CASE 2 : UFO MOVIEZ

United Film Organisers (UFO) moviez was established by Sanjay Gaikwad in the year 2005
and it was started in Mumbai city as a media and entertainment company offering a digital
solution to those engaged in film production, distribution and exhibition. The company started
the conversion of analog reels to digital format and this was transmitted via satellite. This
reduced the distribution cost of the movie and allowed a wider and simultaneous release in
maximum number of theatres of remote areas such as small towns and villages. UFO leased its
digital projecting system to the exhibitors and made revenue out of it by levying a monthly fee
and distributors were imposed a per show fee for each time the show was screened in the
theatre.

KEY POINTS:

1) For expanding the scale of business of UFO moviez Sanjay thought to focus on cinema
advertising business and bring large clients on board and the other option was to
leverage its digital technology in other sectors and the third was to enter into the
distribution business.
2) Often theatres in rural and remote areas had to wait for a few months for the print and
sometimes they were never available which increased the piracy in the Indian film
industry where the movies were recorded with cam recorders and were sold in the
market in the form of video cassettes and optical disks like CDs and DVDs . This was
controlled after the introduction of digital projection in the Indian film industry.
3) The distribution cost has reduced due to digital cinema with maximum number of
digital prints screened simultaneously in 1800 screens for the initial release of the movie
and the cost where 300 analog prints were purchased is similar to the cost for 1800
digital prints that is the digital print in 6 times cheaper when compared to analog print.
4) There was a faster penetration into the remote areas due to digitization of cinema and
the digitization in India rose from 5 % to almost 50 % by 2014 from 2005.
5) This digitization introduced the 100 crore club movies to the Indian film industry where
the money is being sucked back into the industry went up by virtue of a wider release.

ADVANTAGES:

1) Less cost of prints when compared to the analog reels.

2) The handling and transportation charges of the print is saved as the projection is through
satellite using a digital projector.
3) The rate of piracy has gradually reduced and many people are interested in watching
the movie with a quality video and audio which can be experienced only in theaters.
4) The delay in the delivery of prints is very less as everything is digitized and the print
does get scrambled even after several times of usage.

CONCLUSION:

UFO moviez has brought a tremendous change in the revenue of Indian film industry and
even raised the standards and technology by its introduction to digital projection system
and leasing it to the theatres in the remote areas which increases the occupancy of the
theatres and they can be maintained well and can support many people who are dependent
on film industry.