Dth Industry

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Tata Sky - DTH Industry

Interim Report 2 • 10 August 2012

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Porter's five forces model

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Threat of new entrants: The threat of new entrants is very low. The industry is already overcrowded with 7 players. The initial cost of setting up and other barriers of entry are very high.

Threat of substitutes: DTH industry faces a lot if competition from cable television and IPTV. The number of households having cable is twelve times the number having DTH. With rise in internet connectivity in India, it is increasingly becoming easier and cheaper to watch channels online.

Bargaining power of suppliers: The main suppliers of the industry are the set top box providers and the transponders. With the number of players in the DTH industry increasing, it is becoming increasingly difficult to secure transponders. Also, most of the components for a STB have to be imported since the demand doesn’t justify setting up manufacturing/fabrication sites within the country.

Bargaining power of Buyers: The bargaining power of the customer is very high. The switching cost is very low; hence the consumer can easily shift to another operator if the service provided is not up to the mark. Moreover, the options available to him are also plenty and with very little to differentiate one provider from another, the consumer wields a high power

Competitive Rivalry: The rivalry is very intense. Though Tata Sky and Dish TV make up for more than half the market, other players like Sun Direct and Big TV are catching up.

DISH TV

Strengths:

• It was the first entrant and hence has the first mover advantage.

• It has leveraged this advantage to the maximum by securing abundant transponder capacity

• As a result, the number of channels and content it offers is extremely large.

• It has built a commendable brand name for itself and being part of ZEE group has aided this.

• It has made its presence felt across all regions of India, especially rural....