Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 16 pages
Data source: Published sources
Topics:
Indian cable and satellite industry; Doordarshan; Zee Telefilms; Star TV; Subash Chandra; TRP (target rating point) ratings; TAM (television audience measurement) and INTAM; Indian television; ESPN; CNN; Regional channels; Multisystem cable operator; Essel World; News Corporation; Transition
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Abstract
Television as a mode of communication, was introduced in the Indian market way back in 1959 on an experimental basis. Doordarshan, a government-owned channel was formed in 1976 and monopoly rights were granted over terrestrial broadcasting. In 1991, with the privatisation of the broadcasting rights, the Indian cable and satellite industry saw the entry of many players. One such player was Zee Telefilms Limited, which started its operation in 1992. The channel enjoyed the privilege of being the first private player to go on air, but faced competition from other channels such as Sony Entertainment and Star Network, who were also building on their strengths. In 2003, Zee reached around 32 million homes in India and around 225 million people worldwide. This case discusses the transition that took place in the company in the wake of the declining market share and the measures taken to counter the competitors programming strategies. Further, the case discusses Subash Chandra, Chairman of Zee Telefilms and his intentions to make the channel a family-run business. The case allows for discussion in the following areas: (1) the state of the Indian cable and satellite industry and the changing preferences of the customers; (2) the strategy of Zee to increase its TRP (target rating point) ratings in the wake of the competitors programming schedule; (3) the product extending activity of the channel in order to lure the customers; and (4) the challenges that the channel would face with the increase in the number of players entering the cable and satellite industry.
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Abstract
Television as a mode of communication, was introduced in the Indian market way back in 1959 on an experimental basis. Doordarshan, a government-owned channel was formed in 1976 and monopoly rights were granted over terrestrial broadcasting. In 1991, with the privatisation of the broadcasting rights, the Indian cable and satellite industry saw the entry of many players. One such player was Zee Telefilms Limited, which started its operation in 1992. The channel enjoyed the privilege of being the first private player to go on air, but faced competition from other channels such as Sony Entertainment and Star Network, who were also building on their strengths. In 2003, Zee reached around 32 million homes in India and around 225 million people worldwide. This case discusses the transition that took place in the company in the wake of the declining market share and the measures taken to counter the competitors programming strategies. Further, the case discusses Subash Chandra, Chairman of Zee Telefilms and his intentions to make the channel a family-run business. The case allows for discussion in the following areas: (1) the state of the Indian cable and satellite industry and the changing preferences of the customers; (2) the strategy of Zee to increase its TRP (target rating point) ratings in the wake of the competitors programming schedule; (3) the product extending activity of the channel in order to lure the customers; and (4) the challenges that the channel would face with the increase in the number of players entering the cable and satellite industry.