Satellite Television for the Asian Region (STAR) is an Asian TV service owned by Rupert Murdoch’s News Corporation. It is based in Hong Kong, with programming offices in India and Australia, as well as in other south Asian countries. Launched in 1991 with five television channels, STAR pioneered satellite television in Asia and in the process catalysed explosive growth in the media industry across the entire region. According to the STAR website, their service has more than 300 million viewers in 54 countries and is watched by approximately 100 million viewers every day. STAR’s revenues have increased from $220 million in 2003 to $245 million in 2004. STAR has emerged as India’s second-largest media company after Bennett, Coleman & Co. Ltd. which is the publisher of Times of India.
The company was launched in 1990 as part of Hutchison Whampoa group. It started broadcasting five television channels in 1991 from AsiaSat 1 Satellite. Launch of The STAR TV Network pioneered satellite television in Asia and in the process catalysed explosive growth in the media industry across the entire region. In 1993 Rupert Murdoch's News Corporation purchased 63.6% of STAR for over $500 million, followed by the purchase of the remaining 36.4% in July 1995. Murdoch declared that: "(telecommunications) have proved an unambiguous threat to totalitarian regimes everywhere ... satellite broadcasting makes it possible for information-hungry residents of many closed societies to bypass statecontrolled television channels"
After this, the former prime minister Li Peng requested and obtained the ban of satellite dishes throughout the country. Subsequently the STAR TV network dropped the BBC channels from its satellite offer. This, and many ensuing declaration from Murdoch, led critics to believe the businessman was striving to appease the Chinese government in order to have the ban lifted.
STAR Movies - an English language movie channel broadcast to Southeast Asia, India, mainland China, Taiwan and Middle East. STAR World - popular U.S. entertainment programming broadcast to Asia. Formerly known as STAR Plus. STAR Plus - One of India's most popular Hindi general entertainment channels. It was one of the five original STAR TV channels when it launched in 1991, and was dedicated to English language entertainment (which then became STAR World). STAR Utsav -shows popular programs of STAR Plus.
STAR One - Niche Hindi general entertainment channel. STAR Gold - Hindi movie channel. STAR Vijay - Tamil general entertainment channel. STAR News - Hindi news channel. STAR Ananda - Bengali language news channel in India. STAR Majha - Marathi language news channel in India. STAR Pravah - Marathi language general entertainment channel in India.
December 1991: STAR starts to broadcast in India with 5 channels. September 1994 : STAR launches pay TV business in India with the launch of Star Movies, the first Indian pay movie channel. July 1995 :STAR becomes a wholly owned subsidiary of News Corporation. September 1999 :STAR parts way with Zee, paving the way for the launch of all-Hindi service in India. July 2000: Star Plus turns into a Hindi channel and makes television history in India with Kaun Banega Crorepati (KBC) becoming the top performer among all cable and satellite channels during prime time. Star Plus has maintained its leadership in India since then. September 2000: STAR invests in cable networks by acquiring a 26% stake in Hathway Cable
Strengths:
High viewer ship ratings: Star's revenues have increased from $220 million in 2003 to $245 million in 2004. STAR has emerged as India’s second-largest media company after Bennett, Coleman & Co. Ltd. which is the publisher of Times of India. Its share of audience three times that of ZEE. Complete bouquet of channels: Star channel offers a complete bouquet of channels to the viewers and DTH players. Besides its flagship channel ' star channel ' which is a general entertainment channel, the company has offerings in news, comedy, music, sports and fashion. Detailed reporting (depth news of topic):the star news which second largest media company gives us a detailed report of all the happenings of events or news updates in the country .
Star brand image : as the name itself has a good image in the market it easily covers a wide spectrum of the entertainment and industrial markets. Lagging ahead from Zee TV : Its flagship channel 'Zee TV' is the number two channel lagging behind Star Plus though the gap between the two has narrowed down considerably. In the 10 pm to 11 pm slot Zee' s TRPs are less than that of Star Plus. High subscription revenues: star channel enjoys high subscription revenues from international as well as domestic subscribers. It is one of the few broadcasters enjoying such high subscription revenues, which cushions it from any slowdown in advertisement revenues. The company's broadcasting services reach out to more than 300m people across the globe
Increasing demand Of other programs: THE DAILY SOAPS OF zee tv like that of ”saat phere ” is gradually attracting the viewers which affect the TRP of star channel and and prove as a threat. Insecure about programming: Its biggest weakness is its utter and complete dependence on “STAR PLUS” to drive both advertising and distribution revenues.. Increase in operating costs and ad share: THE OPERATING COST IS VERY MUCH AS COMPARED TO other channels which prove to be a problem in future. Even the ad share of star is 25% as compared to 16% of ZEE TV which the company may not be able to take more increase in ad rates.
LESS FOCUS ON OTHER REGIONAL CHANNELS:STAR HAS REMAINED A HINDI BROADCASTER FOR YEARS ,IT SHOULD ALSO FOCUS NOT ONLY ON SOUTH INDIA BUT ALSO ON OTHER LANGUAGES LIKE BANGLA, MARATHI,TELEGU ETC. ONLY TRY TO GIVE EMPHASIS ON SERIOUS NEWS:MUCH OFNEWS IS GENERALLY RELATED TO SERIOUS HAPPENINGS WHICH MAY NOT ATTRACT THE VIEWERS. MISSING CHANNELS FOR KIDS: THERE IS NO SPECIFIC CHANNELS FOR KIDS, THIS ALSO ADDS UPTO TO A WEAK POINT CHANNELS AS THERE SHOULD BE A VARIETY IN PROGRAMS FOR DIFFERENT SMALL AGE GROUP ALSO.
Benefit from the robust growth of the Entertainment and Media sector: The future of the entertainment industry will be decided on the interplay of a number of factors like consumerism, advertising spend, content, pricing, technology and regulation. Entertainment and the media industry is set to grow at 18% to reach an estimated size of Rs 1 trillion in 2011. The television industry revenues are expected to grow from the present size of Rs 191 billon to Rs 519 billon by 2011, implying a 22% over the next five years. In simple words the media sector has grown rapidly.
Digitization (improving into digital technology): Means that cable penetration will increase from 70 homes in 2006 to around 113 homes by 2011 (average figure). Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years. Subscription revenues will increase both from the number of pay TV homes as well as increased subscription rates. India's robust (healthy/sturdy) economic growth has an attractive proxy in its advertising industry. Advertising revenue of the television industry is projected to grow from Rs 66 billion in 2006 to Rs 123 billion by 2011. Thus Star has the opportunity to benefit from the projected robust growth of the media and entertainment industry.
Any slowdown in India's economic growth: Any slowdown in India's economic growth will reduce the demand for the advertiser's products, which may lead to a cut in their ad budgets. This will have a negative impact on its advertising revenues. Increased competition: The Hindi General Entertainment space will become very competitive with the entry of the TV 18 group, UTV, NDTV, INX Media. All these players though initially would make losses but are adequately funded and have a good management team at the helm to cause a potential dent in Star market share.
A fall in Star's TRP's will lead to a decline in its advertisement and subscription revenues. In other words first the players will back up the loss by keeping some amount for only losses then the management team will perform its task and steadily grow to chuck out star. Slow rollout of consumer choice: The consumers may show some hesitation in opting for paid channels and many viewers may not opt star. Both these factors may cause a dent in the subscription revenues of Star.
The STAR CO. LTD. faces competition from the following other channels:2. Zee T.V. 3. Sony T.V. & 4. Sun T.V.
In the current scenario STAR CO. LTD. faces stiff competition from new players such as:-
3. COLORS. 4. MTV(VH1). 5. SAB
TV. 6. BINDASS(MOVIES). 7. 9XM. 8. DISCOVERY.
BCG Matrix i.e. Growth-Share Matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis. Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.
STARS :- High growth business competing in market where they are relatively strong compared with the competition. They have a high point shares and are the ideal businesses. CASH :- Low-growth business with a relatively high point shares. These businesses were stars but now have lost their attractiveness. QUESTION MARK :- Businesses with low point share but which may have a high growth rate. This suggests that they have potential but may require huge ever, a competing force extraordinary effort in order to grow point share. DOGS :- Businesses that have low relative share and low expected growth rate. Dogs may generate enough points to sustain but they are rarely, if ever, a competing force.
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STARS OPERATING PROFIT IS 25%WHICH MORE AS COMPRED TO OTHER CHANNELS. TO BE NO 1 CHANNEL FOR 5 YEARS IT HAS TO BRING DOWN THE OPERATING PROFIT TO 10%. EVEN THE AD SHARE IS 20-25 AS COMPARED TO ZEE WHICH IS 16%,AS STAR CANNOT TAKE UP FURTHER IN NEAR FUTURE. TO GET MORE FROM DISTRIBUTING THE SAME PROGRAM ACROSS DIFFERENT PLATFORMS.
MORE & MORE INCREASING DEMAND FOR OTHER TV CHANNEL LIKE THAT OF “ZEE”s “SAAT PHERE”. TO GET MORE FROM ADVERTISING & DIVERSIFYING, WITHIN BROADCASTING. THE GOVT. WANTED STAR TO EXIT RADIO AS IT FELT STAR MADE A BACKDOOR ENTRY INTO RADIO.
FILM SECTORS,SPECIALISED MANAGEMENT & THE INTERNET. MOBILE PHONES. PAY FOR INDIAN VERSION TV GUIDE,STAR MAGAZINE IN HINDI & CHANNEL “V” MAGAZINE IN ENGLISH. LICENSED MERCHANDISING. TIE UP WITH WEBSITES PROPER BROADCASTING OF OTHER LANGUAGE CHANNEL OR REGIONAL CHANNELS CHILDREN CHANNELS.
CHILDREN
CHANNELS. FILM & T.V. STUDIO.