Case Assignment - 3 Topics - Must Zee TV Batch - PGCBM 28 Group - 1 Candidate name - Sumanta Bhattacharya (2231455) Akshay Nigam (2231342) Anil C Dhyani (2231430)
Must Zee TV Zee TV was well positioned in India in 1999 with massive success in its program. 8 out of top 10 TRP programme was from Zee TV. This clearly shows the strength & acceptibility level of Zee TV . If we analize the reason for success for Zee, we could see the following reason. Amongst Private cmpanies, Zee was the first who emerged to satisfy the desire of quality cable TV program. Which means that they got an advantage of early entrant in this ector in India. Another success factor was the content of Programm by Zee. Program Nix varied according to the time of day & with good program Mix, Zee could able to extract mileage over others. Tie-up with independent content producers like SAB TV who orginally establshed to to produce program for Doordarshan. There was shift towards (during last phase of 90) TV for advertising to catch larger mass of the population & Zee could able to grab most of them as 8 out of top10 TRP rated program was from Zee. This helped Zee to strengthen their financial position which we could see from their balance sheet. Inspite of of its Remarkable success, Uncertentatities looms & they started facing very stiff competition from Star TV (The Pan Asian Subsidiary of News Corp) & sony international Television. Parent company of both these organization was having very strong finincial situation & they started paying high value towards acquiring right of Movies & Cricket telcast which started becoming very popular at that time. Apart from these two major players, various other private player also became active focussing on well defined demographic segments. There were unresolved concern with cable operators on contract enforcement issues. Analysts & Media observers were also raising concern about lack of transperancy in Zee’s increasingly complex organizational structure. On al of above, regulatory & political uncertainity further clouded the picture & threatened to put investment throughout the value chain on hold. Under this circumstances, Zee TV needs to take smart move to ahead of competition. If we consider Macro Economy, Government rules & regulation will affect the busines largly and implementing legislation law like licensing for cable industry seems to be impossible considering the political pressure on government. Uplinking from India would be the factor which is going to happen & Zee being Indian company should invest in implementing the same which will also ensure restructing in the organization and thereby it will bring clarity and transpernacy in the mind of “ analysts and media observers”. Zee can promote this activity as an ethical/valued activity to get some additional space in viewers mind.
Zee should also look into the unresolved issues with Cable operators to resolve their concern & launch new incentivize scheme to spred the reach of cable operator. With the spreaded reach, Zee should launch new channels in different languages to increase the number of viewers. Rather than spending money & fighiting with International giants who is having strong financial muscle, Zee should work on to increase their acceptibility level at cable operators & they should invest in developing local channels like bengali, Odhisa, Marathi, Tamil, Telegu, Malayalam,Kannad etc alongwith one English Channel. Zee is already having large content base which is already had highTRP when launched in Hindi & those can be relaunched in other local languages. Zee should also look into the Program Mix & should include other entaining shows like Music, Reality show etc to catch young generation. Considering long term perspective, Zee should look into perspective of having tie-up with DTH provider as DTH is definitely going to come in coimng days as govt is not having any authentic data about viewers no & they are loosing heavily on service tax and all the channels are also loosing money as they also don’t have the exact no of viewers. Considering the same, DTH is definitely going to come due internal & external pressure.