Harvard Case - Gulabo Sitabo's OTT Debut: Disrupting Traditional Film Distribution
"Gulabo Sitabo's OTT Debut: Disrupting Traditional Film Distribution" Harvard business case study is written by Amit Anand Tiwari, Samrat Gupta, Rohit Kumar Singh. It deals with the challenges in the field of General Management. The case study is 15 page(s) long and it was first published on : Jan 24, 2024
At Fern Fort University, we recommend that Gulabo Sitabo adopt a hybrid distribution strategy, leveraging both traditional theatrical releases and OTT platforms. This approach will maximize revenue streams, expand audience reach, and establish a strong brand presence in the evolving film industry landscape.
2. Background
The case study focuses on Gulabo Sitabo, a production house facing the challenge of navigating the changing film distribution landscape. With the rise of Over-the-Top (OTT) platforms like Netflix and Amazon Prime Video, traditional theatrical releases are increasingly facing competition. Gulabo Sitabo, known for its theatrical releases, must decide whether to embrace the OTT platform or stick to its traditional model. The case study highlights the key stakeholders involved: the production house, the film's director and actors, and the audience.
3. Analysis of the Case Study
This case study can be analyzed using Porter's Five Forces framework to understand the competitive landscape:
- Threat of New Entrants: The film industry has a high barrier to entry due to the high cost of production and distribution. However, the rise of independent filmmakers and digital platforms has lowered the barrier, creating new competitors.
- Bargaining Power of Buyers: Consumers have more choices than ever before due to the abundance of content available on OTT platforms. This gives them significant bargaining power, potentially leading to lower ticket prices or subscription fees.
- Bargaining Power of Suppliers: Actors and directors have significant bargaining power, demanding higher salaries and creative control. This can impact production costs and profitability.
- Threat of Substitute Products: OTT platforms and other forms of entertainment, like gaming and social media, provide alternative forms of entertainment, posing a threat to the film industry.
- Competitive Rivalry: Competition within the film industry is intense, with major studios and independent filmmakers vying for audience attention. The emergence of OTT platforms has further intensified this competition.
Additionally, a SWOT analysis can be conducted to understand Gulabo Sitabo's internal strengths and weaknesses and external opportunities and threats:
Strengths:
- Strong reputation and brand recognition in the Indian film industry.
- Experienced team with a proven track record of successful films.
- Access to established distribution channels for theatrical releases.
Weaknesses:
- Limited experience with digital distribution and OTT platforms.
- Potential lack of resources and expertise to adapt to the changing landscape.
- Dependence on traditional revenue streams, which may be declining.
Opportunities:
- Expanding global reach through OTT platforms.
- Access to a wider audience through digital distribution.
- Increased revenue streams through subscription models and advertising.
Threats:
- Increased competition from established OTT players and new entrants.
- Piracy and copyright infringement issues.
- Shifting consumer preferences towards digital content.
4. Recommendations
Gulabo Sitabo should adopt a hybrid distribution strategy, leveraging both traditional theatrical releases and OTT platforms. This approach will maximize revenue streams, expand audience reach, and establish a strong brand presence in the evolving film industry landscape.
Specific Recommendations:
Develop a Strong OTT Strategy:
- Partner with a reputable OTT platform or create their own streaming service.
- Create high-quality content specifically tailored for the digital audience.
- Utilize data analytics to understand audience preferences and tailor content accordingly.
- Implement strong anti-piracy measures to protect their intellectual property.
Leverage Traditional Theatrical Releases:
- Continue to release films in theaters, especially for large-scale releases and blockbusters.
- Explore innovative strategies to enhance the theatrical experience, such as live Q&As or behind-the-scenes content.
- Utilize traditional marketing channels to promote theatrical releases.
Embrace Digital Marketing:
- Utilize social media platforms and digital advertising to reach a wider audience.
- Create engaging content for online platforms to build anticipation and generate buzz.
- Leverage online reviews and ratings to build credibility and attract viewers.
Invest in Technology and Analytics:
- Invest in data analytics tools to understand audience preferences and optimize content production and distribution.
- Develop a robust content management system to manage and distribute content across multiple platforms.
- Implement a secure and efficient payment gateway for online transactions.
Build a Strong Brand Identity:
- Develop a consistent brand image across all platforms, both online and offline.
- Create a strong brand narrative that resonates with the target audience.
- Utilize social media to engage with fans and build a loyal following.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Gulabo Sitabo's core competency lies in producing high-quality films. The hybrid distribution strategy leverages this competency by expanding its reach through OTT platforms while maintaining its presence in traditional theaters.
- External Customers and Internal Clients: The strategy caters to both traditional and digital audiences, ensuring that the production house can reach a wider demographic. It also considers the needs of internal clients, such as directors and actors, by providing them with multiple platforms to showcase their work.
- Competitors: The hybrid strategy allows Gulabo Sitabo to compete effectively with both traditional studios and established OTT players, by offering a diverse range of content and distribution channels.
- Attractiveness: The strategy is financially attractive, as it allows the production house to tap into multiple revenue streams, including theatrical box office, OTT subscriptions, and advertising.
6. Conclusion
By adopting a hybrid distribution strategy, Gulabo Sitabo can navigate the evolving film industry landscape, expand its audience reach, and maximize its revenue potential. This approach will allow the production house to remain competitive, adapt to changing consumer preferences, and establish a strong brand presence in the digital age.
7. Discussion
Other alternatives not selected include:
- Exclusively focusing on OTT platforms: This approach would limit the production house's reach to digital audiences and potentially reduce its revenue potential from theatrical releases.
- Sticking to traditional theatrical releases: This approach would leave the production house vulnerable to the declining popularity of theatrical releases and the growing dominance of OTT platforms.
The hybrid distribution strategy offers a more balanced approach, mitigating the risks associated with both extremes. The key assumption is that the production house can successfully navigate the complexities of digital distribution and build a strong online presence.
8. Next Steps
- Conduct a feasibility study: Assess the costs and benefits of implementing the hybrid distribution strategy.
- Partner with an OTT platform: Negotiate a mutually beneficial agreement with a reputable OTT platform.
- Develop a digital marketing strategy: Implement a comprehensive plan to reach and engage digital audiences.
- Invest in technology and analytics: Acquire the necessary tools and expertise to manage and optimize digital content distribution.
- Monitor and evaluate performance: Track the success of the hybrid strategy and make adjustments as needed.
This timeline can be adjusted based on the production house's resources and the specific needs of each project. By implementing these steps, Gulabo Sitabo can successfully navigate the changing film industry landscape and secure its future in the digital age.
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Case Description
In 2020, the Indian film industry witnessed a significant rift between producers and exhibitors (cinema owners and multiplex chains) when the producers of the highly anticipated film Gulabo Sitabo opted for a direct digital premiere of the film on Amazon Prime Video, thereby bypassing a theatrical release. The decision angered exhibitors, who viewed over-the-top (OTT) platforms as threats to traditional cinema distribution. Concerns arose that other studios would soon follow suit, jeopardizing their businesses. Although the producers cited COVID-19-related challenges and the increased popularity of streaming services as reasons for their decision, exhibitors accused them of being selfish. Exhibitors emphasized their investments in world-class screens and urged co-operation, threatening retaliatory measures. The rising tension brought up a number of questions: How much of a threat were OTT platforms to traditional film distribution? How could disagreements between producers and traditional distributors be resolved? Might OTT platforms and traditional distribution methods coexist, and if so, how?
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