DTH Market

DTH means direct to home market. It is a technology that provides varied facilities to its viewers. It is a digital satellite service which provides satellite television programming directly to subscribers home anywhere in the country. Since it employs wireless technology, the television programs are transmitted to the subscriber’s television directly from the satellite. This service does not involve the usage of cables and any other wiring infrastructure. The network mostly comprises of network comprises of a broadcasting centre, satellites, encoders, multiplexers, DTH receivers and others.

Dish-TV

The features of DTH are –

  • It offers exceptional sound quality and picture than any other service provider.
  • Viewers can enjoy a theater like experience at home with this service.
  • DTH allows users to pay for only those channels they are interested to watch.
  • It allows advanced viewing control features to the users like Electronic Program Guide (EPG) which enables them to check the current programmes as well as the future programmes.

Thus, with these above features, DTH has become really popular in the Indian markets. The market share of DTH is 20% approximately.  Over the last 6 years of time, the DTH market has witnessed a steady growth and has acquired over 18 million viewers. The DTH market does not enjoy monopoly as there are a lot of companies trying to sell the same product. Therefore, it is a perfect competitive market where the sellers are not the price makers, but the price takers. Due to immense competition, companies are constantly coming up with newer technologies and variety in order to attract the consumers. With the rapid advancement the economists are of the belief that by the year 2015, DTH will enjoy a market share of 40%, digital cable 40% and analog cable will follow with only 20% market share.

The DTH market is the most lucrative market and paradoxically the economic recession in the year 2008 acted as a boon for the DTH market. People stopped going to the movie theatres in order to curb down their expenditure and switched to DTH. DTH services provide the similar movie theatre effect with advanced sound and picture quality.

In the year 2005 when DTH was launched, Dish TV was the only market service provider. It had its monopoly. Currently there are a total seven DTH service providers and they are – Doordarshan, Dish TV, Tata Sky, Sun Direct, Big TV, Airtel’ Digital TV and Videocon D2H.

Thus, with seven companies trying to compete, there is intense rivalry and everyone wants to be at the top. Except Doordarshan, which is a government run DTH, the rest 6 are into cut throat competition.  Here is a list of the percentage of market share these 6 companies have –

  • DishTV : 30%
  •  Sun Direct: 25%
  • Tata Sky: 22%
  • BIG TV : 13%
  • Airtel   : 8%
  • D2H : 2%

After seeing the market share, the next question that comes to mind – Where is the real growth taking place? Rural area or Urban are?

It is quite surprising to see that real growth takes place in the rural areas where there are frequent power-cuts and cable is difficult to get. Research has shown that over the past three years the growth has increased from 34% to 64%.

Though the urban population is skeptical about the DTH market as most of the people want to cling on to their age old beliefs, but it is believed that by the year 2015 DTH will rule the market.  There will be no cable TV operation. The customers will have a will over the channels they wish to watch.

Hence, by elasticity we mean the degree of responsiveness of quantity demanded of a commodity to a change in any of its determinants. So the DTH market is fairly elastic, for if there is a slight change in the price the demand gets affected. Hypothetically, if the price of DTH market service shoots up, users will automatically switch over to the local cable networks which are will be by far cheaper. So due to the presence of substitutes, the DTH market is perfectly elastic.

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  1. VARUN GUPTA says:

    HELLO,

    THIS DISH TV MARKET SHARE OF 30% IS OF INDIAN MARKET…CORRECT? NOT GLOBALLY.

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