1. Presented By: Ankit A. Modi (23) Bhavya Patel (90) Fahad Ramporia (46) Neha Pandya (83) Prashant Malvaniya (21) “An In – Depth Study Of DTH Industry In INDIA”

2. Introduction Definition “A digital satellite service that provides television services direct to subscribers anywhere in the country. Since it makes use of wireless technology, programs are sent to the subscriber's television direct from the satellite, eliminating the need for cables and any cable infrastructure.

3. Product History Concept of satellite television started 64 years ago in the mind of Arthur C. Clark. HBO moved first to satellite delivery of programming. DTH Satellite receivers were developed in the Early 1980. In 1981-85 dish fever grows faster in the world. In India STAR TV initiated for DTH plans in 1997. Concept of satellite television started 64 years ago in the mind of Arthur C. Clark. HBO moved first to satellite delivery of programming. DTH Satellite receivers were developed in the Early 1980. In 1981-85 dish fever grows faster in the world. In India STAR TV initiated for DTH plans in 1997.

4. Substitutes of the product 1.Cable Operator 2.IPTV (live television, time-shifted programming, and content on demand ) 1.Cable Operator 2.IPTV (live television, time-shifted programming, and content on demand )

5. Product Technology and service processing  Television receive-only  Direct to home television Programming Broadcasting centers Transmission The Dish The Receiver

6. Industry Life Cycle Year Subscribers (In million) 20030.00 20051.00 20074.00 200918.70 Source :TV VEOPAR JOURNAL/ April 2009/ Page No:40

7. Global Scenario Region/Country Players The United States11 Canada5 Japan2 Europe23 France4 Germany1 U.K.5 Italy1 Spain1 Rest of Europe11 Asia-Pacific (Excluding Japan)28 Middle East2 Latin America8 Africa1 Total 80 Source: http://www.strategyr.com/DTH_Satellite_TV_Services_Market_Report.aspx

8. Indian DTH Industry  Permitted in 2000, Started in 2001.  Private Players entered in 2003 (Dish TV).  Current 7 players (1 Govt. + 6 Private).  Source : Business Standards, 9-11-2009. Company's Name Subscribers (In Million)Market Share Dish TV5.9231.62% Tata Sky4.5024.04% Sun Direct4.3022.97% Airtel Digital TV2.0010.68% Reliance Big TV2.0010.68% Videocon d2hNA DD Direct+NA Total18.72100.00%

10. Revenue Structure Revenue DriversPercentage (%) Sales1.29% Subscription income79.94% Processing Charges/Service Income1.80% Other Operational Income16.96% Total100.00% Source : ACCEQUITY

11. Cost Structure Cost DriversPercentage (%) Raw Material Consumed 1.42% Power & Fuel Cost 0.24% Employee Cost 4.33% Production Expenses 57.03% General and Administration Expenses 4.90% Selling and Distribution Expenses 29.03% Miscellaneous Expenses 3.05% 100.00% Source : ACCEQUITY

13. Political Factors FactorsUnfavorableNeutralFavorable Political Parties√ Regulatory Role of Government√ Rules for licensing√ Trade Restrictions And Tariffs√ FDI cap√ Government Stability√ (Here, Unfavorable-1 & Favorable-3) Weighted Average = (2*1+4*3)/ 6 =2.33 Thus the overall effect of Political factors on this industry is Favorable.

14. Economic Factors (Here, Unfavorable-1 & Favorable-3) Weighted Average = (1*1+5*3)/ 6 = 2.67 Thus the overall effect of economic factors on this industry is Favorable. FactorsUnfavorableNeutralFavorable Currency Stability√ Gross Domestic Product√ Inflation Rate√ GDP based on PPP√ Interest Rate√ Budget Impact√

15. Social Factors (Here, Unfavorable-1 & Favorable-3) Weighted Average = (1*2+5*3)/ 6 = 2.83 Thus the overall effect of Social factors on this industry is Favorable. FactorsUnfavorableNeutralFavorable Consumer attitudes and opinions√ Brand, company, technology image √ Buying access and trends√ Age distribution and lifestyle trend √ Family form and Population shift√ Cultural implications of DTH√

16. Technological Factors (Here, Unfavorable-1 & Favorable-3) Weighted Average = (1*2+6*3)/ 7 = 2.86 Thus the overall effect of Social factors on this industry is Favorable. FactorsUnfavorableNeutralFavorable Technology√ Govt. course of action towards Technology √ Technology Initiative√ Rate of Technological Change√ Industry R&D Spend√ Technology Push√ Productivity Improvements√

17. Five Force Model Inter Firm Rivalry (High) ` Threats of New Entrants (Moderate To Low) Bargainin g Power of Supplier (Moderate To Low) Threats of Substitute Products (Moderate To High) Bargainin g Power of Buyer (Moderate To High)

18. Threats of New Entrants (Moderate to Low) FactorsLowModerate To Low ModerateModerate To High High Access to Distribution network (High) √ Advertising & Marketing Activity (High) √ Regulation & norms (Moderate To High) √ Capital Requirement (High) √ Cost Design (Moderate to Low) √ Industry Growth (High) √ Government Policy (Liberal) √

19. Threats of Substitute Products (Moderate to High) FactorsLowModerate To Low ModerateModerate To High High Determinants of substitution threat (Low) √ Costs of switching to substitutes (Low) √ Availability of substitutes (Moderate To High) √

20. Bargaining Power of Supplier (Moderate to Low) FactorsLowModerate To Low ModerateModerate To High High Backward Integration (High) √ Supplier Switching Cost (Low) √ Forward integration(Low) √

21. Bargaining Power of Buyers (Moderate to High) FactorsLowModerate To Low ModerateModerate To High High Buyer Switching Costs (Low) √ Brands Awareness (High) √ Availability of Substitute Products (High) √ Purchase Frequency (High) √ Innovative Services (High) √

22. Inter Firm Rivalry (High) FactorsLowModerate To Low ModerateModerate To High High Competition between Companies (High) √ Switching costs (Low) √ Demand Growth (High) √ Untapped Market (High) √ Promotional Activities (Moderate to High) √ Exit barrier (High) √

23. BCG Matrix Industry Growth Rate = 30%. Source: Business Standards, 9-11-2009. Company's Name Subscribers (In Million) Market Share Relative Market Share Dish TV5.9231.62%1.32 Tata Sky4.5024.04%0.76 Sun Direct4.3022.97%0.73 Airtel Digital TV2.0010.68%0.34 Reliance Big TV2.0010.68%0.34 Videocon d2hNA - Total18.72100.00%

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25. GE 9 CELL Matrix Business StrengthWeightDish TVTata SkySun DirectAirtel DigitalBig TV Videocon D2h RatingScoreRatingScoreRatingScoreRatingScoreRatingScoreRatingScore Market Share0.259.002.257.501.887.501.885.001.255.001.252.000.50 Financial Resources0.207.001.408.501.708.001.607.501.507.501.504.000.80 Brand Reputation0.157.501.137.501.136.500.987.001.057.501.136.000.90 Distribution Capacity0.128.000.967.000.846.500.786.500.787.000.845.500.66 Advertising Capabilities0.158.501.287.501.137.001.057.001.056.500.984.000.60 Ability to Compete with Rivals0.138.001.047.000.917.500.987.000.917.000.915.000.65 1.008.057.587.266.546.604.11 DTH Service Industry Industry AttractivenessWeightRatingScore Current Market Size0.208.001.60 Regulatory Environment0.157.001.05 No. of Competitors0.126.500.78 Barriers To Entry0.107.000.70 Market Growth Rate0.137.500.98 Industry Profitability0.158.001.20 Technology Change0.157.501.13 1.00 7.43

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27. ADL (Arthur D. Little) Matrix

28. Driving Forces Internet technology applications Long term industry growth Product innovations Technological changes Regulatory influence Changing societal concerns, attitude & lifestyles

30. Key Success Factors Innovative Services Innovative Marketing Distribution Technology

31. Strategic Factors Exploit Bottlenecks Move First Exploit Market Niche

32. Diamond Model

33. VALUE CHAIN ANALYSIS

34. OT Analysis Opportunities : Huge Untapped market Govt. in favors of industry New products comes in the market Company have own cable subscriber Technology development and Innovative Services Market developments Geographical, export, import Industry or lifestyle trends

35. Continue… Threats: switching cost Government policy/regulations IT developments Competitor intentions Seasonality, weather effects Lack of possibility of growth

36. Conclusion

37. THANK YOU………..