1.

INTRODUCTION TO DTH SERVICES

DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite
programmed with a personal dish in an individual home. DTH does away with the need
for the local cable operator and puts the broadcaster directly in touch with the consumer.
Only cable operators can receive satellite programmed and they then distribute them to
individual homes.
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 was about to launch its DTH services in India. Finally in 2000, DTH was
allowed. The new policy requires all operators to set up earth stations in India within 12
months of getting a license. DTH licenses in India will 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. There is no limit on the number of
companies that can apply for the DTH license. On the DTH front, TRAI issued the
guidelines for operating DTH. Countrys first DTH license was awarded to Dish TV in
2003 which started operations in 2004. Prasar Bharati also started its product DDDirect+.
In 2007, TRAI proposed a new initiative by name Head end-In-The-Sky (HITS) model
as an alternative to the existing cable distribution. Instead of the MSOs providing the
bundle, there will be a single HITS operator who will prepare the bundle of channels and
beam it to the Head end in the satellite. With the average Indian getting younger, and
hence more likely to spend on non essentials, the entertainment industry has the potential
to grow explosively in the future. Now the industry is ready to enter a second stage of
growth powered by the twin engines of technology (availability of quality infrastructure
and the accelerated penetration of digital connectivity) and an enabling regulatory
environment.

1.2 INTRODUCTION TO CABLE SERVICES

The history of Indian Television dates back to the launch of Doordarshan, the countrys
national television network in 1959 when the transmission was in black & white. The 9th
Asian games which were held in 1982 in the countrys capital New Delhi heralded the
mark of colour television broadcast in India. In 1991, Indian economy was liberalized
from the license raj and major initiatives like inviting FDI, deregulation of domestic
businesses emerged. This led to the influx of foreign channels like Star TV and creation
of domestic satellite channels like Sun TV and Zee TV. This virtually destroyed the
monopoly held by Doordarshan. In 1992, the cable TV industry started which changed
the way the average Indian watches the television. Every city in India had a new breed of
entrepreneurs called as cable wallahs or Local Cable Operators (LCO) taking in charge of
distribution. Since this was a disorganized sector carrying new channels on the existing
infrastructure required new investments which the operators were reluctant to make. This
led to the emergence of a new breed of firms called as Multi System Operators (MSO)
who had heavy financial muscles to make capital investments and liaised between the
cable operators and the channels. MSOs provide the feed to the local operators for a fee.
In 1995, government felt the need of regulation in Cable TV and passed the Cable TV
network (Regulation) Act. This was also the time when the state owned Doordarshan and
All India Radio came under a new holding called as Prasar Bharati to give them enough
autonomy. The LCOs reported a lower number of connections where as the broadcasters
demanded a higher rate. MSOs were finding it difficult to operate under these conditions.
This led to an amendment of the Cable TV networks(Regulation)Act in 2002 to provide
Conditional Access System (CAS). With CAS, the last mile distribution could be
addressable with accuracy and digitization of broadcast was also possible. CAS was
rolled out in 2003 staring from Chennai and later to parts of Delhi, Mumbai and Kolkata.

2.REVIEW OF LITERATURE
Their report, " Indian DTH Market Forecast to 2012, provides thorough analysis of
the current market performance and the future outlook of DTH services market in India.
It gives detailed analysis of the success factors and also helps in determining what all are
the issues or the hurdles in front of the burgeoning DTH services market in the country.
The study also explains the reason for why all the incumbent players have been investing
huge amounts into the promotion and marketing of DTH services in the country, despite
the current economic slowdown.
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.

Sandeep Varma and Doris John published a Case study: DTH vs. Cable TV: sky
Wars in India in the year 2006. Home entertainment in India had come a long way
from the days when there was only one national channel, Doordarshan, to the 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,
the scene would become more competitive. Cable operators have started pressurizing the
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.

Sivasundaram Empathy 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.
Researchers from 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.

Indian Readership Survey 2008 R2 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 a predominance in the southern zone.
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. 2008 also witnessed a technology-war
amongst DTH players. With new players Bharti Airtels 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.
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.

Myilsamy (2010) in his research study consumer brand preference towards using DTH
services has found that majority of the respondents were using DTH services because of
more channels. He has found the majority of them were using Big TV because of 900
service. He has suggested that DTH providers have to increase various awareness
programmers to create brand image through attractive advertisement.
Rakshantha (2012) Indian DTH market forecast as per their new research report the
number of DTH subscribes is Forecasted to grow at a CAGR of around 25% during
2009-2012. This research provides Extensive research and ration analysis of the DTH
market in India. It will help clients to understand the underlying potential of DTH
services in the Indian television industry. The report will also help in gaining insight into
the prevailing key trends and development that are contributing positively towards the
growth of the market.

3.1 NEED OF THE STUDY

Every human being is changing time to time according to the changing trends in every
days life. The biggest changes occurred in consumer products, new and innovative
technology has used to satisfy the consumers. In this content the study is taken up with
the various DTH services which have considerable share in the market. Consumers and
buyers play a vital role in the market. Some of the problems faced by the DTH users are
less quality of dish and are, not providing more free channels, less clarity, high
subscription amount and unable to see the local channels and so on. So this study helps to
find out the consumer attitude towards DTH users

3.2 SCOPE OF THE STUDY:

The present study helps to analyze the competition exist in the market regarding DTH
services. The scope of the study also covers the key factors which influences the
customer to take decisions to buy DTH connection against cable services for television.
The study is focused on the four kinds of DTH services namely, Sun direct, TATA sky,
Dish TV, Big TV. The task of the study is to know the preference of the users in Punjab
Region among these various services.

3.3 OBJECTIVES OF THE STUDY:

To study the reasons behind the switching over of multi TV channel users from
cable TV to DTH services.

1 To analyze the factors which influence these switching over from cable TV to DTH
services in Punjab region.

To analyze the position of substitutes of DTH services with respect to DTH

services in the market.

To analyze the opportunities of Indian DTH services

4 .RESEARCH METHODOLOGY
Methodology implies more than simply the methods you intend to use to collect data. It
is often necessary to include a consideration of the concepts and theories which underlie
the methods. For instance, if you intend to highlight a specific feature of a sociological
theory or test an algorithm for some aspect of information retrieval, or test the validity of
a particular system, you have to show that you understand the underlying concepts of the
methodology. There are many different ways to approach the research that fulfils the
requirements of a dissertation. These may vary both within and between disciplines. It is
important to consider the expectations and possibilities concerning research in your own
field. You can do this by talking to your tutors and looking at dissertations written by
former students on your course.
4.1 SAMPLE & POPULATION:
The sample size is , which is 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 .The target population of the survey constitutes the TV households in
Punjab region. I take the Punjab area to collect the primary data from households as this
is the most growing area in NCR region.
4.2 DATA:
Here mainly primary data collected from the TV households in Punjab region by filled up
the questionnaire.
4.3 QUESTIONNAIRE
The questionnaire is well designed and close ended type, so that people easily filled the
questionnaire according to their perception. People always flexible to give their answer
objectively. So here open ended question is more effective as the target population is
households.

4.4 TOOLS & 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.

4.5 LIMITATION OF THE STUDY:

Only Punjab region will consider as research area.
Only Punjab region 4 cities not sufficient enough to analyze the market of DTH satellite
services, there we should also consider the other region for this analysis. Punjab is now
growing area in in India but there is rural area, small cities which we have to consider to
getting back effective result from the analysis.
There are various payment systems of cable TV operators in various areas. Depending on
area whether it is big town or small city or any industrial area or any rural area there are
various payment system of cable TV operators. So here we cant consider all these
system so that we analyze effectively. People are more sensitive towards price which they
have to pay monthly so that plays an important role here for the buying behavior of the
customer. So by considering only one region payment system we cant say anything more
about the buying behavior of the consumer.

5. DATA ANAYLSIS AND INTREPRETATION

5.1 DEMOGRAPHIC CHARECTERISTIC:
This project has been done with the help of primary data that has been collected from the
households of Punjab region. The purchasing behavior mainly depends on the full familys
perception. Now a days TV is the main entertainer of a family, every household take it as
necessary item. There is no difference between perceptions of a middle class family and a
high class family towards TV network regarding their income. As the study is regarding the
comparison between Cable TV & DTH TV so here we neglect the perception towards
consumption of lower class family. Form this study I come to know that people need multi-

channel TV network rather than terrestrial TV network.

5.2 DTH AT PRESENT IN YOUR HOME

TABLE NO 1
DTH SERVICE

NO. OF
RESPONDENT

PERCENTAGE
(%)

MEAN

S.D.

Sun direct

182

60.7

2.19

0.735

Big TV
Digital TV
Dish TV

53
24
29

17.7
8.0
9.7

2.34
2.50
2.21

0.678
0.511
0.774

6
6

2.0
2.0

3.00
1.00

0.000
0.000

2.23

0.731

Tata sky
Others
Total

300

100.0

INTREPRETATION
The table states that 60.7 per cent of the respondents having sun direct in their homes,
with the mean and standard deviation of 2.19 and 0.735, 17.7 per cent of the respondents
having BIG TV with the mean and standard deviation of 2.34 and 0.678,8 per cent of the
respondents having DIGITAL TV with the mean and standard deviation of 2.50 and
0.511,9.7 per cent of the respondents having DISH TV with the mean and standard
deviation of 2.21 and 0.774, and only 2 per cent of the respondents having TATA SKY in
their homes with the mean value of 3.Majority of the respondents (60.7%) having sun
direct in their homes.

5.3 TYPE OF PACKAGE

TABLE NO 2 TYPE OF PACKAGE
S.NO.

TYPE OF
PACKAGE

NO. OF
RESPONDENTS

PERCENTAGE
(%)

Family pack

213

71.0

2
3

South value pack

South started

42
12

14.0
4.0

4
5

Super saver
Others
Total

28
5
300

9.3
1.7
100.0

INTREPRETATION
The above table shows that 71 per cent of the respondents prefer family pack, 14 per
cent of them prefer south value pack, 4 per cent of them prefer south started pack, 9.3
of them prefer super saver pack and 1.7 per cent of them prefer others. Majority (71%)
of the respondents prefer family pack.

5.4 SATISFICATION OF BRAND

S.NO.
1
2
3

TABLE NO 3
SATISFACTION OF BRAND
SATISFACTIO
NO. OF
N
RESPONDENTS
Highly satisfied
Moderate
Satisfied
Total

123
18
159
300

PERCENTAGE
(%)
41
6
53
100

INTREPRETATION
The table implies that 41 per cent of the respondents highly satisfied with the brand, 6 per
cent of them are moderately satisfied, and 53 per cent of them are satisfied with the usage
of brand. Majority (53%) of them are satisfied with the usage of brand.

5.5 GARRETT RANKING TECHNIQUES

TABLE NO 4

GARRETT RANKING TECHNIQUES

S.
FACTORS

TOTAL SCORE

MEAN SCORE

RANK

PRICE
CLARITY
CHANNELS
OFFERS
SOUND CLARITY

1702. 4
1690. 2
1557. 5
1311. 9
1323. 5

5. 67
5. 63
5. 19
4. 37
4. 41

I
II
III
V
IV

NO.
1
2
3
4
5

REASONS BEHIND SELECTING THE DTH SERVICES

INTREPRETATION
The table 4 reveals the reasons for selecting the DTH. Variety of DTH Services was
ranked first by the selected sample respondents with the total score of 1702.4 and mean
score of 5.67. Price was ranked first with the total score of 1702.4 and mean score of
5.67. Clarity occupied second position with the total score of 1690.2 and mean score of
5.63. Channels was ranked third with the total score of 1557.5 and mean score of 5.19.
Offers occupied fifth position with the total score of 1311.9 and mean score of 4.37.
Sound clarity occupied fourth with the total score of 1323.5 and mean score of 4.41

5.6 RELATIONSHIP BETWEEN AGE AND LEVEL OF

SATISFACTION ABOUT CHANNELS
TABLE NO 5
CHI SQUARE TEST
Chi

Cal. Value

Df

P. value

0. 000*
*P<0.001

S/NS

Null
hypothesis

square
S -Significant

48. 880
Ns-Not Significant

Rejected

INTREPRETATION
It is clear that the P value is less than 0.05(P<0.000) at 5% level of significance. Hence,
the null hypothesis is rejected. So there is a relationship between age and channels of
DTH and also statistically significant.

5.7 ANALYSIS OF MEAN, SD & VARIENCE

Table no 6

5.8 RELATIONSHIP BETWEEN GENDER AND LEVEL OF

SATISFACTION ABOUT CHANNELS
TABLE NO 7
CHI SQUARE TEST
Chi

Cal. value

Df

P. value

Null hypothesis

S/NS

square
27. 252
3
0. 000*
S-Significant Ns-Not Significant
*P<0. 001

Rejected

INTREPRETATION
It is clear that the P value is less than 0.05(P<0. 000) at 5% level of significance. Hence
the null hypothesis is rejected. So there is a relationship between gender and channels of
DTH and also statistically significant.

5.9RELATIONSHIP

BETWEEN

SATISFACTION ABOUT

GENDER

AND

LEVEL

OF

CUSTOMERCARE
TABLE NO 8
CHI SQUARE TEST

Chi Cal. Value

square 22. 309
SNs-Not
Significant

Df
4

Significant

P. value
0. 000**

S/NS
S

Null hypothesis
Rejected

*P<0. 001

INTREPRETATION
It is clear that the P value is less than 0. 05(P<0. 000) at 5% level of significance. Hence,
the null hypothesis is rejected. So there is a relationship between gender and customer
care of DTH and also statistically significant.

5.10 RELIABILITY TABLE

TABLE NO 9 RELIABILITY TABLE

S. NO.
1
2
3
4
5
6
7
8

FACTORS
PRICE
CLARITY
CHANNELS
CUSTOMER
CARE
PLANS
OFFERS
SUB CHARGE

MEAN
4.2433
4.3433
4.1167

3.8133
3.9400
3.8633
3.8800
RECHARGE TIME 4.2367

STD SCALE MEAN

ITEM
DEV
. 7656
. 7879
. 8788

DELETED
28. 1933
28. 0933
28. 3200

ALPHA IF ITEM
DELETED
. 7992
. 8102
. 7761

1. 0142 28. 6233

0. 9197 28. 4967
0. 9314 28. 5733
0. 9843 28. 5567
0. 9436 28. 2000
NO. OF CASE
MEAN
STD DEV
VARIANC

. 7583
. 7502
. 7725
. 7726
. 7853
300
32. 4367
4. 6932

E
ALPHA VALUE

22. 0261
0. 8014

INTREPRETATION
From the above table it was clear that, the reliability of scales used in this study was
calculated by Cronbach's coefficient alpha. The coefficient alpha values exceed the
minimum standard of .70. Its provides good estimates of internal consistency reliability.
As shown in the table, coefficient alpha values ranged from .750 to .810 for all the
constructs indicating that the scales used in this study were reliable. It should also be
noted that an alpha of .8014 is probably a reasonable goal.

6. FINDINGS OF THE STUDY

In this study I found that out of 329 respondent 49.2% are cable TV network user and
46.5% DTH satellite TV network user and only 4.3% terrestrial customer which
indicate that if we compare it with all over Indian market then there are only 12%
DTH customer. So here we say that in Ghaziabad region the DTH satellite TV market
is rapidly growing, we can say not only in Ghaziabad it arises in full NCR region.
Here the new players in this market like Videocon d2h, Airtel digital TV also rapidly
increases their market share day by day as we see from the analysis Videocon has
5.9% market which came in the market few months ago where as Airtel has 15%
which also show rapid growing market share. Which is totally different result from the
market analysis of RNCOS Industry Research Solution survey where they showed
different market analysis.

Maximum DTH customers are switched over customer from cable TV network. Those
cable TV customers who still not change their network they said about the high price of
combo pack of DTH services as a reason for not switch over. That means maximum
people want to consume all type of entertainment from all channels.

Out of 329 respondent only 19 are using alternatives out of which 68.4% iptv & 31.6%
cell phone TV. This shows that in future this kind of alternative will create a big
challenge. Now a days people are crazier about internet & cell phone so they always
take advantage of that kind of TV. So DTH players should make a good strategy in
future for that challenge.
In this study we find that 30.2% cable TV customers were not satisfied with their
services where as 13.1% DTH customers also not satisfied with their DTH services. So
there is a big market for DTH players to capture the dissatisfied cable TV customers &
terrestrial customers also.

7.CONCLUSION AND RECOMMODIATIONS

7.1 CONCLUSION
On the basis of the data collected and the tests conducted I have arrived at the following
conclusions:
With the help of frequency table I was able to find the market share cable TV, DTH
satellite TV, terrestrial TV networks and also market share of various DTH players in
DTH market. Such as 49.2% market share cable TV, 46.5% of DTH TV and 4.3% of
terrestrial TV.
Cross tabulation between network connection and overall satisfaction showed that there
were lots of dissatisfied customers of cable TV rather than DTH services. Also cross
tabulation between DTH players and overall satisfaction showed that Reliance &
Videocon suffers from customer dissatisfaction factor most than other players.
There is high association between network provider and satisfaction of the services they
get from network provider. The most important factor came out is to be picture quality
and no disturbance of services.
There is also high association between switch over and various influencing factors.
Picture quality, no disturbance of services, channel packaging are more affective here.
In factor analysis I found out 4 factors which mainly have an impact on consumer buying
behavior or influence customer to switch over from cable TV to DTH TV or buy first TV
network service.
I also found out the market position of various alternatives of DTH TV players. They are
growing now.

7.2 RECOMMODIATIONS
There are lots of customers who dissatisfied with DTH satellite TV services. The
maim sufferer is Reliance Big TV & Videocon d2h the percentage is 31.6% and
33.3% respectively. They should satisfy the customer first which is very common in
the current business scenario.
DTH satellite players should focus on cable TV customer to increase their market
share as there are lots of cable TV market share which is not satisfied with their
network services. This market is larger in urban & semi urban area than Ghaziabad
region. So there are lots of opportunities of DTH players in future.
The main reason behind not switching over is the high price of combo pack that
means people always want to entertain by seeing all channels not limited channels. So
DTH players make the pricing strategy in such a manner so that all the monthly
charge of combo pack reduced.
Now a days people are crazier about the internet & Cell phone, so IPTV & Cell
Phone TV will play an important role in future. Now 6.1% customer using this type of
alternatives along with original one. But in future it will be a big threat to DTH
services. So DTH players should take advanced technology to provide services.