This website uses technical, customisation and analytical cookies, both first-party and third-party, to anonymously facilitate browsing and analyse statistics on use of the website. Learn more
UFO Moviez - Gentle Disruption
-
Reference: HBS-716447-E
-
Number of pages: 21
-
Publication Date: Mar 2, 2016
-
Fecha de edición: May 10, 2016
-
Source: HBSP (USA)
-
Type of Document: Case
Description
UFO Moviez is an Indian technology services provider that enables low-cost, digital delivery of films to cinemas. UFO's satellite-based technology enables a significantly wider release of films compared to traditional analog prints and standard, higher-resolution digital prints that must be transported physically. By 2015, 54% of all cinemas in India were using UFO's digital cinema system. UFO has achieved this without upsetting the industry's value chain of producer-traditional distributor-cinema-owner. The company earns revenue through three main streams: fees charged to the producer/distributor for converting films to digital format and distributing them over satellite, fees charged to the cinema owner for leasing the projection systems, and advertising revenue from ads shown during the screening of films. With cinemas in India mostly digitized, however, UFO faces challenges to continual growth. Should UFO focus on increasing its advertising revenue, leveraging UFO's core technology in other areas, or entering the business of film distribution?