For the complete report, get in touch with us at : info@netscribes.com DTH market in India is one of the fastest growing segments of the Segmented Pay TV industry and is witnessing significant growth on account of rising per capita income and Government mandate of complete digitization. The market is estimated to be worth INR 104 bn in 2012. Increasing role of the government to support FDI in India and technological innovation will also drive the industry. The report begins with the market overview section that offers an insight into the Pay TV industry, its market size and segments. This is followed by a brief history of the DTH segment and an explanation regarding the DTH functioning process. The overview of the DTH market including its market size and growth as well as the market share of major players is listed. A brief description about the DTH subscriber base and its average revenue per unit follows next. The revenue model and a value chain analysis have been provided to highlight the major source of revenue and its distribution. Furthermore, a Porter’s five forces model is provided to understand the competitive scenario prevailing in the DTH market. An analysis of the drivers and challenges explains the factors leading to the growth of the industry. Huge market potential has been one of the key factors augmenting the demand for DTH transmission. In addition, emergence of middle class and increase in discretionary spending also promotes the growth of set top boxes. Increasing television penetration accompanied with attractive offers and price war has also been driving the market. Advantage for DTH players over traditional cable operators add on to the potential for the growth of the DTH market. Complete Digitization of TV services, growing rural market and increasing advertising revenues also play a major role in driving the popularity of the DTH segment. Threat from substitutes and the demand and supply gap for transponders adversely affect the growth of this market. Strict regulations and cap on foreign investments also act as a hurdle for the growing industry. Partnerships with movie distributors, combined retail of LCDs and DTH connection along with technological innovations have been emerging trends in this market. Focus towards exclusive value added services by DTH players have also been a significant uptrend in the market. The report also contains key Government regulations faced by the industry. The competition section starts with a price, feature and service comparison across different DTH players. This is followed by a bubble chart where the relative positions of the players are depicted with respect to their revenue, net profit and market capitalization/ total asset. It also includes profiles of the major players in the market along with their financials. Key ratios and list of important contact persons are also listed. Key geographic areas and major business segments are included as well. The recommendation s

1. Direct to Home (DTH) Market – India
Direct to Home (DTH) Market India
February 2012

2. Executive Summary
 DTH market was valued at INR A bn in 20XX and is projected to reach INR B bn by 20XX
Market  Estimated subscriber base of C mn, expected to reach D mn in the next E years
 Current overall share of DTH households among total TV households of India is pegged at f%
 Drivers: Huge market potential, Emerging middle‐class and rising disposable income, Increasing
television penetration and sale of LCD monitors, Price war and different package options
Drivers & attracting consumers, DTH advantage over traditional cable operators, Complete Digitization of
TV services, Growing Rural Market and Increasing advertising revenues
Challenges  Challanges: Getting a share of the cable driven market and facing the new age IPTV, Demand
supply gap f t
l for transponders i a 7 player b d t market, T
d in l broadcast k t Trapped i TRAI’ content guidelines
d in TRAI’s t t id li
and Cap on Foreign Investment
 Technological Innovations
 Shift from price war to offering exclusive VAS
Trends  C bi d retail of LCD and DTH connections
Combined t il f LCDs d ti
 Partnerships with movie distributors
 Interoperability of STB
 High Taxation
Regulations
g  Tariff Regulation
 Customs and Excise Duty
Major Players
Competition
p Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 2

3. •Market Overview
Market Overview
•Drivers & Challenges
•Trends
T d
•Regulations
•Competition
•Strategic Recommendation
g
•Appendix
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 3

4. DTH industry in India has looked upbeat in recent years but
remains a niche segment
Overview Market Size and Growth (2010‐15e)
• DTH, although niche, has been the fastest growing
segment in the pay TV industry 250
• DTH penetration in India is expected to double to a%
200
by 20XX x%
150
• Current overall share of DTH households among total
TV households of India is pegged at b% 100
•GGovernment of India’s aim for complete digitization
f I di ’ i f l di i i i 50
of TV broadcasting by 20XX has provided ample 0
growth opportunities for DTH players 20XX 20XXe 20XXe 20XXe 20XXe 20XXe
• The market has C broadcasting companies namely
Player 1. Player 2, Player 3, Player 4, Player 5 and
Player 1 Player 2 Player 3 Player 4 Player 5 and
Market Share (2011)
Player 6 and one Free to Air operator – Player 7
• DTH players incur high costs which directly affects Player 1
their profit margins Player 2
 Copyright tax, entertainment tax, entry fee, license fee and Player 3
other taxes constitute y% of revenue earned by DTH Player 4
players
Player 5
 Subscriber acquisition costs, which were originally as high
Player 6
as INR D, currently ranges between INR E ‐ F and is
expected to fall further on account of stabilization in the
price wars and reduction in prices of se t top boxes
Source:
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 4

5. •Market Overview
Market Overview
•Drivers & Challenges
•Trends
T d
•Regulations
•Competition
•Strategic Recommendation
g
•Appendix
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 5

6. Drivers and Challenges – Summary
Drivers
Low Penetration
Emerging middle‐class and rising
e g g dd e c ass a d s g
disposable income Challenges
Increasing television penetration and Getting a share of the cable driven
sale of LCD monitors market and facing the new age IPTV
Price war and different package options
Price war and different package options Demand supply gap for transponders
D d l f d
attracting consumers in a 7 player broadcast market
DTH advantage over traditional cable
operators Trapped in TRAI’s content guidelines
Complete Digitalization of TV services Cap on Foreign Investments
Growing Rural Market
Increasing advertising revenues
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 6

7. •Market Overview
Market Overview
•Drivers & Challenges
•Trends
Trends
•Regulations
•Competition
•Strategic Recommendation
g
•Appendix
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 7

8. Trends
Partnerships with movie
distributors Technological Innovations
Key
Trends
Combined retail of LCDs and Shift from price war to
DTH connections offering exclusive VAS
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 8

9. •Market Overview
Market Overview
•Drivers & Challenges
•Trends
T d
•Regulations
•Competition
•Strategic Recommendation
g
•Appendix
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 9

10. Key Regulations
Interoperability of STB High Taxation
Regulations
Tariff Regulation Customs and Excise Duty
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 10

11. •Market Overview
Market Overview
•Drivers & Challenges
•Trends
T d
•Regulations
•Competition
•Strategic Recommendation
g
•Appendix
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 11

12. Public: Domestic Company – Player 1 (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Head Office
Products and Services
Products and Services
Category Products/Services
Category 1 Key People
Name
N Designation
D i ti
Category 2
Mr. A
SAMPLE
SAMPLE
Mr. B
Mr. C
Mr. D
Source:
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 12

13. Public: Domestic Company – Player 1 (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Total Income Profit (2011‐10)
INR bn INR bn Profitability Ratios
Profit / Loss
600 100 Operating Margin
Net Margin
400 Profit Before Tax Margin
50
200 Return on Equity
Return on Capital Employed
0 0 Return on Working Capital
20XX 20XX 20XX 20XX Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company incurred a net profit of INR X mn in FY 20XX, as Operating costs (% of Sales)
compared to net profit of INR Y mn in FY 20XX Administration costs (% of
• The company reported total Income of INR A bn in FY 20XX, Sales)
SAMPLE
SAMPLE
registering an increase of b per cent over FY 20XX
registering an increase of b per cent over FY 20XX Interest costs (% of Sales)
Interest costs (% of Sales)
• The company earned an operating margin of C per cent in FY Liquidity Ratios
20XX a decrease of d percentage points over FY 20XX Current Ratio
Cash Ratio
• The company reported debt to equity ratio of Z in FY 20XX, a
decrease of W per cent over FY 20XX Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
b i l i
Financial Summary
Interest Coverage Ratio
Indicators Value (18/01/2012) Efficiency Ratios
Market Capitalization (INR ) Fixed Asset Turnover
Total Enterprise Value (INR) Asset Turnover
Current Asset Turnover
EPS (INR)
EPS (INR)
Working Capital Turnover
PE Ratio (Absolute) Capital Employed Turnover
Source: Improved Decline
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 13

14. Public: Domestic Company – Player 1 (3/3)
Key Business Segments Key Geographic Segments
Segment 1 Segment 2 Segment 3 Region 1 Region 2 Region 3
100% 100% 6% 4%
% 1%
22%
2%
50% 96% 97% 96% 96% 50% 94% 96% 99%
76%
0% 0% 2% 1%
0% 4% 3% 2% 3% 0%
2008 2009 2010 2011
2008 2009 2010 2011
Key Recent Developments
Description News
• Player 1 operates in the DTH industry through its brand X
Overview
• Its digital subscriber base touched A mn mark in September 20XX
• Introduction of product B, an enhanced Set Top Box (STB) with capability to record live
p , p ( ) p y
Product Innovation television, anytime, anywhere using mobile phone
• Country’s first product C was launcheed
Award & Recognition • Award 1
Source: SAMPLE
SAMPLE
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 14

15. Private: Domestic Company – Player 2 (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
W bi
Year of Incorporation
Head Office
Products and Services
Products and Services
Category Products/Services
Category 1 Key People
Name
N Designation
D i ti
Mr. A
SAMPLE
SAMPLE Mr. B
Mr. C
Mr. D
Source:
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 15

16. Private: Domestic Company – Player 2 (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Total Income Profit (2011‐10)
INR bn Profit / Loss INR bn Profitability Ratios
3.5 0.5 Operating Margin
3.0 Net Margin
0.0 Profit Before Tax Margin
2.5
Return on Equity
2.0
‐0.5 Return on Capital Employed
1.5
Return on Working Capital
1.0 ‐1.0 Return on Assets
0.5 Return on Fixed Assets
0.0 ‐1.5 Cost Ratios
20XX 20XX 20XX 20XX Operating costs (% of Sales)
Administration costs (% of
Financial Summary Sales)
Interest costs (% of Sales)
Interest costs (% of Sales)
• The company incurred a net loss of INR X mn in FY 20XX, Liquidity Ratios
as compared to net loss of INR Y mn in FY 20XX Current Ratio
Cash Ratio
• The company reported total Income of INR A bn in FY Leverage Ratios
SAMPLE
SAMPLE
20XX, registering an increase of b per cent over FY 20XX Debt to Equity Ratio
Debt to Capital Ratio
• The company earned an operating margin of C per cent in
Interest Coverage Ratio
FY 20XX an increase of d percentage points over FY 20XX
Efficiency Ratios
• The company reported debt to equity ratio of Z in FY Fixed Asset Turnover
20XX, a decrease of W per cent over FY 20XX Asset Turnover
Current Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Source: Improved Decline
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 16

17. Private: Domestic Company – Player 2 (3/3)
Key Recent Developments
Description News
• Player 2 operates through Firm 2 in the DTH segment
Player 2 operates through Firm 2 in the DTH segment
Overview
• It has around A mn gross subscribers and plans to double its count by end of 20XX
• Player 2 is in talks with US based cable operator, Firm C to sell upto a% stake in the
company for INR B bn
Investment
• The company is negotiations for INR E mn HD content acquisition
• It also plans to invest an additional INR F mn for content acquisition over the next b years
• Player 2 entered into a corporate agreement with Firm G to provide free Digital TV
Tie ‐ ups connections with every purchase of Product H
connections ith e er p rchase of Prod ct H
• It has approached J, K, L for non film HD content
Product Launch • Player 2 has broadened its offering by incorporating Z channels on its network
SAMPLE
SAMPLE
Source:
DIRECT TO HOME (DTH) MARKET IN INDIA 2012.PPT 17

18. Thank you for the attention
The Direct‐to‐Home (DTH) Market ‐ India report is a part of Research on India’s Media and
Entertainment Series.
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