GENERAL

MANAGEMENT
REPORT

ON

“Media and
entertainment
industry”

BY
Shubham Rajesh
Katyari

ROLL NO 84
Masters in Management Studies
2022-2024

FACULTY MENTOR

DR. PREMA

MAHALE

A report submitted in partial fulfilment of the requirements of 2

year of MMS Program of Vivekananda Education Society Institute
of Management Studies and Research, Mumbai.
 CERTIFICATE

This is to certify that project titled “MEDIA AND ENTERTAINMENT INDUSTRY”

is successfully completed by MR. SHUBHAM RAJESH KATYARI during the IV Semester,
in partial fulfilment of the Master’s Degree in Management studies recognized by the University
of Mumbai for the academic year 2022-2024 through Vivekanand Education Society
Institute of Management Studies and Research’, Chembur, Mumbai. This project work is
original and not submitted earlier for the award of any degree/diploma or associateship of any
other University/Institution.

Guide:
Dr. Prema
Mahale
VESIM
Date:
 DECLARAT ION

I Shubham Rajesh Katyari, hereby declare that the work presented in this project
entitled “media and entertainment Industry” is an original piece of work carried out by me
under the expert guidance of Dr. Prema Mahale. The information submitted is true and
original to the best of my knowledge.

Signature of Candidate

Shubham katyari
Roll No. 84
MMS- Finance
 ACKNOWLEDGEMENT

I wish to express my appreciation to the various persons that have directly or indirectly
helped me in completing my project.

My sincere thanks to Dr. Prema Mahale for extending all kinds of help, facilities,
resources and guidance for carrying out and successfully completing this project.

I am also thankful to VIVEKANAND EDUCATION SOCIETY INSTITUTE OF

MANAGEMENT STUDIES AND RESEARCH for giving me an opportunity to do such an
interesting project in General Management on entertainment Industry without which it may
have been impossible for me to pursue such interests.
 Table of content

Sr. no. Topic Page Nos.

1 Executive Summary 1

2 Industry Analysis 2

2.1 Customer Profile 8

2.2 Supplier Profile 11

2.3 Competitor’s Profile 12

2.4 Industry Financial 15

2.5 Challenges faced by the Industry 20

2.6 Government Regulation 22

3 About the Company 24

3.1 Genesis of the company, Vision and Mission of the company 25

3.2 Products and Services 27

3.3 Position in Industry 30

3.4 Stakeholder's Details 31

3.5 Company's Financials 32

3.6 Locational and operational details 35

3.7 Challenges faced by the Company 37

3.8 SWOT Analysis 39

4 References 41
 1. Executive Summary

The media and entertainment sector, probably more than any other, is struggling to
handle both the ongoing cyclical changes brought on by the new economic climate and
the cyclical changes that have already occurred. The transition to digital channels and
associated devices has already had a significant influence on structural changes. In fact,
linked gadgets may have had an even greater influence on the sector than the prior
economic considerations. It should come as no surprise that the majority of CEOs in the
media and entertainment industry told they feel unprepared to deal with this vastly
changed reality. During the next five years, 78 percent of respondents expect the degree
of complexity to increase considerably, but just 53 percent think they are prepared to
handle it properly.

Media and entertainment CEOs are now catching up with their counterparts in other
industries for the first time since we started the CEO study in making contact with the
customer. Compared to 88 percent of the whole sample, 80 percent of M&E CEOs rank
"becoming connected" to better understand, anticipate, and provide clients with what
they truly want as their top priority. CEOs in the media and entertainment industry are
also more aggressive in finding new or alternative methods to connect with their
audience.

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 2. Industry Analysis
The media and entertainment sector generates over $2 trillion in revenue globally,
making it a massive consumer POWERHOUSE. The media and entertainment businesses
in the United States account for more than a third of the industry's revenue. Despite the
fact that company is thriving and diversifying into new areas, there are several red flags
to watch out for:-

• Overview of the Media and Entertainment Industry

According to the International Trade Administration (ITA), a U.S. government body,

the media and entertainment (M&E) sectors cover a wide range of activities that
produced $717 billion in sales in the country in 2018 and are expected to reach $825
billion in 2023.The following business sectors are examples of the entertainment
industry:

The film business earned over $110 billion in sales in 2019. Movies, television series,
and video creation make up the majority of this industry's activities.The music industry
encompasses recorded music, live performances, and tours. It also includes a broad
range of transmission methods, with digital music quickly replacing older formats like
tapes and DVDs. In 2019, total revenue was estimated to be over $22 billion, and it is
anticipated to rise further Publishing a book: Hardcopy and digital books also constitute
a rapidly evolving economic landscape, with a $38 billion market in 2018. Popular
consumer books command the largest market share, followed by books for professionals
and academics.play video games In 2019, the fast expanding M&E business generated
$26 billion in sales.

• Video Streaming as a Trend

On-demand video services like Netflix, which formerly controlled the market, are
referred to as streaming. But, the rivalry from behemoths like Amazon Prime, Apple TV,
YouTube, and Disney, as well as from applications and services from the likes of Roku,
Discover, and many more, has made it questionable as to who will eventually emerge as
the market leader. Deloitte believes that in the next years, this industry will continue to
change due to mergers, acquisitions, and even a few corporate bankruptcies.

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• The Emergence, Perhaps, of Virtual Reality
Systems for virtual reality and augmented reality (VR/AR) haven't yet met analysts'
forecasts, but they could be ready to take off in the coming years. Across the world,
billions of devices are running VR/AR applications, and some of them, like Pokemon
Go, have gained widespread consumer adoption. The usage of VR and AR in
educational contexts is growing.

• Three Issues of Concern

1. Consumer anxiety over data privacy waxes and wanes over time, yet every privacy
breach brings it back to the fore and intensifies calls for action. Media companies
have only had a mediocre track record in this area thus far, and they will likely need
to do more in the years to come.

2. Antitrust worries Major players in M&E include the biggest tech firms like Google
and Amazon. Authorities in the United States and other countries are increasingly
requesting that parts of these large corporations be divided into more compact
organisations

3. The COVID-19 pandemic's residual effects: The industry was severely disrupted by
the outbreak, which mostly affected the movie theatre sector and started in earnest
in 2020. The pandemic's conclusion won't provide instant relief to the sector
because so many consumer behaviours have changed—possibly permanently—and
because companies that have shut their doors may find it difficult to reopen.

PESTELANALYSIS
It is a marketing tool, to analyse the macro factors which enables or drives growth. It
analyses factors like Political, Economic, Socio-cultural, Technological, Environmental
and Legal that an industry or a company has no control over. Each of these factors are
then analysed and later decided whether it drives the growth or curtails it. It is important
to understand the macro factors and its influence on a particular industry.

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 political

Legal economic

Environmental social

technological

Political Factors

For the entertainment business, political stability is crucial. As it is one of the main
sources of income for many nations, including India. Because tax laws are primarily
applied to large-scale productions, celebrity or sponsor stage events, festivals, etc., they
have a significant influence on the business. The entertainment sector encompasses more
than just television and movie productions; it also covers theme parks, live theatre, horse
racing, exhibits, etc. As a result, the government is crucial in this. The government will
choose which entertainment venues to provide to the general public and what those
facilities' costs and levies will be. The political issues that have a stronger impact on this
business are things like trade restrictions, intellectual property protection, taxes, and
environmental protection

Economic Factors

In the entertainment sector, this is extremely important. Inflation, employment rates,

income distribution, GDP growth, demography, and other economic factors all have a
significant influence on the entertainment industry's revenue. Because they have more
money to spend, those who have more discretionary income frequently spend more on
entertainment. Price sensitivity is common in poorer nations, as people choose to spend
less on entertainment. Although, India has one of the strongest cinema and theatre
industries in the world, but despite having a sizable young population, it still needs to
expand more in the children's field.

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Socio-cultural Factor

The audience is crucial to the entertainment sector since most people use social
media or watch television even at work. They like playing video games, seeing
other influencers' lives, and watching dramas. Our social culture is being shaped
in some way by the entertainment business. For instance, documenting the daily
routine on Snapchat is essential to keep followers from switching to other
influencers' material. Subconsciously, we strive to emulate the behaviours we
see in plays in real life. Social media and television are required to spread any
awareness. The entertainment business, either directly or indirectly, is dictating
our culture.

Technological Factor

The entertainment sector and technology go hand in hand. Our media sector is
controlled by technology, from grayscale television to vibrant images. The goods, cost
structures, and distribution have all been redefined. The increased usage of digital
media has compelled businesses all over the world to increase their investments in
technology and integrate it into their fundamental business strategy. Future content
makers will be changed by the growing usage of technology since it will make high
internet access necessary and link more people than ever before.

Environmental Factors

The entertainment sector has had some impact on the environment. As we just covered,
the entertainment sector encompasses a wide range of leisure pursuits, including media,
amusement parks, and other amusements that can have a negative impact on the
environment. People will use various modes of transportation to go to the park, which
contributes significantly to pollution. Yet, the media is employed to spread the word and
encourage people to safeguard the environment as much as they can.

Legal Factors

The entertainment sector is subject to severe rules and restrictions. To protect

their material, businesses have the power to purchase patents and copyrights,
and violating any of these might result in heavy fines. Also, tax laws are
exceedingly tight. Everything shall proceed in accordance with the contract and
agreement.
Every applicant will be hired in accordance with the contract. Every economy
has a legal organisation to defend its domestic entertainment sector.

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 2.1 Customer Profile
\Whether it is due to the expanding #MeToo movement, controversies around
casting choices, or discussion surrounding internet portrayals of difficult themes, the
entertainment business has never been more scrutinised.2020 should be an exciting
year with high-caliber product releases and industry developments that reflect the
times we live in and the high expectations of the public. Also, the internet will be
alerted if any material or behaviour deviates from these norms.

Source brandwtach

We looked at the cord-cutting trend, which is defined as "the practise of cancelling or

forgoing a pay television subscription or landline phone connection in favour of an
alternate Internet-based or cellular service," at the beginning of 2019.Due to rising
costs, it appears that more and more Americans are seeking for non-traditional
entertainment options.This is consistent with our Social Index, which revealed that
streaming services ranked first in Q3 2019. It also fits with what we saw before, which
is that Americans who responded to the study valued accessibility over quality when it
came to entertainment.It's conceivable that in 2020, more individuals will migrate to
alternative forms of entertainment as established sources struggle to meet their needs.

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 We were interested to learn what consumers appreciated from an entertainment brand
when we looked at results to our extensive consumer trends study this year.Generally
speaking, we discovered that price came in second place to quality.But when you divide
things up by region, things become more complicated.Comparatively to respondents in
other nations, US respondents were most concerned with "Affordability" (and they
seemed to care a lot more about affordability than quality when it comes to
entertainment).Just 5.8% of people in Spain and 4.1% of people in Mexico chose
affordability as the most crucial characteristic that an entertainment company might
possess, indicating that both countries strongly prefer quality to affordability.hence,
perspectives on how well

Entertainment is known for its ability to adapt to and reflect

quickly changing consumer tastes. Add widespread political and
technological change to the mix, and you could say the
entertainment industry is one that’s facing more disruption than
most.
It’s not just the content itself that needs to meet shifting
expectations – entertainment providers must also battle with
challenges around the medium of delivery, the cost, and audience
access to that content.
The winds of change are blowing harder than ever, and it’s
with this stormy context that we look ahead to what 2020 could
hold for the entertainment industry.

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 2.2 Suppliers profile
Film, print, radio, and television are all part of the worldwide media and
entertainment sector. TV shows, movies, radio shows, music, books, magazines, and
newspapers are among these genres.The media and entertainment sector has recently
witnessed substantial changes in terms of mergers and acquisitions, which has played a
crucial role in the segment's rapid expansion. Several corporations in the media and
entertainment sectors have gone global as a result of these developments in the business.
Also, due to the continuous global digital transformation, businesses in the media and
entertainment sector have begun to feel pressure to improve the efficiency of their
processes. Due to the expanding consumer and pricing expectations, businesses in this
industry are also experiencing demands.

However, a few factors are expected to influence the growth of the media and
entertainment industry in the coming years. These factor includes

Mobile compatibility: In order to stay up with the changing lifestyle brought on by the
development of mobile technology, media portals nowadays need to have a strong
mobile presence. Also, creating a responsive web design (RWD) is essential for
businesses to stay up with the evolving consumer market.

Relevance in today’s digital landscape: To be competitive and meet the unique

business needs of the customers, multinationals working in the media and
entertainment sector must increase their attention on adopting a more audience-
based strategy, driven by data inputs. Moreover, it is anticipated that providing real-
time interactions in the digital sphere would improve the relationship between
marketers and consumers.

The Business Challenge and Journey

The customer, a major leader in the media and entertainment sector with company
operations spread out around the globe, sought to increase supply chain process
efficiency and obtain improved visibility. They sought to identify the leading suppliers
and divide them into groups according to their cost and profit structures. In order to
track and assess supplier performance, the customer also needed to develop a successful
supplier management system.

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To assist the client improve supply chain efficiency, the supplier profile specialists at
Spend Edge conducted a thorough research process that included interviews and
conversations with important industry players. To assist the customer in enhancing their
on-time delivery of the items, the specialists additionally gathered data from trustworthy
sources such trade exhibitions, paid industry databases, and industry forums in the
media and entertainment sector.The media and entertainment sector client was able to
profile the possible suppliers and determine their strengths and shortcomings during the
duration of this supplier profiling engagement. The customer also had the option of
contrasting the performance of their providers with that of their rivals. They were able to
improve the functional capabilities and provide superior operational facilities as a result.

The Results

The media and entertainment sector client was able to increase the effectiveness of their
supply chain and develop solid connections with their suppliers thanks to the supplier
profiling engagement. The customer was also able to improve their current business
models and make fast, relevant, and precise business choices across business divisions.
 2.3 Competitor’s profile
The entertainment industry is made up of several businesses that create and regulate
the entertainment products that are created and offered to the general public. The
entertainment business is made up of several subgroups that lay the foundation and
support the overall entertainment sector. The general public can find entertainment
options such as live entertainment, musical entertainment, exhibition entertainment,
mass media entertainment, and technological entertainment thanks to these
entertainment sub-industries. The circus, comedic acts, athletic events, the performing
arts, musical theatre productions, and concerts are all examples of live entertainment.
Orchestras, concert hall performances, composers, vocalists, and musicians are a few
examples of musical entertainment. A few examples of exhibition entertainment
include theme parks, trade exhibits, and/or fairs. The rivalry in this sector is fierce due
to the wide variety of entertainment options. Businesses and niche markets are always
competing with one another for customers, subscribers, and sales. The demands of
consumers for leisure and entertainment items are increasing.

With fresh developments and suggestions for the market, the entertainment sector is
always changing. E-books are growing more widespread and account for a sizable
share of current book sales. Since more people are able to view television series and
movies online, web-based entertainment is also growing in popularity. Also, radio and
digital downloads are easily accessible online. The entertainment business has also
used cellular handsets as media devices, and high definition and three-dimensional
televisions are being produced and sold.The rivalry in this sector is fierce due to the
wide variety of entertainment options. Businesses and niche markets are always
competing with one another for customers, subscribers, and sales. More entertainment
and amusement are being demanded by consumers..

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Some of the biggest Mergers and Acquisition in India of media and
entertainment industry

Up until the 22nd of September, when the Zee-Sony merger agreement was revealed, 2021 was a
rather quiet year for the media and entertainment (M&E) sector in terms of mergers and
acquisitions (M&A). The upcoming merger of the two businesses would produce a media giant
with combined sales of $2 billion and a market share of more than 25% in the broadcast
sector.The combined company will include two OTT platforms, two film production and
distribution organisations, and 75 TV channels. Experts claim that Zee and Sony are a natural
match because there is little overlap between their broadcasting operations. Sony has a solid
portfolio of non-fiction titles, but Zee is a fiction powerhouse. Zee is a dominant participant in
important regional markets, whereas Sony is absent from those countries.

Uday Sodhi, senior partner at Kurate Digital Consulting, predicts that the conventional
media will consolidate as the share of the advertising pie shrinks as a result of the rise
of digital advertising. "Traditional media corporations will engage in M&As to increase
size and ensure their survival. Acquisition transactions in developing industries like
OTT and gaming will be centred on expanding the whole company. Contrary to
common belief, I don't believe OTT has an excessive number of players. In actuality,
there is adequate room for more players to serve 130 crore people. Similar to what
happened with satellite TV, new platforms will be introduced for OTT.“

According to research analyst Karan Taurani, the M&E sector is seeing three major
developments. This involves 1) the switch to digital, 2) the convergence of ad growth,
and 3) broadcast tariff regulation. "Consolidation is necessary right now to keep the
growth rate up and control the market. Everyone loses if the market is fragmented and
growth rates are converging, regardless of the number of participants (5 or 6), because
everyone would end up paying more for content. Consolidation is necessary so that
you may take advantage of the market's finest opportunities and create a situation in
which two or three dominant firms control a significant portion of it.

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 The “radio and music ” in the chart include many regional and small players who
have market share of 2% or less, It’s because of the highly competitive and regulated
sector, no single company is allowed or rather able to dominate the entire market. In
conclusion, competition is an important factor that significantly effects the outcome.
Competition among firms allows people to avail low prices for at least kind, and go
for less expensive alternative. It also works as motivator for firms to come up with
innovative and new things to gain competition over others.

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 2.4 Industry Financials
Lenders and industry players in the worldwide entertainment business offer
financing for the entertainment industry. This will apply to radio, television, streaming
services, and broadcasters. These media outlets often purchase the content they use for
their programming from either the location where it was made or the owner of the
rights. Distributors, producers, or owners of the rights will create, acquire, and then sell
to or grant licences to major entertainment broadcasters. These broadcasters often
require suppliers to sell on terms of credit, which might range from 30 days to 6 years.
Naturally, the provider will want to get their money as quickly as possible so they can
pay off existing debt, put money back into new content, and expand their product
range. The following list includes some examples of (possible) entertainment
receivables.

The distributor will often offer a minimal warranty. That is, a set sum of money is
promised to the movie makers as payment for completing the project. Prior to the
delivery of the movie, this contractual guarantee is utilised as collateral for the loan in
bridging or production financing facilities (not media receivables finance). Yet, there
are situations when a business can really "sell" their minimal future guarantee (often
at an 80% discount), leaving the lender in charge of collecting the money.A
corporation is more likely to not get its distribution payout in whole and in advance. It
is just utilised as support. These asset sales or pre-delivery transactions will be valued
as production loans. A borrower often pays more interest the longer they must wait for
a distribution payment

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 Examples of entertainment receivables finance

Netflix Receivables –For a three-year watching period, House of Cards (Season 1)

was released to Netflix for the French market. It took 38 months for the 80 million
dollar receivable to be paid in full. In order for the funds to be used for other
material, a financier entered the picture and paid the content provider .

Receivables from Amazon - Amazon purchased the rights to broadcast The

Marvelous Mrs. Maisel. The distributors sought to reduce the receivables for Series
2, which cost $50 million USD, because Amazon would pay over a two-year period
with monthly payments. Following the issuance of the invoice and the assignment
of the debt to this lender, a financier will pay the film distributors; as a result, they
get money from Amazon.

Disney Receivables - As a result of the launch of their new online streaming

service, Disney has increased the amount of material they are buying from other
producers, distributors, and suppliers. Disney often pays over a longer time because
of its purchasing power. Disney received an animated movie from a French vendor.
Disney agreed to pay the supplier monthly for two years, and the supplier requested

The size of the worldwide film and entertainment industry was estimated at
USD 90.92 billion in 2021, and it is anticipated to increase at a CAGR of
7.2% from 2022 to 2030. The market is expanding due to favourable
demographics, shifting consumption patterns, rising disposable incomes,
and a desire to spend on leisure and entertainment. The COVID-19
epidemic, however, has had a negative effect on the market's expansion.
Due to COVID-19 standards established in many countries theatres were
shuttered, thus, hurting the growth of the sector. For instance, starting in
mid-March 2020, over 10,000 movie theatres will be shuttered, according
to a blog post by Livemint. In addition, a significant American theatre chain
announced that it will temporarily close hundreds of sites across the
country.
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 Source: Statista.com
The projection term is expected to have a CAGR of 7.5% for music and videos. This
encouraging rise is attributable to adjustments in the operational strategies of music
labels, such as collaborations with internet streaming services and radio broadcasters.
For instance, Netflix and Spotify joined in November 2021 to enter the audio industry.
Netflix wants to consolidate audio productions for its programming through this.Also,
during the course of the projection period, the rising use of smart devices and the
popularity of digital platforms will support industry growth. Consumer popularity for
music streaming services like Gaana, JioSaavn, Spotify, Wynk Music, Google Play
Music, and Apple Music is rising, which is helping the music and video market
develop.
Regional Perspectives
With a share of 34.5% in the movies & entertainment industry in 2021, North
America dominated. Hollywood, the most established film business in the world, is why
this is the case. Also, the region's higher revenue share is influenced by the presence of
the most screens. For instance, the National Association of Theatre Owners predicted
that in 2020 there will be 40,998 movie screens in the United States.From 2022 to 2030,
Asia Pacific is anticipated to experience the highest CAGR of 8.2%. The growing
consumer spending on entertainment and leisure is largely responsible for the surge.
Also, the leading players' shifting attention to underdeveloped areas like India is fueling
the market's expansion.

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Important Businesses and Market Share Information
A small number of well-established businesses and recent newcomers define the
market. The expanding trend of entertainment and cinema has attracted the attention of
many major players. In order to maintain market share, players in the sector are
broadening the services they offer.For instance, Sony Entertainment Talent Ventures
India was established by Sony Music Entertainment and Sony Pictures Entertainment in
February 2022. (SETVI). By utilising India's commercial skill and celebrity power in
cinema, music, television, digital, and gaming, this cross-corporation joint venture will
provide investment and collaboration opportunities.For instance, Disney+ will introduce
the Star brand across Western Europe, Canada, Australia, and New Zealand in February
2021. The companies will provide a selection of leisurely motion pictures, television
shows, and music videos.

Some of the key players operating in global movie and entertainment market include

• CBA Corporation and CBS Broadcasting Inc.

• Sony Entertainment, Inc.
• The Walt Disney Company
• Time Warner
• 21st Century Fox
• Viacom Inc.
• Comcast
• Netflix, Inc.
• Vivendi
• Universal Pictures

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 Report Attribute Details

Market size value in 2022 USD 95.45 billion

Revenue forecast in 2030 USD 169.68 billion

Growth Rate CAGR of 7.2% from 2022 to 2030

Base year for estimation 2021

Historical data 2017 - 2020

Forecast period 2022 - 2030

Revenue in USD Million and CAGR from 2022 to

Quantitative units
2030

Revenue forecast, company ranking, competitive

Report coverage
landscape, growth factors, and trends

Segments covered Product and region

North America; Europe; Asia Pacific; Central &

Regional scope
South America; Middle East & Africa

U.S.; Canada; Germany; U.K.; China; Japan; Brazil;

Country scope
South Africa

CBA Corporation and CBS Broadcasting Inc.; Sony

Entertainment, Inc.; The Walt Disney Company;
Key companies profiled
Time Warner; 21st Century Fox; Viacom Inc.;
Comcast; Netflix, Inc.; Vivendi; Universal Pictures

Free report customization (equivalent up to 8

Customization scope analysts working days) with purchase. Addition or
alteration to country, regional & segment scope.

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 2.5 Challenges faced by the Industry

Companies in this area encounter a variety of difficulties since the entertainment and
media sector is a highly competitive and evolving one. The top 3 difficulties that
entertainment and media organisations confront are as follows:

Technology disruption:
The emergence of streaming services, digital platforms, and other new technology has
upended the established business structures of the media and entertainment industries.
In order to survive, these businesses must now contend with fresh competitors and
adjust to new income streams and distribution methods.

Content oversaturation:
As streaming services and platforms proliferate, there is an abundance of material that
makes it challenging for businesses to stand out and attract a following.Content
monetization The difficulty of monetizing content has grown significantly for the
entertainment industry
For media and entertainmen monetizing content has become a significant concern.
Companies now need to develop new methods to monetize their content through
subscriptions, advertising, or other income sources as a result of the move to digital
platforms and streaming services.
Another issue for the business is an increase in piracy as a result of the switch to digital
distribution.Absence of representation and diversity: A increasing awareness of the lack
of diversity and representation in the media and entertainment sector has emerged in
recent years. A drive for more diverse and inclusive narrative as well as better on- and
off-screen representation of marginalised groups has resulted from this. Yet,
accomplishing this objective might be difficult as it calls for considerable adjustments in
the employment process.

5 Critical Risks Facing the Entertainment Industry

1) Reputation
A performer's image is equally as crucial in the entertainment business as their actual
talent (if not more so). Negative media coverage, product boycotts, and falling sales are
all ways that bad behaviour is penalised.In the worst-case circumstances, stars are
completely fired from their jobs. Use Roseanne Barr as an example from recent times.
The new version of "Roseanne," which she had successfully revived from the 1990s,
was cancelled before the conclusion of the first season after the show's namesake actor
sent out a racist Tweet. She won't just lose her current job, but her fellow cast members
and crew members' jobs were also lost as a result of the incident.The show's
broadcaster, ABC, may have avoided some embarrassment by promptly terminating it,
but TV stars' reputational danger extends beyond

2) Cyber
In the entertainment sector, cyber risk may take many different forms. Continuity of
service is essential for streaming services like Netflix, Hulu, and Spotify. Inaccessible
platforms due to a cyber attack might annoy marketers looking for a specific level of
visibility and aggravate subscribers who pay a monthly charge for on-demand material.
Other major problems are intellectual property theft and leaks. Both Netflix and HBO
had cyber attacks in 2017 that resulted in the disclosure of famous TV programe
scripts.
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3) Violence
Paris. Manchester. Las Vegas. All are grim demonstrations of the vulnerability of
entertainment industry events to violent acts. Anywhere a lot of people are
gathered in a confined space, there’s an opportunity for a mass casualty
event.Event planners generally prioritise safety, but in recent years, as assaults
appear to become more frequent, they have had to go farther. This include
prohibiting the use of backpacks and other things larger than a purse, doing
arbitrary searches, stepping up security, and creating more thorough
emergency response and evacuation preparations. Failing to take these
precautions might result in victims suing event organisers for harm or fatalities
brought on by an assault.It's also plausible that high-profile assaults might
temporarily increase public fear about huge crowds, even if there is no
evidence to back this claim.
Producers of performances and events could notice a decline in ticket sales,
especially after a well publicised incident.

4) New Business Models

Technology advancements have made it possible for content producers to cut out the
middlemen and distribute their work straight to customers across a range of channels.
Aspiring businesses may produce high-quality content with the help of user-friendly
production tools and distribute it to customers on Facebook, Instagram, YouTube,
or their own websites.
The competitiveness increases when everyone with rudimentary technological
knowledge and entrepreneurial aspirations may expose their creative work to an online
audience. Even well-known performers need to develop fresh methods for reaching
audiences, disseminating their work, and promoting themselves. This entails
communicating with customers more directly through social media posts and releasing
new material straight to streaming services rather than prioritising physical CDs or
DVDs. The availability of more platforms allows producers to target specific markets
and well-established distributors, as opposed to the traditional concentration on creating
content and using marketing strategies that would appeal to the largest possible
audience. Companies in the entertainment industry now need to learn how to diversify
and compete on smaller stages.

5) Talent Risk
The majority of entertainment businesses rely on their stars for success. those artists and
entertainers that spectators and listeners pay to see and hear. But, when an album, a film
or television production, or a performance centre so much around a single person, that
person poses as much risk as potential.Production firms must quickly find a Plan B if a
celebrity is unable to perform for whatever reason. These excuses can range from being
ill, hurt, or dead to being pregnant, arrested, or even just getting detained at an airport.
The cast insurance that entertainment businesses often carry covers the additional costs
of carrying out Plan B, but altering plans at the last minute increases or introduces other
hazards.

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 2.6 Government Regulation
The Cable Networks Act of 1995 and the Prasar Bharti Act of 1990 serve as the
legal framework for the regulatory body that oversees the media and entertainment
industry in India. The Prasar Bharti and the Ministry of Information and Broadcasting
are two of the governmental entities that oversee this industry..

Regulation of the Indian film industry by lawsThese are the laws that govern the
Indian film industry:The Copyright Act of 1957 describes the numerous rights that are
included in a film's copyright.Rights of the film's creatorThe duration or term of the
copyrightthe procedure for assigning a copyright licence.One of the most important
pieces of legislation in the media and entertainment sector is the Copyright Act of
1957, which details the rules for violating a movie's or film's copyright.

Legal Aspects of the Motion Picture IndustryThis industry's contractual component

is essentially its foundation.The numerous contractual aspects can be divided into the
following categories [1]:Finance ContractsThese are the kind of contracts that list
investors as parties since they are the ones funding the project in order for it to be
created. These agreements cover a range of banks and financial institutions as well as
other co-producers that want to contribute funds to the movie's production.Agreements
for actors, writers, directors, and crewThese agreements are among the most significant
in this industry and are also extremely common in nature. These agreements are the
types that authors and artists look for.copyright for their creations and contributions in
exchange for income.

Contract for Distribution

This agreement governs the film's global public premiere, which is often organised
by the producers who handle the film's distribution rights

.Literature Purchase Agreement

This contract determines if the purchased script is wholly original, wholly adapted,
or wholly translated from an earlier work. The producers must be aware of the history
of the script they are buying, thus this agreement is crucial.
Litigation Practice Areas
The following are the frequent subject matters for disputes in the film industry:In this
industry, claims of intellectual property rights pertaining to the ownership of rights are
extremely frequent.Producers who use the names and trademarks of production firms that
were previously held by other businesses are engaging in trademark infringement.The
following factors contribute to the problem of piracy:several low-income groupshigh
costs for tickets Simple access to digital devices and recording equipmentIndia is one of
the top 10 nations that are at the forefront of online piracy, according to a research
conducted by the Motion Picture Distribution Association (MPDA) [2].The Central Board
of Film Certification, which oversees censorship, has the power to exclude certain content
from films in whole or in part.
laws governing the television industry
The following laws govern the media industry's television segment:1994 Cable Television
Network RegulationsThis law establishes the steps for registering a cable in India. Also,
this law establishes the standards for programming and advertising that cable networks
must adhere to.Act governing cable television networks, 1995In the event that certain
rules are not fulfilled, this legislation gives authorities the authority to punish cable TV
networks.Added laws1990's Prasar Bharti ActThe 2007 Broadcasting Act.

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 3. Company Analysis

“EVERY SEATS HOLDS A

STORY”
PVR Ltd, also known as PVR Cinemas, is an Indian multiplex network with
headquarters in Gurgaon. It was earlier known as Priya Village Roadshow Ltd. PVR
started the multiplex revolution in India by building the country's first multiplex theatre in
Saket, New Delhi, in 1997.

Mergers and acquisitions

In 2003, when Village Roadshow chose to end the agreement, ICICI Ventures invested 40
crore in PVR. For 395 crore (US$49 million) in 2012, a subsidiary of PVR Cinemas
purchased the CineMAX theatre network from the Kanakia company, making PVR the
biggest theatre chain in India. PVR Cinemas purchased DT Cinemas, which was owned
by the DLF company, in May 2016 for 500 crore (US$63 million).PVR Cinemas
announced in August 2018 that it has acquired Chennai-based SPI Cinemas for 850 crore
in cash and equity.PVR Cinemas reached the milestone of 800 screens in India in August
2019.The second-largest movie chain in India, INOX Leisure, and PVR announced their
merger on March 27, 2022.

Collaborations

In 2003, when Village Roadshow chose to leave the business, ICICI Investments invested 40
crore in PVR. PVR announced their partnership with the movie RRR in October 2021 as a part of
the promotion for the movie. Likewise, for a short period of time after the movie's premiere on
March 25, 2022, PVR will rename itself as PVRRR across all 170+ of the multiplex chain's
locations in more than 70 cities.PVR announced a partnership with French high-end theatre
operator Ice Theatres, a division of CGR Theatres, in June 2022 to launch additional upscale
theatres in India.artnership. Kanakia Group owned in 2012

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 3.1 Genesis of the company

History

One of the biggest theatre chains currently in operation in India is PVR Cinemas. In
Gurgaon, it was formally founded in June 1997. PVR Cinemas is renowned for its
picture and sound quality and gives its customers a first-rate experience. Multiplex
theatres were first introduced by them in India with the opening of PVR Anupam in
Delhi.In terms of the quantity of displays, the corporation comes out on top. The
PVR group has about 846 screens across the nation. People can have some
amazing movie experiences thanks to them. With a total seating capacity of over
1.82 lakh seats, PVR Cinemas is now functioning in 71 Indian and Sri Lankan
locations.Priya Cinema, named after Priya Jaisinghani, was the precursor to PVR
Cinemas.
It was first built in Vasant Vihar, Delhi, and was acquired by Ajay Bijli's father, who
also controlled the trucking company Amritsar Transport Co., in 1978. The cinema
hall was taken over by Bijli in 1988, refurbished in 1990, and its success inspired the
creation of PVR Cinemas.In 1995, Priya Exhibitors Private Limited and Village
Roadshow Ltd entered into a joint venture with a 60:40 split. It started conducting
business in June 1997. Ajay Bijli, the chairman and managing director of PVR
Cinemas, created the business. Sanjeev Kumar Bijli, the brother of ajay bijli co-
managing director. Under PVR, the corporation also runs a proactive CSR division.
The first PVR Gold Screen debuted at Bengaluru's Forum Mall.

Startup Story

Ajay founded Priya Village Roadshow (PVR) Cinemas in 1995 through a combined
venture between his Priya Cinemas and Village Roadshow, an Australian business.
With its PVR Anupam in Delhi, they were the first to pioneer the concept of a
multiplex in India.

Missions & Vision

The goal of PVR Cinemas is to provide customers with the top movie-going experience.
They aimed to be available to audiences at all times and in all places. The company's
objective is to continue to be India's most favoured and upscale entertainment provider.
PVR wants to give its consumers the best possible moviegoing experiences.

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 Business Model

The core activity of PVR Cinemas is the business of movie screenings. Also,
they work on the creation and release of movies in India. In addition to ticket
booking, PVR also runs theatre advertisements and food and beverage
sales.The business produces and sells gourmet popcorn, a preferred snack
from PVR that is offered in their movie theatres, on various airlines, and even
on Indian railroads. Also, a number of e-commerce websites provide online
ordering for this gourmet popcorn. PVR's V Pristine project provides cleaning
services for residential properties.

Acquisitions

PVR Ltd. has so far acquired some significant businesses. They have bought
five businesses, with the most recent taking place on August 13, 2008.

Company Name Date of Acquisition Amount

SPI Cinemas Pvt Ltd. August 13, 2018 ₹6.3 billion

Zea Maize August 20, 2015 ₹50 million

DT Cinemas June 9, 2015 ₹5 billion

Cinemax India January 8, 2013 ₹4 billion

Leisure World April 13, 2010 -

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 3.2 Product and Services
There is a connection between PVR Cinemas and the entertainment sector. It is an
Indian-based publicly listed firm. Village Roadshow Ltd and Priya Exhibitors Private
Limited collaborated on the project on a 40:60 split. The business was created by
Mr. Ajay Bijli and began operations in 1997. PVR Cinemas holds the distinction of
being the country's first multiplex theatre after recently acquiring CineMax to
become the country's biggest theatre chain. It accomplished a number of firsts by
introducing the ability to purchase tickets and make payments online. The following
firms are competitors of PVR Cinemas:

Product in the Marketing Mix Of PVR Cinemas :

The most well-known multiplex in India is PVR Cinemas, which runs as one. The
business saw the possibilities of cutting-edge technology and as a result, it ran and
created cutting-edge multiplexes.They provided a high-quality and exceptional
ambiance and, because to their uniqueness, were able to draw large audiences. PVR
Cinemas made use of cutting-edge technologies, including Xenon, Digital Cinema,
and Dolby Stereo. It was successful in obtaining exclusive rights from renowned
distributors like 20th Century Fox and Warner Brothers for a number of blockbuster
films.

PVR Cinemas runs single-screen, double-screen, and multiple-screen theatres with

opulent seating options, cosy viewing areas, and the greatest cuisine selections. Hindi,
English, and regional film production and distribution are other activities of PVR
Cinemas.

Place in the Marketing Mix Of PVR Cinemas :

With its corporate headquarters in the Haryana city of Gurgaon, PVR Cinemas is
present all throughout India. One hundred twenty-one locations in forty-seven cities
and towns, including Delhi, Noida, Faridabad in the NCR Region, Jalandhar and
Ludhiana in Punjab, Bhopal and Indore in Madhya Pradesh, Raipur and Bhilai in
Chhattisgarh, Allahabad and Kanpur in Uttar Pradesh, Kolkata in West Bengal, and
Mysore and Bengaluru in Karnataka, have been added to its list of operations. With
the assistance of 550 screens, its extensive distribution network offers spectacular
viewing. The Lettuce Entertain You Limited, PVR bluO entertainment Ltd, and PVR
Leisure Limited companies of PVR Cinemas support the business.

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 SERVICE PRODUCT

In the context of marketing, a product might be either tangible, immaterial, or both.

Contrarily, there is little to no physical component in the case of services. Services
are seen as advantages since they have no or very little tangible component and
are provided to the target consumer. A service is first and foremost a collection of
features, and secondly, its features and advantages are pertinent to a certain target
market. As a result, it's crucial to consider the perspective of the client while
creating a service product's benefit package. There are 5 product tiers, as follows:
The customer's primary reason for visiting a theatre is for the MOVIES, coupled
with the attendant PVR experience.
In the instance of PVR, the expected product would be the setting, hygiene, decent
service, parking, candy bar, etc. PVR has expanded the range of products it offers

:Fine cinema
PVR has provided its clients with access to a high-end moviegoing experience.PVR
Cinemas brought the idea of luxury watching to Bangalore after the enormous
success of Cinema Europa in Delhi. For the first time in India, two extremely
opulent, special auditoriums called Gold Class Cinemas have been inaugurated.
They each offer 32 plush, fully-reclining seats with plenty of legroom. Customers
may also get treated like stars at the upscale Gold Class lounge, which offers
delicious food and drinks and a great pre-movie

Bulk Reservations
For business group reservations (of twenty seats or more), special arrangements
are made. Information may be submitted online and PVR officials directly get in
touch with the affected folks. * Telephonic and online bookingThe factility of
e- booking, which was pioneered by PVR and is now now offered by Satyam
cineplexes, is another service that PVR offers. Also available is telebooking. *
Events at PVRMoreover, PVR has started assisting consumers with organising
birthday and cat parties. They have transformed PVR into more than simply a way
to binge watch movies. * magazine and newsletter for moviesTo keep its
clients enthralled with movies and PVR, it has also launched an online periodical
called "PVRWire," which is sent to subscribers directly. They have also launched a
movie magazine called ‘Movies First’.

cinema tickets
They have also adopted the original idea of cinema coupons, which may be given
as gifts. They are also being used by several corporations as incentives and prizes
for their workers. The certificates come in amounts ranging from Rs 100 to Rs 350,
and to take advantage of the deal, a *minimum of 25 coupons must be purchased.
In Delhi/NCR, the following choices are available. New Delhi The PVR Movie
Money Voucher costs Rs 150 and is good in all PVR theatres (with the exception of
PVR Gurgaon - Cinema Europa) throughout the week. PVR Gurgaon (Cinema
Europa) charges Rs 160 for PVR Movie Money Vouchers.There are the following
choices in Bangalore.Classic Every week (including weekends): Rs 130/-Monday
through Thursday Full week (including weekends): Rs 150/Gold Class Monday.

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 THE SERVICE PACKAGE
The idea of "package" services Product implies that what you provide to the
market is a collection of several services, both real and intangible, but there is a
major or substantive or "core" service, and auxiliary, peripheral, and facilitator
services are created around it. It is crucial to remember that enabling services
are essential; else, the entire service would fail. Another category, referred to as
supporting services, is utilised to provide value and set oneself apart from the
competitors rather than facilitating the usage of core services. When it comes to
PVR, quality assessment using RATER The following dimensions can be used
to gauge a process for assessing customer service quality: * Reliability - The
capacity to deliver promised services consistently and correctly. PVR is a fairly
well-known company. The audience has a first-rate experience of both the main
product, the movie, as well as the additional components. As a result, it is
extremely competent of providing the service it offers in a decent manner. The
service is of the highest calibre and is always provided on schedule. *
Assurance - Employees' professionalism, knowledge, and capacity to exude
truth and assurance. PVR is a high contact firm, thus the staff members are
thoroughly trained in all facets of courteous and customer engagement. As a
service, PVR movies strongly rely on its staff because they are the sole channel
of direct contact with the clients. They are competent and undoubtedly capable
of projecting the assurance that the brand name stands for. * Tangibility -
How tangible things like buildings, machinery, and people are PVR movies
feature a lot of real-world components, such as the crew, the theatres,
candy shops, restrooms, etc., are all very neatly preserved and properly
maintained. * Empathy - Giving the consumer customised, caring attention.
Although personalization is not feasible for a service like this, PVR Cinemas
staff members are always incredibly friendly and give clients quality support
when needed. All personnel exhibit a highly friendly attitude towards the target
demographic, from the employees assigned to work the ticket counter to the
employee who directs patrons to their appropriate seats in the theatre. *
Responsiveness - Readiness to offer timely assistance to customers. PVR
workers are trained to inconvenience clients as little as possible and are quick
and professional in providing their services.

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3.3 Position of the company in the industry

Source: Statista.com

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 3.5 Company Financials.

Revenue Model
The selling of movie tickets accounts for the majority of PVR Cinemas' income.
They receive about 46% of their income from box office receipts. Food and beverage
sales, which account for around 29% of the company's revenues, generate the second
highest level of income. The remaining 15% of the money is generated by advertising,
the sale of movies, and other unrelated operations.

Funding and Investors

Early in 2021, PVR Ltd. raised a total of 800 crores through qualified
institutional placements (QIP). The board also gave the go-ahead to issue up to
500 crores worth of NCDs in order to acquire additional funds. PVR Ltd.
received capital of $14.72 billion over the course of 5 rounds, excluding this.

Date Round Money Investors

August 12, 2020 Post-IPO Equity ₹3 billion -
January 17, Post-IPO
2017 ₹9.02 billion Warburg Pincus
Secondary
Multiples
June 12, 2015 Post-IPO Equity - Alternate Asset
Management
Pvt Ltd.
ICICI Venture,
June 5, 2008 Post-IPO Equity ₹1.2 billion
JP Morgan
March 27, 2003 Venture Round ₹380 million ICICI Venture

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 Growth
PVR Cinemas has grown astronomically over the past 20 years, starting
with a single theatre called Priya Cinema in Vasant Vihar. This one screen
expanded to 846 screens at 176 theatres around the nation. The business has
consistently innovated concepts and technology to maintain its upward
trajectory. The box office income for PVR increases steadily from 2015 to
2020. In 5 years, it rose from 8.24 billion to 17.31 billion. Yet, the epidemic has
had a significant impact on their business this year. Over the years, PVR's
Food and Beverage (F&B) division has consistently grown. In FY 2020, they
generated 960 crores from selling food and beverage.

As the company progressed, they also kept introducing new brands that kept pulling
people towards their cinemas. Here is the list of brands under PVR Ltd.

• PVR Director's Cut

• PVR Pictures
• PVR IMAX
• PVR 4DX
• Playhouse
• PVR GOLD
• PVR LUXE
• PVR P[XL]
• PVR ONYX
• PVR DIT
• PVR Nest
• 4700BC Popcorn
• V Pristine

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3.6 Locational and operational details.

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 3.7 Challenges faced by the company
1 Competition

PVR's early entry into the NCR multiplex industry and pioneering emphasis
contributed to its steady expansion throughout the years. Even in markets
where PVR was the market leader, the arrival of new competitors in 2001
provided a threat to PVR. For instance, the New Delhi-based Satyam
Cineplexes operated 12 screens in three different sites in Delhi in 2005, totaling
more than 5000 seats, and had plans to spend more than Rs. 25 billion in
cineplexes all across the nation. By 2008, it had expanded to 100 new displays
around the nation and had established itself as a major participant on the
national scene.

2 OTT Platforms

The following significant problem, OTT Platforms, affects not only PVR
Cinemas but the entire organisation. PVR increased ticket prices to make up
for lost sales. Additionally, PVR deserves a lot of credit for revolutionising
Indian film. Yet because OTT services have already become addictive,
consumers are less likely to go to the cinema.

3 Pandemic

The theatres were replaced with OTT services during the shutdown. Several movies
are still being released in OTTs despite the lockdown being over and the theatres being
available for business.

4 YouTube User-Generated Narratives

On large, affordable platforms like YouTube, young filmmakers can display and
promote their work. Funny cat videos can no longer be found on YouTube. Anybody
with the necessary resources—time, money, and dedication—can now produce creative
television productions that can be seen, which poses a threat to the number of people
that visit theatres like PVR.

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With this Covid epidemic, PVR Cinemas is facing a lot of difficulties. Its operations
were halted as a result of the closure and further limitations. This negatively affected
their ability to expand financially. The OTT Platforms are the next important issue that
is hurting not only PVR Cinemas but the whole business. These platforms started
replacing the theatres by breaking into people's houses during the lockdown. Several
films continue to be released in OTTs even after the lockdown is over and the theatres
are operating regularly. The future of theatres and multiplex movie theatres may be in
jeopardy as a result of this.

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 3.8 SWOT analysis
PVR Limited's SWOT analysis analyses the brand's potential, threats, strengths, and
weaknesses. Strengths and weaknesses are internal aspects in PVR Limited's SWOT
analysis, whilst opportunities and threats are external factors.

PVR's Limited strenghts

The major elements of PVR Limited's business that provide it a competitive edge in the
market are examined in terms of the company's strengths. The strength of a brand may be
attributed to a variety of things, such as its financial standing, skilled personnel,
distinctiveness of its products, and intangible assets like brand value. Following are PVR
Strengths:
1. First mover advantage in the Indian multiplex industry
2. Build and run modern multiplexes to produce an environment of the highest calibre.
3. Making use of modern technology, such as the Dolby stereo sound system, digital
cinema, Xenon technology, etc.
4. Acquired exclusive rights to screen blockbusters from major studios, namely Warner
Brothers and 20th Century Fox, among others.
5. The biggest multiplex operators in the world, with more than 1500 screens
6. Very strong brand equity

PVR's Limited Weakness

brand's shortcomings are specific areas of its business that may be improved to strengthen
its position. Certain flaws can be described as qualities that the business lacks or in which
the competition excels.
weaknesses:
1. More expensive ticket pricing
2. Longer-term customer retention
3. Parking difficulties
4. There isn't enough client input to make services better.

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PVR Limited Opportunities
Each brand has the potential to develop in certain areas in order to grow its
customer base. Opportunities for a brand might include global growth, product
enhancements, improved communication, etc.
Opportunities
:1. Strengthen ties with community road shows
2. Increasing family entertainment expenditures
3. There is a big film industry with more than 200 movies made annually
.4. More incentives to keep PVR devotees
5. Enter the film distribution industry
6. Grow the business by adding more displays and concentrating on more people.
7. Work with franchises and networking websites

PVR Limited Threats

Each firm may face risks in the form of elements that might harm its operations.
Threats can come from a variety of sources, including increasing rival activity,
shifting governmental priorities, alternative goods or services, etc.
Limited's
1. Growing competition from multiplexes that are similar.
2. Interference by the government with the entertainment tax
3. The use of other forms of entertainment by consumers
4. Industry may be impacted by piracy and a slowing economy.
5. A movie that hurts the reputation of multiplexes

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 4. References
 https://startuptalky.com/pvr-cinemas-success-story/#PVR_Cinemas_-
_Mission_and_Vision
 https://finshiksha.com/media-entertainment-industry-and-understanding-pvr-cinema/
 . https://en.wikipedia.org/wiki/PVR_Cinemas
 https://riskandinsurance.com/6-critical-risks-facing-the-entertainment-industry/
 pendedge.com/casestudy/media-and-entertainment-supplier-profiling

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