The only constant in today's Media industry is change. Given the growth and significance of this industry in the global economy, this change puts industry players in a permanent position of assessing new products, services and enabling technologies. Customers worldwide have become extremely choosy on what they want and it has become a challenge for the media players to not only meet such demands but also constantly innovate to stay alive in an extremely competitive environment. The likelihood of investing in a white elephant or "missing the train" of a successful product opportunity is surely as great as identifying the right product at the right time. Direct to Home (DTH) broadcasting has been one such area of high investment with a dual purpose of effecting good revenues in the long run and providing top class services as well.

Direct-To-home (DTH) TV distribution is one in which a large number of channels are digitally compressed, encrypted and beamed from very high power satellites. The programs can be directly transmitted to homes, using very small dish antennae and card operated Integrated Receiver Decoders (IRDS). It normally provides a basic service consisting of a certain number of channels at a particular cost. DTH can provide a lot of other high revenue generating, value-added services like Internet Access, Video Conferencing, Video On Demand, Home security/Shopping/Banking, E-mail, Pay Per View, Near Video On Demand and Data Broadcasts.

The Market dynamics of DTH could be broadly classified as Broadcast policies and regulations, Market potential, Major players involved in DTH consortia, Costs, Revenues, Value added services, Evolving technologies and Superior content and connectivity. The DTH end-to-end service value-chain is complex, technologically sophisticated and includes almost all aspects of broadcasting, such as satellite ownership/bulk leasing of transponders, large scale broadcasting studios/up-link earth-station, acquisition/production/arrangement of many programming channels, user-friendly creation of an Electronic Programme Guide, sourcing/distribution/technical support of subscribers reception equipment, elaborate marketing of DTH services, comprehensive subscription billing systems and revenue collection, etc. These diverse requirements coupled with considerable financial risks involved, means that a consortium of companies into these services is the best likely solution for this venture.

Certain Business Projections have been drawn for DTH service providers in India based on three parameters namely- Subscriber base, Project cost and Revenues. These parameters have been projected for the total market size for DTH in India.

Subscriber Estimates- Firstly, since cable has penetrated the Indian market in a big way with roughly 35 million C&S homes, a parallel can been drawn with the U.S market pattern where cable was the first mover, present now in approximately 160 million households compared to a mere 10 million DTH homes. Due to this critical penetration achieved by CATV in India it is imperative that in its first few years of operations, DTH will be focused on a niche market. This niche would basically constitute the rich segment from urban as well as rural areas due to the primary reason of high initial costs for DTH and the associated psychology of people. The second reason could be the better service and value added services (VAS) like pay per view (PPV), NVOD and Internet being offered on DTH. Two approaches have been drawn for the subscriber projections. One is based on the disposable income of the population and the second based on cannibalization of CATV, multiple TV households and VAS, the projections from the two being approximately the same.

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