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”
IntroductionDefinition
“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.
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.
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 )
Product Technology and service processing
Television receive-only Direct to home television• Programming • Broadcasting centers • Transmission• The Dish• The Receiver
Industry Life Cycle
YearSubscribers(In million)
2003 0.00
2005 1.00
2007 4.00
2009 18.70
Source :TV VEOPAR JOURNAL/ April 2009/ Page No:40
Global ScenarioRegion/Country Players The United States 11Canada 5Japan 2Europe 23 France 4 Germany 1 U.K. 5 Italy 1 Spain 1 Rest of Europe 11Asia-Pacific (Excluding Japan) 28Middle East 2Latin America 8Africa 1Total 80
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Indian DTH IndustryPermitted 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 NameSubscribers (In Million) Market Share
Dish TV 5.92 31.62%Tata Sky 4.50 24.04%Sun Direct 4.30 22.97%
Airtel Digital TV 2.00 10.68%
Reliance Big TV 2.00 10.68%Videocon d2h NA NADD Direct+ NA NATotal 18.72 100.00%
Revenue StructureRevenue Drivers
Percentage (%)
Sales 1.29%Subscription income 79.94%Processing Charges/Service Income 1.80%Other Operational Income 16.96%Total 100.00%
Sou
rce : A
CC
EQ
UIT
Y
Cost StructureCost Drivers
Percentage (%)
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
: A
CC
EQ
UIT
Y
Political FactorsFactors Unfavorabl
e
Neutr
al
Favorabl
e
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.
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.
Factors Unfavorabl
e
Neutra
l
Favorabl
e
Currency Stability √
Gross Domestic
Product
√
Inflation Rate √
GDP based on PPP √
Interest Rate √
Budget Impact √
Social Factors
(Here, Unfavorable-1 & Favorable-3)(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.
Factors Unfavorabl
e
Neutra
l
Favorabl
e
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 √
Technological Factors
(Here, Unfavorable-1 & Favorable-3)Weighted Average = (1*2+6*3)/ 7 = 2.86Thus the overall effect of Social factors on this industry is Favorable.
Factors Unfavorabl
e
Neutra
l
Favorabl
e
Technology √
Govt. course of action
towards Technology
√
Technology Initiative √
Rate of Technological
Change
√
Industry R&D Spend √
Technology Push √
Productivity Improvements √
Five Force Model
Threats of New Entrants (Moderate to Low)
Factors Low Moderate To Low
Moderate
Moderate 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)
√
Threats of Substitute Products (Moderate to High)
Factors Low Moderate To Low
Moderate
Moderate To High
High
Determinants of
substitution
threat (Low)
√
Costs of
switching to
substitutes (Low)
√
Availability of
substitutes
(Moderate To
High)
√
Bargaining Power of Supplier (Moderate to Low)
Factors Low Moderate To Low
Moderate
Moderate To High
High
Backward Integration (High)
√
Supplier Switching Cost (Low)
√
Forward integration(Low)
√
Bargaining Power of Buyers (Moderate to High)
Factors Low Moderate To Low
Moderate
Moderate To High
High
Buyer Switching Costs (Low)
√
Brands Awareness (High)
√
Availability of Substitute Products (High)
√
PurchaseFrequency (High)
√
Innovative Services (High)
√
Inter Firm Rivalry (High)
Factors Low Moderate To Low
Moderate
Moderate To High
High
Competition between Companies (High)
√
Switching costs
(Low)
√
Demand Growth
(High)
√
Untapped Market (High)
√
Promotional
Activities
(Moderate to High)
√
Exit barrier (High) √
BCG Matrix
Industry Growth Rate = 30%.Source: Business Standards, 9-11-2009.
Company's Name
Subscribers (In Million)
Market Share
Relative Market Share
Dish TV 5.92 31.62% 1.32Tata Sky 4.50 24.04% 0.76Sun Direct 4.30 22.97% 0.73
Airtel Digital TV 2.00 10.68% 0.34
Reliance Big TV 2.00 10.68% 0.34Videocon d2h NA NA -Total 18.72 100.00%
Continue…
GE 9 CELL MatrixBusiness Strength Weight Dish TV Tata Sky Sun Direct
Airtel Digital Big TV
Videocon D2h
Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score
Market Share 0.25 9.00 2.25 7.50 1.88 7.50 1.88 5.00 1.25 5.00 1.25 2.00 0.50
Financial Resources 0.20 7.00 1.40 8.50 1.70 8.00 1.60 7.50 1.50 7.50 1.50 4.00 0.80Brand Reputation 0.15 7.50 1.13 7.50 1.13 6.50 0.98 7.00 1.05 7.50 1.13 6.00 0.90
Distribution Capacity 0.12 8.00 0.96 7.00 0.84 6.50 0.78 6.50 0.78 7.00 0.84 5.50 0.66
Advertising Capabilities 0.15 8.50 1.28 7.50 1.13 7.00 1.05 7.00 1.05 6.50 0.98 4.00 0.60Ability to Compete with Rivals 0.13 8.00 1.04 7.00 0.91 7.50 0.98 7.00 0.91 7.00 0.91 5.00 0.65
1.00 8.05 7.58 7.26 6.54 6.60 4.11
DTH Service Industry
Industry Attractiveness Weight Rating ScoreCurrent Market Size 0.20 8.00 1.60Regulatory Environment 0.15 7.00 1.05No. of Competitors 0.12 6.50 0.78Barriers To Entry 0.10 7.00 0.70Market Growth Rate 0.13 7.50 0.98Industry Profitability 0.15 8.00 1.20Technology Change 0.15 7.50 1.13 1.00 7.43
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ADL (Arthur D. Little) Matrix
Driving ForcesInternet technology applications
Long term industry growth
Product innovations
Technological changes
Regulatory influence
Changing societal concerns, attitude & lifestyles
Key Success Factors
Innovative Services
Innovative Marketing
Distribution
Technology
Strategic Factors
Exploit Bottlenecks
Move First
Exploit Market Niche
Diamond Model
VALUE CHAIN ANALYSIS
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
Continue…
Threats:
switching cost Government policy/regulations IT developments Competitor intentions Seasonality, weather effects Lack of possibility of growth
Conclusion
THANK YOU………..