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8/8/2019 Risk Analysis and Business Continuity Planning of Zee TV
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Term Paper
Internal and Competitive analysis of Zee EntertainmentEnterprise Limited
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Table of Content
1.Introduction ............................................................................................................................. 3
2. Zees Mission ......................................................................................................................... 3
3. Company Profile..................................................................................................................... 3
3.1 ZEE is ............................................................................................................................... 3
3.2 Alliances & Partnerships .................................................................................................. 4
3.3 Zees portfolio of brands .................................................................................................. 5
4. SWOT Analysis of Zee .......................................................................................................... 6
5. Financial Performance ............................................................................................................ 7
5.1 Financial Analysis- ........................................................................................................... 8
5.2 Ratio Analysis (for FY 2009)-.......................................................................................... 9
6. Marketing Strategies- ............................................................................................................. 9
6.1 5 Cs of marketing......................................................................................................... 10
6.2 Ansoffs matrix............................................................................................................... 10
6.3 Segmentation .................................................................................................................. 11
6.4 Product Life cycle .......................................................................................................... 11
7. Competitive Analysis- .......................................................................................................... 12
7.1 Zees major brand ZEE TV Market share for the year 2009 ...................................... 12
7.2 Advertising share year 2009 ........................................................................................... 12
7.4 Market wise performance of top 6 general entertainment channels-2009 ..................... 13
7.4 Customer Loyalty ........................................................................................................... 13
7.5 Perceptual Mapping ........................................................................................................ 14
7. Risk Analysis ..................................................................................................................... 147.1 Porters Five Forces Model: Analyzing the Television Broadcasting Industry with
reference to Zee......................................................................................................................... 14
8.Conclusion ............................................................................................................................. 16
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Term Paper On Zee Entertainment Enterprise Limited
1.Introduction
The Zee Entertainment Enterprises Ltd. (NSE: ZEEL) is the largest media and entertainmentcompany in India and is a subsidiary of Finnish media corporation Turner Group. The company's
Chairman, Managing Director and Founder is Subhash Chandra and its Chief Executive Officer
is Puneet Goenka
Zee Entertainment Enterprises Limited is one of Indias leading television, media andentertainment companies. It is amongst the largest producers and aggregators of Hindi
programming in the world, with an extensive library housing over 80,000 hours of television
content. With rights to more than 3,000 movie titles from foremost studios and of iconic filmstars, Zee houses the worlds largest Hindi film library.
Through its strong presence worldwide, Zee entertains over 500 million viewers across 167
countries. Pioneer of television entertainment industry in India, Zees well known brands includeZee TV, Zee Cinema, Zee Premier, Zee Action, Zee Classic, Ten Sports, Zee Sports, Zee Cafe,Zee Studio, Zee Trendz, Zee Jagran, Zing, ETC Music and ETC Punjabi. The company also has
a strong offering in the regional language domain with channels such as Zee Marathi, Zee
Bangla, Zee Telugu, Zee Kannada, Zee Talkies and Zee Cinema.
The Zee stable owns an integrated range of businesses. All of these in singularity adhere to the
content-to-consumer value chain model of media and entertainment business. Zee is a pioneer inevery aspect of content aggregation and distribution through traditional media like satellite and
cable and new media like the internet, in India. Mission and Vision of Zee group
2. Zees MissionAs a Corporation, we will be profitable, productive, creative, trendsetting and financially sound
with care and concern for all our viewers and stakeholders namely advertisers, cable operators,
producers and production houses.
3. Company Profile
3.1 ZEE is
The largest producer and aggregator of Hindi programming in the world, with more than 80,000
hours of original programming in its archives. One of the most popular entertainment brands in India; was ranked 9th most popular brandwithin a decade of its launch.
One of the largest Indian programming content distributors with an estimated reach of more
than 500 million viewers in over 167 countries including USA, Canada, Europe, Africa, theMiddle East, South East Asia, Australia and New Zealand.
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3.2 Alliances & Partnerships
1) Zee Turner
A 74:26 joint venture between Zee and Turner International to distribute the Zee Turner pay
channel bouquet in India and neighboring countries. A 74:26 joint venture between Zee and
Turner International to distribute the Zee Turner pay channel bouquet.
2) Ten Sports
Ten Sports and Zee Sports combine, have give the viewers a lot of action in the past years and
have become a force to reckon with in the sports entertainment business. Popular events like
WWE, UEFA Champions and League Football have made inroads into the Indian market. Tennisfans enjoy the grand slams with a series of ATP 500 and a multitude of other events. For indoor
sports fan, the channel has showcased the world poker tour and darting events. Cricket being
nothing less than a religion in India, Ten Sports has acquired the rights to of the ten cricketboards, giving it over 100 days of cricket a year. This is the maximum number of days of cricket
across sports channels. The right to these 5 boards; Sri Lanka, Pakistan, South Africa, West Indie
and Zimbabwe are with Ten Sports for the next 4 years.
3)ETC Network
ETC Networks Limited (ETC.BO) is a media company listed on the Bombay stock exchange
operating two television channels, ETC Music and ETC Punjabi in India. Zee acquired a 51%
stake in June 2002. Zee acquired a 51% stake in June.
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3.3 Zees portfolio of brands
Zee TV Hindi entertainment channel
Zee Cinema Hindi movie channel
Zee News Hindi news channel
Zee Muzic Music channelZee Caf English channel targeted at the urban and young audiences
Zee Studio English movie channel
Zee Marathi Marathi language channelZee Punjabi Punjabi language entertainment channel
Zee Bangla Bengali language channel
Zee Gujarati Gujarati language channelZee Trendz 24-hour premium fashion and style channel
Siticable Largest cable network in India with a reach of 7 million homes
Zed Learning solutions network of India
ZICA Leading animation studio in India
etc Music channeletc Punjabi Punjabi language channel
Kidzee Leader in pre-primary segment having 225 + centres across 100 cities in
India, Middle East, Singapore and IndonesiaZee Action 24-hour Hindi action movie channel
Zee Smile A light entertainment channel
Zee Classic A movie channel for black and white classic moviesZee Premiere A 24-hour movie channel featuring the latest Hindi movies
Zee Telugu A Telugu language channel
Zee Business Business news channel
Zee Sports Sports channel
Zee Jagran Channel for spiritual programmesZee Arabiya Channel in the Middle East
ZIMA Media education in the field of Direction, Acting, Writing
3. 4 Zees Strategies
* Inspire creativity
* Continue to run our business as best in class, with viewer satisfaction as the ultimate goal.* Enhance our leadership position in the genres we compete.
* Continuous innovation to stay ahead of the curve and seize growth opportunities
* Invest in the business in a focused, disciplined way and achieve superior financialperformance.
* To use the strong cash flows of our business to improve returns to shareholders
* Reaffirm our commitment to highest level of integrity and professionalism throughout our
business.
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4. SWOT Analysis of Zee
* Leading broadcaster in India and overseasfor South East Asian content* First mover advantage across genres* Widest offering of channels by a single
broadcaster in the country* Across genres, our channels are either leadersor strong contenders for the leadership Position* Diversified revenue streams: advertising and
subscription* Diversified customer base:across167 countries
* Operating the largest pay TV distributionplatform in the country, Zee Turner
* Large network gives tremendous leverage withadvertisers* Cost conscious approach towards business* Affiliate companies have leading presence
across the media value chain cable anddistribution, direct-to-home satellite services,
digital media amongst others.
Increased competition: The Hindi General
Entertainment space will become verycompetitive with the entry of the TV 18group, UTV, NDTV, INX Media.
Slow rollout of CAS: The government maydelay the rollout of CAS. The consumers mayshow some hesitation in opting for paid
channels and many viewers may opt only forFTA channels. Both these factors may cause adent in the subscription revenues of Zee TV
Lower advertisement rates in the IPL week .
The I & B ministry plans to setup a separate
regulator to monitor content on TV channels.
Threat from Google TV /IPTV to companys
DTH segment.
From Film Industry & Sports events.
Benefit from the robust growth of the
Entertainment and Media sector: The futureof the entertainment industry will be
decided on the interplay of a number offactors like consumerism, advertising spend,content, pricing, technology and regulation.
The television industry revenues areexpected to grow from the present size of Rs
191 bn to Rs 519 bn by 2011
Digitization (rollout of CAS and DTH)
means that cable penetration will increasefrom 70 m homes in 2006 to around 113 mhomes by 2011.
Increased market share of General
entertainment channels in comparison toprevious year.
Zees main brand Zee TV Lagging behind Star
Plus & Colors: Its flagship channel 'Zee TV' isthe number three channel lagging behind StarPlus and colors.
Problem of attrition: The attrition rate in thecompany has increased. NDTV, UTV, INXMedia, TV 18- Viacom combine have entered
the Hindi General Entertainment space. AshviniYardi, Senior Vice President (Programming),resigned to join competitor Viacom V TV 18
combine.Weak on programme packaging
Me too approach
Lack of hugely popular Non-fiction realty
shows.
Zee Cinema is not capable to show newreleases Excessive diversification into various
other genres like sports, regional channels may
loosen focus on flagship channel.
Favorable
Unfavorable
Strengths Weaknesses
ThreatsOpportunities
Internal
External
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5. Financial Performance
Zee Entertainment Enterprises Limited (ZEEL) is an integrated media and entertainment
company engaged primarily in broadcasting and content development, production and its
delivery via satellite. The Company has 15 channels that serve an array of content choices inIndia. The Company operates in three segments: Broadcasting and content (B & C), which
principally consists of developing, producing and procuring television programming and film
content and delivering via satellites, thereby earning revenues by way of advertisement and
subscription revenues and syndication; Education, which principally consists of deliveringlearning solutions and training to various segments of the society, and Film Production, which
principally consists of production and distribution of films. Effective March 29, 2010, Zee News
Ltd. demerged its Regional General Entertainment Channel Business Undertaking and
transferred its operation to Zee Entertainment Enterprises Limited.
Ticker: 505537 Country: INDIA
Exchanges: BOM Major Industry: Recreation
Sub Industry: Radio & T.V. Broadcasts
2010 Sales21,997,825,000
(Year Ending Jan 2011).
Employees: 1,400
Currency: Indian Rupees Market Cap: 139,140,149,097
Fiscal Yr Ends: March Shares Outstanding: 977,794,442
Share Type: Ordinary Closely Held Shares: 360,210,736
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5.1 Financial Analysis-
Zee TV has gone through restructuring and has bought six regional entertainment channels from
Zee News. This helped the company promote its channel more aggressively and improve themargins. During 2009-10, the regional entertainment channels generated a revenue of Rs 404crore and an EBITDA of Rs 126 crore. This translates to an EBITDA margin of 31.2%, higher
than that of standalone Zee TV. Analysts say the acquisition will enhance the earnings of the
company.
Another aspect that worked in favour of ZEE is the improving ad revenue and growing
viewership. Despite intense competition from sports programmes and other Hindi networks, Zee
TV continues to dominate the Hindi general entertainment space with a share of 20%. It hasmaintained its dominance on the weekly rating charts with an average of 19 shows in the top 100
programmes. It also kept programming and operating costs under control. as a percentage of
revenue, these costs came down to 40.1% in the January-March period from 43.4% in theDecember quarter
Soaring Stock Prices in last one year
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5.2 Ratio Analysis (for FY 2009)-
Key Stats And Current Ratios
6. Marketing Strategies-
Joined hands with rajshri pictures for distribution of films in domestic market.
Cable as well as satellite distribution
Developing region centric ads an innovative strategy
The life-size microphones and College Ka Singing Superstar initiatives were of a
comprehensive 360* campaign.
Channel has created Sa Re Ga Ma Pa Music Zones at select bus stops across the city.The entire bus stop will have Sa Re Ga Ma Pa branding, lights along with a music setup
replete with speakers and associated paraphernalia.
Zee TV launches Indias First Interactive Marketing Campaign in the Hindi GECspace- the channel has decided to present the audience with Indias first-of-its kind
interactive marketing experience in the Hindi GEC space - A campaign that includesand involves the audience in shaping the show at every stage. The first leg of this
campaign calls out to viewers to participate in the naming of the new show.
RATIO COMPANY INDUSTRY
Earnings per Share 10.37 15.51
Dividends yield 1.03 1.04
Payoutratio 22.26 14.29
P/E ratio 27 18.91
Net Profit margin 16.38 -2.92
Return on Investments 11.38 6.05
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Zee TVs endeavor to strengthen its online presence through interactive applications onFacebook and Twitter or the Dance India Dance channel on Youtube that went on to
become the Most viewed channel on YouTube for a sustained period of time, no doubt
Zee TVs clutter-breaking marketing innovations have invariably grabbed eye-balls
6.1 5 Cs of marketing
Collaborators: With ETC and Turner group
Competitors: Star, Colors, SET India
Company: Products: Entertainment, sports , music, movies, sports, Life style channels, DTH,
Distribution , Education sector etc.
Customers: Indian and abroad viewers
Context: Light entertainment and sports.
6.2 Ansoffs matrix
Zee
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6.3 Segmentation
Segmentation is based upon observable characteristics of consumers. Major segmentation
variables used-Geographic. Behavior, psychographic, demographic
6.4 Product Life cycle
ZEE
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7. Competitive Analysis-
7.1 Zees major brand ZEE TV Market share for the year 2009
7.2 Advertising share year 2009
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7.4 Market wise performance of top 6 general entertainment channels-2009
7.4 Customer Loyalty
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7.5 Perceptual Mapping
7. Risk Analysis
7.1 Porters Five Forces Model: Analyzing the Television Broadcasting Industry with
reference to Zee
Bindaas
Colors
Star, ZEE,
NDTVImagine,
Sony
DD
National
High Innovative Content
nsumer acceptance Low
Consumer acceptance high
Low Innovative Content
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Bargaining power of Buyers
Strength of ForceHigh
Buyers (end users as well as advertisers) do not face significant switching costs and are
extremely price sensitive
Viewers' tastes frequently change, providing little loyalty to any particular network Advertising buyers dictate television programming choices
The customers are fragmented, so their bargaining power is low
ZEE itself is a leading DTH operator with Dish TV hence can reach directly to its
buyers(viewers) without bargaining of any intermediary( Cable operators)
But The rollout of CAS and DTH services will enable the consumer to choose the
channels that he wishes to view increasing his bargaining power.
Bargaining Power of the Suppliers
Strength of Force-- Low- Medium
Since most suppliers to Broadcasters have either been acquired/ have a tie-up with the
broadcaster, the bargaining power of suppliers is low. For ex- Viacom has acquired
Paramount.
However ZEE TV commissioned the UTV group for producing content of around 250
hours once it became popular.
However, Independent content providers pose a major challenge to online revenue model
The supplying industry comprises a large number of small operators
The service is undifferentiated and can be replaces by substitutes
There is huge competition among the content providers to Channel Like Zee. So suppliers
have limited scope of bargaining.
Threat of New Entrants
Strength of ForceHigh
Higher the competition in an industry, the easier it is for other companies to enter this
industry. In such a situation, new entrants could change major determinants of the marketenvironment (e.g. market shares, prices, customer loyalty) for Zee at any time. There is
always a latent pressure for reaction and adjustment for Zee TV in this industry. The threat of
new entries will depend on the extent to which there are barriers to entry. These are typically
High start-up capital is a big de motivator
New entrants have difficulty accessing distribution channels.
New entrant has some problems finding skilled employees, materials, and suppliers.
Serviceable used equipment is expensive.
Long-lasting economies of learning and scale also de motivate the potential new entrant
Economies of scale (minimum size requirements for profitable operations)
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Brand loyalty of customers
Scarcity of important resources, e.g. qualified expert staff
Access to raw materials is controlled by existing players
Distribution channels are controlled by existing players
Threat of Substitutes
Strength of ForceMedium
A threat from substitutes exists if there are alternative products with lower prices of better
performance parameters for the same purpose. They could potentially attract a significant
proportion of market volume and hence reduce the potential sales volume for existing players.
This category also relates to complementary products. Similarly to the threat of new entrants,
the threat of substitutes is determined by factors like
The relative price for performance of substitutes
Customers incur no incur switching costs.
Also, adequate substitutes are available.
Possibly, One roadcasting medium substitute for the other(movies as a replacement
for TV) Pirated content is a decent(and free substitute).
Other free time activities be could be substitutes (concerts, games, gambling)
Internet TV could be emerged as a big substitute in near future.
8.Conclusion
Zee TV is back at #3 with 176 GRPs. According to the data released by TAM, StarPlus remained the #1 channel with 336 GRPs, followed by Colors at #2 with 258
GRPs. Zee TV and Sony both gathered 176 GRPs for the week. Impact of K Cwearing off. Sony had displaced Zee TV from the #3 slot following the launch of
Season 4 of the internationally successful game show Who Wants to be a Millionaire
on 11 October 2010. Even so, four weeks after the launch of the show, the GRP(viewership) ratings of the channel have started slipping.
Performance of fiction shows crucial for loyal eyeballs. Fiction soaps adjoining
celebrity-hosted shows need to get sampled and build a loyal viewership base for ageneral entertainment channel (GEC) to have sustained GRP momentum.
Competition remains intense, but how much would it hurt? We remain mindful of thecompetitive intensity in the broadcasting space. Even so, our 15% advertising revenue
growth forecast for the company in FY12 adequately captures the fragmentation of
the ad revenue pie.