Dth Industry

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INDUSTRY PROFILE

Introduction

Direct to Home (DTH) is a distribution platform for multichannel TV programmers on Ku band (high frequency of 11.7 to 14.55 Gigahertz) by using a satellite system which transmits signals directly to subscriber premises.

The term predates DBS satellites and is often used in reference to services accepted by lower power satellites which required larger dishes.

How DTH Work:-

Following are the simplified steps on how DTH works:
1. Tata Sky uplinks all channels from broadcasters to its satellite (INSAT 4A). 2. The satellite sends these channels in digital format to the minidish fixed outside your home. 3. The minidish relays the channels to the digicomp which decodes the channels and sends them to your television, giving you an incomparable television screening experience with DVD quality picture and CD quality sound.

DTH INDUSTRY IN INDIA

DTH Players in India

In earlier days there was only one TV channel in India the “Doordarshan”, Channel doordarshan was owned and operated by government of India. In those eras every home which

The Cable Television Ordinance Law was passed in January 1995. This enabled cable operators to provide channels and later on private companies were allowed to air their own channels and this lead to the explosive growth in number of TV channels and number of cable operators.

The growth of TV channels & cable operators created a big industry and market opportunities. Until few years back there were as many as 1,00,000 cable operators across India. However the services provided by cable operators were poor. The strikes, increase in tariff plan, selective broadcast and poor services were major cause of dissatisfaction among the customers. This has created an opportunity for DTH, which serves an immediate threat to the high-end cable networks. Some of the key players in the industry are Dish TV by Zee group, Tata Sky joint venture of Tata & Star TV, Big TV by Anil Dhirubhai Ambani Group, and Digital TV by Bharati Telemedia, SUN Direct from the promoters of Sun TV. There are some other companies who are contemplating to start their own DTH like Videocon.

There is an massive opportunity for DTH in the Indian market. The opportunity in India almost 10 times that in developed countries like the US and Europe. For every channel there is a scope for broadcasting it in at least ten different 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 right to) sell. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolistic). An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. Firms within an oligopoly produce branded products and there are also barriers to entry.

Key characteristics of “Oligopoly” are following:
* Few larger suppliers dominate the market.
* Interdependence between firms.
* Each firm produces branded products.
* Significant entry barriers into the market in the long run which allows firms to make supernormal profits. * Each oligopolistic is aware of the actions of the others.

Analysis of Indian DTH industry:
Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+ was launched since DD Direct+ is non commercial and free DTH service. Hence we would focus our discussion on private players in the industry. As of now Dish TV, Tata Sky, Big TV, Airtel Digital TV, Sun Direct are in the industry. There are some other players like Videocon, who want to join this highly profitable industry. Since there are only 3 major players and the market concentration is...
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