CURRENT AFFAIRS OF

BUSINESS
06.05.2020
ENTERTAINMENT INDUSTRY

NAME : SAIF ALI KHAN S

DEPARTMENT : MBA - 'A'

RRN NO : 190292601050

BATCH : II
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1. INDEX 1

2. INTRODUCTION OF THE INDUSTRY 2-5

3. EVOLUTION OF THE INDUSTRY 6-8

4. FUTURE PLAN OF THE INDUSTRY 8 - 11

5. PVR CINEMAS 12 - 22

6. STAR INDIA PRIVATE LIMITED 22 - 31

7. DISH TV INDIA LIMITED 32 - 43

8. REFERENCE 43 - 44

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INTRODUCTION​ :

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy
and is making high growth strides. Proving its resilience to the world, the Indian M&E
industry is on the cusp of a strong phase of growth, backed by rising consumer demand
and improving advertising revenues. The industry has been largely driven by increasing
digitisation and higher internet usage over the last decade. Internet has almost become a
mainstream media for entertainment for most of the people.

The Indian advertising industry is projected to be the second fastest growing advertising
market in Asia after China. At present, advertising revenue accounts for around 0.38 per
cent of India’s gross domestic product. By 2021, Indian media and entertainment
industry to reach Rs 2.35 trillion

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 ● Market Dynamics

The Indian media and entertainment industry is expected to reach around Rs 307,000
core crore (US$ 43.93 billion) by 2024. Media and entertainment Industry is set to
expand at a CAGR of 13.5 per cent over 2019-24. In FY19, major segments were
television, print and films with a market size of Rs 713 billion (US$ 10.22 billion), Rs
333 billion (US$ 4.76 billion) and Rs 185 billion (US$ 2.62 billion), respectively. They
are projected to reach Rs 1025 billion (US$ 14.67 billion), Rs 375 billion (US$ 4.76
billion) and Rs 228 billion (US$ 3.26 billion), respectively in FY22. Indian television
market has an opportunity of catering to 100 million homes as 197 million homes out of
the total 298 million have TV sets as of 2018.

Digital media & entertainment (M&E) platforms in India grew 13.3 per cent in FY19 to
reach Rs 163,100 crore (US$ 23.34 billion), contributing the most to the growth of M&E
sector in the country. India’s advertising revenue is projected to reach Rs 1,367 billion
(US$ 19.56 billion) in FY24 from Rs 693 billion (US$ 10 billion) in FY19. India’s
advertisement spending increased to Rs 67,603 crore (US$ 9.67 billion), growing at 11
per cent y-o-y in 2019. India ranked at 15th in the world in music industry and is
expected to enter into the top 10 music markets by 2022.

● Recent development/Investments

The Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B)
sector (including Print Media) in the period April 2000 – December 2019 stood at US$
8.71 billion, as per data released by Department for Promotion of Industry and Internal
Trade (DPIIT).

Netflix Inc. grew by 700 per cent with the help of local content and marketing that
attracted more users during 2018-19.

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About 95 per cent of online video consumption is in Indian languages in Tier 2 and Tier
3 cities.

Bharti Airtel’s direct-to-home (DTH) arm Airtel Digital TV and Dish TV going to be
merged by end of August 2019.

As stated in Union Budget 2019-20, government to launch dedicated channel for

start-ups.

Spotify to launch lite version for low-end Android phones in India.

Star India signs up 35 advertisers for ICC World Cup, targets over Rs 1,000 crore (US$
144million) in ad sales.

Dailyhunt, a regional language news aggregator run by Verse Innovation Pvt Ltd, will
receive investment of US$ 60 million in a new funding round led by Goldman Sachs
Investment Partners.

As of January 2019, Zee Studios launched a digital content arm Zee Studios Originals, to
globally produce premium, original content and create new (IPs) Intellectual Properties
for all digital platforms.

As on July 2019, SonyLIV, India’s first premium video on demand platform (VOD)
crossed the 100 million app download on Play store.

India is one of the top five markets for the media, content and technology agency
Wavemaker where it services clients like Hero MotoCorp, Paytm, IPL and Myntra
among others

After bagging media rights of Indian Premier League (IPL), Star India has also won
broadcast and digital rights for New Zealand Cricket upto April 2020.

● Government Initiatives

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The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of
Information and Broadcasting, Government of India, with a request to Fastrack the
recommendations on broadcasting, in an attempt to boost reforms in the broadcasting
sector. The Government of India has agreed to set up the National Centre of Excellence
for Animation, Gaming, Visual Effects and Comics industry in Mumbai. The Indian and
Canadian Government have signed an audio visual co-production deal to enable
producers from both the countries exchange and explore their culture and creativity,
respectively.

The Government of India has supported Media and Entertainment industry’s growth by
taking various initiatives such as digitising the cable distribution sector to attract greater
institutional funding, increasing FDI limit from 74 per cent to 100 per cent in cable and
DTH satellite platforms, and granting industry status to the film industry for easy access
to institutional finance.

● Road Ahead

The Indian Media and Entertainment industry is on an impressive growth path. The
industry is expected to grow at a much faster rate than the global average rate.

Growth is expected in retail advertisement, on the back of factors such as several

players entering the food and beverages segment, e-commerce gaining more popularity
in the country, and domestic companies testing out the waters. The rural region is also a
potentially profitable target.

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EVOLUTION OF ENTERTAINMENT INDUSTRY​ :

The Indian media & entertainment (M&E) sector has grown in double digits almost
every year for the past 10 years. This growth has been fuelled by drivers like government
policies (increased FDI limits), technological development, growing consumer spends,
and increasing competition leading to greater affordability and better and wider
infrastructure like broadband, multiplexes and DTH penetration.

The sector stands strong at an estimated size of Rs 1.5 trillion in 2017 maintaining its
double-digit trend with almost a 13% rise over the previous year. This growth, looks set
to continue, with estimates that India will be the third largest economy in the world by
2030 backed by a strong demographic, economic factors and a supportive regulatory
environment which is expected to further the growth of the M&E sector.

Let us look at some of the factors that have been game changers for this sector.

Television Distribution :

Digitisation of cable TV services, which began in 2012, was finally completed on

March 31st, 2017. The government’s persistence and support towards digitisation has
helped to resolve one of the most pernicious issues, which was addressability.
Digitisation and increasing market share of DTH is seen to have had a ripple effect on a
number of factors like increased collections from the last mile, increase in government
revenue, some stability to the carriage/subscription equation and an increase in media
consumption. In addition to private sector DTH, another key influencer has been free
dish–the government’s free DTH service. Its expanded market share seems to have
impacted business models across the TV broadcasting spectrum and influenced
advertising strategy.

Film Distribution​ ​:

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If there is one segment that has been revolutionised by technology, it is film. A little
over 15 years ago, we would talk about a movie being a hit if it was a ‘silver jubilee’ or a
‘golden jubilee’. A nationwide release was considered an impossibility. For the last few
years, major films have been regularly released on 2000 plus screens and many on 4000
plus screens on the same day. Digital distribution has enabled wide distribution at an
affordable cost and changed production, distribution and business models along the way.
This has not only helped the film industry fight piracy to an extent but also
better-enabled monetization of advertising by exhibition chains.

Viewer Experience :

Subscribers today are willing to pay more for a superior experience in entertainment but
are also becoming increasingly selective about what they pay for. Easy access to high
affordable technology like HD content and devices, sophisticated set top boxes, three
and four-dimension content and superior sound experiences like Dolby has raised the bar
for quality entertainment. According to industry estimates, HD grew with digitization
and is now estimated to have crossed 10 million subscribers, on the back of increased
sale of large television screens of 40 inches and above. The proliferation of better
experiences and choice in the home, has enabled consumers to become selective about
what they step out for, thereby impacting the way films are made. Movies that offer a
grand scale, big stars or special effects have been generally garnering an increased share
of box office revenue, as consumers begin to prefer to watch ‘regular’ movies on the
home TV or mobile screen. As entertainment on the mobile screen proliferates, tools like
personalisation algorithms are expected to become as important to success and
increasing viewership time and retention as is great content.

Broadband Infrastructure :

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A key factor in the evolution of the media and entertainment sector has been the wider
adoption of broadband. Not only has it changed the way consumers behave and consume
entertainment, it is changing the relationship between the business and the consumer. For
decades, many parts of this sector viewed themselves as B2B enterprises with customers
being advertisers or cable companies but as the direct relationship with customers grows,
they should increasingly consider becoming B2C companies. In 2017, India reached a
telecom subscriber base of 1.19 billion and almost 430 million broadband subscribers in
mid-2018–with most being wireless, according to data from the Telecom Regulatory
Authority of India (TRAI). The number of smartphones sold in India in 2017 amounted
to 124 million, as per market research firm IDC. India is now the second largest
smartphone market in the world after China. The increase in affordability of data in the
past two years seems to have propelled consumption of entertainment on the mobile. The
OTT app ecosystem now has over 30 providers, impacting the content production
ecosystem and driving up the price of content. Further technology adoption like Fibre to
the home (FTTH) lined up for wired broadband connections, is expected to fuel growth
of IPTV and consumption across three household devices: television, laptop and mobile.

In India, we are still in the early stages of the transformation of the M&E industry, with
technology as a catalyst. Changing consumer patterns are seen disrupting business
models that have held sway for almost a century, and have resulted in initiating the
process of transforming the structure of the industry. India is unlikely to follow the exact
same path charted in western countries with the economics being quite different.

FUTURE PLANS OF THE ENTERTAINMENT INDUSTRY​ :

While the media and entertainment industry was one of the first sectors of business to
navigate digital disruption, its transformation is far from over.

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That’s the key finding of PwC’s annual “2018 Media & Entertainment Outlook,” which
projects that industry revenues will reach $792.3 billion by 2022, up from 666.9 billion
in 2017.

“The distinctions between print and digital, video games and sports, wireless and fixed
Internet access, pay-TV and OTT, and social and traditional media are blurring,” said
Mark McCaffrey, PwC’s U.S. technology, media, and telecommunications leader. “So to
succeed in the future, companies must re-envision every aspect of what they do and how
they do it. That means having, or having access to, the right technology and premium
content, delivered in a cost-effective manner to an audience that is engaged with the
brand.”

Below, we take a look at five industry trends highlighted in the PwC report, all of which
are expected to continue shaping the M&E landscape.

Fastest-Growing Revenue Segments :

During the five-year period from 2017 to 2022, virtual reality (VR), over-the-top (OTT)
video, and internet advertising will be among the fastest-growing revenue generators for
M&E companies in the U.S., PwC predicts.

The VR market is quickly transforming into an entertainment and productivity platform.

In fact, outlets such as USA Today, Washington Post, and The New York Times are on
board the VR journalism trend. The U.S. is currently the world’s leading VR market,
with revenue of $1.5 billion in 2017, a 250%-plus increase year over year. By 2022, that
total is expected to reach $7.2 billion.

OTT video revenue for media and entertainment (think: HBO Go, Hulu, Netflix) in the
U.S. reached $20.1 billion in 2017, up 15.2% YoY. PwC predicts that growth rates will
begin to slow as the market matures, but revenue in this area is expected to reach $30.6
billion in 2022.

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Additionally, the U.S. continues to lead the global Internet advertising market, with total
revenue of $88 billion in 2017. The report predicts that the market will continue to
experience growth over the forecast period, expanding at a 7.7% CAGR between 2017
and 2022 to reach $127.4 billion.

Convergence Throughout The Industry :

Convergence will be a big M&E theme during the next five years, according to PwC.

For Example​, streaming services, TV companies, and social networks are now
competing over both conventional sports and e-sports rights, the report points out.
Additionally, TV companies, telecoms, tech companies, OTT operators, and movie
studios are competing to provide TV content. Radio stations, podcast companies, and
streaming services are competing to provide radio and podcast content. Brands, too, are
jumping on board, creating content to engage the same audiences that M&E companies
are after.

“We’re seeing convergence of geographies, a convergence of access, and there continues

to be a lot of M&A and transactions looking to consolidate content and grow content
base,” McCaffrey said. “There’s a lot of focus on user experience and loyalty, with
companies trying to create a more direct relationship with consumers of content.”

5G To Evolve What Content Is :

The move to 5G wireless networks affects telecom operators, but it also changes what’s
possible in terms of the experiences faster broadband will facilitate. Just think of
T-Mobile’s recent acquisition of broadband video startup Layer3, which will enable it to
launch an internet-delivered television service across the U.S., powered by 5G.

For its part, Sprint has already made access to Hulu available in some of its packages,
which will certainly drive consumption once 5G comes to fruition. Plus, 5G is

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developing alongside continuing advances in artificial intelligence, the worldwide rollout
of IoT devices, the evolution of virtual and augmented reality, and location-based
services. From a content perspective, the opportunities to innovate in the next five
years—and beyond—are seemingly endless.

M&A Continues :

A ton of merger and acquisition news has been making headlines in M&E. Take the
approved $85.4 billion merger between AT&T and Time Warner. And let’s not overlook
Disney’s intent to acquire most of the assets of 21st Century Fox.

The bigger picture? These deals will set a precedent for future M&E consolidation.

“We expect more and more content consolidation in the U.S. as traditional media
companies fight for market share against newcomers, such as Netflix, Amazon Prime,
and Google,” McCaffrey said. “And I think the impact of those deals, regardless of what
the decision is, will potentially create a cascade of events within the industry.”

Data Consumption Will Continue To Grow :

Over the next five years, PwC expects data traffic levels will grow by a 22.3% CAGR,
reaching 397.8 trillion megabytes in 2022.

PwC attributes the growth in data consumption to consumers’ growing appetite for video
content, which will account for 85.6% of total data consumption in 2022. 5G, as
mentioned above, will contribute to this boost.

“The opportunity at the end is the growing access to people absorbing content,”
McCaffrey told CMO.com.

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​PVR CINEMAS ​:

INTRODUCTION :

PVR Cinemas is a film entertainment public ltd company in India. The company began
as a joint venture agreement between Priya Exhibitors Private Limited and Village
Roadshow Limited in 1995 with 60:40 ratio, began its commercial operations in June
1997. The company is founded by Ajay Bijli who is the chairman and managing director
of PVR Cinemas. Ajay Bijli's brother Sanjeev Kumar Bijli is the Joint Managing
Director of PVR Ltd. The company also operates a pro-active CSR wing under PVR.
The first PVR Gold Screen was introduced in Forum Mall, Bangalore.

PVR Ltd. is the largest and the most premium film exhibition company in India. Since its
inception in 1997, the brand has redefined the cinema industry and the way people watch
movies in the country. The company acquired Cinemax in 2012 and had taken over DT
Cinemas in the year 2016 serving 100 million + patrons annually. Currently PVR
operates a cinema circuit of 845 Screens in 176 Properties in 71 Cities (India and Sri
Lanka).

PVR offers a grand collection of cinema formats. From its Mainstream to Gold Class
Cinemas, Director’s Cut to the latest sub brands - PVR ICON and PVR Superplex, the

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company has made exceptional technology like the IMAX®, 4DX and ECX (Enhanced
Cinema Experience) accessible to its audience. VR’s recent addition has been P[XL] –
India’s first premium extra-large home grown big screen format for a truly enigmatic
movie watching experience.

PVR Ltd, the integrated ‘film and retail brand’ has PVR Cinemas as its major subsidiary.
Its other two subsidiaries are PVR Leisure and PVR Pictures. PVR Pictures has been a
prolific distributor of non-studio/ independent international films in India since 2002.
With over 350+ Hollywood, 175+ Hindi, 75+ regional films across genres being released
under this banner over more than a decade, PVR Pictures has the highest box office
shares of independent foreign language films in the country. The arm has been
instrumental in recognizing the gap with respect to the demand and supply of discerning
cinema and has consistently released around 30-40 films per year.

HISTORY :

PVR Saket

The company has its origin as Priya Cinema in South Delhi, which was bought by Ajay
Bijli's father in 1978, who also owned a trucking business, Amritsar Transport Co. In
1988, Bijli took over the running of the cinema hall, which was revamped in 1990, and
its success led to the founding PVR Cinemas.

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In 2003, ICICI Ventures invested ₹40 crore in PVR when Village Roadshow decided to
pull out of the partnership. In 2012, Kanakia group owned CineMAX cinema chain was
bought by Cine Hospitality Private Ltd, a subsidiary of PVR Cinemas for ₹395
crore (US$55 million), making PVR the largest cinema chain in India. In May
2016, DLF group owned DT Cinemas was bought by PVR Cinemas for ₹433
crore (US$61 million).. Recently PVR Cinemas ventured into a new cinema concept-
Superplex in Noida. The cinema has 15 screens with IMAX, 4DX, Gold Class, a
playhouse and mainstream auditoriums. PVR Cinemas has invested ₹48 crores in this
new venture. PVR's first "Gold Screen" was launched in Indore in 2007. Recently, PVR
Cinemas in association with HP India has launched Asia's first Virtual Reality (VR)
Lounge at PVR ECX, Mall of India, Noida.

In August 2018, PVR Cinemas announced their acquisition of Chennai-based Sathyam

Cinemas for ₹850 crore in a cash and stock deal.

In August 2019 PVR Cinemas crossed its 800 screens milestone count in India.

MARKETING STRATEGY :

Marketing strategies of PVR CINEMA

➔ Segmentation :

On the basis of customer preferences PVR under the clustered category PVR concentrate
on target audience they only cater to the premium movie going audience. It has
approximately 22 million movie gets per month.

➔ Targeting :

PVR has premium pricing and they target mainly on customer preference. Its uses
concentrated method as they have targeted a much focused audience out of the entire
masses.

➔ Positioning :

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PVR makes use of all their tangible elements to prove their customers that their movie
tickets are worth the price they are paying. PVR ensures the customers as a superior
brand in terms of cinema viewing as well as the experience.

➔ Entertainment Marketing :

Entertainment services include screening of movies, their premiers, press & media,
required special screening of movie show & also different types of eatable served within
the multiplex.

➔ Movie Marketing :

It can create a brand image for the company. It focuses on movie marketing that are big
screened along with crating & making aware the people about the multiplex. Various
media channels are invited to cover the whole premier events which has positive effect
on the multiplex, stars, mediachannels are invited of huge celebration

➔ Café Marketing :

It’s a new concept launched by the multiplex to marketing the movies. Its promoting
movie with the help of eatable sold in the cafeteria within the premises of the multiplex.
Here the eatables are named after the movie.

➔ Special Events Marketing :

Multiplex also screens special events such as cricket matches, documentaries & also to
organize celebration of religious festivals as well as the special days like valentine day,
independence & republic day. Also it arranges birthday parties as per viewer’s demands.

➔ Tie Up With Various Corporate :

Multiplex has tie u with corporate associates. It’s like the corporate organized or they
host the events that are conducted in the multiplex & in turn the multiplex gives it sales
indirectly.

➔ Movie Shooting & Advertisement :

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Multiplex also allows shooting for movies & advertisements as it helps to publicize &
create a brand name for itself. Movie shootings advertisements take place here because
of the ambient factors & also space the as the movie makers are not given the premises
free of cost.

➔ Special Screening Of Hollywood Movies :

Multiplex arranges the screening of Hollywood at their theatres. These special

screenings are referred as midnight matiness. It is an innovative attempt on the part of
multiplex to combine various elements of leisure & partying with cinema viewing.

MARKETING MIX :

➔ PRODUCT

The customer comes to a cinema hall for, along with the attendant experience of PVR.
The expected product in PVR’s case world be ambience, hygiene, parking, candy bar etc.
PVR has augmented its product offerings luxury cinema with exclusive auditoriums,
fally reclining seats & many more, but booking, e-booking & tele- booking facilities
providing by PVR to their patrons. PVR also provides parties at PVR, movie newsletter
and magazine, movie vouchers to the viewers.

➔ PRICE

PVR comes across as a superior brand in terms of cinema viewing as well as the
experience. PVR market leader to set its own prices price that are originally started from
120 to 500RS. The high pricing has not led to any change in the footballs that PVR gets
viewers are enjoying superior ambience, environment, seating, viewing etc. With these
ticket charges.

➔ PLACE

PVR cinema halls usually situated at good location in the cities of India and abroad.
Their places are always well situated and are well lined PVR also having their own
distribution channels for movie.

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 ➔ PROMOTION

PVR gives advertisement on Friday about latest movie schedules in ‘Times of India’. As
well on won website. It has also a host of online promotional contests associated with
movie. They are also in collaboration with cellular services like Airtel have sms and win
contest and give out free tickets to the winners. They also arrange commercial shooting,
premiere shows with leading film star and fun events for children while screening
animations.

➔ PEOPLE

PVR has given free tickets for their employees to view film in the cinema hall, gives 10
national holidays to employees very great importance is given to person hygiene and
appearance clean uniform and shoes, job performance evaluation at the completion of
first 90days of employment. Employees are taught deal with safety problems regarding
accidents, fire, bomb threat, armed robbery etc. All trainees are made to train at all
departments like ticket sales, computers service skills, cash handling sales, credit & sales
etc. so employees persuading brand of PVR with their friendly, informed, helpful,
reliable, cheerful entyastic, nature, therefore, the audience can easily relate and
communicate with them.

➔ PHYSICAL EVIDENCE

Customers are not only see a service but also see various tangible service like facilities,
communication, objectives, other customers, price etc. on the basis of these PVR
provides the lavish building, layout, colors of interiors, tickets, labels, logo of the cinema
hall to formulate a good unified corporate image/identity.

AMALGAMATION, MERGER AND ACQUISITIONS

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PVR Cinemas’ acquisition of Chennai-based SPI Cinemas will likely be completed, and
the merger process will be wrapped up within nine to 12 months. With it, PVR will
acquire a 71.7 per cent stake in SPI for Rs. 850 crores, in a cash-and-stock deal.

Exhibition chains eating up each other is not new. In the past, Carnival Cinemas took
over 242 screens of Anil Ambani’s Big Cinemas for Rs. 700 crore. The Bengaluru-based
group has also absorbed E-Square Cinemas, a Maharashtra-based multiplex chain. Inox
Cinemas bought the Delhi-based Sathyam Cineplexes in July 2014 for Rs. 182 crores.
SPI Cinemas has one instance of selling too – in 2015, it sold its uber-plush 11-screen
multiplex Luxe in Phoenix Market City, Velachery, to Jazz Cinemas, a firm owned by
VK Sasikala’s relatives.

Regarding the current merger, reports had surfaced as far back as 2015 that PVR had
entered into talks with SPI for a proposed merger worth Rs 750 crores to Rs. 1,000
crores, but PVR subsequently denied all reports. SPI Cinemas, formerly known as
Sathyam Cinemas, is the largest exhibitor in South India, with a presence across 10 cities
through a network of 76 screens.

According to a press release issued by PVR Cinemas, Kiran Reddy and Swaroop Reddy,
who head SPI cinemas, will remain with the company to provide ‘strategic guidance in
integrating the company with PVR Cinemas’.

According to Mint, this is PVR’s third takeover in the recent past, after Cinemax in 2013
and DT Cinemas in 2016. According to the agreement with SPI, “PVR would acquire
222,711 equity shares of SPI Cinemas, constituting 71.7 per cent of the paid-up equity

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share capital of SPI, from existing shareholders for a total consideration of ₹633 crore.”
PVR said in a statement, “It will also issue 1.6 million equity shares of PVR Ltd,
constituting approximately 3.3 per cent of the diluted paid-up equity share capital of the
company, pursuant to a scheme of amalgamation between SPI and PVR.” EY served as
an adviser for the transaction.

Under the terms of the proposed acquisition, PVR would acquire 222,711 equity shares
of SPI Cinemas constituting 71.7 % of the paid-up equity share capital of SPI from
existing shareholders for a total consideration of Rs 633 crore and issue 1.6 mn equity
shares of PVR Ltd constituting 3.3% of the diluted paid up equity share capital of the
company pursuant to a scheme of amalgamation between SPI and PVR.

SPI Cinemas has a network of 76 screens (68 operational and 8 expected to commence
operations soon) across 17 properties and 10 cities. Further, the company has a signed
pipeline of over 100 screens which are expected to be rolled out over the next 5 years.
SPI Cinemas has 31 operational screens in Chennai including the iconic Sathyam
Cinemas, which was established in 1974.

The other roster of brands under which SPI operates cinemas include Escape, Palazzo,
The Cinema and S2. In terms of occupancies across all organised multiplex chains in the
country, Sathyam is expected to achieve annual admissions of about 16-17 mn
moviegoers in FY19 and estimated revenues of Rs 4.1- 4.2 bn.

PVR’s total screen count will increase to 706 screens across 152 properties and 60 cities.
The acquisition will also propel PVR as the 7th largest cinema exhibitor globally in
annual admissions at its theatres, which will be in excess of 100 mn. Both Kiran M
Reddy and Swaroop Reddy will continue to remain associated with the business and
provide strategic guidance in integrating the business with PVR and create value for all
the stakeholders. The transaction is expected to be closed in next 30 days and the merger
is expected to be completed in next 9-12 months.

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FROM CINEMA TO CINEMA

● SPI Cinemas has 31 operational screens in Chennai including the iconic Sathyam
Cinemas, which was established in 1974.
● The other roster of brands under which SPI operates cinemas include Escape,
Palazzo, The Cinema and S2.
● PVR’s total screen count will increase to 706 screens across 152 properties and
60 cities.
● The acquisition will also propel PVR as the 7th largest cinema exhibitor globally.

BUSINESS MODEL :

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FUTURE PLAN :

Multiplex major PVR plans to expand into smaller towns through a sub-brand. A final
decision is expected towards the end of this fiscal.

Nearly two-thirds of PVR’s revenues come from tier 1 cities, with tier 2 cities
contributing the balance. Its presence in tier 3 cities and smaller towns is limited. The
company has been experimenting with a low-cost format, ‘PVR Talkies’, over the last
2-3 years across eight markets, including Latur and Aurangabad.

LOW-COST SET-UP

Compared to a Gold Class (its premium offering), where setting up a screen costs around
₹5.5 crore, the setting up of a regular PVR outlet comes at ₹3 crore per screen.
Compared with this, setting up a screen under PVR Talkies costs ₹1.75–2 crore.

According to Gautam Dutta, CEO, the company is in talks with various consultants on
having a sub-brand.“We are contemplating the introduction of a sub-brand in tier 2 and 3
markets. Maybe a decision on this could come closer to March this year,” he told
BusinessLine.

Nearly 10 per cent of the company’s top-line came from its premium offerings such as
Gold Class, IMAX, 4DX and PXL. It operates a cinema circuit of 741 screens at 159
properties in 63 cities pan-India, with 167,972 seats. It is also open to the idea of taking
over single-screen or iconic theatres in tier 2 and rebranding them as ‘PVR’. “All our
offerings will be branded as PVR,” Dutta said. The company plans to invest ₹500-600
crore over the next two years to add around 100-odd screens every year.

FOR THE DIFFERENTLY ABLED

PVR is also investing in a special programme to expand the scope of movie viewing for
the differently abled.

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Under this programme, the company intends to provide assistive equipment to people
with mobility issues, ensure wheel-chair friendly seats, provide audio description with
the help of the XL Cinema app to the visually-impaired and play films with subtitles for
the hearing impaired.

STAFF TRAINING

Staff training is also being carried out to cater to differently abled customers.

Around 230 screens at 50 cinemas have been readied accordingly under the first phase of
this programme. By June next year another 45 cinemas with 230 screens should be ready
under the second phase.

“Approximately 1 per cent of the seats in an auditorium will have facilities for the
differently abled. More than increasing footfalls, we are focussing on inclusion,” Dutta
said.

STAR INDIA PRIVATE LIMITED​ :

INTRODUCTION :

Star India Private Limited is an Indian media conglomerate and a wholly owned
subsidiary of The Walt Disney Company India. It is headquartered in Mumbai,

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Maharashtra. It has a network of 60 channels in eight different languages, reaching out to
9 out of 10 cable and satellite TV homes in India. The network reaches approximately
790 million viewers a month across India and more than 100 countries. Star India
generates more than 30,000 hours of content every year.

HISTORY

❏ Founding

Star TV (Satellite Television Asian Region) was founded in 1991 as a joint venture
between Hutchison Whampoa and Li Ka-Shing. It was launched as a Pan-Asian
beam-to-air Hollywood English-language entertainment channel for Asian audiences.

❏ 1990–2000

In 1990, Star TV included Star Plus (then an English-language entertainment channel),

Prime Sports, Channel V, Star Movies.

In 1992, Rupert Murdoch’s News Corporation purchased 63.6% of STAR for $525
million, followed by the purchase of the remaining 36.4% on 1 January 1993. Star
broadcasting operations were run from Rupert Murdoch's Fox Broadcasting premises.

Between 1994 and 1998, Star India was launched, later launched Star Movies, Channel
V, and Star News with a limited Hindi offering.

In 1998, STAR News was launched as a dedicated news channel with content from
NDTV.

❏ 2001–2010

In 2001, Star India acquired South India based Vijay TV. In 2003, Star India's deal with
NDTV ended and Star News was made into a 24-hour news channel. And it entered into
a joint venture with Anand Bazar Patrika Group to comply with the regulations set for

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uplinking of news and current affairs channels by the Government of India. It
subsequently exited from this joint venture in 2012. After the split the channel was
renamed to ABP News and operated by Anand Bazar Patrika Group.

In 2004, Star One was launched as a Hindi content channel. In 2008, Star Jalsha, a
Bengali language entertainment channel and Star Pravah, a Marathi language
entertainment channel were launched.

In 2009, Star India acquired Trivandrum, India based media conglomerate Asianet
Communications Limited which served Malayalam language content. In August 2009,
the Star Group restructured its Asian broadcast businesses into three units – Star India,
Star, and Fox International Channels Asia.

In the same year, Star Affiliate and CJ Group of South Korea launched CJ Alive (later
known as ShopCJ), a 24-hour Indian television shopping channel which used STAR
Utsav for hosting the television marketing programs in six-hour slots in its initial stage
of launch. Star Affiliate exited the joint venture in May 2014.

21st Century Fox launched a film production and distribution business in India through
Fox Star Studios India, an affiliate of Star India in the same year.

❏ 2011–present

In 2012, Star India acquired the BCCI Rights for India cricket for the period 2012
through 2018. ESPN was renamed Star Sports 4, STAR Cricket was renamed Star Sports
3, Star Sports was renamed to Star Sports 1 and Star Sports 2 kept its name. STAR
Cricket HD and ESPN HD were renamed to Star Sports HD1 and Star Sports HD2
respectively.

In 2015, Star India launched its video-on-demand service, Hotstar and forayed into
online streaming.

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In 2015, Star India has acquired broadcast businesses of Maa Television Pvt. Ltd to
boost its presence in Telugu speaking markets where Star doesn't have any presence
before. By this acquisition Star has regional presence in the entire South Indian markets.

In February 2017, Star India and global media conglomerate, TED, announced a new TV
series, TED Talks India – Nayi Soch. Its programmes starred Bollywood actor Shahrukh
Khan and featured newer TED talks made in Hindi language. The programme followed
the signature TED format of prominent speakers voicing their opinions in an 18-minute
or less monologue in front of a live audience.

On 28 August 2017, Star India replaced its Hindi Entertainment channel Life OK with a
free-to-air channel Star Bharat.

On 5 September 2017, Star India won the global media rights to broadcast Indian
Premier League (IPL) for 5 years beginning in 2018. The company bid INR 16,347.50
crore to secure the rights from the previous broadcaster, Sony Pictures Network.

On 14 December 2017, The Walt Disney Company announced the acquisition of 21st
Century Fox, which included Star India.

On 13 December 2018, Disney announced Uday Shankar who serves as chairman of Star
India will lead Disney's Asian operations and will become the new chairman of Disney
India, which became a wholly owned subsidiary of The Walt Disney Company, being
re-organized under The Walt Disney Company (India) Private Limited.

On 4 January 2019, Star TV shut down its television operations in USA for promotion of
its digital counterpart, Hotstar.

On 20 March 2019, Star India became the part of Disney India as the deal was closed.

DIVISIONS :

❏ Star Media Networks

➔ Star Sports

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 ➔ Star Media Networks South
➢ Asianet Star Communications
➢ Star Maa Network
❏ Fox Star Studios
❏ Novi Digital Entertainment
➔ Hotstar
❏ Mashal Sports (74%)
➔ Pro Kabaddi league
❏ Indian Super League (40%)

MARKETING STRATEGY :

The marketing-mix model is applied to discuss the Marketing Strategy of Star India and
the Indian Television Industry.

Product

This Marketing Strategy element reflects the solution to the customers’ needs. Star India
and the Indian Television Industry should develop unique product design, name and
features to stand out in the competitive market. Following factors should be considered
to develop the product strategy- quality, variety, features, packaging, brand name and
augmented services.

Pricing

This Marketing Strategy element requires an evaluation of the value of products for
targeted customers. The pricing strategy of the Star India and the Indian Television
Industry will focus on setting the list price, credit terms, payment period and discounts.

If Star India and the Indian Television Industry decides to choose the price penetration
strategy, it will have to set the lower price than competitors. The company will be able to

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win market share based on discounted pricing. However, management should be aware
of the potential retaliation from competitors in the form of an undesired price war.

Place/distribution

This Marketing Strategy element requires Star India and the Indian Television Industry
to make some important decisions when developing its distribution plan. It should
decide:

➢ Whether the company wants to make the product available to targeted customer
segments through its channels, or it needs a distribution partner to serve the
customers' needs.
➢ Whether the distribution will be direct (involving no middlemen), or indirect. If
indirect distribution strategy is adopted, the number of middlemen must be
selected (wholesalers, retailers etc.)
➢ Whether it is interested in: traditional brick and mortar distribution network,
online distribution or a combination of both. Certain online retailers like Amazon
are available if online distribution strategy is chosen. The company can also
develop its online website to sell the product.

Promotion

This is one of the most important elements of Star India and the Indian Television
Industry Marketing Strategy. Star India and the Indian Television Industry can blend
above and below the line promotional strategies to achieve its marketing objectives. The
above the line promotion options for Star India and the Indian Television Industry are-
television, radio and print advertising. Below the line promotion options are- catalogues,
tradeshows and direct mail campaigns.

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For example, the selection of TV advertising as a promotional strategy will allow the
company to target the mass market, increase brand awareness and brand recall. However,
it is an expensive promotional strategy and suits if the company has adequate resources
available for the promotional efforts.

The popularity of social media marketing has raised significantly during the last few
years. Use of this promotional strategy will enable Star India and the Indian Television
Industry to reach the mass market economically. It will also offer an opportunity to
actively interact with customers, develop a personalised relationship and manage
e-WOM to get better results. However, the risk of uncontrollable negative e-WOM
remains there.

AMALGAMATION, MERGER AND ACQUISITION :

The Walt Disney Company’s $71.3-billion acquisition of Rupert Murdoch-owned 21st

Century Fox, which includes Star India, will axe 300-350 jobs in India, said two persons
in the know.

The merger, which is awaiting some clearances in Mexico, is on track in India and the
two sides have begun sharing data and knowledge, one of the persons said, adding that
the management structure is also being worked upon.

“The announcement can come later this week or early next week. The sharing of
information is on and books will be closed by March 31. Post-merger, close to 350
positions will become redundant and a restructuring will take place,” a source said.

Another person said the merged entity, Star and Disney India, will be headed by Sanjay
Gupta, who is now the Star India managing director. He will report to Uday Shankar,
chairman of Star and Disney India, and president of The Walt Disney Co Asia Pacific.

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Sanjay Jain, who serves as Star India CFO, is expected to move to The Walt Disney Co
Asia Pacific in a similar role, while Sujeet Vaidya, CFO at Disney India, will oversee
finances of the merged entity.

Abhishek Maheshwari, country head of Disney India, will take over the English and kids
clusters as well as live events of the merged entity.

This will include Star World, Star Movies and the kids’ channels from the Disney stable.

Gaurav Banerjee, who heads the Hindi general entertainment channels (GECs) for Star
India, will lead all Hindi entertainment channels — GECs and movies —including
Disney-owned UTV Movies.

ET had reported earlier that despite being the world’s largest entertainment company,
Disney in India is a dwarf to Star India. Disney had on December 22, 2017 offered to
buy the 21st Century Fox assets in a $52.4-billion all-stock deal.

After rival Comcast made a counter bid, Disney upped its offer to $71.3 billion in cash
and stock.

The deal is expected to catapult Walt Disney to the top seat in the Indian entertainment
genre as it will own rights of some of the biggest media properties like the Indian
Premier League (IPL), the English Premier League (EPL), top regional language and
Hindi TV shows, and films.

GDP OF STAR INDIA PRIVATE LIMITED :

Star India, a subsidiary of Murdoch's New Corporation, and the leading TV network in
India, is considering whether to acquire (or continue its arms-length relationship) with
one of its major content providers, Balaji Telefilms. The case provides information on
the industry context, regulatory environment, key competitors, and the Indian TV
market. The case is a good vehicle to discuss value chain concepts and understand the

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relative strategic positions of different players within a value chain. The case also
provides a good introduction to one of the largest television markets in the world.

It's June 2004, and “Incredible India” is the Indian tourism department's popular new
campaign. Indians are experiencing prosperity like never before. The country has just
logged an annual GDP growth of 8.2%. India is booming and so is its television industry.

For the very first time, a famous actor from an Indian television soap opera presented an
award at the Emmys in the United States. Further reflecting on the growing popularity of
television in India, many big name movie or “Bollywood” stars are crossing over into
television. Television in India is no longer the younger insignificant cousin of the Indian
movie industry.

Riding on the growth of the Indian television industry is Star India, a subsidiary of News
Corporation. Of the top 50 weekly television shows aired in India, more than 40 are on
Star India's flagship channel, Star Plus. Balaji Telefilms, one of India's largest content
production companies, creates the majority of the content for these shows. In light of
Star India's heavy reliance on Balaji, Star India's executive team is closely examining
that relationship. Both companies have enjoyed their strong collaboration and their long
history of creating value for each other. But with the launch of many new channels and
delivery platforms expected in the near future, content will be a big factor in soliciting
and retaining viewers. Star India's executive team is wondering whether they should
continue an arm's-length relationship with Balaji or become more involved in controlling
their content production. Star India is considering either buying Balaji or acquiring a
partial stake. Either of these actions has significant implications across the industry's
value chain.

FUTURE PLAN :

Uday Shankar, the Walt Disney Company Asia Pacific president and Star & Disney
India chairman, has shared the group’s strong position at the Disney Global Summit on

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Thursday (April 11) last. Hotstar with over 300 million monthly users has been placed
among the largest video platforms in the world, whereas Star captures 65% of the sports
television market share in India, revealed Uday Shankar.

Talking about the growth and future of Hotstar, the Star India boss explained at length
how Hotstar has managed to breach the 300 million monthly active users mark,
something that places Star Group’s video on demand platform among the largest in the
world and what the OTT platform is ready to offer in the next few years.

“Today, Star captures 30% of all TV advertising and almost 30% of all digital video
advertising as well. It also takes 40% of all TV affiliate revenue. Our goal is to improve
these shares further with a cross screen advertising engine,” said Uday Shankar. “In the
last two decades, Star has developed a capacity to develop market leading entertainment
and sports content in eight languages. For every four hours of TV watched in India, 1
hour is on Star. Star broadcasts 250 days of live sports every year and has a 65% share of
sports viewership in India,” he said.

Hotstar, with over 100,000 hours of drama, movies, sports and sports content, accounts
for 40 per cent of all long-form digital video consumed in India. “Given the large Indian
population, we built Hotstar for scale and focused on creating a scaled advertising
platform too rather than focusing only on the nascent subscription market,” Uday
Shankar explained. “Hotstar is arguably more advanced in engagement initiatives than
any other service in India. These include gamification of content, a social experience
around video and even allowing in-app transactions now. As a result, an active viewer
spends 2.7 times more time on video than a passive viewer. “

He also revealed the targeted, potential market for the company’s business growth in
India. “India has a strong and rapidly growing middle class. The number of households
earning more than $8,500 a year has grown by 10% annually. And this segment will
constitute almost half of the population by 2028. If you consider purchasing power
parity, discretionary consumer spending in this market is going to be extremely attractive
and the media industry is set to be a key beneficiary.”

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DISH TV INDIA LIMITED​ :

INTRODUCTION :

Asia's largest Direct to Home Entertainment Company DishTV is the pioneer when it
comes to digital entertainment. The innovative offerings and revolutionary features of
DishTV have earned it a prestigious place of being World’s third largest DTH company.

Being the leader in DTH services, DishTV has changed the face of Indian Television by
making it possible for every customer to have access to premium quality digital
entertainment. Enhancing the viewing experiencing, the tri-satellite technology that
broadcasts Hi-Definition and Standard Definition signals, DishTV has taken the
standards of television to incredible heights.

Adding to the world class TV viewing experience, DishTV gives freedom to its
customers to select channels of their choice, customize their own entertainment packages
and pay just for the same. As a plethora of channel packs are accessible, the customers
have the free hand to build their package to suit their taste and budget. Upping the
entertainment quotient, DishTV also provides its customers with features like radio
channels, electronic program guide, parental lock, capacity for more than 500+ channels
and movies on demand.

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DishTV has pioneered a ‘Customers Satisfaction Bible’ which is constantly improved,
modified and updated to achieve the objective of optimizing customer’s satisfaction.
Consistent with such objective, every initiative and every technological innovation at
DishTV is driven with an effort to provide its customers the best possible services with a
strict adherence to quality. Taking special care to ensure that all possible support is
provided to the customers in the best and innovative manner, DishTV is the brand that
works with ‘Service with a Passion’ attitude.

● About the Brand

Redefining the meaning of television for its customers with its exceptional digital
quality, DishTV has revolutionised the digital entertainment in India. With its digital
transmission, DishTV has given its customers a giant leap from the analogue quality
cable transmission towards qualitative, refined and defined television entertainment and
enjoyment.

● Technology and Infrastructure

DishTV, the only Direct to Home Entertainment Company that serves its customers with
a passion, always endeavours to offer its customers with exceptional picture quality,
stereophonic sound along with unmatched services. Believing in the quote “Best choices
come with best rewards”, the brand offers the finest to its customers with its best-in-class
technology and infrastructure.

● Digital Picture Quality and Stereophonic Sound

Delivering maximum entertainment right in their homes, DishTV offers its customers
with unmatched picture quality and superb sound experience.

● Geographic Mobility

The full-fledged all India coverage of DishTV ensures that entertainment is reached in
every nook and corner of the country along with uninterrupted services and nonstop
access to all channels.

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 ● Dyna Boost

DishTV employs the services of NSS6 satellite at 95.0°E which is specifically designed
for DTH operations and equipped with Automatic Level Control (ALC) feature that
enables the satellite to maintain constant EIRP even in case of uplink signal degradation
due to bad weather conditions.

● Wide Range of Products

Suit yourself with the set of options DishTV has for you. Providing three kinds of Set
Top Boxes- DISH HD+ with Recorder, Digital Set-Top-Box with Recorder, DishTV
caters to the various needs of its customers. While DISH HD+ provides Hi-Definition
signals for life like picture quality along with the power to pause, record and rewind live
TV, Digital Set-Top-Box lets you record the programmes of your choice. Digital
Set-Top-Box is the apt option for those who desire awesome television experience at a
very affordable cost!

● Recharge Offers

Making certain that you never miss onto entertainment, DishTV offers you a range of
recharge offers that are designed to provide maximum value for money where you can
select and pay for channels of your choice. With instant recharge feature, DishTV gives
its customers an opportunity to recharge their packs in no time through various payment
options including online payment, from home, or by visiting nearby dealers.

● Services

Believing strongly in customer satisfaction, DishTV addresses to its customer’s

complaints and grievances at any point of time with its 24*7 call centre services across
the country.

MARKETING STRATEGY :

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Marketing strategy helps companies achieve business goals & objectives, and marketing
mix (4Ps) is the widely used framework to define the strategies. This article elaborates
the product, pricing, advertising & distribution strategies used by DishTV.

Dishtv Product Strategy:

The product strategy and mix in DishTV marketing strategy can be explained as follows:

DishTV is one the well-established DTH service providers having a strong customer
base. DishTV is a digital entertainment company which provides Direct to Home
Entertainment service to its customers using high-class infrastructure consisting of
tri-satellite technology that broadcasts High Definition and Standard Definition signals.

The product category of DishTV includes network hardware. DishTV also offers
innovative products like Dish on wheels where one can have an entertainment system in
the car and Dish Flix, India’s first home video system with 50 pre-downloaded movies
with 15 new movies refreshed each month. The packs offered by DishTV are the
network services which come in different categories for hi definition and standard
definition. The packs are further divided on the basis of number of channels offered in
sports, entertainment, family, children and regional channels. Other DishTV services
include Miniplex which premiers a newly released movie every Friday, Movies on
Demand which allows users to order their favourite movie and the Active Services which
provide content in gaming, music-devotional and otherwise, kids section and comedy.

DishTV Price/Pricing Strategy:

Below is the pricing strategy in DishTV marketing strategy:

DishTV has got several packs with different pricing strategies mainly to compete with
other DTH players. The pricing for all three offerings of DishTV is different. The prices
of products are fixed and taken as one-time installation charges at the time of purchase.
An overview of the pricing strategy in the marketing mix of DishTV is as discussed.
DishTV packs are priced on a prepaid subscription based model, where the user pays for
the channels he subscribes per day, per month, per 6 months or per year depending on

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his subscription plan. The subscription plans for packs are very flexible. The packs are
priced mainly on the basis of number of channels available in it, but huge discounts and
offers are given for longer duration subscriptions. Services have no common pricing
strategy. For example, while the customer pays for each movie he orders in Movie on
Demand (usage based), he pays Rs.55 per month for Miniplex (monthly rental). Other
services like multilingual are completely free of cost, meanwhile Active services are
subscription based. In addition to above, DishTV also launched differential pricing for
customers in metros, phase I and phase II cities to increase the yield management and
minimize the consumer surplus.

Dishtv Place & Distribution Strategy:

Following is the distribution strategy of DishTV:

For the product category, orders for DishTV set top box installations are taken
predominantly via three channels- online order booking, order by calling on helpline and
visiting a DishTV dealer store. The first two channels are direct from consumer to the
company, but the penetration of these channels is still not fully developed in the present
Indian context. Therefore, DishTV also maintains a pan-India dealer network to reach
the rural and internet averse customers. The distribution network for DishTV is such that
it owns the last mile subscriber. It maintains a huge network of 172,000 dealers all over
India across 8600+ towns, has over 300 sales personnel and 14 regional offices. For
buying packs, there is a recharge system similar to a mobile network recharge. The packs
are available online on DishTV’s website as well as can be bought from retailer shops.
Same goes with the value-added services like Movie on Demand, Miniplex, Active
services etc.

DishTV recharges are also available on various Mobile recharge platforms like Paytm,
mobikwik etc.

Dishtv Promotion & Advertising Strategy:

The promotional and advertising strategy in the DishTV marketing strategy is as follows:

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DishTV has got a 360 marketing strategy as a part of its advertising and marketing.
DishTV is the market leader in DTH services with a strong share market share, followed
closely by the competitor Tata Sky. Since the pricing for majority players in the segment
are similar, DishTV follows aggressive marketing to maintain edge over competitors. It
has roped in famous Indian Actor Shah Rukh Khan as its brand ambassador. Over the
past few years it has come up with various creative and interesting ad campaigns like
“Wish Karo, Dish Karo”, “Sab par Dish sawaar hai” and “Life Masala Maar ke” which
mean “Just wish and have Dish”, “Everyone is crazy about Dish” and “Life with spice”
respectively. The earlier DishTV ad campaigns were targeted at cable TV subscribers to
encourage users to have a DTH service owing to better quality of service for affordable
prices by pitching it as India’s first DTH service provider. The next set of ads focused on
the competition while the latest ad commercial focuses on the government’s recent
mandate of cable tv digitization. The protagonist of ad reminds the viewers to switch to
digital from analog cable before the deadline and ends with the tagline- “Set top box
matlab DishTV”.

People:

DishTV is a pioneer in India’s DTH service and it focuses on delivering quality via
innovation, customer delight and most importantly service delivery. Although its
offering can be categorised as mental stimulus and is a low contact service, the emphasis
on quality service delivery requires a technically advanced and highly motivated work
force. DishTV has an energetic team of employees who take immense pride in providing
excellence. The company tries to build an environment of support and fast track career
growth to attract and retain the best talent. DishTV’s employment philosophy is oriented
towards employees and their success. They inculcate the key deliverables of service into
their workforce very clearly. It’s employment philosophy also ensures that the individual
rights of employees are respected and they are treated with courtesy and dignity. To
retain talent, DishTV ensures that the employees are best suited to the job positions they
are given on the basis of their skill set. The evaluation of employees is done based on
their abilities, the job performance, skills and experience.

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Physical Evidence:

DishTV positions itself as the company of firsts and banks on the fact that it is the first
DTH service provider of the country. It keeps coming up with new technologies and
offers them for the first time in country- like Dish Flix, India’s first home video system
and Dish on wheels service. It has got numerous awards for its service delivery
excellence which it showcases it proudly on the company’s website and in promotions.
DishTV is the largest DTH service provider in Asia. It has been awarded as The Most
Trusted DTH Brand of Indian four times in a row by Brand Trust of India, Most
Innovative Service of the year and recognized for Innovation in Programming. It has also
been awarded for the Best Promotional Marketing Campaign. DishTV also explicitly
promotes the advanced infrastructure and network systems it has in place. DishTV is the
first in India to use 3 satellites for broadcasting and has coverage in every corner of the
country. It uses NSS6 satellite designed especially for DTH operations and is equipped
with Automatic Level Control which enables good broadcast service even in bad weather
conditions.

Process:

As already stated, the service provided by DishTV can be classified as mental stimulus,
so the customer is not part of the service co-creation directly. Therefore, most of the
processing takes place behind the curtain if we look at the theatre model of service. The
process of service delivery is fairly technical and is abstracted from the users. Customers
only focus on the result of service and not the whole process of it. But when it comes to
buying packs and booking for a DishTV set top box, the process matters. DishTV has a
very good online presence and widely distributed dealer network which take care of this
process and provide a seamless and comfortable buying experience to the customer.
Online recharges provide ease of use and high functionality. Order booking can be either
done online, through call centre or through the dealer network. Except buying from the
dealer, customer can do most of the purchase process sitting in the comforts of his home

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which saves a lot of non-monetary cost for the customer. Hence, this gives an overview
of DishTV marketing mix.

AMALGAMATION, MERGERS AND ACQUISITIONS :

After over a year of snag, the merger of DTH operators Dish TV India and Videocon d2h
has finally been concluded, which is set to create the largest DTH service provider in the
country with a subscriber base of about 28 million.

The merger, which was approved by the board of both the companies in November 2016,
has been going through various approval processes, including from Ministry of
Information and Broadcasting, NCLT and the Competition Commission of India.

Besides, the amalgamation also saw a temporary standstill after Dish TV in January said
it is evaluating the impact of reported insolvency proceedings initiated against certain
entities of the Videocon Group on its proposed merger with Videocon d2h.

In a stock exchange filing today, Dish TV India said it has duly filed required documents
with the Registrar of Companies, Mumbai, Maharashtra.

Accordingly, the companies have completed all the steps pursuant to the scheme post
NCLT approval, and Videocon D2H Ltd has merged with Dish TV India Ltd on March
22, 2018, which is the effective date of the scheme, it said.

Dish TV India said post the receipt of all the necessary approvals, the companies have
filed the "copy of the order dated July 27, 2017 passed by the NCLT along with the
approved scheme in Form INC--28 with the Registrar of companies, Mumbai,
Maharashtra on March, 22 2018".

"Today, Videocon D2h Ltd and Dish TV India Ltd have become one entity. This
amalgamation positions the new entity for exceptional future growth and profitability
and puts on us the responsibility to lead the DTH industry in India to the next level,"
Dish TV India CMD Jawahar Goel said.

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A meeting of the Board of Dish TV India is scheduled to be held on March 26, to
consider and initiate necessary incidental actions in relation to the amalgamation of
Videocon D2H Ltd into Dish TV India Ltd.

Dish TV has an active subscriber base of 15.5 million, while that of Videocon d2h stands
at around 12.2 million.

The Mumbai bench of the National Company Law Tribunal (NCLT) had approved the
merger in July 2017. Earlier, in May last year, the Zee Group firm had got approval from
the fair trade regulator CCI for the proposed merger.

It has already received approval from the Securities and Exchange Board of India (Sebi),
NSE and BSE.

Dish TV and Videocon D2h reported separate revenue and EBITDA numbers which at a
pro-format level added up to Rs 60,862 million and Rs 19,909 million, respectively for
FY17.

BUSINESS MODEL AND PLAN :

Exhibit 1

In the television value chain there are four different participants- Content Creators
(UTV, Balaji etc). Broadcasters (Star Plus, Zee TV, Colors etc.). Distributors (Digicable,
Hath way. Dish TV, Big TV etc.) and End Users (Consumers). What Dish TV
establishes is the direct link between broadcasters and end users unlike traditional cable
operators who used to downlink services received from broadcasters and further
distribute those services to end consumers. Due to large number of number of users
spread all across India's expansive geographical boundaries there was non urvformity in

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distribution system. No cable operator could assure of unadulterated pure clarity of over
200 channels. Dish TV whereas works on an altogether different platform. Dish TV
provides a Satellite TV installation screen that puts the subscriber in control of the
installation process. A Dish TV subscriber can change satellite transponders, and detect
the strength of their satellite signal with a satellite signal meter. Moreover, the satellite
signal meter is accompanied by a special audio sound that lets the subscriber know when
they have aligned their Satellite TV dish properly-leaving no question that the
installation has been performed correctly. Hnally, the satellite signal meter allows
subscribers to easily determine if there is a problem with their satellite signal and to
maintain the signal by removing any obstructions and retesting the signal.

Dish TV downlinks the services from broadcasters to its head end (A cable television
head end is a master facility for receiving television signals for processing and
distribution over a cable television system) and uplinks to its satellite and from that
satellite, the consumer directly gets the services with the help of dish usually fit on the
roof of the house which is connected to a set-top-box which is further connected to the
television set (Exhibit 1). Hence there is no division of services on offer and the services
get delivered digitally to the customer. Dish TV uses NSS-6 to broadcast its
programmes. NSS-6 was launched on 17 December 2002 by European-based satellite
provider, NewSkies. Dish TV hopped on to NSS-6 from an IN SAT satellite in July
2004. The change in the satellite was to increase the channel offering as NSS 6 offered
more transponder capacity. Recently Dish TV's tie up with Asia Satellite
Telecommunications Co. ltd enabled it to offer much better and more services to rts
customers.

There are several advantages over which Dish TV pitches upon to give it edge over other
modes of distribution channels. Apart from providing superior clarity viewing
experience coupled with theatre like sound. Dish TV also offers multiple add on
services. Add on services include games and award winning service like Matrimony,
Banking. Interactive News etc. Every single satellite TV program broadcast through
Dish TV services is accompanied worth a complete description of the program. With a
click of the Dish TV remote, subscribers are provided with a brief description of the
current program, the time the programs starts and ends and the date the program is being
aired.

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FUTURE PLAN :

Dish TV plans to launch innovative devices in FY20 as part of its strategy to attract
digital and tactical digital consumers.

The DTH operator noted that subscribers are consuming more and more entertainment
from multiple sources. To capitalise upon this opportunity, the company launched Dish
Smrt Stick wi-fi dongle which enables existing Dish Nxt HD+ set top boxes (STBs) to
connect with the internet and stream online content onto the subscribers’ TV set.

In the company’s annual report, Dish TV CMD Jawahar Goel noted that the consumer
interest in entertainment is at an all-time high and is continuing to grow. He also stated
that the entertainment industry evolution is primarily influenced by technology and the
viewers.

Dish TV India has launched the 2.0 version of #DishAudition and #Alaghitalent; an
endeavour to enable content creators to showcase their talent. Having opened up a world
of opportunities for young talent across the country, this latest season gives them chance
to showcase their acting, singing and dancing skills and emerge as superstars of
tomorrow.

But what makes this season different is its collaboration with the all-new OTT App
Watcho. This time around, #DishAudition & #Alaghitalent celebrates its winners by
featuring them on the Watcho App and giving them a platform to become stars. In
addition, there will be prizes and gratifications for shortlisted artists as well.

In order to participate, users need to create and upload their videos and display their
talent using #DishAudition & #Alaghitalent on their social media profiles across
platforms. In keeping with the content on the Watcho app, this month’s theme is
‘Bollywood’; giving creators a huge canvas to pick from.

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In order to increase its market share in Tamil Nadu, DTH operator Dish TV has added 30
new Tamil channels to fill in the gap in its content portfolio. With the addition of these
30 channels, Dish TV’s Tamil channel offering will increase to 70.

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