Project in Tech Mgt

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GROUP 4 Roll No. Name 2012067 Akshay Uday Phal 2012069 Amandeep Sheokand 2012078 Himanshu Jain 2012116 Sunil Pandey 2012121 Swayambhar Majumder 2012230 Rajdeep Deb Roy 2012246 T arika Chopra Indian Entertainment Business : Films

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GROUP 4

Roll No. Name

2012067 Akshay Uday Phal2012069 Amandeep Sheokand2012078 Himanshu Jain2012116 Sunil Pandey2012121 Swayambhar Majumder

2012230 Rajdeep Deb Roy2012246 Tarika Chopra

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Indian Entertainment Business : Films

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FILMS

• India produces largest number of films(more than 2000) in world but remains low onprofitability

• Indian Film industry thrives in regional languages as well as its more popular cousinBollywood

• Number of Telgu films produced every year exceeds Hindi films

• Central Board of Film Certification reports*,

*http://cbfcindia.gov.in/CbfcWeb/fckeditor/editor/images/Uploadedfiles/file/Publications/ANNUAL_2011.pdf

Total No. of Certificates 2010 2011

Celluloid Films 3781 3548

Video Films 9530 9637

Digital 0 341

Total 13311 13526

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FILM| BUSINESS ISSUES

• No Cooperation in the industry : Regional industries form separate association whileBollywood has separate association. Extreme fragmentation means no unified voice ondifferent issues.

• Dubbing : Telgu Film Association does not allow films not produced in AP to be dubbed andshowed in AP. This move in 2006 was due to perceived threat from Tamil films with goodstars.

• Margins : For every big budget or start film, there is wrangling on who will get how muchmargin. Producers , distributors and theater owners are in constant fight.

• Rising Content Costs : India centric channels require 6-8 hours of fresh programing contentevery day. Handful of companies provide content so costs of content is growing up. Balaji

Telefilms remains one of the premier content providers today.• Falling revenues for TV : Rising costs, content costs and no matching increase in revenue

has coasted TV channels. With digitization, revenues will increase for paid channels.

• Ticket price Fallacy : All over country, scriptwriters, production companies wish to makefilms for market audience who can watch in multiplexes in Delhi, Chennai, Mumbai,Malaysia as they can pay Rs. 150 and upwards for ticket. Vast untapped potential of smaller towns usually overlooked.

*Dii R2, Chrome Data Analytics**http://www.afaqs.com/news/story/35716_Broadcasters-agree-to-reasonable-carriage-fees

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INDIAN FILM BUSINESS | REVENUES

Average ticket prices : Average ticket prices have remained lowest in world. Average TicketPrices are close to Rs. 30 overall India. Timing, theater, Calls of Screen, Town etc. decidethe Average Ticket prices. Multiplexes have been able to raise ticket prices in metros andbig towns

In film placements : Right from Bobby in 1970 ( Rajdoot Motorcycles) to Taal , Lage RaoMunna Bhai, in film placements have been present in films. Marketers like in filmplacements because the audience cant skip adverts. Also, the reach is far more and verycost effective. Cumulative reach even for moderately successful film is very high

In theater advertising : Both off screen and on screen advertising are sources of revenue.On screen advertisements are shown before film begins and during the intermission. Theyare no more localized affairs. Companies like Pyramid Saimira have rights to advertise onmore then 1000 screens. Off screen advertising include standees, activations, sat branding,ticket branding etc. Vanish was launched in AP with more then 25,000 demonstrations inless then a week using off Screen Advertising

Internet, PPV and mobile : Very few websites stream movies in India due to low broadband.Mobile brings in revenue through ringtones, games , videos etc. Pay per view is a popular option. With increasing penetration of DTH, pay per view is a good way to increaserevenue. Customers also have to shell out Rs. 50-75 and can watch film at their convenience

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INDIAN FILM BUSINESS | WAY BUSINESSWORKSIndian Film Business three key elements, Production, Distribution and Retail.

Film Production : Finances are more transparent and film companies, individual producers provide

funding. Pre production planning of 4-6 months is very common before cameras even starts roilingDistribution :Distribution arrangement works between distributors and producers as well as distributors

and exhibitors. Distributor and producer can have either one or a combination of arrangements likeMinimum Guarantee, Commission Basis and Outright Payment. Distributors and exhibitors can work onarrangements like Theater Hire, Percentage Basis and Fixed Hire

Retail: Retailing happens in theaters, pay per view, CDs/DVDs, streaming on websites and mobilephones, home video and television

Metrics

Walk-ins : Important measure of success of film, contributes to food and beverage sales too

Avg. Ticket price : Lowest in India, in 2007 average price in USA was USD 6.77 while in India was USD3 in metros.

Box office Gross :Total money collected in a day or week. This is not the net money earned by film.Taxes, shares of distributors are deducted , other revenue sources added to get total revenues

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PVR CINEMAS

Largest cinema chain in India.

Began its commercial operations in June 1997.

Launched India’s first multiplex.

First to launch India’s biggest 11 screen multiplex at PVR Bangalore.

First to have a fully digital multiplex at PVR Ambience Mall, Gurgaon.

First to introduce THX.

First to offer mobile, computerized & online ticketing.

Entered the production business by launching PVR Pictures.

101 screens in 25 multiplexes across India, with 37 screens and 13 multiplexes in Delhi and

NCR.

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PVR CINEMAS

Largest cinema chain in India.

Began its commercial operations in June 1997.

Launched India’s first multiplex.

First to launch India’s biggest 11 screen multiplex at PVR Bangalore.

First to have a fully digital multiplex at PVR Ambience Mall, Gurgaon.

First to introduce THX.

First to offer mobile, computerized & online ticketing.

Entered the production business by launching PVR Pictures.

101 screens in 25 multiplexes across India, with 37 screens and 13 multiplexes in Delhi and

NCR.

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OBJECTIVE

Lock in customers to theater chains

Provide unlimited offers to customers

Attractive discounts to customers in purchase of food and beverages

Utilize customers bound by the magnetic card to negotiate with distributors

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Solution Description

• Business component chosen

• Unlimited Card

• Technology used

• Advantages

• Performance parameters

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Financial Implications

• Feasibility

• Customer reports

• People coming with the card holders

• Employing delivery boys

• Extension of online web portal

• Calculations

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Maintenance

Unlimited™ Card comes with following hardware and software components requirement:

Magnetic Card.

Kiosk Machine detecting the Magnetic Card.

Biometric reader attached to Kiosk to check fingerprints for personal identification.

Printer attached to the Kiosk.

Software processing the overall process.

Data storage and retrieval base.

Networking the data to the ERP system.

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Maintenance

Big Data: Maintenances are required with the increasing data and load i.e. more data space and serve

configuration improvement.

Recovery system: Backup system will be always ready with the parallel mirrored data in case there is iss

with the existing one.

Call centre: Separate call centre facility for this Card System facilitating customers as well as the internal use

for all kind of information required for the backend system.

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Upgradation

• Following are the scope of upgradation in hardware and software side:

• Moving from magnetic card to inbuilt information already feeded into biometric device.

• Finger print to Retina/Voice check.

• Big data handling tool.

• Usage of cloud for data retrieval instead of physical storage.

• Increasing the complexity of business logic of the software with the counter of issues every time that had earlier no

care of.

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Appendices

• Biometric devices

• Website

• System

• Miscellaneous items

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THANK YOU