An Analysis Of The Media Industry In India With Focus On Star

Star T.V. Case Analysis

Group I

Abra Mahender Reddy N. Adithya N. Divisha Agrawal Nagendra Singh Sakshi Sharma Varshik N.

Case Summary  Star

Plus displaced Zee TV at the number one slot  It retained its position for nine years till it was displaced by Colors in April 2009  It came back to number one with Sach ka Samna  Total Television advertising spend is Rs. 8000 cr of which 60% is for Hindi Entertainment Sector

Case Summary  Colors

used differentiation and disruptive programming  They identified fatigue with saas-bahu serials  There was a power struggle at the top of Star India  There was a management exodus following the exit of the co-CEOs.  They changed their content providers like Balaji Telefilms.

Case Summary  Revenues

fell from Rs. 425cr to Rs. 175cr from July’07 to June’08  Shift in strategy of advertising agencies to picking best programs rather than channels  James Murdoch elevated to the chairman of News Corp. Asia

Strategy for Revival  The

Indian operations would directly report to James Murdoch  Three Overarching silos of command; fiction, non-fiction, idea labs  Innovation through consumer research  Use for Disruptive strategy like airing the programs for one hour etc.  Use of new content providers

SWOT

Porter’s Five Forces Analysis of TV Entertainment Industry

Competitiveness within the Industry(High)  Highly

Fragmented Industry  High Fixed Cost  Highly perishable products  Highly diversified rivals

Bargaining Power of Suppliers(Low)

 Decreasing

bargaining power of

suppliers: Increasing number of content providers Wide use of performance parameters

Bargaining Power of Consumer(High)  Consumer

can switch channels  Increased globalization  Availability of a variety of alternative sources of entertainment

Threat of New Entrants(Low) Low risk of new entrants because:  High sunk costs  High capital requirement  Difficult access to distribution  Steeper learning curve because of mature market

Threat of Substitutes Increasing sources of substitute products:  Film Industry  Innovative marketing by DTH operators  Significant sporting events like World Cups  Significant cultural events  Print media  Internet

Thank You