LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT

Report on Capstone Project (MGT- 738) On

Consumer perception towards DTH TV: A comparative study of Tata sky and Airtel Digital TV

Submitted to Lovely Professional University In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration

Submitted by: VaibhavSharma (10805117) BibinBabu (10805260) AbhishekSaini (10805395) Kishore Singh (10806527) Kumar Shubendu (10805105)
DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY JALANDHAR NEW DELHI GT ROAD PHAGWARA PUNJAB

DECLARATION
We thereby declare that the Capstone Project entitled Consumer perception towards DTH TV: A comparative study of Tata sky and AirtelDigital TVis an authentic record of our own work carried out as in partial fulfillment of the Requirements for the award of Degree of Master of Business Administration from Lovely Professional University, Phagwara, under the guidance of Mr. Harvinder Singh.

Name of Student: Vaibhav Registration Number: 10805117

Name of Student: BibinBabu Registration Number: 10805260

Name of Student: Kumar Shubendu Registration Number: 10805105

Name of Student: Abhishek Kumar Saini Registration Number: 10805395

Name of Student: Kishor Singh Registration Number: 10806527

Date: Place:

Certificate

This is to certify that this Capstone Project entitled Consumer perception towards DTH TV: A comparative study of Tata Sky and Airtel Digital TV is made by the students is under my guidance. This project is correct to the best of my knowledge and belief. The Capstone Project is fit for the submission for the partial fulfillment for the award of Degree of Master of Business Administration from Lovely Professional University, Phagwara.

Name: Mr. Harvinder Singh U. ID: 17018 Designation: Assistant Professor

Signature of Faculty Mentor

TABLE OF CONTENTS

PARTICULARS CHAPTER 1:INTRODUCTION CHAPTER 2:REVIEW OF LITERATURE CHAPTER 3: OBJECTIVES OF THE STUDY CHAPTER 4: METHODOLOGY CHAPTER 5: SCOPE OF STUDY CHAPTER 6: DATA SHEET AND GRAPHS CHAPTER7: FINDINGS,COMPARISON AND CONCLUSION CHAPTER 8: REFRENCES

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CHAPTER 1

INTRODUCTION
1.1. Industry

The Digital Cable TV Industry: Paving the Road to Success Indian cable TV industry has witnessed many ups and downs since its inception but has managed to maintain a firm foothold in the country's TV viewing homes. Screen Digest currently estimates that out of 111 mn cable and satellite TV households in India, almost 86 mn, or over 77%, have cable TV. As the competition intensifies with the growth of direct to home (DTH) and IPTV in key markets, cable operators in India and other parts of Asia Pacific are responding with the introduction of set top boxes with digital output, interactive services and next generation ramp-up like Digital Video Recorders (DVRs), Video on Demand (VoD) and Pay per View (PPV) services. In earlier days there was only one TV channel in India the Doordarshan, Channel doordarshan was owned and operated by government of India. In those eras every home which had a TV set used to have its own antenna to capture the signals. The Cable Television Ordinance Law was passed in January 1995. This enabled cable operators to feed channels and later on private companies were allowed to air their own channels and this led to the explosive growth in number of TV channels and number of cable operators. The growth of TV channels & cable operators created a big industry and market opportunities. Until few years back there were as many as 1,00,000 cable operators across India. However the services provided by cable operators were poor. The strikes, increase in tariff plan, selective broadcast and poor services were major cause of dissatisfaction among the customers. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks. Some of the key players in the industry are DishTV by Zee group, TataSky joint venture of Tata & Star TV, Big TV by Anil DhirubhaiAmbani Group, Digital TV by Bharti Tele media, SUN Direct from the promoters of Sun TV. There are some other companies who are contemplating to start their own DTH like Videocon. The Indian market was till now dominated by the presence of local cable TV operators and had complete monopoly over it. DTH opened an option for Indian Consumers to opt for the satellite service to obtain television channels direct to their homes without any intermediaries. It also provided several value added services to enhance their television watching experience. DTH is still a relatively new category and most people were hesitant to experiment with it. While Indian consumers were not completely satisfied with their cable services, they did not feel the need to switch over to any other means of entertainment. There is an immense opportunity for DTH in the Indian market. The opportunity in India almost 10 times that in developed countries like the US and Europe. For every channel there is a scope for broadcasting it in at least ten different languages. So every channel multiplied by ten that is the kind of scope for DTH in the country.

The way DTH reaches a consumer's home is different from the way cable TV does. In DTH, TV channels would be transmitted from the satellite to a small dish antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster directly connects to the user. The middlemen like local cable operators are not there in the picture. DTH can also reach the remotest of areas since it does away with the intermediate step of a cable operator and the wires (cables) that come from the cable operator to your house. As we explained above, in DTH signals directly come from the satellite to your DTH dish. DTH offers better quality picture than cable TV. This is because cable TV in India is analog. Despite digital transmission and reception, the cable transmission is still analog. DTH offers stereophonic sound effects. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate. Apart from enhanced picture quality, DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc are pushing for it. In DTH, the payments will be made directly by the subscriber to the satellite company offering the service. A big problem that broadcasters face in India is the issue of underreporting of subscribers by cable operators. With no way to actually cross check, the MSOs and the broadcasters lose a lot. Broadcasters do not earn much in subscription fees and are mostly dependent on advertisement revenue to cover their costs, which is not sustainable and does not offer high growth in revenues for broadcasters. The way out of this is to use a set-top box so that it will be clear how many households are actually using cable or going for DTH where broadcasters directly connect to consumers and can actually grow revenues with a growth in the subscriber base. Today, broadcasters believe that the market is ripe for DTH. The prices of the dish and the settop box have come down significantly. Overall investments required in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs. The major thing that DTH operators are betting on is that the service is coming at a time when the government is pushing for CAS (conditional access system), which will make cable television more expensive, narrowing the tariff gap between DTH and cable. DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry estimates, there are 130 million TV homes of which 85 million are served by cable and around 16 million by DTH with the remaining taken by terrestrial transmission. Digital cable TV is also gaining popularity amongst TV viewers in Asia Pacific as over 35 mn homes migrated from analog to digital TV in 2009. With the growing conversion to digital from analog cable TV, digital cable deployment is also expected to pick up in India in the coming years as financing grows and technology costs fall. Television population of India is approx.135 million and 80% populations have access to cable and satellite (Doordarshan). As per the statistics, DTH has a 20% market share with more than 22 million DTH subscribers. Subscriber base for DTH has grown very rapidly in past 5 years. It can be evident from the fact that Dish TV was the only player in 2005 and now there are over 10 DTH service providers because DTH comes with many advantages like better picture, sound quality, value added features, it has cost disadvantage. Some of the major players that have

identified the market potential and started their DTH services include Tata Sky (joint venture of Tata & Star TV), Airtel Digital TV (BharatiTelemedia), Dish TV (Zee group), Big TV (Anil DhirubhaiAmbani Group) and SUN Direct (Sun TV). There is a huge growth opportunity for DTH in India and it is projected to grow at a CAGR of 24%. The future of DTH industry depends largely on pioneering marketing tactics implemented by the DTH players. In fact, opportunity in India is ten times more as compared to developed countries like the US and Europe.

1.2. Key Trends

1.2.1. Value added services Major DTH providers are offering value added services (VAS ) as an innovative strategy to lure customers. Popular VAS offered by DTH include on-demand movies, matrimonial services, job search, travel planning, mobile services, TV banking, astrology and many more. Dish TV is the popular value added services provider for mobile services. The company partnered with Indiatimes.com to offer mobile services under the name Mobile Active. The service allows users to preview ring tones, wallpapers, text alerts and contests on their TV and download it on their mobiles. 1.2.2. Partnerships with movie/video distribution companies A major share of Indian entertainment content comes from Bollywood and regional films. Hollywood movies create another big opportunity to make revenue. Eyeing this opportunity, DTH providers are entering into partnerships with movie/video distribution companies. Recently, Reliance forged alliances with UTV Communications and Star India to acquire the rights to two Hindi films. Last month, the company also forged a strategic marketing alliance with Fox Star Studios for the India release of Avatar. Such partnerships are integral to a healthy competition among DTH players. In the future, major partnerships are expected with major publishers as well as TV content providers. 1.2.3. High -Definition Services Technology has no limits. With a large number of options available to view channels across the world on the new highend television sets, now the focus will be to add quality to TV viewing. High-definition is the latest mantra in TV entertainment. DTH providers have started offering HD services in India. Recently, Sun TV launched the first HD DTH service in India. Samsung Electronics telecommunications systems division manufactures the HD set top boxes for Sun Direct. Sun TV is expecting to add over 45,000 subscribers to this service by March 2010. According to company officials, the average annual cost to a subscriber at present stands at around Rs.2,500.

1.2.4. Looking Beyond DTH in India has many miles to go. Although there are several issues regarding content and quality of service offered by the cable service providers, most of the TV households in India still prefer cable service to DTH. In such a scenario, DTH operators have no option but to offer the service at the lowest cost possible to pull customers towards them. This would encourage mass subscription and result in increased ARP U. Currently, the market is dynamic with a lot of

introductory bonanzas and free offers from companies like Sun TV. If other DTH players are ready to compromise a little of their profits and offer simpler packages targeting the average Indian households, the industry will become more competitive and achieve its goals.

1.3 STRUCTURE OF THE DTH INDUSTRY: In the current context of the global financial meltdown, the Direct to Home (DTH) industry in India is in the throes of multifarious challenges and opportunities. The big game is all about shaping up grandiose plans to master the winning rules to garner as much portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes big value, akin to the space occupied by television and telephony, inter-firm rivalries have thrown up price wars, discount schemes, procurement of transponders, ambitious targets for improving the subscription base, popular bouquet of channels, set top boxes with superior quality of videos, improving content, etc as a desperate means to entice the Indian viewer. A neat 20 per cent annual growth is being witnessed in the DTH sector in India with over 16 million households having digital payTV. The structure of the DTH industry in India can be categorized as an Oligopoly. The word Oligopoly is derived from the Greek for few (entities with the right to) sell. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. Firms within an oligopoly produce branded products and there are also barriers to entry. Key characteristics of Oligopoly are following: Few larger supplier dominates the market Interdependence between firms Each firm produces branded products Significant entry barriers into the market in the long run which allows firms to make supernormal profits Each oligopolistic is aware of the actions of the others. Analysis of the Indian DTH industry: Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+ was launched since DD Direct+ is non-commercial and free DTH service hence we would focus our discussion on private players in the industry. As of now DishTV, TataSky, BigTV, AirTelDigitel TV, Sun Direct and DD Direct are in the industry. Videocon DTH has also added on to the competition. Since there are only 3 major players and the market concentration is very high Indian DTH industry is oligopolistic.

1.3. Environment Analysis of DTH Industry in India

Threat of New Entrants - LOW

DTH market in India is already crowded.

Bargaining power of Suppliers VERY HIGH

Inter Firm Rivalry VERY HIGH Price wars litigations.

Bargaining Power of buyers - HIGH

Price sensitive buyers. Ample of options.

Threat of SubstitutesVERY HIGH

Cable TV Very High IPTV High

Threat of substitutes DTH gives stiff competition from the terrestrial, cable & IPTV. As per the industry estimates, there are 130 million TV homes of which 71 million are served by cable and around 6 million served by DTH with the remaining taken by terrestrial transmission. As IPTV is a new entrant there is not much data on its subscriber base.

Bargaining power of suppliers DTH industry relies on three major suppliers. Customer premise equipment (CPE). Comparing of the satellite Dish, Set Top Box with the necessary Access Card, the Ku band transponders are obtaining satellites and content. With India set to overtake Japan as Asias largest DTH by next year, the bargaining power of India DTH operators with CPE suppliers have been steadily increasing.

Bargaining power of buyers With enough operations to choose both from the point of alternate mediums like cable, IPTV and terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will to decide. Customers will continue to have a high bargaining power until DTH platforms try to differentiate them as superior players with better content and clarity. Rivalry among existing firms With 3 operational players and 4 players in the queue, inter firm rivalry is quite high. The competition from state owned DD-Direct to private players in negligible from the content point of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not change any monthly subscription charges. Between Dish TV is Tata Sky there is an intense rivalry exhibited by price war and discount schemes offered to new connections. Being the first mover, dish TV had price advantage in both the STB offers superiors DVD quality Video to its advanced STB. While Dish TV is planning to spend Rs.850 crs over the next 3 years, the rival Tata Sky is willing to spend Rs. 2000 crs over the medium term. The companies have also set ambitious targets with Dish TV aiming to reach 5 million subscribers in the next 18 to 20 months while Tata Sky aiming to reach 8million subscribers in the next 18 to 20 months while Tata Sky aiming for 8 million subscribers by 2012. Threat of new entrants With already 7 players space in the DTH space, threat of new entrants is low. There is already enough competition which will discourage new firms to enter this business. While getting a licensee is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the required transponder. There is a definite, first mover advantage.

1.4. Companies Tata Sky TATA Sky is a direct broadcast satellite television provider in India, using MPEG-2 and MPEG4 digital compression technology, transmitting using INSAT 4A at 83.0E. Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR. Tata Sky DTH endeavours to offer Indian viewers a world-class television viewing experience through its satellite television service. Incorporated in 2004, Tata Sky is a JV between the TATA Group and STAR. Tata Sky DTH endeavours to offer Indian viewers a world-class television viewing experience through its satellite television service. Its primary competitors are cable television and other DTH service providersAirtel digital TV, Reliance Big TV, DD Direct+, Dish TV, Sun Direct, and Videocon D2H.

Airtel Digital TV Airtel digital TV is an Indian direct broadcast satellite service provider owned and operated by BhartiAirtel. Its satellite service, launched on 2008, transmits digital satellite television and

audio to households in India. It uses MPEG-4 digital compression with DVB-S2 technology, transmitting using the satellites INSAT-4CR 74E and SES-7 108.2E. Airtel Digital TV service was launched on 8 October 2008. As of 18 September 2012, Airtel has total 304 Channels and Services including 15 HD channels. Its primary competitors are cable television and other DTH service providersReliance Big TV, DD Direct+, Dish TV, Tata Sky, Sun Direct, and Videocon D2H. It has a total subscriber base of 7.1 million as of 31 December 2011. DD DIRECT+ Doordarshan is the public television broadcaster of India and a division of PrasarBharti, a public service broadcaster nominated by the Government of India. DD Direct+ is a free Direct to Home (DTH) service that provides satellite television and audio programming to households and businesses in the Indian subcontinent. Owned by parent company Doordarshan, DD Direct Plus was launched on December 16, 2004. Now chairman of DD plus+ is ShriArunBhatnagar and CEO is B S Lalli under the ministry of information and broadcasting. Dish TV Dish TV is the first private DTH satellite television provider in India, using MPEG- 2 digital compression technology, transmitting using NSS Satellite at 95.0. Dish TV is a division of Zee Network Enterprise (Essel Group Venture). DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Enterprises. Sun Direct Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital compression technology. It is the country's first MPEG 4 technology DTH service provider. The service was finally launched on December 2007. Because of the lowest pricing of any DTH in India Sun Direct spread rapidly all over the country. By 2009 it became leading DTH provider with 3 million subscribers. This makes it 4th largest DTH service provider of India. BIG TV Reliance BIG TV is a DTH satellite television provider in India based in NaviMumbai, using MPEG-4 digital compression technology. It is the 5th DTH service launched in India. Reliance BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance Anil DhirubhaiAmbani Group. BIG TV startedoperations from 19 August 2008 with the slogan "TV ho To BIG Ho"

Videocon d2h Videocon d2h is a DTH satellite television provider in India based in Mumbai, using MPEG-4 with DVB S2 digital compression technology. Videocon d2h launched May 1, 2009. It came with a very good strategy for selling both of its electronic products like TVs DVDs along with the new set top box. This is offering direct to TV without any set top box also. Only the antenna is enough, it also came with DVD which is connected directly to the TV or antenna is connected to DVD which gives a best quality of output.

Market Share of DTH players in India

2% 8% 13% 30% DishTV Sun Direct Tata Sky 22% 25% BIG TV Airtel D2H

Reference : DTH Market Forecast 2012 by Business Standard

CHAPTER 2

Review of Literature
2.1.SandeepVarma& Doris John, DHT vs. cable TV: sky wars in India in 2006 SandeepVarma and Doris John published a Case study: DTH vs. Cable TV: Sky Wars in India in year 2006. Home entertainment in India had come a long way from days when there was only one national

channel, Doordarshan, to 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, scene would become more competitive. Cable operators have started pressurizing 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. The case allows for discussion on the present scenario of home entertainment in India. They highlight the various technological advancements that happened in the field of TV broadcasting and also throw light on various service providers and their services. They discuss the emerging technologies in home entertainment in India. 2.2. ShivasundaramUpadhay, Industry analysis- DTH industry in India Published 2007 Industry analyst SivasundaramUmapathy 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 Potters 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. Todays 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. 2.3. 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. 2.4. Indian readership survey 2008 round 2. The Indian Readership Survey 2008 ROUND 2 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 predominance in the southern zone. 2.5. Indian entertainment & media outlook 2009 in 2009 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. Witnessed a technology-war amongst DTH players. With new players BhartiAirtels Digital TV and Reliances 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. 2.6. Rncos industry research solution, Indian DTH market forecast to 2012 in 2009 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.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. 2.7. Suranjan (2011), DTH In India: A few survival strategies Over the last three years, the direct-to-home (DTH) satellite industry has come on strongly worldwide. It has grown from a niche delivery mechanism into a mainstream business. The spread of subscription-based DTH satellite TV promises to enhance choices for many households in developing countries. With the Government throwing open the DTH sector in the country, a handful of players have come up with grandiose plans to enter the market. Given the stiff level of competition this premium services will face from the existing multi-channel cable network, possible entrants need to clearly grasp a few of the winning rules of the game. A few things are assured in the DTH industry even in the face of paradigm shifts. First, the value of transponders is likely to fall as compression allows more and more content to go through the same satellite, and as more satellite are launched. Second, as bandwidth explodes, so will demand for content. Obscure sports and the like will become more valuable; conversely, much of the content that is currently valuable will face downward pricing pressure. Niche content providers will emerge. 2.8. Patel , Mitesh Kanubhai,2012, International Journal of New Innovations Future growth in this industry is largely depended on the players ability to provide customized services which requires a deep understanding of consumer perception and satisfaction for DTH services.

2.9. Krishnamurthy, Gokul, 2012, Buissnessline, Course consumer correction, direct to home services The dissonance between consumer perception on parameters such as pricing and service quality, and what is actually on offer, was accentuated by lack of consumer awareness, thanks in large part to lack of communication. 2.10. Shadeshavan, 2012 Business and Industry, Buying Behaviour, Perception in Indian DTH Industry. The report is based upon the buying behaviour of consumers in the DTH industry. Although the report is an industry specific report but other aspects which play a vital role are changing trends, new entrants in the market, change of customer perception and influence in decision making in the family. 2.11. Adekunle, Tunmise,2012, X-rays and its entrance claims against what obtains with DSTV, Making The DTH TV Available for All Customers appreciate the opportunity to do business with a local company that is actively involved in the community. Further, they will want to identify and associate themselves with a service if it accurately reflects their lifestyles through the programming it offers. And customers can be passionate about a company that provides excellent service. 2.12. Chandrapaul, 2012, Study-DTH services in India The successful launch of India's heaviest satellite from spaceport of Kourou in French Guyana may have boosted the country's space research efforts to yet another level, but it has also lifted the spirits of at least three DirectTo-Home televisions broadcasters, one of which has been waiting for years to launch its services in India. Onboard India's new generation spacecraft Ariane-5G rocket, the INSAT-4A was placed in geosynchronous transfer orbit in 3-axis stabilized mode shortly after launch, drawing cheers for the fact that it was the first launch of a 3,080 kg satellite by India. For the DTH wannabes then, this is indeed good news because even as the country's TV viewership explodes, peculiar broadcasting laws and lack of transponder availability has been obstructing proliferation of DTH services in the country for years. 2.13. SravanthiVemulawada, 2009,customer satisfaction with DTH services This case study was written by SravanthiVemulawada, under the direction of R Muthukumar, IBS, and Hyderabad. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from generalised experiences QM0006Customer Satisfaction with DTH Services in India. Since Cable TV entered India in 1992, entertainment on television has grown rapidly. Out of the 71 million TV households in 1999, 32 million had access to Cable TV. DTH service is particularly effective in remote areas, where cables and even normal television services are poor or nonexistent. These services provide the finest picture and sound quality. Like the quality of any modern movie theatre, DTH also provides the best quality surround sound. Although DTH services were proposed in India way back in 1996, it was not permitted until 2003. 2.14. Patel K. Mitesh(2012), Perception and Satisfaction with Direct to Home Services: A Comparative Study in Gujarat, India, International Journal of New Innovations, 2012, 1(2), 288294 Growing middle class, media exposure and changing lifestyle of Indian population has put India in global pie as a promising market for a business houses to enter and flourish and DTH is not an exception. Future growth in this industry is largely depended on the players ability to provide customized services which requires a deep understanding of consumer perception and satisfaction for DTH services. The basic objective of the study is to undertake a comparative study of consumer satisfaction and perception of urban and rural consumer for DTH services. This research had been conducted in 2011. Various tools like factor analysis, chi-square analysis, ANNOVA test and Z-test were used in this study. The study found that Consumer demographics like age, income, occupation and gender would not have any bearing on their level of satisfaction

and they are unrelated to each other in both rural and urban area. Consumers across rural and urban areas perceives that DTH is costly than that of cable network. Consumer is having a favourable perception for picture quality in comparisons with cable in both urban and rural consumer. Rural and urban consumers are similar on their effect of demographics on satisfaction.

2.15. AvniManiar and KrutikaMuley( 2009),Opinions of the nuclear families regarding their usage of DTH TV, Asian Journal of Home Science, Vol 4 No.2, pp201-208. DTH TV is the next significant improvement since the invention of cable television. To know the opinions of the nuclear families regarding their usage of DTH TV, 80 families were selected as a sample of the study. Questionnaire was used as a tool for collection of the data. The majority of the families selected DTH TV because it provides high quality of picture and sound. DTH T.V has enhanced the TV viewing experience of the families. 2.16. Research: Lazaroo, Tasha, 2012, BuissnessweekA study of Consumer perception and preference for Cable Connection versus DTH connectivity. Of the 1.75 Crore DTH subscribers in India, 70% are in rural areas and towns with populations below 10 Lakhs, which has 50% of 12.5 Crore cable TV homes are in India. After its launch in 2003, the Indian DTH industry has come a long way, adding more players in this business and has been growing at a high rate. The industry has survived the global financial meltdown and has become stronger in the recent period. 2.17. Research: Indian DTH Market Forecast to 2012; By: Doomsday, from 2012 doomsday prediction dated June 22nd, 2010 According to above research report, number of DTH subscribers is forecast to grow at around 25% during 2009-2012.Given the superior quality of DTH services in terms of viewing and interactivity, number of DTH subscribers has been soaring. However, current number of DTH subscribers constitutes only a meagre proportion of the total number of TV households, indicating vast future growth potential. 2.18. Research: Competition between Cable Television and Direct Broadcast Satellite; By: Andrew Wise &KiranDuwadi dated January 2005 Direct Broadcast Satellite (DBS) is often considered a substitute for basic cable service, but current cable subscribers may face substantial switching costs to move from cable to DBS services. The research has used aggregate firm-level price data and other related demographic variables to examine the cost of switching from cable to DBS and vice versa. The challenge for cable operators exists in rural areas, where installation and application are extremely difficult. Nearly three forth of India belongs to rural territory. This is also one of the reasons why DBS still exists, but this has also created an opportunity for DTH, which serves an immediate threat to the high-end cable networks.

CHAPTER 3

OBJECTIVES OF THE STUDY:

3.1 To study the reasons behind the switching from cable TV to DTH services.

There are so many reasons behind this switching over. People sometimes think that both network operators give various channels but it is the picture quality which differentiates those. Sometime pay only for those channels which you need is also a reason for that switch over. So here we want to study the reason behind the switching from cable TV to DTH TV. 3.2 To analyze the factors which influence these switching over from cable TV to DTH services in Jalandhar , Phagwara region. All factors not influence more the people to that switch over, there we want to make a series of factors on the basis of influencing power of the factors by applying statistical tools. 3.3 To analyze the position of substitutes of DTH services with respect to DTH services in the market. 3.4 Comparing the presence of Airtel Digital TV and Tata Sky in the said region. Analyzing the environmental analysis we try to analyze the market of the TV networks which are quite helpful to find out opportunities of Indian DTH services. How the present DTH players capture the opportunities to stay in the growth. 3.5 To check the reasons behind popularity/unpopularity of Airtel Digital TV and Tata Sky in the region. The popularity/preference of DTH service by users varies from family to family in respect to cost, channels available, service, post purchase experience, number of family members etc. 3.6 To analyze the opportunities for these players.

CHAPTER 4

METHODOLOGY:
4.1 SAMPLE & POPULATION:

The sample size is which is primary data 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 taken to be400.The target population of the survey constitutes the TV households

in Phagwara and Jalandhar region. We took the Phagwara and Jalandhar area to collect the primary data as it seems tohave a growing market in Punjab for DTH.Also because the area tend to have more non-working ladies who use television on daily basis.
4.2DATA:

Here mainly primary data is collected from the TV households and working professionals in Phagwara and Jalandhar region by filling up the questionnaire.
4.3AREA COVERED:

The area targeted here is Phagwara and Jalandhar region which seems to have a growing market in Punjab for DTH and also in termsof population andeconomical growth. The data have been collected randomly from this region. We mainly covered Phagwara, Chaheru,Satnampura, Model Town , Urban Estate and Sastrinagar area to collect the data.
4.4QUESTINNAIRE:

The questionnaire is well designed and close ended type, so that people could easily fill the questionnaire according to their perception. People are alwayswilling to give their answer objectively. So here open ended question must not have been too effective.
4.5TOOLS & 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.
4.6SOFTWARE:

SPSS & EXCEL used here to analyze the primary data. SPSS is very useful here to effectively analyze the data and get effective result which is reliable enough as sample size is sufficient to analyze.

CHAPTER 5

SCOPE OF THE STUDY:

Past Few Years Television as hardware device evolution from standard television box to slimmer versions From Regular to Flat Screens From Flat to LCD From LCD to LED

The evolution will continue towards personalized broadcasting.

In future the televisions will act as display devices, that could be plugged in to any input devices not necessarily only satellite or cable channels. They would be used to stream information. In US time spent by consumers online is today much higher than on televisions. Consumers are willing to view video streaming online for TV shows, Sitcoms and also movies. If that happens and continues over a period of time TV business (as hardware will go out of business) which large players like Samsung, LG will not want to. Simple because when users would want to spend time online and consume same content online the players who will gain most are the laptop and desktop manufacturers HP, Dell, Apple and others among which LG and Samsung dont have much share. So to keep TV in business they would reinvent the use of TV box. So expect devices like TV to get IP addresses and WiFi features that could be hooked on to the Internet. Consumers would want to create playlist (of youtube videos?) or information streams (twitter, facebook) or photo stream (family albums, etc) that could be broadcasted over the internet to their TVs or personal devices. Unlike what users see today a choice of channels that they browse on TV, they would create their own broadcast and stream it to televisions. So users end of creating theirbroadcast, they would access it from wherever they want to. Like you are on a vacation, and you have a TV at your hotel, you would connect that to your own broadcast and view entertainment of your choice. So media channels and networks will not just face competition from existing television competitors but anyone would could participate in these broadcast of consumers choice even a small website. These broadcasts online will be standardized to any web content format or APIs or anything as simple as a XML or RSS feed.

The study is mainly all about the comparison between Airtel Digital TV &Tata Sky and its competition with Cable TV services and analysis various factors which influenced people to switch over from cable TV to DTH TV and to select amongst these two operators. So we analyze the factors which influenced people more to switch over and the study also says about the substitutes/ threats of other DTH service providers such as DishTV,BigTV , SUNTV company make new strategy in future to face the new competition.

From this study we know the perception of the households towards Airtel Digital TV &Tata Skyand cable TV so that they use it in companys strategy to make them prepare for that competitive market. Various other DTH players also use new strategies/technology to give more facility to the customers to win over the competition in the market. The market share of various network suppliers helps them to analyze their business so that they capture the opportunities & also the market share of various .All of this information helps Airtel Digital TV andTata Sky to carry DTH industry in a good position and helps to analyze future strategy. From this study people also take advantage to choose the suitable TV network providers by analyzing the market environment. Also the dealers can choose to which brand to follow and support on.

CHAPTER 6

DATA SHEET AND CHARTS CABLE TV

TABLE 1:Age * Ever heared of DTH? Crosstabulation Count Ever heared of DTH? Yes Age 18-30 31-40 41-50 50+ Total 77 35 12 4 128 No 13 8 3 2 26 3 1 0 0 0 1 Total 91 43 15 6 155

(reference :-Appendix 1,question 4 of questionnaire) Table showing the range of audiences age using cable TV who have heard about the DTH services. The crossable shows that 77 of the total 155 respondents falling between age 18-30 Have heard about DTH TABLE 2:-

Age * Ever heared of DTH? Crosstabulation Count Ever heared of DTH? Yes Age 18-30 31-40 41-50 50+ Total 77 35 12 4 128 No 14 8 3 2 27 Total 91 43 15 6 155

(reference :-Appendix 1,question 4 of questionnaire) Table showing the locality of the respondent using cable TV who have heard about the DTH services. The crossable shows that 52 out of the total 155 respondents from Jalandhar region

Have heard about DTH.

PIE CHART 1:-

(reference :-Appendix 1,question 4 of questionnaire) This pie chart shows the percentage composition of the peoples perception about what type of channels they like to prefer and watch frequently on Cable TV.

PIE CHART 2:-

(reference :-Appendix 1,question 4 of questionnaire) This pie chart shows the contribution of DTH and Cable TV viewers out of the total viewers.

TABLE 3:Locality * Which brand comes in your mind when you hear DTH provider. Crosstabulation Count Which brand comes in your mind when you hear DTH provider. Airtel Locality Phagwara Jalandhar Others Total 16 18 9 43 Tata Sky 31 37 20 88 Others 4 9 10 23 5 1 0 0 1 Total 52 64 39 155

(reference :-Appendix 1,question 5 of questionnaire) This table shows the brand awareness of DTH provider within people of various locality.it shows that Tata sky is more prominent as compared to Airtel in all tha regions mentioned above.If whenever they have heard about DTH.

TABLE 4:-

Locality * Ever heared of DTH? Crosstabulation Count Ever heared of DTH? Yes Locality Phagwara Jalandhar Others Total 47 52 29 128 No 5 12 10 27 Total 52 64 39 155

(reference :-Appendix 1,question 5 of questionnaire) This table shows the brand awareness of DTH provider within people of age ranging from 18 to 50+ .The data shows that brand recall of Tata Sky is more than the Airtel . But using Cable TV.

TABLE 5:Which brand comes in your mind when you hear DTH provider. * Do you have any plan to switch to DTH in future? Crosstabulation Count Do you have any plan to switch to DTH in future? Yes Which brand comes in your mind when you hear DTH provider. Others 10 13 24 Airtel Tata Sky 25 65 No 19 23 Total 43 88

Total

100

55

155

(reference :-Appendix 1,question 5,6 of questionnaire) The following data shows that if given a chance to switch to the DTH service people will prefer Tata Sky more to be at home as compared to Airtel according to the following sample space.

TABLE 6:If yes then which you'll prefer? * Why would you prefer the above provider? Crosstabulation Count Why would you prefer the above provider? no response If yes then which you'll prefer? Tata Sky Others 0 0 14 4 9 8 9 0 14 4 46 16 no response Airtel 65 0 Picture Quality 0 11 Cost 0 4 Custoomization. 0 0 Better service. 0 13 Total 65 28

Total

65

29

21

31

155

(reference :-Appendix 1,question 7,8 of questionnaire) This table shows the reason behind switching toward DTH services in which they give more preference to picture quality and better reception and overall service.

Which brand comes in your mind when you hear DTH provider. * Age Crosstabulation Count Age 18-30 Which brand comes in your mind when you hear DTH provider. Airtel Tata Sky Others 5 Total 22 58 11 0 91 31-40 17 16 9 1 43 41-50 3 9 3 0 15 50+ 1 5 0 0 6 Total 43 88 23 1 155

DISH TV
TABLE 7:Age * Which DTH service you are using? Crosstabulation Count Which DTH service you are using? Airtel Tata Sky Others Total

Age

18-30 31-40 41-50 50+

63 24 10 1 98

49 27 10 2 88

37 10 9 3 59

149 61 29 6 245

Total

(reference :-Apendix 1,question 9 of questionnaire) Table showing the range of audiences age using DTH services. The crossable shows that 63 out of the total 245 respondents falling between age 18-30 are actually using Airtel DTH. PIECHART 3:-

(reference :-Appendix 1,question 9 of questionnaire) The following pie chart shows that the majority of people subscribe Airtel with 40% of the total population. Tata Sky 35.92% and others 24.08%.

TABLE 8:Age * DTH rental? Crosstabulation Count DTH rental? <150 Age 18-30 31-40 41-50 50+ Total 21 6 4 1 32 151-200 37 12 7 1 57 201-250 39 22 11 1 73 251-300 32 20 5 3 60 300+ 20 1 2 0 23 Total 149 61 29 6 245

(reference :-Appendix 1,question 13 of questionnaire) The data shows that age group between 18-30yrs who are youngsters and budding workers prefer moderate plan between Rs.201-250.

TABLE 9:Which DTH service you are using? * Are you happy with the list of channels? Crosstabulation Count Are you happy with the list of channels? Yes Which DTH service you are using? Airtel Tata Sky Others Total 70 70 46 186 No 28 18 13 59 Total 98 88 59 245

(reference :-Appendix 1,question 9,15 of questionnaire) This data shows the perception of the customers who are using DTH services of various providers and whether they are satisfied with the list of channels provided by the company for the given Package.

TABLE 10:Age * Are you happy with the list of channels? Crosstabulation Count

Are you happy with the list of channels? Yes Age 18-30 31-40 41-50 50+ Total 119 41 22 4 186 No 30 20 7 2 59 Total 149 61 29 6 245

(reference :-Appendix 1,question 15 of questionnaire) This data shows the perception of the customers of different age groups who are using DTH services and whether they are satisfied with the list of channels provided by the company for the given Package.

TABLE 11:Locality * Which DTH service you are using? Crosstabulation Count Which DTH service you are using? Airtel Locality Phagwara Jalandhar Others Total 18 45 35 98 Tata Sky 23 35 30 88 Others 9 29 21 59 Total 50 109 86 245

(reference :-Appendix 1,question 9 of questionnaire) This table shows in which region DTH services of which company are most preferred and the data shows that Airtel is more preferred in all the locality 98 people use Airtel aout of 245 DTH users.

TABLE 12:Locality * DTH rental? Crosstabulation Count DTH rental? Total

<150 Locality Phagwara Jalandhar Others Total 3 20 9 32

151-200 11 22 24 57

201-250 16 33 24 73

251-300 13 25 22 60

300+ 7 9 7 23 50 109 86 245

(reference :-Appendix 1,question 13 of questionnaire) The following data shows that how much rental does DTH subscribers pay depending upon the locality.most of the customers fall under the category of Rs.201-250.

TABLE 13:Family * Which DTH service you are using? Crosstabulation Count Which DTH service you are using? Airtel Family Less than 3 3-5 5+ Total 5 71 22 98 Tata Sky 4 42 42 88 Others 2 30 27 59 Total 11 143 91 245

(reference :-Appendix 1,question 9 of questionnaire) Depending upon the size of the family which DTH services are more preferred in which Airtel is leading the mark. There can be an interpretion that Airtel is providing some special offers for customers having joint family.

TABLE 14:Family * DTH rental? Crosstabulation Count

DTH rental? <150 Family Less than 3 3-5 5+ Total 2 27 3 32 151-200 2 34 21 57 201-250 5 37 31 73 251-300 2 36 22 60 300+ 0 9 14 23 Total 11 143 91 245

(reference :-Appendix 1,question 13 of questionnaire) The following data shows that how much rental does DTH subscribers pay depending upon the size of the family.Most of the customers fall under the category of Rs.201-250.

TABLE 15:Family * Is there any add on service you use? Crosstabulation Count Is there any add on service you use? Yes Family Less than 3 3-5 5+ Total 6 62 54 122 No 5 81 37 123 Total 11 143 91 245

(reference :-Appendix 1,question 16 of questionnaire) The following data shows that customers having family size of 5+ uses more addon services as compared to smaller families this could be because of kids asking their parents for PPV cartoons and movies and elders asking for bhakti songs etc.

TABLE 16:Family * Rate your satisfaction with the overall service you are getting. Crosstabulation Count Rate your satisfaction with the overall service you are getting. Excellent Family Less than 3 3-5 5+ Total 4 48 22 74 Good 7 69 67 143 Average 0 24 2 26 Poor 0 2 0 2 Total 11 143 91 245

(reference:-Appendix 1,question 17of questionnaire) The data shows that most of the customer(143) out of 245 DTH subscribers rated there DTH service providers as good .

TABLE 17:Which DTH service you are using? * Why did you opt the provider? Crosstabulation Count Why did you opt the provider? Pic quality Which DTH service you are using? Airtel Tata Sky Others Total 39 20 8 67 Cost 20 20 21 61 Customization 15 20 11 46 Better service 24 28 19 71 Total 98 88 59 245

(reference :-Appendix 1,question 9,11of questionnaire) The table shows the criteria upon which customers have chosen there service providers.The data shows that people prefer Picture quality, Cost and Better service to be utmost important while choosing service provider . Airtel is leading company in providing that.

TABLE 18:Which DTH service you are using? * Scale your satisfaction level wrt pic quality especially in monsoons. Crosstabulation Count Scale your satisfaction level wrt pic quality especially in monsoons. Excellent Which DTH service you are using? Airtel Tata Sky Others Total 21 30 11 62 Good 62 40 32 134 Average 7 15 14 36 Poor 8 3 2 13 Total 98 88 59 245

(reference :-Appendix 1,question 9,12 of questionnaire) The data is regarding perception of customers with respect to picture quality in monsoon. The data shows that Tata sky provide excellent reception during cloudy and windy weather but on average Airtel is good with most customers.

TABLE 19:Which DTH service you are using? * DTH rental? Crosstabulation Count DTH rental? <150 Which DTH service you are using? Airtel Tata Sky Others Total 26 2 4 32 151-200 24 16 17 57 201-250 21 33 19 73 251-300 20 26 14 60 300+ 7 11 5 23 Total 98 88 59 245

(reference :-Appendix 1,question 9,13 of questionnaire) The data shows the DTH rentals charged by the different providers.

TABLE 20:Which DTH service you are using? * Is there any add on service you use? Crosstabulation Count Is there any add on service you use? Yes Which DTH service you are using? Airtel Tata Sky Others Total 42 53 27 122 No 56 35 32 123 Total 98 88 59 245

(reference :-Appendix 1,question 9,16 of questionnaire) People using Tata sky are using more addon services as compared to Airtel this means that Tata sky is providing wide range of addon services and quality.

APPENDIX

Name of respondent: ______________________________ Age: a) 18-30 b) 30-40 c) 40-50 d) 50+

Locality:

a) Phagwara

b) Jalandhar

c) Other

Family members: ____ Having Cable or DTH? a) Cable b) DTH

If you are using Cable, please fill the following. 1. What is the rental you pay for your services? a) Less than 150 b) 150-200 c) 200-250 2. How many channels you get in the package? a) Less than 50 b) 50-75 c) 75-100

d) 250-300

e) 300+

d) 100-150

e) 150+

3. Which are the kinds of channels you watch the most? a) Regional b) Sports c) Movies d) News e) Others

9. Have you ever heard of DTH services? a) Yes b) No 10. Which brand comes in your mind when you hear DTH provider? a) Airtel b) Tata sky c) Big TV d) Dish TV e) Sun TV 11. Do you have any plan to switch to DTH in future? a) Yes b) No 12. If yes than which provider you will prefer? a) Airtel b) Tata sky c) Big TV

d) Dish TV

e) Sun TV

13. Why would you prefer the above provider? a) Picture Quality b) Cost c) Customization

d) Better Service

If you are a DTH user, please fill the following. 14. Which DTH service you are using? a) Airtel b) Tata sky c) Big TV d) Dish TV e) Sun TV

15. What made you shift to DTH? a) Picture Quality b) Cost c) Customization d) Better Service

16. Why did you opt the provider? a) Picture Quality b) Cost c) Customization d) Better Service

17. Scale your satisfaction with respect to picture quality especially in monsoon. a) Excellent b) Good c) Average d) Poor

18. What is the rental you pay for your services? a) Less than 150 b) 150-200 c) 200-250 d) 250-300 e) 300+

19. How many channels you get in the package? a) Less than 50 b) 50-75 c) 75-100 d) 100-150 e) 150+

20. Are you happy with the list of channels? a) Yes b) No

21. Is there any add on service which you use? a) Yes b) No

22. Rate you satisfaction with the overall service you are getting? a) Excellent b) Good c) Average d) Poor

THANK YOU