Dth Industry -Econimic Analysis

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Indian DTH (Direct to Home) Industry – An Economic Analysis

Managerial Economics Assignment

Indian DTH (Direct to Home) Industry – An Economic Analysis Prepared by: Prashant Vashishtha ePGP-03-055

Submitted to:

Dr. Kausik Gangopadhyay Indian Institute of Management, Kozhikode 16-Jan-2011

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Indian DTH (Direct to Home) Industry – An Economic Analysis

Contents
Contents..................................................................................................................... 2 Scope.......................................................................................................................... 3 DTH Industry – An Overview.......................................................................................3 Structure of the Indian DTH Industry.........................................................................4 3.1 Pricing............................................................................................................... 5 Substitutes products for DTH offerings.......................................................................6 Complement products ...............................................................................................7 Entry barriers in DTH industry....................................................................................8 Recent entrants..........................................................................................................8 Conclusion.................................................................................................................. 9 References..................................................................................................................9

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Indian DTH (Direct to Home) Industry – An Economic Analysis

Scope
This assignment is mainly to understand the market structure of DTH (direct to home) industry in India. This paper also explains the various factors based on economic theories like current structure, various players, competition and the entry barriers.

DTH Industry – An Overview
Long back we only had only one TV channel in India. ‘Doordarshan’ was the only channel available for viewers and it was owned & controlled by government of India. Reception of signal used to happen via an antenna installed in every home with Television. Then with Cable TV Ordinance law passed in January 1995, cable operators started providing more channels to Indian viewers which were owned by private companies. This led to a momentous and huge growth in TV industry resulting in a lot of channels resulting in a big industry. But there were lot of issues with Cable Television which gave an opportunity for DTH industry to bloom in India. DTH is defined as the reception of satellite programmes with a personal dish in an individual home. Cable TV and DTH are two methods of delivery of television content. Cable TV is through cable networks and DTH is wireless, reaching direct to the consumer through a small dish and a set-top box. Although the government has ensured that free-to-air channels on cable are delivered to the consumer without a set-top box, DTH signals cannot be received without the set-top box. The rapid growth of DTH in India has propelled an exodus from cabled homes, the need to measure viewership in this space is more than ever; aMap, the overnight ratings agency, has mounted a peoplemeter panel to measure viewership and interactive engagement in DTH homes in India. India currently has 6 major DTH service providers and a total of over 20 million subscriber households in 2010. And these are: • Dish TV(a ZEE TV subsidiary) Tata Sky(Joint venture between Tata and Rupert Murdoch’s Sky TV) South India Media Giant Sun Network owned 'Sun direct DTH' 3

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Indian DTH (Direct to Home) Industry – An Economic Analysis

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Reliance owned BIG TV Bharti Airtel's DTH Service 'Airtel Digital TV' Public sector DD Direct Plus.



As of 2010, India has the most competitive...
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