the No. 1 DTH service provider of India with 5.8million subscribers and soon officially launched its HD service in India.

Sun Direct is also the first to provide high-definition television services in India

Glitch and satellite change

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s direct
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On July 7, 2010 a power glitch in the INSAT 4B satellite turned down the DTHsystem partly and SUN Direct announced that the service will be free till wholeservices are restored

Subscriber base

Sun Direct has over 8 million subscribers as of January 2013. There were over 48million DTH subscribers in India as of June 2012

BIG TV

About Reliance Digital TV

Reliance digital TV limited is a part of Reliance Communications Ltd., asubsidiary of Reliance Anil Dhirubhai Ambani Group

. BIG TV started operations from 19 August 2008 with the slogan "TV ho Toh BIGHo" ("If you have a TV, make it BIG"). It currently offers close to 250channel s[3] and many interactive ones, 32 cinema halls (i.e. Pay Per View CinemaChannels) as well as many Radio channels.

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big tv%
http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-3http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-3http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-3http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-3


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The company plans to increase the number of channels in the near future to 400and begin High Definition (HD) broadcast. There are also plans to introduceservices like i-Stock, i-News and other such interactive services in the future .[4]

Reliance BIG TV's launch in August deployed the MPEG4 technology. The

Subscriber Base

Reliance Digital TV had about 7 million customers as of November 2011.Thereare about 30 million DTH subscribers in India as of February 2012

AIRTEL

History

Airtel digital TV is an Indian direct-broadcast satellite service provider ownedand operated by Bharti Airtel.

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MARKET SHARE AIRTEL

AIRTEL
http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-4http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-4http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-4http://en.wikipedia.org/wiki/Reliance_Digital_TV#cite_note-4


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Its satellite service, launched in 2008, transmits digital satellite television andaudio to households in India.

It uses MPEG-4 digital compression with DVB-S2 technology, transmitting usingthe satellite SES-7 108.2E.

As of 9 August 2013, Airtel digital TV has total 324 Channels and Servicesincluding 17 HD channels .[3]

Subscriber Base . It has a total subscriber base of 7.9 million as of 31 January, 2013.

Airtel Digital TV [HD] Airtel Digital TV HD provides channels in their native resolution of 1080i or 720p

with 16:9 aspect ratio

Airtel Digital TV HD+ is a recorder that records content on an external USBdrive/ hard disk drive

Airtel Digital TV [HD] Recorder

On 4 May 2010, Airtel digital TV from bharti airtel announced the launch of its3D ready High Definition Personal Video
http://en.wikipedia.org/wiki/MPEG-4http://en.wikipedia.org/wiki/DVB-S2http://en.wikipedia.org/wiki/SES7http://en.wikipedia.org/wiki/High-definition_televisionhttp://en.wikipedia.org/wiki/Airtel_digital_TV#cite_note-3http://en.wikipedia.org/wiki/Airtel_digital_TV#cite_note-3http://en.wikipedia.org/wiki/Airtel_digital_TV#cite_note-3http://en.wikipedia.org/wiki/Airtel_digital_TV#cite_note-3http://en.wikipedia.org/wiki/High-definition_televisionhttp://en.wikipedia.org/wiki/SES7http://en.wikipedia.org/wiki/DVB-S2http://en.wikipedia.org/wiki/MPEG-4


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VIDEOCON

History

Videocon d2h is the DTH service provided by the Videocon Group. Videocon Group is an industrial conglomerate with interests all over the world,

and is an Indian multinational company. As a pioneering offer in the Indian DTH market, Videocon d2h offered Satellite

LCDs & TVs which were DTH enabled with sizes ranging from 19" to 32". This concept in the DTH service was an innovation in the presence of other

players like Dish TV, Tata Sky, Airtel Digital TV, Sun Direct and Reliance DigitalTV providing only the set top box.

Videocon d2h became the first DTH service provider in India to offer a 3D readySet Top Box in

Competitor Analysis

Videocon D2H launched the first ever HD-DVR with 3d for its customers to watch content with 3D Experience.

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videocon%
http://en.wikipedia.org/wiki/Videocon_Grouphttp://en.wikipedia.org/wiki/Videocon_Group


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Videocon D2H will bridge the gap as connector to broadcaster and TVcustomers. Videocon Services today unveiled its new range of satellite LCDs ,arevolutionary breakthrough that enables the LCD to receive signals directlythrough satellites without any use of set top box giving customers freedomfrom wires, additional contraptions and multiple remotes.

The inbuilt Set top box offers perfect picture quality by ensuring no signalloss.

Product bundling

Dish cost is Rs.1800 but free for 3 month bundled usagea) Free home delivery

b) Free instalationc) 1month free home serviced) And after one month also the service has been taken limited coste) Monthly recharge also done here

Cost LeadershipThe market leader Dish TV said it will raise prices of its set-top boxes by Rs 250, others

including Tata Sky, Airtel digital TV and Videocon d2h are also looking to increaseprices.

Dish TVs standard definition set -top box, which was priced at Rs 1,999 will now cost Rs2,249. Its Dish + recorder will cost Rs 2,349. The company has kept the price of its high-definition set-top boxes unchanged.

First Movers AdvantageMarket is highly price conscious and promotion driven .With the onslaught of price cutstarted by TATA sky with their promotion of all inclusive 999 offer few time back, in which company made available the DTH for just Rs 999 ,all other players are alsomoving on the same line and they are giving the DTH connections for the same rate oreven less. Tata Sky launched HD services at Rs 2,599, forcing market leader Dish TV to cut


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prices by more than 50% within days of launch. Videocon D2H launched the first ever HD-DVR with 3d for its customers to watch content with 3D Experience.

Slowdown-Hit DTH Industry Seeks GovtIntervention

Hit by the global slowdown and slow growth in subscriber base, the countrys direct -to-home (DTH) service providers asked the government to bail them out and take a relookat the four-level tax system imposed on them.With the dollar appreciating against therupee, the hardware cost has gone up by 10-15 percent. The DTH industry can facemassive losses in the years to come on account of low average revenues per user (ARPU)and also the duty that each service provider has to pay while importing hardware.

Due to dollar appreciation, the hardware, especially the set-top boxes, which is importedfrom other countries, has become costlier. Therefore, the DTH players have not benefited much from service duty cuts. However, the current trend has not stopped thecompanies from launching new offers and services. Players like Dish TV and BIG TV arenow offering multi-dwelling units (MDUs), and are exploring options with real estatedevelopers for wiring their projects in the construction stage.

PRICE DISCRIMINATION

Customers are offered lower price during festivals and off seasonsi) Tata sky was offering free subscription for a year during Diwali (2012)ii) Airtel was offering free movie pack last year in December (2012)


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APPENDICESSUBSCRIBER BASE DTH INDUSTRY 2010 2013

(Figure in '000)

Month Dish TV T SKY S DIRECT BIG TV Airtel DTHVideocon

Industry % of Dish TV

Apr'10 7123 4689 4214 2180 2839 475 21521 33%May'10 7313 4809 4334 2250 3041 515 22263 33%

June'10 7542 4985 4464 2324 3275 601 23192 33%July'10 7791 5115 4566 2389 3500 718 24080 32%Aug'10 8057 5242 4691 2449 3736 870 25046 32%Sep'10 8309 5382 4761 2529 3961 1071 26013 32%Oct'10 8662 5592 4901 2659 4278 1338 27430 32%Nov'10 9172 5894 5069 2780 4767 1723 29405 31%

Dec'10 9444 6024 5177 2847 5052 1959 30503 31%Jan'11 9760 6137 5287 2917 5297 2179 31577 31%Feb'11 10098 6273 5372 2992 5597 2439 32771 31%

Mar'11 10444 6434 5460 3045 5900 2713 33996 31%Apr'11 10.7 6.6 5.5 3.1 6.1 2.9 35.0 31%

May'11 10.9 6.7 5.6 3.2 6.4 3.2 35.9 30%

June'11 11.2 6.8 5.7 3.2 6.6 3.4 36.9 30%

Q1 FY12 11.2 6.8 5.7 3.2 6.6 3.4 36.9 30%July'11 11.3 7.0 5.7 3.3 6.8 3.6 37.8 30%

Aug'11 11.5 7.1 5.8 3.3 7.0 3.8 38.6 30%

Sep'11 11.7 7.3 5.9 3.4 7.2 4.0 39.5 30%

Q2 FY12 11.7 7.3 5.9 3.4 7.2 4.0 39.5 30%

Oct'11 12.2 7.5 6.0 3.5 7.5 4.4 41.1 30%Nov'11 12.4 7.6 6.0 3.5 7.7 4.6 41.9 29%Dec'11 12.5 7.8 6.1 3.6 7.9 4.8 42.5 29%

Q3 FY12 12.5 7.8 6.1 3.6 7.9 4.8 42.5 29%

Jan'12 12.6 7.9 6.2 3.6 8.0 4.9 43.2 29%

Feb'12 12.7 8.0 6.2 3.6 8.1 5.1 43.8 29%

Mar'12 12.9 8.1 6.3 3.7 8.3 5.2 44.5 29%Q4 FY12 12.9 8.1 6.3 3.7 8.3 5.2 44.5 29%Apr'12 13.1 8.3 6.3 3.7 8.4 5.4 45.2 29%May'12 13.2 8.5 6.4 3.7 8.6 5.6 46.1 29%

June'12 13.4 8.7 6.4 3.8 8.8 5.8 46.9 29%

Q1 FY13 13.4 8.7 6.4 3.8 8.8 5.8 46.9 29%

July'12 13.5 8.9 6.5 3.8 8.9 6.0 47.6 28%Aug'12 13.7 9.0 6.5 3.8 9.1 6.1 48.3 28%Sep'12 13.9 9.2 6.6 3.8 9.2 6.3 49.1 28%

Q2 FY13 13.9 9.2 6.6 3.8 9.2 6.3 49.1 28%Oct'12 14.1 9.4 6.6 3.9 9.4 6.5 50.0 28%Nov'12 14.5 9.8 6.8 3.9 9.8 6.9 51.7 28%Dec'12 14.7 10.0 6.8 4.0 9.9 7.1 52.5 28%

Q3 FY13 14.7 10.0 6.8 4.0 9.9 7.1 52.5 28%Jan'13 14.9 10.2 6.9 4.0 10.1 7.3 53.3 28%Feb'13 15.0 10.3 7.0 4.0 10.2 7.4 54.0 28%Mar'13 15.1 10.5 7.1 4.0 10.4 7.6 54.7 28%

Q4 FY13 15.1 10.5 7.1 4.0 10.4 7.6 54.7 28%Apr'13 15.2 10.7 7.2 4.0 10.6 7.7 55.5 27%May'13 15.3 10.9 7.3 4.1 10.7 7.9 56.2 27%June'13 15.4 11.0 7.3 4.1 10.9 8.1 56.8 27%

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