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It is a joint venture between the Tata Group, that owns 80% and STAR Group that owns a 20%
stake. Tata Sky was incorporated in 2004 but was launched only in 2006. It currently offers close
to 200 channels (As of August 2010) and some interactive ones; this count includes some
numbers off HD channels offered by Tata Sky (as Tata Sky - HD) and interactive services also.
The company uses the Sky brand owned by British Sky Broadcasting.
In October 2008, Tata Sky announced launching of DVR service Tata Sky+ which allowed 90
hours of recording in a MPEG-4 compatible Set Top Box. The remote is provided with playback
control keys and is being sold with special offers for existing suscribers.
In 2008, Singapore-based Temasek Holdings picked up 10% stake in Tata Sky from the Tata
Group. This has diluted Tata's stake in the venture to 75%.
STAR’s parent company, News Corporation, owns an International group of DTH businesses
that include Sky Italia in Italy and Foxtel in Australia.
Tata Sky+
Tata Sky+ is a premium set-top box-cum-Personal Video Recorder or even known as DVR
Digital Video Recorder that allows recording up to 130 hours of live TV, recording one
programme while watching another, pause, fast-forward and rewind a live telecast and review a
TV programme. Also Tata Sky+ provides service using MPEG-4 digital compression
technology.
Tata Sky HD
Tata Sky HD was launched on June 14, 2010, and has channels in their native resolution of 1080i
or 720p. The STB is compatible with 5.1 CH surround sound as well. The service currently
offers four HD channels - National Geographic Channel HD, Discovery HD, Showcase HD (Pay
Per View) & Star Plus HD. More channels such as Star Movies HD and other popular sports
channels in HD format are expected to be added soon.
Certifications and Honours
DTH services were first proposed in India in 1996. But they did not pass approval because there
were concerns over national security and a cultural invasion. In 1997, the government even
imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to
launch its DTH services in India.
Finally in 2000, DTH was allowed. The new policy required all operators to set up earth stations
in India within 12 months of getting a license. DTH licenses in India cost $2.14 million and will
be valid for 10 years. The companies offering DTH service will have to have an Indian chief and
foreign equity has been capped at 49 per cent.
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.
Country’s first private DTH license was awarded to Dish TV in 2003 which started operations in
2004.Prasar Bharti also started its product DD-Direct+.
Market Share
Others
AirtelDigitel 5%
7%
Tata Sky
25%
Market Share
With 7 operational players, the segment rivalry is quite high. The competition
from state owned DD-Direct to private players is negligible from the content
point of view as the number of channels offered by DD-Direct is very limited.
However, DD-Direct does not charge any monthly subscription fee which poses
a threat to the private players. Between Dish TV and Tata Sky there is an intense
rivalry exhibited by price wars and discount schemes offered to new connections.
Being the first mover, Dish TV has price advantage in both the STB as well as
procuring the transponders. On the other hand, Tata Sky claims its STB having
superior DVD quality video. There is also a competition at acquiring the content.
In 2004 TATA group(India most largest and most respectable business conglomerate) and
STAR( leading media and entertainment company in Asia ) form a joint venture to establish Tata
Sky.In Jan 2006 Tata Sky selects NDS end to end system for its DTH(satellite) digital pay-TV
platform.In Aug 2006 Tata Sky launches satellite DTH service across the India.In July 2007
Connection reach 1 millon within the 11 month of launch.In Apr 2008 surpasses 2 millon
connection within the 21 months.In Aug 2008 Launches India’s first Hindi-language Electronoic
programme guide(EPG)in partnership with NDS.In Oct 2008 Tata Sky launches India’s first
DTH DVR based on NDS XTV DVR technology. In March 2010 Tata Sky reaches 5 million
subscribers making it India’s second largest DTH playerIn June 2010 Tata Sky launches HD
channels and an HD zapper set-top box.
KEY FACTORS OF GROWTH FOR TATA SKY:
The 3 major reasons for growth of Tata Sky that can be explored are:
Unlike analog cable, Tata Sky subscribers can view TV through superior digital DVD quality
picture and CD quality sound
In order to empower the Indian viewer with choice, control and convenience Tata Sky has a
widearray of programming choices and interactive services like Active Cooking, Active Wizkids
etc.that can be ordered with any of the basic packages. This service is being provided in
association
with 24 X7 guru.com. The customer is not going to stay forever with the package he subscribed
to initially, he should be encouraged to subscribe to other packages and value added services
quickly to increase revenues. These applications are expected to do well given that in India TV
viewing in India is done as a family.
Tata Sky has established an extensive customer service network across the country. It has
engaged a field force of approximately 3000 service engineers who are complemented by high-
end 24x7 call centre’s, manned by multi-lingual customer service associates, trained to solve all
customer problems.
Tata Sky takes direct responsibility for installing and servicing the hardware for periodic
problems that exist at every subscriber's home, thereby ensuring the highest levels of customer
service. Tata Sky retails its hardware and prepaid recharge vouchers through popular consumer
electronic stores to enhance customer convenience.
STRENGTHS
OPPORTUNITIES
THREATS
RECOMMEDATIONS:
The following price related strategies could be adopted, which may lead to a short term loss but a
medium term break even and profit.
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· Free Set Top: Set top Boxes can be given free while ensuring lock in by providing base
pack free for limited time duration, thus inducing update to next level.
· Multiple Connections: Provide discounts for consumers buying second Tata Sky
Connection (up to 50% off)
· Encourage References: Provide discounts on Monthly charges if a reference from
existing consumer becomes a new customer.
· Payment Options: Allow multiple points of payment, ensuring timely payment and
convenience to the customer – Credit Card through Website, Pre Paid cards from Retail
shops to be activated using Telephone and Drop Boxes at Societies.
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