reliance big tv demo zone

8/7/2019 Reliance BIG TV Demo Zone

http://slidepdf.com/reader/full/reliance-big-tv-demo-zone 1/10

Reliance BIG TV Demo Zone

Chhatisgarh Electronics,

7th Shopping Complex

Nr. Evergreen Hotel Nehru Nagar

Bhilai-490020

Chattisgarh

Customer Service contact:

Call: 022-3033 8888 or 1800-200-9001 (Toll free)

SMS BIGTV to 55454

e-mail: [email protected]

Post all your Reliance Big TV complaints it in our forum here.

For exciting Dish DTH offer please visit Bit TV website at http://www.bigtv.co.in/

Airtel dth services

09676868111

contact us

24 *7 customer support in 10 languages

North Hub : 0124 4448080

East Hub : 033 44448080

West Hub : 020 44448080

South Hub : 080 44448080

Projected Growth in DTH Services in India Show a 30% Hike by 2012

As per the available reports and projections, the DTH market is likely to grow by 30% by

2012. As of now, the DTH market in India has a very low penetration level. Though DTH

services have been in India for many years now, the major portion of its growth falls under

the last leg. Only in the past 3 years it has seen some growth however, the growth

experienced now is not sufficient enough for the DTH service providers to boast about their

success. Interestingly, India has been a tough market for the DTH service providers. Many

companies thought India would be one of the fastest growing markets for DTH services but

their assumptions were proved to be wrong. One of the reasons for the lack of success so

far with the DTH market is the cost factor. Some of the service providers have attractive

packages only for long time subscribers. The Indian market is used to paying their cable

network service providers on monthly basis.

Because of the low penetration level of the DTH services in the Indian market, the DTH

service providers are likely to make vigorous efforts to change the situation. It is expected

that they will add many interesting features to their services adding many bells and

whistles. The market as of now is very small but the competition level is high. So companies

have to fight a tough battle to grab a share of the projected 30% growth. So far Sun Direct

has been doing well in the market as per the prevailing conditions as they have positioned



their services well to suit the Indian market. Other pioneering DTH service providers

like TATA Skyand Dish TV are lying far behind the competition. Among the latest

comers, Big TV is taking the second lead after Sun Direct whereas, Airtel DTH is left behind

in the race.

Projected figures of growth do not indicate the percentage of market share that will be heldby the companies in 2012. It only indicates that there will be around 30% growth in this

industry in the next three years. During this period, lot of improvements are expected too

from the DTH service providers. The picture quality is likely to improve and the sound

quality too will be enhanced. Many interactive services are likely to be introduced.

DTH service providers are also likely to make attractive marketing efforts and they are

expected to release better packages at reduced prices. People will also be able to choose

their channels and pay just for the channels watched unlike the packages that we have

now.

All these factors are likely to improve the market conditions for DTH in India (best DTHservice in India). Many new players are also likely to jump in. BSNL and Videocon will be the

next set of new players in the DTH industry in India. We need to wait to see how the market

sways in the next 3 years.

Interesting observations.

The lack of growth is certainly because of high upfront investment. Couple that with non-portability (STBs are not interchangeable), it is making consumers stay away.

Secondly, channel pricing is way too high as compared to cable. Now that cable is also goingdigital, the age old axiom of quality does not hold true (SRK seriously needs a change a

script here).

Thirdly, for people with multiple TVs, the cost is even more.

I doubt whether launching of active services will make much difference.

To achieve higher growth, DTH providers must come up with innovative schemes:

y Provide free installation and STB when consumer opts for a long term plan. y Package the channels attractively. Allow a-la-carte on each and every channel. Lower

the price.y Lower the multiple TV cost in a single dwelling.y Come up with attractive group booking schemes for large condo complexes.

DIRECT TO HOME (DTH) TECHNOLOGY ± THE BIG PLAYERS IN INDIA

For the past few years, at least one service which has picked up rapidly is entertainment ontelevision. Fed up with poor, unpredictable cable television across small towns and cities,people are switching over to DTH entertainment for their television at the speed of light.This can be justified because India has a varied Geography and population distribution. Socable television is not available everywhere, particularly in remote hills, villages,farmhouses etc. These are the places where the demand for satellite television is rising.



Even though the government has put a heavy license price of nearly a hundred millionrupees, other figures in this context are definitely encouraging. For example, India has atotal of almost 90 million households which have television. Out of these, cable televisionand DTH services are accessed in about 45 million (half) and in the next few years, it is setto increase by another 10. This will then make the Indian market the world¶s biggest cable

television market. Now with increasing switches to DTH from cable, who will not like to havea nice big piece of this pie? Barely a couple of years ago, not a single household has satelliteconnections compared to the millions which now have them.

Currently, there are 2 major players in the Indian satellite television market ± Dish TV andTATA Sky. Dish TV is owned by the Subhash Chandra led Essel Group. Tata Sky on theother hand is a joint venture between Tata Group and Star Networks in an 80-20partnership. These two bigwigs aim to capture at least 33 percent of the cable televisionmarket and with fierce competition, ad campaigns, and publicity; they might manage it in acouple of years. This much has already been established that the digital DTH satelliteservice will only continue to grow steadily with all the advantages.

Comparing separately, both Dish TV and Tata Sky have their own pros and cons. While Dish

has good after sale services, the video quality and reception is not as crisp as on Tata Sky.In fact, Tata Sky claims to use more advanced equipment so that the picture quality isalmost like DVD and the audio like that of a CD. This lacks in Dish and so makes it a lessfavorable option amongst the urban societies. Dish being relatively cheaper is favored bythe largely rural families and those in remote areas. One major drawback in Tata Sky istheir poor services. More than forty percent of their users keep complaining of hearing IVRSmessages and offers with no one to hear their complaints on the other end. But all thismight change when Anil Ambani¶s ADAG launches their DTH service ± Big TV to the averageconsumer. They plan to change the entertainment on television scene completely.

The first thing which makes them competent is the price at which they are entering themarket ± just Rs.1000 along with the monthly subscription of Rs.350. this is less than

almost twice at which Dish or Tata sky operates.

Along with this, Big TV will have many other unique features to boast of such as the totalnumber of available channels ± around 250. This is, they say, is more than any of thecurrent providers. Not only this, subscribers will be able to view around 32 pay per viewchannel at Rs. 100 with films from Bollywood, Hollywood and regional areas. Big TV alsoclaims to provide HD Quality Video through MPEG 4 compression which is the latest andcomparable to the best. Even the sound quality will be DVD, much better than that of thecurrent services. One thing is for sure ± Big TV is here to stay. Industry experts arespeculating a major price war once ADAG launches the service which is currently availableonly to Reliance employees. With a hand reaching out to financing Hollywood studios, AnilAmbani might even be able to get foreign faces to endorse his Big TV. His aim simple andpowerful ± to take the nation by storm, establish a steady market share and in the end,

emerge as the sole leader. In addition to this, Tata Sky and Dish TV are going through arough patch with various issues. Last year, Dish TV reported a net loss of Rs. 115 crore.

Various users who have has the opportunity to test Big TV have only praises to sing forthem. Many people feel that this might actually be one of the greatest digital DTH servicesin India. Along with the regular Indian channel, Reliance also plans to introduceinternational channels which are not available anywhere in India. The fact is that Big TVcannot afford to place them in bad light if they want people to switch over and so theycannot make phony promises.



Apart from this, Sun TV, a major channel in the south is trying to gain a profitable marketshare through its DTH service which is still in a young stage. They are piloting test signals inTamil Nadu and Karnataka with their Sun Direct Service. So far, it has only received amixed response which makes them far from a threat to any of the other players. Anothernew company with intentions on the DTH market is Bharti and they plan to offer intense

competition to other DTH providers. As of now, they have already invested close to 150crore in the initial setup stage. They are planning to distribute their service through theircurrent DSL network, which is already very popular in major Indian towns and cities. Theyhave the clever options of providing to their customers Broadband internet, Phone calls, andnow Television all from a single point.

Whatever may be the case, one cannot rule out cable providers and companies. They havestarted feeling the intimidation from these digital DTH providers and are already beginningto provide IPTV services much akin to Airtel. However, they will something really powerfulto keep themselves from becoming extinct. Fortunately, in all cases, it is us, the consumerwho will benefit.

Market Structure : Indian DTH Industrytranponders and other high tech equipment. The following entry barriers exist inDTH industry1.High initial setup cost of satellite, transponder and other higtechequipment : The initial cost of setup for broadcaster is hugh so this actsas a big entry barrier.2.DTH is a lowmargin and high volume industry: DTH thogh is a

lucrative business however it is a low margin and high volume industry.

For a new entrant to succeed it has to ensure that it builds customer base

soon other wise it will not be possible to make profit.

3.Cost of a set top boxes: The cost of setup box installed in a homes isstil very high and the cost of a set top box is a significant entry barrier.Higher number of subscriber can bring down the cost incrementaly.4.Pricing has to be competitive versus cable: For a new entrant to be

successful it is going be very difficult as they entrant will to compete withlocal cable operators as well

asexisting DTH service provider. There arealready established players in the market and the price war

has alreadystarted.5.Differentiation through content: There are hundreds of TV channels in

India and as per the industry reports there are close to 150+ channels

waiting for approval, this take the numbers to 400 different TV channels.

So providing the right content to the right consumer will also play a crtical

role in success of new entrant, differentiation through content is must.

6.Customer Service: The quality of customer service will be a key

differentiator. As Indian consumer are habitual of calling the cablewalah

whenever there is some issue.A new entrant will face challenges in two

fronts; One to ensure that it is providing better customer service than

local cable operators and on the other hand it hasto provide better

customer service than existing DTH service provider.7.Multicultural & Multilingual Gepgraphy: India being a



multicultural,multrilingual society it is very important for the new entrantto ensure that it maintains a fine

balance between the regional and nationflavour.8.Long gestation and break even period: It takes lot of time to for a

new entrant to stabilize and grow in this industry. Even achieveing the

break even period is comparatively high.The Dish TV from Zee which

was launched in 2003 will reach break even in 2009(6 years ) and TataSkylaunched in 2006 hopes to break even in 5-7 years. This long break even

period is a significant barrier for new entrant.Page 10Satyesh Singh Rajput

DTH PLAYERS WITH MARKET SHARE Hi,** DD DTH > 8 MILLIÖN VIEWERS ( WILL BE MORE THAN 10 MILLION AS REMOTE AREA NUMBERSNOT AVAILABLE)

***Private DTH players with launch details and viewers no with private dth market share

(1) Dish tv (2005) = 4.5 million =31 % market share

(2) Tata sky (2006) = 4 million = 26 % market share

(3) Sun dth (dec,2007) = 3.5 million = 23 % market share

(4) Big tv (aug,2008) = 1.8 million = 12 % market share

(5) Airtel dth (oct,2008) = 1 million

few other points=**DD DTH = india's only fta dth service** Tata sky = india's only ISO:2009 certified dth company**Airtel dth = only dth company with World space Radio service

Market Structure : Indian DTH Industry9.High Cost of content: The cost of content is high in this industry andposes a serious challenge for the service provider.

Recent entries in the industry

The DTH industry in India is still at nascent stage and recently three companies

have entered in the industry Big TV from ADAG(Anil Dhirubhai Ambani

Group),Sun DTH by promoers of SUN TV and Digital TV from Bharati telemedia.DTH industry in India offers immense potential of growth.It is one of thefastest growing DTH market in world.Economic drivers ofthis decision for BIG TV by ADAG



The total number of TV owning households in India is estimated at 120million. This represents a

54% penetration of TV in Indian households. Out ofthis, Cable and Satellite households are 68

million.Television households areestimated to grow to 165 million in 2011, resulting in an annual

compoundedgrowth rate of 6.5% p.a.The DTH industry is currently pegged at 2.6 millionsubscribers.

The DTH Industry revenue is expected to grow at80% compounded per

annum over thenext 5 years and will be in the range of Rs.100 billion in 2011. Due to the

continued buoyancy in the Indian economy and an annual growth rate of over

9%, the country's gross domestic product is touching US$ One trillion. This,

coupled with increasing penetration of TVs, will give a boost to the demand for

better quality products like DTH. In terms of sheer numbers, DTH subscribers

are expected to touch 27 million in 2011 and 61 million in 2015.

Big TV,which is targeting five million customers to begin with, seeks tocapture 40% of the current

DTH market in the next 12 months. Currently, thereare 120 million television homes out of which 80

million are cable and satellite(C&S) homes and a measly six million pay-TV DTH homes, comprising less

than5% of the domestic television market.

In 2007, the size of the Indian media and entertainment industry was inthe tune of Rs 50,000 crore, which is expected to grow to about Rs 1,15,000

crore by 2012. However, research reports reveal that in wherever digitisation

has happened and CAS has been made mandatory, 25% of the audience has

shifted from cable to DTH.Big TV hopes to capture the market by offering more than its rivals. Whileboth Dish TV and Tata Sky initially launched their services in 4,400 and 3,500Page 11Satyesh Singh Rajput



Market Structure : Indian DTH Industrytowns respectively, Big TV will reach 6,500 towns. Both Dish TV and Tata Skyhad 35,000 retail windows to reach to customers whereas Big TV had 1,00,000.Economic impact of the decision:

BIG TV DTH was the largest retail rollout of a home entertainment Service inIndia.

BIG TV, achieved the 1 million subscriber mark, within 90 days of its

launch. This has helped BIG TV to capture the share of 15 per cent in just 3

months in the fast-evolving Indian DTH sector. It has become the 3rd largest

player in very short time and is positioned to challenge DishTV and TataSky. This

is very significant considering the fact it took years for DishTV & TataSky to

reach the same number of subscribers. AirTel Digital TV was launched on 9th

October but they could not become as big as BIG TV.BIG TV poses very serious challenge to DishTV & Sky TV.References:

[1]htt p://en.wikipedia.org/wiki/O ligopoly

[2]htt p://www.expresscomputeronline.com/2002 1118/opinion2.shtml

[3]htt p:// www.dishtv.in/Static/pdf/M gmt.%20Discussion%20&% 20Analysis.pdf

[4]htt p://en.wikipedia.org/wiki/Herfinda hl_index



Page 12Satyesh Singh Rajput

Market Structure : Indian DTH Industry

[5]htt p://en.wikipedia.org/wiki/Doord arsh an

[6]htt p://www.ap nadth.com/tech_o vr.htm

[7]htt p://www.indiantelevision.com/special/sperep1.htm

[8]htt p://teck.in/mtnl-lau nches-india s-first-iptv-in.html

[9]htt p://www.contentsutra.com/entry/419-iptv-will-strug gle-in-india-says -gar tner/

[10]ht tp://tutor2u.net/economics/content/topics/mono poly/oligop oly_notes.htm

[11]ht tp://www.enotes.com/small-business-encyclopedia/industry-life-cycle

[12]ht tp://en.wikipedia.org/wiki/Complementary_ good

[13]http://www.tami ndia.com/t amindia

[14]ht tp://www.scatma g.com/technical

[15]ht tp://timesofindia.indiatimes.com/articleshow/323215483.cms

[16]ht tp://www.labnol.org/india/corp orate/reliance-adag- joins-the-dt h-b andwago n/93/

[17]ht tp://www.ficci-frames.com/Archive/2003/synopsis03/dth.htm

[18]ht tp://www.atimes.com/atimes/South_Asia/IH30Df01.html

[19]ht tp://www.relianceada grou p.com/ad a/overview.html

[20]ht tp://www.isuppli.com/A bstract/P7381_20051227211418.pdf

[21]ht tp://www.financialexpress.com/news/big-tv-lau nch- to-intensify-dt h-b attle/351013/

[22]ht tp://www.indianexpress.com/news/dth-sp ace-hots- up- tata-sky-launched/10184 /

[23]ht tp://www. sivasun dar am.com/wp- content/u ploa ds/2007/08/dth -industry-in-india.p df



[23]http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=289656

[24]ht tp://www.tvnext.in/news/ 155/ARTICLE/ 1741/2008-11 -24.html

[25]http://www.financialexpress.com/news/dth-subscribers-double-in-7-mnths/379548/

[26]ht tp://en.wikipedia.org/wiki/DD_Direct_Plus

[28]ht tp://www.hind uon net.com/2003/08/11/stories/2 003081101581200.htm Page 13Satyesh Singh Rajput

reliance big tv demo zone

Documents