1) Potential of the sector

 SHARE MARKET
The Indian M&E industry is projected to grow at a pace of 14% over the period 2016-
2021, outshining the global average of 4.2% CAGR, with advertising revenue expected to
increase at a compounded Annual Growth Rate (CAGR) of 15.3% during the same
period. Television is expected to grow at a CAGR of 14.7% over the next five years as
both advertisement and subscription revenues are projected to exhibit strong growth at
14.4% and 14.8% respectively. Print is projected to continue its growth at 7.3%, largely
on the back of continued readership growth in vernacular markets and advertisements'
confidence in the medium, tier II and tier III cities. Films segment is expected to bounce
back and is forecasted to grow at CAGR of7.7% as the revenue streams broaden. Digital
media overtook filmed entertainment in 2019 to become the third-largest segment of the
M&E sector. Animation and VFX is expected to grow at a CAGR of 20.4% over 2016-
2021.OTT content investments in India touched $700 million in 2020.
 INDUSTRY ATTRACTIVENESS
Entertainment media is that it gives people amusement. Through consuming content
for the purposes of entertainment, a person gets to unwind from a stressful day of
work or school. Furthermore, entertainment media brings people together. For
example, families can watch a television show together and friends can decide to meet
up and go for a movie.

02)
*MAJOR PLAYERS
1. STAR INDIA PVT LTD
Vision – ‘We want to create a brand that breaks rule, a brand that look, speak sounds
and behave like no other in TV space.
Mission- the objective for the channels team is to work towards leadership in each of
these slots. The channels decision not to prolong storylines beyond their natural
course.
Goals – 1) To reach millions of household across the countries
2) To improve story and content quality, so that consumption of content
Will increase
3) To generate higher TRP’S for the channel

Objective- 1) to put the customer first

2) Make every employee a brand ambassador

3) Formalizing market processes and measuring results.

 2. BENNETT, Coleman and Co Ltd –
Mission: Vision - "We are a global company with cosmic consciousness served from
India, aggregating audiences to network media brands transiting through print."
Objective- "Create and build brands with differentiated content to capture relevant
audiences and market value of these to advertisers to help them sell and strengthen
their brands."
Goals- A simple guiding thought–treat newspaper not as a product but as a Brand,
whose prime objective is to serve its readers & advertisers.

3. Yash Raj Films Studios

Vision: The vision for the future is to produce more films every year under the YRF
production banner while progressively, as YRF Studios, backing additional films to
ensure a sizeable number of releases every year – each belonging to a different genre,
each with the YRF stamp of quality and each vying with the other to be the top notch
release of the year.
4. Saregama India Ltd
Vision/Mission- Sa Re Ga Ma Music Academy recognizes the requirements of being
a part of music industry and its functions, thus provides a broad learning environment
for students, which connects them directly with the industry.

03)

Company- Netflix Inc.

Logo
Timeline

Netflix was founded in 1997 by Hastings and Randolph as a way to offer movie rentals over
the internet. This eventually led to Netflix.com in 1998, which focused on DVD rentals and
sales. The next year the company added a subscription service, allowing the customer
unlimited DVD rentals at a monthly rate. Things began to mold in 2000 when Netflix offered
recommendations systems, which used member’s ratings to predict choices.

 Going public in 2002, Netflix grew slowly; hitting 4.2 million members by 2005.
Worth less than $2 a share in the beginning, the stock didn't begin to truly take off
until around 2009, when it had made its way to around $8 a share. Of course, the rest
is stock market history, as the shares have climbed astronomically; pushing toward
$400 at one point.
 The big tipping point was most definitely the introduction of streaming in 2007.
Creating a place where members could watch content instantly online basically
changed the game. The reverberations from this move are still being felt today, as
more programming is geared around the ability to watch it as you want to, rather than
catching it at a specific time when it airs.
 In 2009 the company began partnering with electronics companies to get Netflix on
smart TVs and gaming consoles. This process continued over the next few years, and
the company gained access to Europe in 2012.
 In 2013, everything changed. Netflix introduced its own original programming. Think
"House of Cards" and "Orange is the New Black."
 By 2016, Netflix was accessible worldwide, and the company has continued to create
more original content, while pressing to grow its membership.

SWOT ANALYSIS

Strengths

1. World's Leading Video Streaming Network with presence over 190 Countries
2. Increasing paid membership aiding business growth

3. Strong focus on innovation in technology and development

4. Big brand name with strong brand associations

5. Producing Local Content, Distributing Globally over its own Global Content Delivery
network known as "Open Connect".

Weaknesses

1. Netflix's suppliers of content are becoming its competitors

2. Dependency of user subscribing to Netflix services on release of famous TV shows 4. Cost

paid for licensing new content far outruns streaming content costs

3. Netflix free cash flow has decreased

5. Investment in original content leads to shrinking of content library

Opportunities

1. The world is shifting most of the content to the World Wide Web or the internet, which
spells huge opportunity for Netflix

2. Niche segments like documentaries and cinematic movies can be well tapped

3. Huge potential for earning revenue from advertisements

4. International broadband users are increasing

5. Tapping untapped territories where English has the benefit of being widely used as the

Second language.

Threats

1. Increasing expenses for domestic as well as international business

2. Slump in the domestic DVD revenue

3. Escalating Technological, Development and Administrative expenses

4. Dependency of revenue from International business on fluctuating exchange rates

5. Price rise in subscription packs could lead to switching of customers to the competitors.

PESTEL ANALYSIS
Political

1. US have restrictions on countries like Crimea, North Korea and Syria thus leaving a
potential market untapped.

2. Netflix is still not present in the most populated country i.e. China due to permission
issues from Chinese Government.

3. Need to work on content restrictions so that same films and TV shows are available in
every country.

Economical

1. Fluctuating exchange rate can negatively impact revenues

2. Increase in personnel related cost due to increase in workforce. Apart from this third party
expenses, general and administrative expenses and facility related cost hikes contributed to
overall rise in expenditure.

3. Domestic streaming cost, domestic marketing expenses and other costs also increased
which need to be controlled

4. Cash outflow continue to increase thus less liquidity.

Social

1. Netflix has big brand reputation and prides itself in complying to ethical business

Standards and morality

2. Netflix is known for giving away student scholarships and charities to aid financially

Challenged students

3. Reed Hastings (the CEO) has set an example by giving a large sum of his personal funds to

The Giving Pledge Charity

Technological

1. Improvement in compression techniques will improve overall quality of streaming with

Relatively less data

2. The focus is not only on video streaming quality but also on improving experience in
convenient payment and delivery processes 3. The New Thumbs Up/Down Rating System
will help in improving personalization, making the front screen on Netflix even more relevant
to the users.

Legal
1. Need to fight battles against Geoblocks and copyright infringements

2. Video piracy is the reason of huge loss to the streaming and cinema industry thus
punishments to the offenders should be severe.

3. streaming on multiple devices should be checked as users are sharing their credentials to
reduce cable bills.

Environmental

1. Using wind power to offset its energy for cloud storage is a new initiative to reduce its

Carbon footprints.

Key strategies

1) Develop high speed internet service to its customers

2) Reduce cost content costs by producing their own content
3) Expand globally to take advantage of a whole new market
4) Expand its offering of quality television series.

BIBLIOGRAPHY

1) https://www.moneycontrol.com/stocks/marketinfo/marketcap/bse/media-
entertainment.html
2) https://www.ibef.org/industry/media-entertainment-india/showcase
3) https://www.statista.com/statistics/302585/net-sales-of-leading-indian-media-and-
entertainment-companies/
4) https://www.thestreet.com/technology/history-of-netflix-15091518
5) https://www.vault.com/industries-professions/industries/media-and-entertainment