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dishtv is a division of Zee Network Enterprise (Essel Group Venture). EGV has national and global presence with business interests in media programming, broadcasting & distribution, speciality packaging and entertainment. Zee Network incorporated dishtv to modernize TV viewing. dishtv is Indias first direct to home (DTH) entertainment service. By digitalizing Indian entertainment, this enterprise brought best television viewing technology to the living room. It not only transmits high quality programmes through satellite; but also gives a complete control of selecting channels and paying for them. dishtv imparts DVD quality picture and stereophonic sound effects to the customers. It promises to change the experience of TV viewing with its uninterrupted transmission service. The endeavour enters next level of entertainment with futuristic features, such as EPG (Electronic Programme Guide), parental lock, games, 400 channels, interactive TV and movie on demand. dishtv also brings exclusive national and international channels for the first time in India. Going the DTH way has a lot of benefits. You are automatically upgraded to a host of world class features that makes television viewing a pleasurable experience. Have a look at some of the key add on benefits that dishtv brings to your home.

Digital Picture Quality The exceptional digital and Direct to Home transmission ensures you watch all your favourite programmes in true DVD quality. Stereophonic Sound The Direct to Home satellite transmission treats you with a true theatre experience by providing awesome Stereophonic sound. Geographic Mobility No matter which part of the country you are in or moving to, dishtv with its all India coverage ensures direct signals wherever you are. Uninterrupted Viewing With dishtv at your home, as long as your equipment is connected to a power source you can enjoy uninterrupted transmission of your favourite programmes. Capacity up to 400 DTH Channels dishtv can offer you up to 400 entertaining channels. And that's not all, every month more channels will be added to provide complete entertainment to your family. Dyna Boost

dishtv is using the NSS6 satellite at 95.0E designed specifically for DTH operations. It is equipped with Automatic Level Control (ALC) feature that enables the satellite to maintain constant satellite EIRP even in case of uplink signal degradation due to weather conditions such as rain, fog or clouds. Instaflip dishtv's Instaflip technology helps you change channels quickly and conveniently. Our efficient processors make it possible for you to browse through all 300+ channels and services in less than 2 seconds.So, get set browsing all the channels on DISHTV with fast scrolling, intuitive navigation and quick flip surfing.

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Market Structure : Indian DTH IndustryIntroductionDirect To Home (DTH) is a distribution platform for multichannel TV programmes on Kuband (high frequency of 11.7 to 14.55 Gigahertz) by using a satellite system which transmsignals directly to subscriber premises The term predates DBS satellites and is often used in reference to services carriedby lower power satellites which required larger dishes.DTH Industry in IndiaIn earlier days there was only one TV channel in India the Doordarshan,Channel doordarshan was owned and operated by government of India. In thoseera every home which had a TV set used to have its own antenna to capturethe signals. The Cable Television Ordinance Law was paased in January 1995. Thisenabled cable operators to feed channels and later on private companies wereallowed to air their own channels and this led to the explosive growth in numberof TV channels and number of cable operators. The growth of TV channels & cable operators created a big industry andmarket opportunities.Untill few years back there were as many as 1,00,000 cable operators acrossIndia. However the services provided by cable operators were poor.The strikes,increase in tariff plan, selective broadcast and poor services were major causePage 2 Satyesh Singh Rajput Following are the simplifiedsteps on how DTH works:1.Broadcoster Sends thesignals 2. The satellite receives thesignalsat Ku Band3.The Dish Antenna atsubscribershome receives the signals

Market Structure : Indian DTH Industryof dissatisfaction among the customers. This has created an opportunity forDTH, which serves an immediate threat to the high-end cable networks. Someof the key player in the industry are DishTV by Zee group, TataSky joint ventureof Tata & Star TV, Big TV by Anil Dhirubhai Ambani Group, Digital TV by Bharati Telemedia, SUN Direct from the promoters of Sun TV.There are some othercompanies who are comtemplating to start their own DTH like Videocon. There is an

immense opportunity for DTH in the Indian market. Theopportunity in India almost 10 times that in developed countries like the US andEurope. For every channel there is a scope for broadcasting it in at least tendifferent languages. So every channel multiplied by ten, that is the kind of scope for DTH in the country.Structure of the Indian DTH industry 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 rightto) sell.An oligopoly is a market form in which a market or industry is dominated by asmall 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 brandedproducts 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 allowsfirms to make supernormal profits Each oligopolist is aware of the actions of the others. Analysis of Indian DTH industry: Page 3 Satyesh Singh Rajput

Market Structure : Indian DTH IndustryIndian DTH industry is still at nascent stage. In the year 2003 DD Direct+was launched since DD Direct+ is non commericial and free DTH service (www.financialexpress.com&www.wkipedia.org) hence we would focous ourdiscussion on private players in the industry.As of now DishTV, TataSky, BigTV, AirTel Digitel TV, Sun Direct are in theindustry. There are some other players like Videocon, who want to join thishighlu lucrative industry. Since there are only 3 major players and the marketconcentration is very high Indian DTH industry is oligopolistic. DTH Industry Market Share 2008* BrandPromoterMarketShareDish TVZee group53% TataSkyTata Sons & Star TV30%Big TVAnil Dhirubhai Abani Group15%Others (Sun Direct, AirTelDigital TV )Sun by SUN TVAirTel by Bharati telemedia2%Another way of confirming it is by using the index Herfindahl. TheHerfindahl index, also known as Herfindahl-Hirschman Index or HHI, is ameasure of the size of firms in relationship to the industry and an indicator of the amount of competition among them.HHI s defined as the sum of the squares of the market shares of 50 largestfirms (or summed over all the firms if there are fewer than 50) within theindustry, when the market shares are expressed as percentages; the result isproportional to the average market share, weighted by market share. The higher the HHI Index the more oligopolistic is the industryIn mathematical term it is defined as following : n H= s i2 i=1Where s i is the market share of firm i in the market, and n is the number of firms.Page 4 Satyesh Singh Rajput

Market Structure : Indian DTH IndustryIn the case of Indian DTH Industry the HHI index can be computed by squaringthe market share of each player and adding them i.e. H= 532 + 302 + 152 + 22 H = 85399Since this value of H is petty high it indicates that the market is oligopolistic.Substitute goods/products for the products of DTH Industry Substitute goods : Refers to a good which is to some extent interchangeablewith another good. In economics term it means that when the price of one goodincreases, demand for the other good increases. The total number of TV owning households in India is estimated at 117million. This represents a 54% penetration of TV in Indian households. Out of this, Cable and Satellite households are 68 million. The total subscriber base of DTH has crossed 8.9 million.At times there were 1,00,000 cable operators, however due to stiff competition and the introduction of other alternatives like DTH, CAS, IPTV,Online TV the number of cable operators have come down to 60,000.DTH is a new entrant in channel broadcasting & entertainment industry. Itfaces direct and stiff competition from various service provider which sends TVsignals to homes. Terrestrial Television: Doordarshan is the public television broadcaster of India and a division of Prasar Bharati, a public service broadcaster nominated bythe Government of India. It is one of the largest broadcasting organizations inthe world in terms of the infrastructure of studios and transmitters.Doordarshan is the world's largest terrestrial broadcaster with over 1400terrestrial TV transmitters located throughout the country covering approx. 88%of India's geographical area.Doordarshan was the only player in industry providing news andentertainment. It enjoyed the monopoly and has been very successful for sometime

however offlate it is continuouslyPage 5 Satyesh Singh Rajput

Market Structure : Indian DTH Industrylosing interest of audience because of stiff competition from private channels. Cable TV Operators: In 1992, the government liberated its markets, openingthem up to cable television. This led to astronomical growth of number of TVchannels and created a huge demand of cable TV operators. The cable TVoperators came in to the business and connect urban & rural home to theprivate channels.Cable TV operators are present in almost all cities and towns of India, theycharge installation fee and monthly rental for the services provided. Theseoperators even telecast local and regional channels.Cable TV providers also provide CAS services. CAS or conditional accesssystem, is a digital mode of transmitting TV channels through a set-top box(STB). The transmission signals are encrypted and viewers need to buy a set-top box to receive and decrypt the signal.Cable TV operators poses a serious threat and stiff competition to DTH Industry.Infact DTH industry is trying to eat the market share of cable TV operators. Conditional Access System(CAS): Conditional Access system was introducedmetro cities of India to provide the subcribber the choice channel he/she wishesto view. CAS required the subscriber to buy set-top-boxes. The implementationof CAS was focused only on the big cities of India.CAS is very much similar to DTH as far as the power to the user isconcerned. IPTV: IPTV describes a system where a digital television service is deliveredusing the Internet Protocol over a network infrastructure, which may includedelivery by a broadband connection. IPTV is technically far superior than anyother alternative.A number of other operators, including Bharat Sanchar Nigam Ltd and RelianceCommunication are planning to launch IPTV in a big way.Researchers from Gartner [2007] believes that IPTV will struggle in India forfollowing 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 phasedmanner, and more players are moving into DTH, which is growing. IPTV will be priced at the same prie as digital cable or DTH, so no pricedifferentiationPage 6 Satyesh Singh Rajput

Market Structure : Indian DTH IndustryAs the number of broadband users are increasing in urban and semi urban citiesIPTV can pose serious threat to DTH player in long run. OnLine TV: The world wide web is changing lot of things, the way data &information are stored, and shared has changed dramatically. Web 2.0 offersusers to watch TV programs online. There are already websites like:http://www.indiatvonline.com/ http://www.tvdekho.com/Apart from these website TV channels are also streaming live videos of theirprograms.Online TV though is a niche industry as of now but with increased penetration of broadband connection, it can pose significant challenge to DTH industry. Cartel : A cartel is a formal (explicit) agreement among firms. Cartels usuallyoccur in an oligopolistic industry, where there is a small number of sellers andusually involve homogeneous products. Cartel members may agree on suchmatters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common salesagencies, and the division of profits or combination of these. The Indian DTH industry is still in nascent state. It is in growth stage andso far no cartel has developed. Given the nature of DTH industry (high volume)there will definitely come a time when the industry will go through M&Afollowed by catelizing. Complement goods for the products of the firm Complement good: Complement good is a good which is consumed withanother good; its cross elasticity of demand is negative. This means that, if goods A and B were complements, more of good A being bought would result inmore of good B also being bought.This is also termed joint demand. TV sales and DTH sales:

DTH & Cable industry are complimentary goods for TV Sales and viceversa. An increase in sales/market penetration of either of them lead toincreased sales/market penetration of other.Page 7 Satyesh Singh Rajput

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DTH Industry in India

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dishtv is a division of Zee Network Enterprise (Essel Group Venture). EGV has national and global presence with business interests in media programming, broadcasting & distribution, speciality packaging and entertainment. Zee Network incorporated dishtv to modernize TV viewing. dishtv is Indias first direct to home (DTH) entertainment service. By digitalizing Indian entertainment, this enterprise brought best television viewing technology to the living room. It not only transmits high quality programmes through satellite; but also gives a complete control of selecting channels and paying for them. dishtv imparts DVD quality picture and stereophonic sound effects to the customers. It promises to change the experience of TV viewing with its uninterrupted transmission service. The endeavour enters next level of entertainment with futuristic features, such as EPG (Electronic Programme Guide), parental lock, games, 400 channels, interactive TV and movie on demand. dishtv also brings exclusive national and international channels for the first time in India.