TVR cinemas: film prioritization

and
negotiation during crisis

Submitted by:
Submitted to : Anchal
Neerav Verma Honey Sehgal
Rahul Upadhyay
Swapnil Mark Pushong
Varsha Jaglan
 INTRODUCTION
 The scenario presented in this case study outlines the challenges and
uncertainties faced by Mr. Vimal Ramchandani, the Project Manager of TVR
Cinemas, a subsidiary of the Tiya Group, which operates a chain of
multiplexes in India. As Mr. Ramchandani sips his coffee, he receives a
message notifying him of an urgent meeting with no specific agenda.
 In the subsequent meeting, Mr. Vijay, the Managing Director of TVR Cinemas,
expresses his concerns regarding the rapidly spreading COVID-19 pandemic
and its potential impact on their business. He informs Mr. Ramchandani that
TVR Cinemas has signed agreements for the all-India screening of four
movies due to release in May-June 2020, and the pandemic may force them
to shut down their multiplexes. This presents a significant challenge as the
commitment with production partners must be upheld.
 Mr. Vijay tasks Mr. Ramchandani with finding an alternative strategy to
navigate the crisis and ensure the company's survival. He emphasizes the
need to safeguard the interests of all stakeholders and suggests that time,
cost, and scope adjustments for the film projects may be necessary.
Furthermore, he calls for the development of standard operating procedures
(SOPs) for business continuity post-lockdown.
 OBJECTIVES
 Completion of Due Film Projects: TVR Cinemas must fulfill its commitment to
produce seven film projects, which may require adjustments in response to the
crisis.
 Stakeholder Interests: Safeguarding the interests of all stakeholders, including
production partners, distributors, and employees, is paramount.
 Time, Cost, and Scope Trade-offs: Considering the potential disruption to
timelines and budgets, Mr. Ramchandani needs to assess how to maintain project
quality within altered constraints.
 Risks and Alternatives: An evaluation of the risks associated with alternative ways
of launching film projects is crucial. This includes exploring new distribution
channels or release formats.
 Business Continuity SOPs: Developing SOPs to ensure business continuity post-
lockdown is essential to minimize the impact of the crisis on TVR Cinemas'
operations.
 In the face of these challenges, Mr. Ramchandani must devise a unique and
adaptive plan that will not only ensure the survival of TVR Cinemas but also keep
their stakeholders satisfied and engaged during these unprecedented and
turbulent times. The decisions and strategies he will formulate could have a far-
reaching impact on the future of the company and the Indian cinema exhibition
industry as a whole.
 Challenges
 How to prioritize seven pipe-lined Bollywood movie projects in
the midst of a crisis. TVR Cinemas has signed agreements to
screen four of these films, but the other three are still in the
pipeline. The company needs to decide which films to prioritize
and how to reschedule the others, taking into account factors
such as the budget, the cast and crew's availability, and the
market potential of each film.
 How to negotiate with distributors and producers to secure the
best possible deals. TVR Cinemas is in a weakened position due
to the crisis, so it needs to negotiate carefully to avoid being
taken advantage of. The company needs to get the best possible
terms for rental fees, marketing support, and other expenses.
 How to recover the company's reputation and launch its own OTT
platform. TVR Cinemas has been struggling financially for some
time, and its reputation has been tarnished by the crisis. The
company needs to find a way to regain the public's trust and
attract new customers. Launching its own OTT platform could be
one way to do this, but it would require a significant investment.
 In addition to these specific challenges, TVR Cinemas also faces a
number of general challenges that are common to all businesses
during a crisis. These include:
 Maintaining cash flow. TVR Cinemas needs to ensure that it has

enough cash on hand to cover its operating expenses. This may

require the company to make cuts to its budget or to seek
additional financing.
 Protecting its employees. TVR Cinemas needs to take steps to

protect its employees from the health and economic risks of the
crisis. This may include implementing remote work
arrangements, providing financial assistance to employees who
are unable to work, and offering employee assistance programs.
 Adapting to new market conditions. The crisis is likely to have a

lasting impact on the entertainment industry. TVR Cinemas needs

to be prepared to adapt to new market conditions, such as a shift
in consumer preferences towards streaming services.
 The case study of TVR Cinemas presents a number of complex

challenges, but it also offers an opportunity for the company to

innovate and reinvent itself. By successfully addressing these
challenges, TVR Cinemas can emerge from the crisis stronger and
more resilient.
 Methology
 KPMG and Deloitte Reports: These are renowned consulting firms known for
their in-depth research and analysis. Mr. Ramchandani leveraged their reports
to gain comprehensive insights into the Indian media and entertainment sector.
Reports from such reputable firms are likely to provide valuable and up-to-
date data and trends.
 Stolz et al. (2020) Report: Mr. Ramchandani cited a report authored by Stolz et
al. in 2020. This report likely contributed to his understanding of the future
perspective of the entertainment sector, shedding light on potential directions
and challenges.
 Deloitte's Digital Media Trends Survey (2020): The survey conducted by Deloitte
in 2020 was a valuable resource for Mr. Ramchandani. It revealed a shift in
consumer behavior towards video streaming subscriptions over traditional paid
TV subscriptions. Such insights are crucial for adapting to changing market
dynamics.
 Shekhar (2020): The reference to Shekhar's work indicates that Mr.
Ramchandani is taking into account insights and perspectives from experts and
industry insiders. Shekhar's perspective on OTT (Over-the-Top) platforms
benefiting from the global lockdown is an example of real-time market
analysis.
Strategic plan
 Protection of Future Earnings: The plan acknowledges the importance of safeguarding the
company's future earnings. This indicates a focus on long-term sustainability and
profitability.
 Preservation of Pipelined Projects: Recognizing the substantial investments made in
projects already in the pipeline, Mr. Ramchandani aims to ensure that these projects
continue without interruption. This is vital for future revenue generation.
 Engagement with OTT Platforms: Mr. Ramchandani suggests establishing partnerships
with Over-the-Top (OTT) platforms. These collaborations can generate revenue during the
lockdown period and prevent producers from directly engaging with OTT vendors. By
acting as an intermediary, the company can benefit and provide a valuable service to its
stakeholders.
 Brand Value Preservation: Collaborations, even with competing stakeholders, are
considered as long as they don't diminish the brand value of Tiya Pictures. This ensures
that partnerships are pursued without harming the company's reputation.
 Control Over Project Releases: Mr. Ramchandani advocates for Tiya Pictures taking the
lead in deciding the sequence of project releases in collaboration. This position of control
aligns with the company's role as a primary stakeholder and allows it to make decisions
that serve its interests and stakeholders.
 Exploration of Self-Driven Platform: As a forward-looking strategy, the plan contemplates
the potential launch of a self-driven platform in the future. This aligns with the evolving
trends in the media and entertainment industry, where digital and streaming platforms are
gaining prominence.
Conclusion
 The TVR Cinemas case study is a valuable example of how to
prioritize and negotiate film releases during a crisis. The company
faced a number of challenges, including the COVID-19 pandemic,
which led to a nationwide lockdown and a sharp decline in cinema
attendance. However, TVR Cinemas was able to navigate these
challenges successfully by taking a number of key steps:
 Prioritizing films based on their commercial potential. TVR Cinemas
analyzed the seven films in its pipeline and prioritized them based
on their estimated box office returns. This allowed the company to
focus its resources on the films that were most likely to be
successful.
 Negotiating with filmmakers and OTT partners. TVR Cinemas
worked with filmmakers to renegotiate release dates and
budgets. The company also negotiated with OTT partners to secure
streaming deals for films that were not able to be released
theatrically.
 Developing a new business model. TVR Cinemas launched its own
OTT platform to provide viewers with access to its films. This
platform helped the company to generate revenue even during the
TVR Cinemas' success in navigating the COVID-19 crisis provides a
number of valuable lessons for other businesses:
 Be proactive and take decisive action. TVR Cinemas did not wait

for the crisis to resolve before taking action. The company

quickly developed a plan to prioritize and release its films, and it
worked with filmmakers and OTT partners to secure new deals.
 Be flexible and adaptable. The COVID-19 pandemic created a

rapidly changing environment. TVR Cinemas was able to adapt its

business model and release strategy to meet the changing needs
of its customers.
 Focus on your core strengths. TVR Cinemas is a leading

multiplex chain in India. The company used its expertise in

cinema exhibition to develop a new OTT platform and provide
viewers with access to its films.
 The TVR Cinemas case study is a reminder that even during the

most difficult of times, it is possible to succeed by taking

decisive action, being flexible, and focusing on your core
strengths.