Publications
Publications
- March 2016 (Revised May 2016)
- HBS Case Collection
UFO Moviez—Gentle Disruption
By: Hong Luo, Felix Oberholzer-Gee and Saloni Chaturvedi
Abstract
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 for 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?
Keywords
Film Entertainment; Information Technology; Distribution; Disruption; Growth and Development Strategy; Technology Industry; Motion Pictures and Video Industry; India
Citation
Luo, Hong, Felix Oberholzer-Gee, and Saloni Chaturvedi. "UFO Moviez—Gentle Disruption." Harvard Business School Case 716-447, March 2016. (Revised May 2016.)