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