Emerald Emerging Markets Case Studies

Evo TV
Meenakshi Rawani, Ashwini K. Awasthi, Siddhartha Sarkar,
Article information:
To cite this document:
Meenakshi Rawani, Ashwini K. Awasthi, Siddhartha Sarkar, (2016) "Evo TV", Emerald Emerging Markets Case Studies, Vol.
6 Issue: 1, pp.1-18, https://doi.org/10.1108/EEMCS-06-2015-0101
Permanent link to this document:
https://doi.org/10.1108/EEMCS-06-2015-0101
Downloaded on: 03 January 2019, At: 01:15 (PT)
References: this document contains references to 5 other documents.
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

To copy this document: permissions@emeraldinsight.com

The fulltext of this document has been downloaded 138 times since 2016*
Users who downloaded this article also downloaded:
(2016),"Delhi traffic police: social media for better traffic management", Emerald Emerging Markets Case Studies, Vol. 6 Iss
1 pp. 1-17 <a href="https://doi.org/10.1108/EEMCS-06-2015-0152">https://doi.org/10.1108/EEMCS-06-2015-0152</a>
(2016),"Can IKEA adapt its service experience to India?", Emerald Emerging Markets Case Studies, Vol. 6 Iss 1 pp. 1-14 <a
href="https://doi.org/10.1108/EEMCS-10-2014-0245">https://doi.org/10.1108/EEMCS-10-2014-0245</a>

Access to this document was granted through an Emerald subscription provided by emerald-srm:532276 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication
Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

*Related content and download information correct at time of download.

 Evo TV
Meenakshi Rawani, Ashwini K. Awasthi and Siddhartha Sarkar
Meenakshi Rawani is based
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)
at School of Business,
FLAME, Pune, India.
Prof Ashwini K. Awasthi is
based at the Department of
Marketing, Institute of
Management, Ahmedabad,
India. Siddhartha Sarkar is
Doctoral Candidate of
Marketing at School of
Management, Indian
Institute of Technology
Bombay, Mumbai, India.
Disclaimer: This case is written
solely for educational
purposes and is not intended
to represent successful or
unsuccessful managerial
decision making. The author/s
may have disguised names;
financial and other
recognizable information to
protect confidentiality.
DOI 10.1108/EEMCS-06-2015-0101
Introduction
On June 12, 2012, Amkette offered Indian consumers an interactive interface for their
television sets, similar to the one that they were using on their smartphones. Evo TV, a new
digital media device, supported by android operating system, provided internet
connectivity in television. It was a cost effective substitute to smart television. Pradeep
Bapna, Executive Director, Amkette, said:
Today, digital products add value to the ever changing modern lifestyle. The launch of Evo TV
is going to be helpful in achieving Amkette’s vision of delivering best digital products, and
bridging the convergence gap between internet, storage, television, and computers.
Amkette, once a familiar brand name in floppy diskettes in India, had swiftly moved into
lifestyle computer peripheral products in late 1990s. In line with its innovation thrust for
cutting edge lifestyle products, management approved the concept of Evo TV in early
2009, and thereafter, it took three years of persistent hard work, for the product to see the
light of the day. On the day of product launch, Bapna wondered whether Evo TV will boost
Amkette’s sales figure and stop the decline in its profits in the technology market.
Allied Electronics & Magnetics Ltd (Amkette)
In the year 1985, Rajiv Bapna and Pradeep Bapna co-founded Allied Electronics &
Magnetics Limited, widely known as Amkette, for manufacturing floppy diskettes in India.
Amkette’s first manufacturing plant was set up in Udaipur city of Rajasthan, with an initial
investment of around Rs 5 crores. The company collaborated with a leading German
technology innovator to procure the required technology for production of floppy diskettes.
The background
In 1985, Amkette launched eight-inch-sized floppy diskettes which gained a rapid
acceptance in domestic and international markets. The company completed first
production lot of 40,000 floppy diskettes within a period of eight months. This was a
phenomenal performance for a start-up company. The company made a huge success due
to its state-of-the-art manufacturing process and reached the break-even point in the
second year.
Since 1986 onwards, there was an overwhelming growth in the demand of floppy diskettes.
In the year 1995, the company made record sales of 1 million boxes (1 box contains 10
diskettes). The successive innovations led the introduction of 5.25- and 3.5-inch-sized
floppy diskettes. In the production of micro floppy diskette, Amkette maintained class of
10,000 cleanliness standard, which means maximum permissible suspended particle in the
atmosphere one per 10,000.
VOL. 6 NO. 1 2016, pp. 1-18, © Emerald Group Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
 Initially, majority of sales were made in the international markets. The major exports of 8
inch and 5 inch floppy diskettes were made to Europe and USA. Domestic market
contributed only 20 per cent of the total company sales because of lower computer
penetration. Despite initial regulatory hurdles and international competition from giants like
Sony and Max, Amkette’s foray into domestic storage media product was successful. By
1995, Amkette had become the largest selling floppy diskette brand in India and its
milestones are as follows:
 1986 – India’s first 20.3 cm (8’) floppy diskettes shipped out from Amkette Plant in April.
 1986 – First export of floppy diskettes from India by Amkette in December.
 1987 – Established 13.3 cm (5.25’) floppy diskettes Plant.
 1988 – National Productivity Award from President of India.
 1991 – Established 8.9 cm (3.5’) floppy diskettes Plant.
 1995 – Largest selling floppy diskettes brand in India.
 1997 – India’s Best Consumables Company Award.
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

 1999 – Introduction of first Keyboard with Membrane Keys in India.

 2004 – Introduction of CD recordable and CD rewritable in Indian market.
 2006 – Introduction of DVDRs in India.
 2007 – Launch of Series – A range of computer peripherals.
 2008 – Introduction of flash drives and memory cards in India.
 2009 – Launch of Flash TV in Indian market.
 2011 – Unveiling of new company logo and vision 2020 in January.
 2011 – Introducing of a series of wireless products in the country in April (www.
smeworld.org).
During mid-1990s, Amkett’s domestic market share of floppies was more than its share in
the international market. However, the sales of floppies observed a continuous decline
since the year 2000, due to penetration of new storage media products such as CDs, DVDs
and USBs. By the end of year 2004, floppies had almost vanished from the market, and
Amkette deliberately moved into other media storage devices and lifestyle products.

Product portfolio
Amkette’s philosophy had been to cater to and improve consumer’s computing experience.
Since its inception, the focus was only on peripheral products, and not on hard disks,
mother boards, projectors, etc. Bapna says “Amkette is a media company, and we
manufacture everything for computers except computers”. Amkette adopted “house of
brands” strategy to diversify into new product categories and tried to build individual
product brands. They introduced an independent set of stand-alone brands, positioning
them on functional benefits for maximum impact in the market. Launch of new brands did
not dilute the Amkette brand. The current range of Amkette products are storage media
such as flash drives, memory cards, CDR/RW and DVDR/RW, digital efficiency products
like laptop sleeves, cleaning kits, dust covers, DVD wallets, webcams, HDMI cables, wired
and wireless keyboards and computer mouse, and digital lifestyle products include Evo TV
and Flash TV (Table I).
Amkette introduced many user-friendly and innovative peripheral products like
ergonomically designed wireless keyboards, and wireless Bluetooth mouse, to enhance
computing experience of users. These new products were designed to address
user-specific problems. For example, keeping in mind the primary concern of wireless

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 1 2016

 Table I Products portfolio of Amkette
Storage media Accessories Audio zone

Flash storage USB hubs and card readers TruChat headset Speakers
Optical storage Flash links Earphone
Power products Clip on BT
HDMI cables TruBeats headphones
Cleaning kits
Audio cables
Laptop sleeves
CD/DVD

Wired zone Wireless zone Digital lifestyle

Keyboards Keyboards ⫹ Mouse Combo Evo TV

Mouse Mouse Flash TV 720p
USB hubs and card readers Headphones Flash TV HD Pro
Web cam Tablet bluetooth keyboard
Headphones Smart all-in-one keyboard
HDMI cables Wi-key touch
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

Source: Company website (www.amkette.com)

products with regards to battery consumption, Cruizer wireless desktop were designed
with automatic sleep mode features.

Advertising and promotion

Traditionally, Amkette was known for its floppy diskettes only. With changing times, it
repositioned itself as a digital lifestyle company. The primary punchline “when reliability
matters” reflected commitment of the company to its consumers. The new punchline
“redefining digital lifestyle” reflected company’s focus on enhancing consumer’s digital
lifestyle. The new logo has letter “A” that symbolizes “at the rate”, highlighting company’s
focus on digital technology. The orange color in the new logo represented freshness and
energy, to rejuvenate consumers’ day-to-day life.
Amkette did not make large expenditure on traditional advertising medium. Occasional
print advertisements were given for new product launches. New products were promoted
in a cost-effective way. The company put flyers of new or upcoming products in the
packaging box of the products that it sold. The flyers informed consumers about the new
products, provided details and explained promotional schemes. The strategy had been
successful for introduction of various products.

Distribution
The products were sold through multi-brand retail outlets as well as specialty retail outlets,
for a wider coverage. The distribution network of Amkette was spread across 110 cities in
India. The company had established a wide network of 500 distributors, over 6,000 retail
outlets and 22 sales offices across the country. The emergence of e-retailers such as eBay,
Flipkart, Snapdeal and others also contributed substantially to its sales figures. Online sale
through its own website was merely 15 per cent, whereas third party e-retailers contributed
almost 85 per cent of online sale. Amkette’s distribution network and its after sales services
had been instrumental in company’s growth.

Research and development

Computers and peripherals market was susceptible to frequent upheavals. The product life
cycles were short and required continuous innovation. According to Bapna:
[. . .] the product mix is changing very rapidly in computers peripheral industry, and the product
obsolesce cycle is very short. The life span of a product is from 1 to 5 years only. Research and

VOL. 6 NO. 1 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

 Development department of Amkette continuously works for designing new products, and
creating newer ways of doing things (Personal Communication, April 26, 2014).

Amkette gradually shifted focus on new computer peripheral products, to keep pace with
the changing market expectations. A team of engineers was constantly engaged in
innovation and product design, at its head office in New Delhi, India, while a team of
engineers was engaged in software installation and repair-related activities at Udaipur,
Rajasthan.

Computers and peripherals industry

Computer peripherals include the input devices such as key boards, card readers, mouse,
light pen and output devices such as printers and monitors, and input/output devices such
as terminals and auxiliary memory devices. Collectively, computer peripherals account for
about 60 to 70 per cent of the total value in a computer system. The growth in the demand
of peripheral industry is directly associated with the demand in the computer industry.
In the early days of technology acceptance in India, computers and peripherals
contributed a mere 8 per cent of the total value of the electronic industry production. The
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

industry experienced a significant development after the introduction of liberalization

policy, in the year 1984. As a result, the total computer peripherals turnover was Rs 31.4
and Rs 54.5 crores in the year 1986 and 1987. In the introductory stage of computer
technology, domestic players were majorly manufacturing dot matrix printers, line printers/
daisy wheel printers, cartridge tape drives, terminals, monitors, keyboards, plotters and
digitizers. Initially, the domestic peripheral industry accounted for only 20 per cent of the
total demand, while the remaining was met through imports. The industry developed export
competence by late 1980s and that continued till mid-1990s. The growth of computers and
peripherals is dependent upon innovative designs, and competitive prices (Technology in
Indian Computer Peripheral Industry, 2014). The industry did not keep pace with global
competition (this required technological advancements), and it gradually lost in the exports
market. It then shifted the focus on domestic market.
In India, computer penetration grew from 6.3 per 1,000 people in 2000-2001 to 18 per 1,000
people in 2005-2006 year (Table II). Computer penetration witnessed a significant growth
from 6.34 million units in March 2007 to 9.31 million units in March 2011, representing
approximately 40 per thousand people (Working Group Report on Information Technology,
2012-2017).
Computer market is broadly classified into desktop computers and laptops. In 2005-2006,
sale of laptops and desktops was 0.43 million units and 4.61 million units, respectively. The
sale of laptops escalated to 3.28 million units, registering more than 650 per cent increase,
whereas 6.03 million units of desktops were sold during the same period, registering a
growth of 30 per cent (Figure 1, Table III).
Due to technology convergence, the distinction between IT, consumer electronics and
Telecom was diminishing rapidly. The advent of innovative products and sustainable
infrastructure allowed consumers to watch videos, live streaming content and Web

Table II Computer penetration in India

Year PC Penetration in SEC A-C Household (in %)

2006-2007 19
2007-2008 30
2008-2009 38
2009-2010 41
2010-2011 43
Source: Twelfth Five Year Plan (2012-2017), available at: http://planningcommission.gov.in/aboutus/
committee/wrkgrp12/cit/wgrep_dit.pdf (accessed 15 April 2014)

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 1 2016

 Figure 1 Sales volume of personal computers in India (desktop and laptop)

Sale of PC (in millions)

4

0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-2011
Laptop 0.43 0.85 1.82 1.52 2.51 3.28
Desktop 4.61 5.49 5.52 5.28 5.53 6.03
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

Source: MAIT Annual Report 2012-2013, available at: www.mait.

com/download.aspx?mpgid=33&pgidtrail=65 (accessed 28 April
2014)

Table III Computers and peripherals market: 2009-2010 and 2010-2011

Total installs Total revenue (in Rs crores)
April 2009- April 2010- April 2009- April 2010-
Product March 2010 March 2011 % Growth March 2010 March 2011 % Growth

Computerize
Desktop PCs 5,525,992 6,030,418 9 11,267 13,014 16
Notebooks 2,322,850 2,950,192 27 8,868 9,440 6
Netbooks 185,714 334,324 80 260 468 80
Servers 101,827 87,275 ⫺14 1,836 1,574 ⫺14
Printers
Dot Matrix 383,597 384,869 0 257 258 0
Inkjet 1,142,131 1,355,504 19 177 203 15
Laser 971,807 1,130,658 16 660 734 11
Lime 4,640 4,234 ⫺9 54 50 ⫺7
Other peripherals
Key boards 5,756,923 6,171,191 7%
Monitors 5,754,111 6,163,108 7%
UPS Systems 2,324,480 2,384,197 7%
Networking products
Network interface card 3,454,721 4,440,666 29%
Hub 161,602 155,899 ⫺4%
Source: Twelfth Five Year Plan (2012-2017), available at: http://planningcommission.gov.in/aboutus/committee/wrkgrp12/cit/wgrep_dit.
pdf, (accessed 15 April 2014)

navigation on portable devices. Smart devices such as tablets and smartphones were
becoming a preferred choice for the Indian consumers to access multi-media content
(Figure 2) (Working Group Report on Information Technology, 2012-2017).

Television industry
Television occupies a dominant position in Indian media and entertainment sector. Indian
television entertainment had experienced several significant changes over the years. In the
era of black and white television, Doordarshan was the only channel available for

VOL. 6 NO. 1 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

 Figure 2 Market penetration of tablets and smartphones

Year 21% Only Tablet

PC Owner Smartphone Owner

PC Owner + Smartphone
Owner

Notes: CAGR growth – Growth of 2011-2012 over 2005-2006

Source: MAIT Annual Report 2012-2013, available at: www.mait
.com/download.aspx?mpgid=33&pgidtrail=65 (accessed 28 April
2014)
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

entertainment, information and broadcasting (Figure 3). Since 1980, Indian television
industry had gone a long way, with almost 600 channels in its fold, of which approximately
one-third are operating in General Entertainment Channels (GEC) category (this includes
national and regional channels). The national GEC such as STAR, ZEE, Colors and others
emphasize on Hindi non-fiction content, and Hinid film content, to connect with younger
audience. The regional channels on the other hand emphasize on non-Hindi speaking
audiences. In the year 2010, GEC accounted for 70 per cent of viewership, followed by
news category channels, accounting for 7 to 8 per cent of veiwership. The other genres
related to children, music and sports, and they capture the remaining viewership (Media &
Entertainment in India, 2011).

Figure 3 Evolution of TV channels in India

• Doordarshan was the single national broadcaster

1980s

• Ramaayan and Mahabharat were the popular shows with record viewership
1980s

• Five new channels introduced by Hong Kong based Star TV

1992

• More than 50 channels available to Indian viewers

1996

• More international channels such as Nickelodeon, Cartoon Network, VH1, and

2002-
03
Disney were launched in India. The number of channels increased to ~100

• Entry of authentic news channels such as AajTak and Star News

2003

• Two million digital TV households

2006

• 394 TV channels in 2009. Non-news & current affairs TV channels grew from 0
2009 to 183; news & current affairs TV channels grew to 211
• Over 50 channels already in India and another 100 waiting to go live
2010
• Launch of HD channels, food first, Movie Now, Launch of HD feed of Star, Zee
channels

• Annual growth rate for the television industry is projected to be 12% over the
2015 next five years

Source: Deloitte Analysis, available at: www.deloitte.com/

assets/dcom-india/local%20assets/documents/me%20-%20
whitepaper%20for%20assocham.pdf (accessed 1 May
2014)

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 1 2016

 As a result, Indian television industry is experiencing an increased demand. The sales of
black and white television are significant in rural areas, registering 163 per cent growth
from 59 televisions per thousands in 1989-1990 to 155 in 1995-1996. The sales of black and
white television in urban areas grew 50 per cent from 304 televisions per thousand in
1989-1990 to 456 televisions in 1995-1996. The sales of color televisions in urban areas
were 123 per thousand households in 1989-1990, and 9 in rural areas, which rose to 212
color televisions in urban areas and 26 in rural areas in the year 1995-1996 (Television
Manufacturing Data, 2014). Over the years, the traditional Indian television industry
witnessed many changes due to rapid technology obsolescence, and rapid new product
adoptions. The demand for cathode ray tube (CRT) television is stabile at 13 million units,
during the period 2012-2017. After the steady disappearance of CRT televisions from the
market, new technology televisions such as liquid-crystal display (LCD), Plasma,
high-definition (HD) and three-dimensional (3D) were hopeful of faster adoption. LCD
television registered a growth rate of 80 per cent, with 4.50 million units in 2011-2012. Also,
the change was there in the size of display screens. The demand for 32-39 inches television
sets is expected to capture 43 per cent market share by 2014 (Television Manufacturing
Data, 2014).
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

The technology convergence allowed television sets to support multiple applications, and
experience unimanigable use of television, from watching television to internet access. It
was expected that television would evolve in future as a platform for the use of smart
applications, besides watching the traditional entertainment channels.

Evo TV
On June 12, 2012 the first model of Evo TV was launched. Though the idea of connected
TV device was conceptualized in 2009, Amkette could not introduce the same in Indian
market due to lack of consumer awareness and technology support. The hardware of
the first model was compatible with Android Gingerbread 2.3.4, though advanced
Android versions such as Honeycomb, and Ice Cream Sandwich were already available
in the market. Evo TV was a smart device offering range of connectivity options such as
HDMI, SD card, Ethernet and charging cable. It was small and compact in size, and
allowed consumers to access YouTube, download torrents, stream music and movies,
view live news and sports events, access thousands of apps and games on their
traditional TV sets. The application of Evo Discover allows the user to access World
Wide Web, and the support of Adobe Flash creates a flawless experience of Web
surfing. The device also supports MS Word, Excel, PowerPoint and similar other formats
to combine work and fun experience together. It delivered the experience of a smart TV
into a traditional TV set, and provided simple user interface, with easy-to-use innovative
features, android applications, customization of favorites, etc. An advanced remote
control provided innovative features like the touch sensor, 360 point, click air motion
sensor and rechargeable battery. It was an affordable solution for the Indian homes,
and it did not require replacement of conventional TV sets. The product was targeted
at the young professionals aged less than 32-35 years, who like to surf the internet,
check mails, watch videos, stream music, watch sports, play games and access world
news at their home environment. Amkette also targeted corporate customers with
internet features such as Web browsing, streaming media and social networking for
business purpose. Initially, the product was made available in Delhi, Mumbai, Kolkata
and Bangalore, with further pan India expansion plan. Indian consumers were not fully
aware and well-versed with the concept of connected TV device; thus, it was essential
to explain the features and benefits of this innovative device to encourage the product
acceptance. Amkette deputed its own trained sales personnel at retail outlets to
demonstrate product features and incurred an average cost of Rs 15,000 per outlet.
Amkette planned to subsequently launch the product in 40 cities across India by the
end of August 2012. Expenses budgeted for marketing (including promotion) were Rs
6 crores for the projected sale of 40,000 units of Evo TV. This budget included the cost

VOL. 6 NO. 1 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

 incurred to display the products as per the company specified retail standards, in
selected outlets across India. The product was promoted through newspaper
advertisements in renowned national dailies (Figure 4). According to Bapna:
Evo TV is not a mass market product. Thus it will be sold through multi brand outlets, and online
retailers. With the growing inclination of consumers towards online shopping, we hope to make
40 – 50 per cent of sale through internet.

The management expected approximately 40 per cent gross margin for Evo TV and was
hopeful that its sale would contribute to at least 50 per cent of revenues of Amkette. Of the

Figure 4 Newspaper advertisement of Evo TV

Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 1 2016

 total product cost, 55 per cent was incurred for product acquisition (including all
accessories) from Shenzhen, China, and 5 per cent for software installation in India.
Evo TV was covered under one-year limited warranty against any defects from the date of
original purchase. The warranty promised a repair or replacement of the product, provided
the product was found defective in material or workmanship. The warranty did not cover
any product malfunctioning due to third party software use. S.S. Rajawat, Deputy Manager
(technology) pointed:
[. . .] there could be different reasons for fresh product failure such as simultaneous installation
of many applications, inappropriate or incomplete installation of apps, user unawareness in
handling the product, and issues in connecting with Ethernet or Wi-Fi (Personal Communication,
April 28, 2014).

The key reason for incomplete software upgrade was low bandwidth at the consumer’s
end. The device worked properly with 20-22 applications. Installation of more number of
applications slacked the performance of device. Customers were requested to return the
product at the nearby authorized retail store in case of any software or installation default.
Amkette focused on customer satisfaction; therefore every issue, no matter how miniscule
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

it was, was to be resolved with utmost care. The customers were promised repair of the
device within 24 hours, excluding the time required in transferring the product between
different offices. Amkette also offered various schemes to customers on purchase of Evo
TV. Every new product had its unique serial number with ETHO MAC ID, and WIFI MAC ID.
These were unique serial numbers which were helpful in implementing various schemes
such as cash-back incentives and loyalty incentives. WIFI MAC ID was automatically
recognized once the installation steps were completed by the customer and got registered
at central database warranty management system. Further, the use of Ethernet would
recognize ETHO MAC ID and approve the loyalty scheme for the customer.

The path ahead

With the advent of smart TVs, many prominent players in computer industry had to offer
platforms for converting traditional TVs into smart TVs. The birth of connected TV was
ascribed to public launch of BBC iPlayer in December 2007, which offered “on demand TV
programming”, unlike recording of the programme. The principle behind iPlayer was to
bring on personal computing experience into the television world. Subsequently, the world
witnessed the launch of devices such as first generation Apple TV in 2007 and Google TV
in the year 2010 (The Challenges of Connected TV, 2013). Growth of connected TV
depended on quality of broadcast services, availability of content and suitable
infrastructure facilities related to mobile and internet services. Therefore, penetration of
connected TV varied significantly in different countries. Countries like USA, South Korea,
UK and Japan were more fertile markets for connected TV (Figure 5).
In Japan, share of connected TV was 55 per cent of television market for the year 2012,
while it was more than 40 per cent in China and Western Europe (The Challenges of
Connected TV, 2013). The increased access to internet and Web surfing created an
indirect network effect for the growth and acceptance of other innovative smart devices.
Tablet market was growing rapidly since November 2010. The sale of connected TV
devices was also expected to grow further. It was projected that around 570 million
homes worldwide would have a connected-TV device by 2016 (Figure 6). Though Indian
consumers were getting familiarized with smart apps in tablets and smart phones,
however, familiarity with smart TV and connected TV was comparatively low in India.
Consumers who were accustomed to view only pay television (subscription based
television) were slow in adoption of advanced and interactive functions of connected
TVs. The early adoption of connected TV was expected from technology enthusiasts.
Indian market was characterized by poor broadband coverage, low income, and
literacy levels. The proposed 3G technology allowed convergence of computing

VOL. 6 NO. 1 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

 Figure 5 Connected-TV and Pay-TV[1] home penetration of households in major
markets, end-2016

105
90

Percentagge (%)
75
60
45
30
15
0
USA UK Spain South Russia Japan Itlay India China Canada Brazil
Korea

Connected-TV Homes Pay-TV Homes

Source: Informa Telecoms & Media, available at: www.informatandm.com

/wp-content/uploads/2012/02/ITM-CES-Connected-TV-White-Paper.
pdf (accessed 3 May 2014)
Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

Figure 6 Global, Pay-TV and Connected-TV homes, 2011-2016

1,-000
Home (millions)

800
600
400
200
0
2011 2012 2013 2014 2015 2016
Year

Pay TV Connected TV

Source: Informa Telecoms & Media, available at: www.

informatandm.com/wp-content/uploads/2012/02/ITM-CES-Connected
-TV-White-Paper.pdf (accessed 3 May 2014)

Keywords:
Product life cycle,
Diffusion of innovation,
Consumer adoption,
Innovative products
features with mobile devices, and led to a significant increase in internet access on the
go. Evo TV, a connected TV device, allowed consumers to use smart apps on their
television set, and it was initially priced at Rs 9,995.
The use of Android operating system and cost of downloading apps were lesser as
compared to other devices such as Apple TV. Evo TV had to compete with Google TV
which was launched in July 2012, offering Android operating system and similar features.
Smartphones and tablets were also offering similar experience. In future, Evo TV could also
face tough challenge from any low-cost entrant of connected TV devices. Will Evo TV
withstand Amkette’s growth expectations? How the cost will be recovered, in case only 10
to 20 per cent of targeted sales were realized?
Note
1. Pay-TV means the existing subscription-based television wherein the consumer pays per view of
entertainment.

PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 6 NO. 1 2016

 References
Media & Entertainment in India (2011), “Digital Road Ahead”, Deloitte, available at: www.deloitte.com/
assets/dcom-india/local%20assets/documents/me%20-%20whitepaper%20for%20assocham.pdf
(accessed 1 May 2014).

Technology in Indian Computer Peripheral Industry (2014), available at: www.dsir.gov.in/reports/

techreps/tsr038.pdf (accessed 12 April 2014).
Television Manufacturing Data (2014), Indiantelevision.com, available at: www.indiantelevision.org.in/
industryresources/tvmanufact/tvmanufacture1.htm (accessed 28 April 2014).

The Challenges of Connected, TV (2014), “Directorate-general for internal policies, European

Parliament, 2013”, available at: www.europarl.europa.eu/RegData/etudes/note/join/2013/513976/IPO
L-CULT_NT(2013)513976_EN.pdf (accessed 3 May 2014).
Working Group Report on Information Technology for Twelfth Five Year Plan (2012-2017), Department
of Information Technology, Ministry of Communications and Information Technology, available at:
http://planningcommission.gov.in/aboutus/committee/wrkgrp12/cit/wgrep_dit.pdf (accessed 15 April
2014).

About the authors

Downloaded by Telkom University, Teaching Note Telkom At 01:15 03 January 2019 (PT)

Meenakshi Rawani has earned her PhD in Marketing from Nirma Institute of Management,
Ahmedabad. Professor Rawani has been actively engaged with research and teaching for
the past nine years. Her academic interests are in the field of services marketing, research
methodology and marketing research. Professor Meenakshi Rawani is the corresponding
author and can be contacted at: rawanimeenu@gmail.com
Professor Awasthi has 25 years of experience in industry and academia. A recipient of
research grants from University Grants Commission of India. He has consulted to
non-government organisations, and entrepreneurs. His academic interests are in the field
of marketing management, marketing research, sales management, and services
marketing.

Siddhartha Sarkar is a PhD student in the area of Marketing at SJMSOM, IIT Bombay. His
areas of research include Private Label Brands, Image Congruity between Private Label
and Self Image, Applications of Game Theory in Private Label Purchase Intention.

VOL. 6 NO. 1 2016 EMERALD EMERGING MARKETS CASE STUDIES PAGE 11