Oligopoly Definition and Characteristics
DTH Industry Introduction, How it works, History Of Indian Broadcasting
Current Players in DTH industry
Comparisn between DTH industry players total subscribers share V/s Cable Operators share
Revenue Structure, Cost Structure, Revenue Generated
Michael Poter’s Five Force Model
Threat Of Substitutes Threat Of Buyers Threat Of Suppliers Threat Of Rivals and
Threat Of New Entrants
Entry Barriers in DTH
Two ways of reducing Price War Between Competing Companies
Cartel Agreement Game Theory
Industry Life Cycle, Driving Forces, OT Analysis
Oligopoly is an abridged version of monopolistic competition .
It is a competition among few big sellers each one of them selling either
homogenous or hydrogenous products.
Homogeneous or Differentiated Product
High Cross Elasticities
Importance of Advertising and Selling costs
Direct To Home (DTH) is a distribution platform for multichannel TV
programmes 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 carried by lower power satellites which required larger
Product Technology and service
Videocon Group DoorDarshan
By ZEE Group
Anil Dhirubhai Ambani Bharti Telemedia
TATA Sons & Star TV
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(E) (E) (E)
% DTH to HH TV 1 2 3 3 9 13 17 20 22 24
% Cable to HH TV 55 59 61 64 64 62 60 59 57 55
Market Share in %
Source : ACCEQUITY
DTH & Cable industry
are complimentary An increase in sales/market
goods for TV Sales and penetration of either of
viceversa. them lead to increased
sales/market penetration of
Cable TV Operators
Conditional Access System(CAS)
We would take the entire broadcasting
industry for analysing the bargaining
power of the buyers. With enough options
to choose both from the point of
alternate mediums like Cable, IPTV and
Terrestrial broadcast and from the point of
increasing DTH operators, the consumers
is at his will to decide
Consumers will continue to have a high
bargaining power until DTH platforms try
to differentiate them as superior players
with better content and clarity
With already 7 players in DTH space,
threat of new entrants is relatively
low. There is already enough
competition which will discourage
new firms to enter this business.
While getting a license is relatively
easy, the barriers to entry are high
when it comes to pricing of CPE and
getting the required transponders.
There is a definite First mover
advantage which can be inferred by
comparing prices of Dish TV vs. Tata
Sky. So any new entrant will face a
high cost when it comes to
equipment and transponders.
High initial setup cost of
DTH is a low margin
and high volume Cost of a set top boxes.
and other higtech
Pricing has to be
competitive versus Customer Service.
Long gestation and
Multilingual High Cost of content.
break even period.
Market Share in % (2009 Statistics)
Mark Share in %
25.00% 24.04% 22.98%
Dish TV Tata Sky Sun Airtel Big TV Videocon DD
Subscribers Share (In millions)- 2009 stats.
Subscribers Share (In millions)- 2009 stats.
Dish TV Tata Sky Sun Direct Airtel Big TV Videocon DD Direct
2. Game Theory
A cartel is a formal (explicit) agreement among firms.
Cartels usually occur in an oligopolistic industry, where there is a small
number of sellers and usually involve homogeneous products.
Cartel members may agree on such matters as price fixing, total industry
output, market shares, allocation of customers, allocation of territories, bid
rigging, establishment of common sales agencies, and the division of profits or
combination of these.
The Indian DTH industry is still in nascent state. It is in growth stage and so
far no cartel has developed.
Given the nature of DTH industry (high volume) there will definitely come a
time when the industry will go through M&A
followed by catelizing.
Cut Price Maintain Price
DD 5000 Units DD 4500 Units
Sun Tv DD 5000 Units DD 8000 Units
Strategies DD 7000 Units DD 5500 Units
DD 4000 Units DD 5500 Units
Factors Unfavorable Neutral Favorable
Currency Stability √
Gross Domestic Product √
Inflation Rate √
GDP based on PPP √
Interest Rate √
Budget Impact √
Thus the overall effect of economic factors on this industry is Favorable.
ADL (Arthur D. Little) Matrix
Industry Life Cycle
Year (In million)
Source :TV VEOPAR JOURNAL/ April 2009/ Page No:40
Huge Untapped market
Govt. in favors of industry
New products comes in the market
Technology development and
Seasonality, weather effects
Lack of possibility of growth
Industry or lifestyle trends