India has a total television population of close to 135 million, out of which 80 percent have access to cable and satellite. The total DTH subscribers are close to 22 million. Thus, DTH has a market share of approximately 20 percent. The subscriber base for DTH in 2006 was a meager 1 million. Now for an industry which is just 5 years old, it is a great achievement.

Every player came with innovative offerings like Movie on Demand free worth the cost of set top box, free subscription for first few months. All these things were coupled with aggressive marketing campaigns. Videocon d2h is the latest player in this competitive industry.

So where is the real growth happening for the DTH industry. Is it the urban areas or rural? The growth is coming from the rural area. Statistics, reveals that the growth for the digital segment in rural areas was 34 percent, 49 percent and 64 percent respectively, in the past three years.

In the Indian market, "One size fits all" strategy does not work for long. So, the DTH players have to design packages suitable for rural consumers to enable them enjoy the digital content. The DTH industry is expected to grow at a CAGR of close to 24 percent.The future of DTH industry will largely depend on innovative marketing tactics and latest technology adopted by the DTH players. The stage seems to be all set.

Impact of Technology

Technology is spurring the race to the top slot in the DTH sector, with players employing interactive television solutions (ITV), digital video recorders (DVR) and high-definition services (HD).

The capital investment of the DTH sector in these technologies in the previous financial year was around Rs. 300 crores, which this year increased to around Rs. 400 crores. And, as new technology arrives, the investment only increases. Every player spends more than Rs 3,000 crore to establish basic infrastructure, while the operating expenditure for a new player is Rs 500-600 crores.

The potential of technology is immense. DTH players are highly dependent on technology to enhance their brand value. Today, every customer differentiates between brands based on technology and services. Besides ITV and DVR, there is MPEG 4 with DVBS 2 technology and HD DTH which increases broadcast capacity and provides better picture quality. Active services mixed with internet facilities help add value to a brand and bring customers on board.

While 2006 saw the entry of active services, it is the launch of DVR that has brought a difference to the sector. A DVR, also known as personal video recorder (PVR), allows DTH subscribers to pause live TV, as well as record, playback, rewind and fast-forward their TV programmes, as per requirement.

Digital Video Recorders

Indian DTH wars are all set to reach the next level with almost all DTH players launching Digital Video Recorders (DVR) in the market.

DVRs enable subscribers to record live video feeds and watch them at their own comfort at any time. They comprise of a hard drive that can store a limited amount of video on it. It is useful in case you are working or mostly outside, while your favorite shows are on TV or if you can not afford a day's leave from office for that awesome cricket match. A DVR is your friend in need when the wife holds the remote at prime time.

DVR prices are linked to storage capacity. In China and Taiwan, DVR boxes can come between USD 60 and USD 100 depending on the configuration, storage capacity, operating software, and so on. When imported, the duty and taxes increase the pricing.

The HD DVR receiver possesses several features that are not found in regular receivers.

The HD DVR receiver can have anywhere from 35-hours to over 300-hours recording capabilities. Even if you are not at home, you can program your HD DVR receiver to record a particular show. As soon as you walk in, you can easily check the shows that you missed while you were out. With the record feature, you will no longer have to worry about missing an episode or a documentary even if you have to leave your home for days at a time. This particular feature is perfect for individuals who are very busy and yet would like to be updated with their favorite shows.

It is worth noting that these units can record programs at varying levels of quality and the maximum capacity usually refers to the number of hours it can hold at the lowest quality setting. Certain systems can record programs at four different quality levels: basic, medium, high, or best. Newer DVR systems can record HDTV signals.

If you have ever seen full-motion video on the Web, you know how images can get distorted. This happens on DVR recordings made at low quality levels, particularly if there is a lot of movement in the image. As a result, different quality settings are good for different types of programs: while an old black-and-white movie or a talk show will look just fine at the basic level, an action movie will be almost unwatchable. So bear this in mind if you're thinking of buying a DVR primarily to watch your action adventure better to go for the higher capacity unit.

HDTV is considered as one of the world's best digital broadcast platforms, with a higher resolution than the traditional television system. The images and pictures appear more clear and sharp and sound quality is also enhanced. HDTV is expected to improve the viewer experience by about 5 times over a regular television. HD transmissions offer 5 times more pixels than SD transmission. HD ready transmission at 720p or 1080i are substantially superior to their SD counterparts as they offer much better picture quality and Dolby Digital 5.1 audio.

HD ready and Full HD LCD TVs are already gaining popularity in India thanks to stiff competition among the major players like Videocon, LG, Samsung and Sony.

Satellite HD DVR

We at Videocon d2h are planning to launch our own Satellite HD DVR in July - August 2010 to cater to the technology savvy customers who are looking for the very latest. It would include all the unique features associated with DVRs like pause live TV, record, play back, rewind and fast forward of their favourite programmes for viewing when they choose. Viewers can record one TV show while playing another, or record both simultaneously. Viewers would be able to record their programmes from mobile as well as internet It has unique series recording feature with JPEG images on TV using our HD DVR and it would be capable of playing HD feed.

Through the Videocon d2h HD DVR, subscribers would be able to easily access premium HD channels like Discovery HD, NGC HD, HBO HD and ESPN HD. People with the latest LCD or plasma television will surely enjoy a one-of-a-kind high definition experience. The images will be displayed in the clearest possible way while the sound is supported by Digital Dolby. You will certainly feel like you are actually in the movie with the high image resolution. If you are already a subscriber of satellite television, you will simply have to upgrade to HD DVR receivers to be able to enjoy its many benefits.

We already have as part of our product range the world's first satellite DVD. Our satellite DVD can not only play DVD movies but can also receive DTH services. There are many more innovative products in the pipeline. This is part of our ongoing commitment to offer consumers in India, the highest quality DTH services with the latest technology.

A few things are assured in the DTH industry even in the face of paradigm shifts. First, the value of transponders is likely to fall as compression allows more and more content to go through the same satellite, and as more satellites are launched. What is clearer than ever is that Direct to Home (DTH) is here to stay and will play a major role in bringing television to masses around the world.