BUSINESS ENVIRONMENT - DIST TV

1. PRESENTED By:-
Aakriti Handa -16BSP0015GG
Aayush agarwall - 16BSP0028GG
Abhisek kumar Jha - 16BSP0088GG
Aditi Tandon - 16BSP0131GG
Akshit Shah - 16BSP0231GG
Anand - 16BSP0289GG
Anjali Parmar - 16BSP0326GG
Ankit - 16BSP0336GG

2. Environmental scanning
 Dish TV is the pioneer and leader of DTH services in India. It
is formerly known as ASC Enterprises Ltd., is a part of Zee
Network Enterprise (Essel Group Venture). Dish TV was also
voted India's most trusted DTH brand according to the Brand
Trust Report 2014, a study conducted by Trust Research
Advisory.
 Its primary competitors are DD Free Dish , ABS Free
Dish, Tata Sky, Sun Direct, Airtel digital TV, Videocon
d2h and Reliance Digital TV.

3. Business Environment
 DTH service involves distribution of multi-channel TV
programmes by using a satellite system that provides TV
signals directly to the subscriber’s premises.
 Dish TV has changed the India Television technology by
bringing up the different features such as:-
 Interactive channels
 Uninterrupted viewing
 Parental lock
 Geographical Mobility
 Effective video gaming

4. Business
 It has 9000 outlets all over India with 100 vans and 150 dish
care centres.
 It include 225 channels with 21 audio channels.
 It has a huge distribution network of 650 customers, with
45000 dealers in 6500 cities.
 It has 24*7 call centres in 1600 seats in different languages.

5. Profit gain by the Company
 Dish TV has incurred huge expenses on, spreading awareness
of the product and launching brand building on a pan-India
basis.
 Some cost entitle by the Company are
 Implementation Cost
 Customer Premises Equipment cost
 Content Cost

6. In 2008
TR= INR 4,130 Million
TC= INR 4,980 Million
TVC= INR 1,330 Million
Where the TVC is greater than TR, but instead of being shut
down it overcomes its losses and thus the company is heading
towards breakeven analysis.
Dish TV is still in operation because even if it shuts down
its business it will have to incur the fixed costs. Since dish
was the first entrant into the DTH services it has incurred
huge capital expenditure thus in the hope of earning
profits its still in operation and trying to achieve a leavel
of break even.

7. Capturing the market share
 Since there was no limit on the number of companies
that could apply for the DTH license, the number of
competitors increased.
 Even though Dish TV had first mover advantage there
was cut throat competition.
 Dish TV tried to capture the market by reducing costs
to customers.
 As per the Media Partners Asia’s report the DTH
industry’s combined losses were set to cross INR
20,000 million in 2008-09.

8. The company realised it could not bear
further losses. Thus they transferred their
burden onto the customers in the form of
increasing chargers of its connection and
offerings
Service tax @ 12%-12.5%(earlier absorbed
by Dish TV)

9. INDUSTRY INITIATIVES
HELPING DISH TV
License fee reduced from 10% to
6.9% with effect from April 2008
Central Value Added Tax(CENTVAT)
reduced from 14% to 10% leading to
lowering of Customer Premises
Equipment(CPE) cost.

10. CONCLUSION
According to the case Dish TV despite of being in this
business for so long has still not been able to achieve its
break even point. Its total cost is greater than the total
revenue. However the company is planning to maximise
its EBITDA.
 Since it’s a measure of a firm's gross income. A positive
EBITDA implies that the company is heading towards
achieving its break point i.e. a point of no profit or no
loss. Dish TV is still the market leader despite of facing
tough competition from various players like TATA SKY,
AIRTEL etc.