STRATEGIC MANAGEMENT REPORT

A STRATEGIC ANALYSIS OF ZEE ENTERTAINMENT

ENTERPRISES (ZEEL)

Submitted to:

Prof. Ashutosh Sinha

Submitted by:

Group 2 (Section F)

ABM21034 Nitish Singh

PGP40294 Akanksha Bhatt
PGP40302 Dhruv Garg
PGP40310 Kabeer Patil
PGP40318 Param Mahawar
PGP40326 Rikov Bhattacharya
PGP40335 Shreshta Chinta
PGP40343 Vibhuti Roach

Term 3 - PGP40 (2024-26)

1
Table of Contents

No. Topic

1 About the Company and Timeline

2 Financial Performance

3 Environmental Analysis - PESTEL

4 Industry Analysis - Porter’s Five Forces

5 Internal Analysis - Resource Based View

6 Internal Analysis - Value Chain Analysis

7 Business Level Strategy - Cost Leadership & Value Net

8 Corporate Strategy - Expansion via Ansoff Matrix

9 Diversification - An Analysis of Zee-Sony merger

10 Strategic Leadership & CSR

11 Internationalization Strategy - Porter’s Diamond and CAGE framework

12 Final Recommendations

13 Bibliography

14 Appendix

2
About the company

Zee Entertainment Enterprises Limited (ZEEL), established by Subhash Chandra in 1991, is a leading
media and entertainment conglomerate in India. Based in Mumbai and part of the Essel Group, ZEEL was
instrumental in establishing India's private satellite television business with the launch of Zee TV in 1992.
Currently, it is a content giant with a presence in multiple business segments, with a viewership of over
1.3 billion across over 190 countries.

Strategic Positioning

Vision: To become the largest worldwide content company with origins in India.
Mission: To connect, inform, and inspire individuals through the presentation of engaging content across
various platforms.

Key Business Segments

Television Broadcasting:
ZEEL features a huge collection of 48+ foreign and local language and genre television channels.
• General Entertainment: Zee TV, &TV
• Cinematic Productions: Zee Cinema, Zee Bollywood, Zee Action
•Geographical: Zee Marathi, Zee Bangla, Zee Tamil, Zee Telugu, etc.
•Global Presence: Zee World (Africa), Zee Alwan (Middle East), Zee One (Germany), etc.

Over-the-top digital – ZEE5

ZEE5, launched in 2018, is the firm's over-the-top (OTT) streaming digital service. It has exclusive web
series, films, TV shows, and live TV across 12 languages. ZEE5 is the epicenter of ZEEL's digital-first
strategy and is competing with Netflix, Amazon Prime, and Disney+ Hotstar.

Film Production – Zee Studios:

Zee Studios is involved in the production and distribution of Hindi and regional language feature films. It
has made both commercially successful and critically successful hits.

Music – Zee Music Company:

Zee Music has become a leading music label in India, challenging the incumbent players quite effectively.
Its large music catalog is firmly grounded in films and digital content in the Zee brand.

3
FINANCIAL PERFORMANCE

The financial performance of Zee enterprises can be described as robust with strong liquidity, managed
expenses, and thriving digital growth in the face of adverse market conditions where media companies are
witnessing revenue declines.

Profitability:
Zee’s revenue split reflects a story of declining advertising revenue, only partially set off by an increase in
revenue from subscriptions. It has adopted strict cost cutting measures in the face of declining revenues to
preserve its operating profit margin which has risen from 10% in 2023 to 16% in 2024. This is higher than
the industry mean of 13%.

Liquidity:
Zee’s balance sheet reveals a position of strong liquidity with a current ratio of 4.6 and quick ratio of 1.65.
Industry median for current ratio is 2.13, reflecting Zee’s position to meet its current liabilities quickly.

Solvency:
Zee’s debt to equity ratio is 0.02% -0.03% which is very low. This is in line with the industry median which
is 0.23%. Media companies prefer keeping their debt levels very low to be flexible and adapt to any
changing technology in the future. This also makes their interest coverage ratio very high (around 10 for
Zee).

Activity:
The asset turnover ratio for Zee is 0.65 indicating a capital light model, typical for businesses with high IP
requirements. The receivables collection period is ~70 days. ZEE5’s average watch time
~214 minutes/month one of the highest in the industry.

Competitor Benchmarking:

● Sun TV has seen a modest 2% dip in ad revenue but stable margins of 15–20% indicating a cost
focus. Its consistent regional viewership underpins strong cash flows. It has made controlled
CAPEX decisions leading to steady revenues from both pay TV and digital platforms
● Sony Pictures India has seen ~12% YoY decline in ad revenue compressing margins pushing
operating margins in low double digits under cost pressures. It’s high fixed cost structure and its;
declining linear viewership impacts revenue
● Star TV saw a 40% jump in ad revenue FY24 and subscription revenue up ~14% driven by dual
ICC events leading to solid operating cash flow with low leverage and operating margins of >15%

A more detailed competitor comparison can be found in Appendix I.

4
PESTLE ANALYSIS

1. Political Factors - A Significant role is played by India’s Ministry of Information and

Broadcasting (MIB) in regulating content, foreign rights, and broadcasting rights (Broadcasting
and Cable Services (BACS), Programming Code, and Advertising Code) of the media industry. In
2022 New Tariff Order (NTO) was introduced, which allowed broadcasters to revise channel
pricing which enabled ZEEL to set prices for its channels, allowing it to increase revenues from
subscriptions.

2. Economic Factors - Due to increasing urbanization and rising incomes, India’s media and
entertainment sector is expected to grow significantly, with projections indicating it will reach
₹2.73. Due to economic downturns, there has been a noticeable reduction in marketing budgets,
which can affect ZEEL’s revenues.

3. Social Factors - India is a country of diverse cultures and languages. Zee has and can further
effectively capitalize on this by offering content in multiple regional languages. Post Covid there
has been a shift in consumer preferences from traditional cable TV to OTT platforms.
Additionally, there is a growing youth demographic with an increasing preference for mobile-first
content consumption, such as short-form videos and streaming.

4. Technological Factors - ZEEL leverages technologies like AI for content recommendation and
data analytics to enhance user experience, increasing the overall personalization. Due to rising
piracy risks, ZEEL is investing in robust digital rights management (DRM) systems and content
protection technologies to safeguard its intellectual property and prevent unauthorized access to
its content.

5. Environmental Factors - There has been an increasing pressure to adopt sustainable practices to
reduce carbon footprint in the content production processes and broadcasting.

6. Legal Factors - ZEEL must comply with media laws, Cable TV Act, IT Act, and the TRAI
regulations, and ensure compliance in broadcasting and OTT content.

5
PORTER’S ANALYSIS

1. Threat of Rivalry

Attractiveness

Sl. No. Factor 1 2 3 4 5 Remarks

Indian Media is highly fragmented

and competitive, with players like
Star India, Sony Pictures Networks,
Number of Viacom18, and OTT - Netflix and
1 Competitors 2 Amazon Prime Video.

Expansion of digital platforms and

increased demand among consumers
2 Industry Growth 3 for diversified content.
Infrastructure for broadcasting,
Fixed Costs/ Storage satellite uplinking, servers,
3 Costs 3 cybersecurity, licenses, etc.
Multiple regional languages with
family-friendly narratives. However,
4 Differentiation 3 Competitors are also catching up

5 Switching Costs 1 Minimal switching costs

Advertising and subscription models
Openness of Terms of are relatively transparent, with
6 Sale 3 standard rates and packages.
There is an oversupply of content,
leading to fragmented viewership,
diluting audience attention, and
7 Excess Capacity 2 advertising revenues.
Initiative- expanded its digital
footprint through Zee5; counteracted
the declining viewership in
traditional broadcasting and to
8 Strategic Stakes 3 capture the growing online audience.

1B. THE THREAT OF RIVALRY- BARRIERS TO EXIT

Attractiveness

Sl. No. 1 2 3 4 5 Remarks

6
 Costly - proprietary content libraries
and broadcasting infrastructure,
1 Asset Specialization 3 which have very limited resale value.
Costs related to severance, asset
write-offs, and contractual
2 Fixed Cost of Exit 3 obligations.
The Indian government regulates the
media sector and is not overly
3 Govt. Restrictions 3 prohibitive.

AVERAGE 2.636

2. Threat of Entry

Attractiveness

Sl. No. 1 2 3 4 5 Remarks

Zee's Economies of Scale, good

distribution network, and strong
marketing make it difficult for new
1 Economies of Scale 5 entrants
can differentiate themselves through
Product niche content or innovative delivery
2 Differentiation 3 methods.
Zee has an established brand, and for
new entrants, it would require
3 Brand Identity 4 significant marketing investments.
Customer Switching Low switching costs make it easier
4 Cost 2 for new entrants.
Zee's extensive distribution network,
including partnerships with cable
operators and direct-to-home (DTH)
services, provides a competitive
advantage. New entrants may face
challenges in securing similar
Access to Channels of distribution agreements, limiting
5 Distribution 4 their reach.
Requires high capital investment,
6 Capital Requirement 5 serving as a significant barrier

7
 Expertise is required yet accessible;
New entrants can easily acquire the
Access to Technology/ necessary technology and
7 Know-how 3 knowledge.
Access to Raw New entrants can negotiate with
8 Materials 3 content creators at high costs.
Govt. Policy/ Some policies are present yet do not
9 Protection 2 restrict foreign entrants.

AVERAGE 3.75

3. Bargaining Power of Buyers

Attractiveness

Sl. No. 1 2 3 4 5 Remarks

Includes end viewers along with

1 Number of Buyers 4 advertisers.
Availability of
2 Substitutes 2 Saturated with alternatives.
relatively low for both Advertisers
3 Switching Costs 3 and viewers.
increasing trend for less expensive
content creation. However, the
increasing trend of brands engaging
in content marketing and
sponsorships indicates a growing
Buyers' Threat of interest in content ownership, posing
4 Backward Integration 2 a moderate threat
Emergence of OTT Platforms and
Industry's Threat of digital distribution channels; threat
5 Forward Integration 3 to traditional broadcasting
content quality enhances viewer
loyalty and attracts advertisers
Contribution to seeking effective platforms for their
6 Quality 3 campaigns.
depends on the time slot, program
7 Contribution to Cost 3 popularity, and audience reach.

8
 Revenue is highly sensitive to the
8 Buyers' Profitability 3 financial health of its advertisers.

AVERAGE 2.875

4. Bargaining Power of Suppliers

Attractiveness

Sl. No. 1 2 3 4 5 Remarks

The company has an extensive 50+

channel network playing 160+
1 Number of Suppliers 3 countries
Alternative content producers,
Availability of technology solutions, and
2 Substitutes 2 distribution networks
May involve negotiating new
contracts and understanding different
3 Switching Cost 3 audience demographics.
Limited by the complexities and
Suppliers' Threat of capital requirements of media
4 Forward Integration 4 distribution
Limited ; Relies on external
Industry's Threat of suppliers for content and
5 Backward Integration 4 technological infrastructure.
Suppliers influence the quality,
affecting engagement and ensuring
Contribution to seamless broadcasting and streaming
6 Quality 3 experiences.
cost - Content licensing fees,
technology infrastructure, and
7 Contribution to Cost 3 distribution expenses.
Suppliers often engage with multiple
broadcasters and platforms, Zee is a
Industry's Importance significant partner for many
8 to Supplier 3 suppliers,

AVERAGE 3

9
5. Threat of Substitutes

Attractiveness

Sl. No. 1 2 3 4 5 Remarks

Availability of Close
1 Substitutes 3 Abundance of alternatives.

2 Switching Cost 3 Low switching costs;

Substitutes' Price Substitutes offer competitive pricing

3 Value 4 models.
Profitability of
Producers of Low profitability of traditional
4 Substitutes 4 media houses

AVERAGE 3.5

GOVT. ACTIONS

Attractiveness

Sl. No. 1 2 3 4 5 Remarks

Cinematograph Act to protect media

1 Industry Protection 3 entities from Piracy.

TRAI outlines a set of industry

regulations to ensure transparent and
2 Industry Regulations 4 fair terms.
various customs and tariff
Customs & Tariff regulations for digital content
3 Restrictions Abroad 3 exports..

OVERALL AVERAGE ATTRACTIVENESS - MODERATE 2.97

10
RESOURCE BASED VIEW (RBV) ANALYSIS

Sources of Sustained Competitive Advantage:

1. Brand Presence: Integral part of Indian cable TV over the years, Zee has become a household
name in the country, producing daily soaps, music, movies, and drama content for the Indian
masses.

2. Catalogue of Content: A robust library of over 3600 movies and 1600 TV shows produced
available for consumption by the audience.

3. Regional Presence: Content made in 10+ regional languages incl. Marathi, Tamil, Telugu, Oria,
etc. and having the highest brand presence and content recall in regional content among all other
competitors

4. Zee Music Company: Second highest subscribed music label in India on Youtube (after T-series)
with more than 10 music videos launched daily in 10+ regional languages for albums, movies,
TV shows etc, giving Zee Music Company a highly competitive edge.

11
VALUE CHAIN ANALYSIS

12
BUSINESS LEVEL STRATEGY

The strategy Zee Entertainment Enterprises Limited (ZEEL) implements for industry challenge
management follows the overall cost leadership approach outlined by Porter.

Cost Leadership Strategy:

ZEEL directs its efforts to reduce expenses for better profitability levels. Meanwhile the company
achieved 1.64 billion rupees in profits during the quarter ending December 31, 2024 whereas the year
before ended with 585 million rupees. The decrease in operational costs reached 16% which reduced
programming and technology expenses to enable core profit margin growth from 10.2% to 16.1%. ZEEL
adopts a competitive pricing approach as its main method to defend its market presence.

Several operational initiatives allow Zee to achieve competitive pricing leadership in its industry.

1. Operational efficiency and cost reduction

● Reduction in Programming costs: Zee implements cost-efficient programming by providing

regional entertainment that runs cheaper than high-end global productions or expensive franchise
programming.
● Administrative & Overhead cost control : The company demonstrated strategic decision-making
regarding expense reduction while increasing EBITDA margins in recent periods. The company
executed a workforce reduction of 15% as it constructed an operational structure with reduced
personnel numbers.

2. Strategic Content Investment:

● Regional and Localized content: Local content formation constitutes a core business strategy for
Zee because it enables production of low-cost attractive regional programming that proves
cheaper to produce than international content.
● Balanced Original Programming: Zee picks original content productions that cost moderately
while bringing high viewership data to deliver positive financial outcomes compared to
production expenses

3. Revenue Model Leveraging Advertising

● Ad supported Revenue Structure: Affordable subscriptions enable Zee to reach wider audiences
which produces higher commercial advertising revenue. Zee News generates revenue through
recorded advertisements of 10-seconds with a price tag of INR 3,936 which combines
affordability with maximum profits.
● Competitive ad pricing: Zee operates flexible advertisement pricing models to attract many types
of advertisers which helps the company maintain profitable operations while balancing content
expenses.

13
4. Leveraging Economies of Scale

● Broad Portfolio Utilization: Zee implements efficient cross-channel promotion through its
extensive channels and platforms which enables smooth operations between networks at reduced
costs.
● Global Reach and Distribution: The worldwide distribution network spanning 170 countries
enables the enterprise to disperse marketing and distribution expenses equally thus decreasing
content as well as distribution costs per unit.

5. Cost-Controlled Partnerships and Outsourcing:

● Strategic Partnerships: Zee optimizes its operational costs by creating alliances with production
houses and technology providers and distribution networks and distribution networks which
decreases its initial capital outlays and fixed expenses.
● Outsourcing Non-Core Functions: Zee implements external partnerships to manage its expenses -
all technical operations together with support activities are outsourced to reduce fixed expenses
into variable expenditures.

A peer to peer comparison of Zee with other major players in the entertainment industry can be found in
the appendix.

14
VALUE NET ANALYSIS

Value creation happens in content production, value capture happens via licensing deals with production
houses. Zee capitalizes on several win-win relationships here and win-lose from competitors.

Consumers:
Zee persists in increasing its original content development and regional content production to match
varied customer demands. Maintains affordable pricing, enhancing accessibility.
Suppliers: Zee develops strong bonds with regional production houses that result in reduced costs because
of their negotiated agreements and long-term mutual agreements.
Complementors: Through partnerships with telecom and smart device companies Zee delivers
subscription bundles which help users get acquired and subscribed.
Substitutors: The company deploys strategic investments into digital transformation projects like ZEE5 to
face the shift from traditional TV toward social media entertainment.

Often interactions in pricing in the OTT - a fiercely competitive space can be modelled after a Prisoner’s
Dilemma Game.

Competitor Cooperates Competitor Competes

Zee Cooperates (5, 5) - Pareto Optimal Output (2, 6)

15
 Zee Competes (6, 2) (3, 3) - Nash Equilibrium

Zee and Competitor Pricing Model

In this matrix, the first number in each pair represents Zee’s payoff and the second represents the
competitor’s payoff. This model illustrates how mutual cooperation in high pricing (collusion) yields a
balanced outcome, while unilateral deviation can lead to higher individual gains at the cost of the
opponent, and mutual defection results in a lower payoff for both parties.

Each party’s best action is to compete which becomes the dominant strategy and results in lower profits
for both companies, leading to a price competition between OTT platforms.

16
CORPORATE STRATEGY (Expansion via Ansoff Matrix)

1. Market Penetration (Existing Markets, Existing Products)

● Ad Revenue Optimisation: Use advanced data analytics and AI-powered ad targeting to optimize
monetization strategies.
● Weekly Subscriptions: Introduced affordable and flexible subscription products targeted at more
sensitive users to increase user penetration and retention.
● Regional Expansion: Focus more on dubbing and subtitles for international audiences and
regional languages speakers.

2. Market Development (New Markets, Existing Products)

● Regional Language Penetration: It must invest in content creation in the neglected but high
digital consumption areas in the regional markets.
● International Collaborations: To achieve broader market reach, Zee can partner with overseas
streaming services.
● Content Syndication: License existing content for OTT in international markets, putting more
eyes on content at lower costs than production.

3. Product Development (Existing Markets, New Products)

● Content in multiple formats: Multi-format content: Create brief videos and interactive series for
younger, internet-savvy audiences
● AI-Powered Personalization: By using AI-driven content recommendation engines, Zee can help
users engage with the content in a better way.
● Niche Content Segments: Focusing on hyper-niche genres such as true crime, esports
documentaries, and cultural storytelling to differentiate from competitors.

4. Diversification (New Markets, New Products)

● Esports, Gaming and Live Events: Providing access to gaming content, live-streamed
entertainment and virtual events can draw younger demographics.
● Innovate with the Metaverse & Web3: Utilize NFTs, virtual reality storytelling, and immersive
entertainment to engage the digital-savvy audience of the next decade.
● Educational & Wellness Content: get in on the fast growing edutainment and mental wellness
streaming segments and access the learning and self-improvement trend.

17
Sony-Zee Merger Analysis: Breakdown of the Failed Merger

Overview of the deal

The Sony-Zee merger, originally announced in 2021 as a $10 billion deal, was meant to create the largest
media powerhouse in the country. The combined group would eventually control more than 75 television
channels, streaming platforms- Zee5 and SonyLIV and a significant sports portfolio.The shareholding
structure post-merger was proposed as follows:
Sony Pictures Networks: 50.86% | Zee Entertainment: 3.99% | Public: 45.15%
This merger could have created synergies to completely alter India's media sector, pooling resources
across sectors broadcast, streaming and sports.

Reasons for failure of the merger

● Leadership Conflict: Punit Goenka remains on as CEO of Zee despite an objection from Sony
that Goenka not be allowed to continue without a clearance letter due to investigation against Zee
by the SEBI (Securities and Exchange Board of India) on SG (Corporate Governance) violations.
The parties were primarily concerned about the stability in leadership.
● Added Scrutiny: The merger faced regulatory roadblocks as SEBI and Competition
Commission of India delayed merger approvals, citing concerns about governance and the
potential for market dominance. These regulatory barriers greatly slowed advances.
● Regulatory Non Compliance: Zee also did not divest Russian assets as mandated by regulatory
authorities.

Way Ahead for Zee

Given the failed merger had a devastating effect on the firm in terms of media presence and strategy, Zee
is required to implement the following strategies to remain competitive.
Restructure Entity - Leadership and Governance
● Restructure its leadership team and appoint independent directors to provide exit route for
regulator concerns related with promoter influence.
● Concentrate on advancing corporate governance standards to restore stakeholder confidence.
Strategic Alliances Rather than Mergers
● Tie up with sports broadcasting companies or co-produce with overseas content producers —
like Netflix or regional players like Sun TV Network or Yash Raj Films.
● Explore strategic tie-ups (like with the Pro Kabaddi) to bolster its sports portfolio without
marquee acquisitions.
Divest Non-Performing Assets
● Reduce poorly performing TV networks for greater efficiency

18
 ● End high-cost untenable contracts and push a greater cash flow margin directly into ad revenue
for health.

STRATEGIC LEADERSHIP
CEO Punit Goenka has led the transformation from a legacy broadcast firm to a digital-first firm with a
focus on building ZEE5, its OTT platform. His leadership has facilitated the company's digital transition,
growth in international footprint, and diversification of content.

1. Adaptability & Resilience

In spite of increased online platforms and media volatility, ZEE has managed to adjust with consumer
movements towards digital and on-demand material. The business has shown strength in riding through
regulatory challenges, international OTT majors' rivalry, and the effects of the COVID-19 pandemic by
centering on digital subscription growth and content collaborations.

2. Cost Optimization and Efficiency:

ZEE made a massive leadership restructuring in 2024 to organize operations and accelerate cost
efficiencies. This was done through the reduction of staff and shifting the reporting hierarchies to promote
more accountability and responsiveness. ZEE, through its leadership, aims to raise its operating margin by
18%-20% by FY26 by enforcing cost reduction and maximizing the profitability of its OTT platforms.

3. Diversification and Strategic Expansion

ZEE has diversified its content offerings by including regional and international content to cater to a
broad base. Its content production and distribution process has manifested forward integration, allowing it
to make a global presence across over 170 countries. Post the merger debacle with Sony, ZEE has focused
on internalizing the strengths, growth in the OTT segment, and diversification of the revenue streams
through strategic alliances.

4. Digital Innovation:
The company is continuing to make waves with digital offerings like ZEE5, making a global reach to
masses.This shift in strategy is deserving of thought on the new paradigm of watching digital content,
with more inclusion of the OTT platform's user base in the pipeline. ZEE has taken to AI and data
analytics in order to reach its audience with targeted content as well as staying abreast with contemporary
technological breakthroughs in the media and entertainment space.

CSR (Corporate Social Responsibility)

1. Community Outreach: Under programs like Born To Shine, ZEE makes investments in education
and empowerment of underprivileged people, arts, culture, and education in relation to the
cultural capital of the company.

19
2. Education & Empowerment: ZEE collaborates with GiveIndia for the Born To Shine program in
the form of scholarships and mentorship for more than 30 prodigies from underprivileged girls,
which equips future thinkers and artists.

3. Healthcare and Wellness: Its health care priorities also comprise the provision of mobile medical
camps in poor communities in low-income areas through its Arogya program for proper medical
assistance and sanitation in rural communities.

4. Environmental Sustainability: The company follows green practices in its operations such as
waste minimization, energy conservation, and encouraging green practices such as planting trees
and green production processes.

5. Disaster Relief and Recovery: Under its disaster relief program, ZEE partnered with Bal Raksha
Bharat to aid in the delivery of medical kits through drones to far-flung locations across Himachal
Pradesh.

20
INTERNATIONALIZATION STRATEGY (TRANSNATIONAL)

Their transnational strategy enables ZEEL to keep centralized production and distribution while adjusting
to different regions' preferences. Thus, with the Indian cost-effective production ecosystem, ZEEL will be
able to develop a huge library of Hindi and regional-language content and adapt it for international
audiences through the dubbing, subtitling, and localized programming.
One of the most critical pillars within the ZEEL strategy is its shift into digital-first via ZEE5, its OTT
platform. This platform will help develop hyper-localized content in various languages with a federated
branding strategy.

PORTER’S DIAMOND FRAMEWORK

Demand conditions in India significantly strengthen the case for growth for ZEEL, propelled by a massive
population, fast digital adoption, and cheap internet access. This is a mobile-first audience, whose low

21
data cost has caused video streaming to explode compared to the previous year; thus, Zee5 emerges as a
key pillar in ZEEL long-term strategy. Zee faces fierce competition with domestic players and
international giants. Therefore, to attract and retain customers, ZEEL uses a hybrid monetization model
(SVOD + AVOD) to continue increasing revenue from advertising as well as offering premium
subscriptions to customers. Additionally, the content strategy of ZEEL is going with a combination of
regional productions, Bollywood and international co-productions.

CAGE FRAMEWORK

Africa wants Bollywood in its diverse languages whereas Europe, with its diaspora-driven needs, would
necessitate dubbing. Countries in MENA witness a significant influx of viewers for Indian serials, but
restrictions place a check on content censorship and Arabic localization.
Africa faces stricter content regulations while Asia-Pacific enjoys supportive policies and trade relations
with India. Latin America has average censorship and MENA countries impose strong censorship despite
rich trade relations. At a moderate distance geographically, Africa increases localization costs whereas
longer-distance Europe and Lain America relies on digital streaming. Asia-Pacific and MENA enjoy a
moderate nearness combined with good digital infrastructure. Affordability becomes critical as Africa and
Asia Pacific has little disposable income, while Europe and MENA will opt for premium subscription
since it generally has a wealthier consumer base.

22
FINAL RECOMMENDATIONS

Overall priorities for Zee should be diversified growth to capitalize on its strengths while retaining profits
through a strong cost focus.

Recommendation 1: Expand Original & Regional Content

The first priority is to expand original and regional content by investing in new shows across top languages
to capture key markets. This involves thorough market research, budget allocation for regional genres, and
partnering with local producers for authenticity. Key performance indicators (KPIs) include the number of
new shows launched, regional viewership growth, and return on investment per property.

Recommendation 2: Expand Original & Regional Content

While Zee has done this in the past, scope remains to double down on cost cutting. Zee must aim to reduce
costs without compromising content quality by automating processes, streamlining production methods,
and optimizing labor. Additionally, negotiating better vendor rates and consolidating partnerships form a
core part of this approach. Metrics such as percentage cost reduction, improvements in EBITDA margins,
and shorter production cycle times will gauge success.

Recommendation 3: Strengthen International Market Presence

Though Zee is present in different parts of the globe, mere presence is not enough. Absence of a clear
international strategy would lead to lost revenues to competitors. By identifying high-potential growth
markets through data-driven insights, the company can tailor content and marketing campaigns to resonate
with diverse audiences. Pursuing cross-border deals and collaborating with local partners will further
expand distribution and bolster brand recognition. Key measures of success in these global initiatives
include international revenue contributions, newly signed partnerships, increased international subscriber
numbers, and overall user retention—ultimately reinforcing Zee’s brand presence worldwide.

23
Bibliography:

Business Standard. (n.d.). Zee's strategic initiatives in digital expansion. Retrieved from
https://www.business-standard.com/finance/zee-strategic-initiatives-in-digital-expansion

Economic Times. (n.d.). Staff-linked cost rationalisation complete: ZEE. Retrieved from
https://economictimes.indiatimes.com/industry/staff-linked-cost-rationalisation-complete-zee

Marketing91. (2025). Marketing mix of Zee Entertainment and 7Ps (Updated 2025). Retrieved
from https://www.marketing91.com/zee-entertainment-marketing-mix

Reuters. (n.d.). Indian broadcaster Zee's Q2 margin jumps, lifting shares. Retrieved from
https://www.reuters.com/article/zee-q2-margin-jumps-lifting-shares

Reuters. (n.d.). India's Zee Entertainment reports sharp rise in Q3 profit, margins on cost cuts.
Retrieved from https://www.reuters.com/article/zee-q3-profit

Zee Entertainment. (2025). Zee Entertainment Annual Report 2025. Retrieved from
https://www.zeeentertainment.com/investors/annual-reports/2025

24
Appendix A: Financial Performance

Financial Comparison of Zee with its peers

Mar Cap Current Debt / Int Asset

No. Name OPM %
Rs.Cr. ratio Eq Coverage Turnover

Sun TV
1 25613.53 55.18 10.1 0.01 194.84 0.4
Network

2 Saregama India 9875.33 22.34 2.9 0 194.2 0.43

Zee
3 9445.75 13.58 6.14 0.03 29.71 0.64
Entertainment

4 PVR Inox 8961.24 26.56 0.45 1.17 0.53 0.37

5 Tips Music 8082.15 67.56 2.86 0.02 678.47 0.91

6 Prime Focus 2723.58 17.05 1.38 11.63 0.49 0.57

7 Sri Adhik. Bros. 1544.71 -31.66 0.23 0 -74.71 0.03

Median: (32 Co.s) 574.4 13.74 2.13 0.24 2.21 0.57

25
Appendix B: A peer to peer comparison of business strategy between zee and other players in the industry

Criterion Zee5 (ZEEL) Amazon Prime Disney+ Hotstar Voot (Viacom18)

Video

Pricing Model 499/year 1499/year 1499/year 499/year

Content Cost Moderate (focus High (Premium Very High Moderate (Mostly
on regional global originals) (Premium sports TV show library,
originals) rights and global fewer originals)
franchises)

Revenue Ads & Subscription Subscription heavy Heavily Ad-

Source Subscriptions (sports-driven based, minimal
premium pricing) subscription

Target Mass Market & Premium urban Mass Market (Sports Primarily mass
Audience Regional viewers audience viewers + premium TV audience
content seekers)

Operational High (Recent Moderate (High Moderate (High High (Low

Efficiency aggressive cost content investment sports rights costs) investment in
optimization) offset by global original content)
subscriber base)

26