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Case Study: Doordarshan's Problems

The document discusses Doordarshan's declining revenues and growing problems in the late 1990s and early 2000s. After initial revenue growth in 1999-2000, Doordarshan's revenues were projected to grow much slower than private channels by 2000-01. Doordarshan was plagued by mismanagement, falling viewership, loss of advertisers, and allegations of corruption. Analysts questioned whether the government could continue owning Doordarshan and felt privatization may be the only solution.

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Pranshu Sahasrabuddhe
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46 views2 pages

Case Study: Doordarshan's Problems

The document discusses Doordarshan's declining revenues and growing problems in the late 1990s and early 2000s. After initial revenue growth in 1999-2000, Doordarshan's revenues were projected to grow much slower than private channels by 2000-01. Doordarshan was plagued by mismanagement, falling viewership, loss of advertisers, and allegations of corruption. Analysts questioned whether the government could continue owning Doordarshan and felt privatization may be the only solution.

Uploaded by

Pranshu Sahasrabuddhe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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School of Commerce

MBA (FT) 5yr 2nd Semester


Internal I
Marketing management
Time:1hr M.M.20
Note: 1. Attempt any one question from section A.
2. Each question carries equal marks.

Section A
1. Discuss the various aspect of Business environment.
2. Discuss the critical dimensions of the role of government in promoting and regulating the
business activities.
Section B (Compulsory)

3. Case Study: Doordarshan's Problems


After years of falling revenues, in 1999-2000 Doordarshan (DD) had a revenue growth at
50%. In 1999-2000, DD earned revenues of 6.1mn compared to 3.99 mn in 1998-99. DD
showed signs of revival with the launch of DD World (a channel for NRIs) and had relative
success with some of its regional channels. However, by the end of 2000-01, DD's
honeymoon with success seemed to be over. In 2000- 01, DD's revenues were projected to
grow at 6-15% while private channels such as Zee TV, Star, Sony had projected 40-50%
revenue growth. Analyst's felt that DD's sagging revenues were only tip of the iceberg. DD
was plagued by multiple problems, which found their roots in the mismanagement of affairs.
By the late 1990's the private producers, advertisers and audience had deserted DD. Not even
one car company advertised on DD and even two-wheeler manufacturers kept a low profile.
Ads of Pepsi and Coca-Cola were found only during sports telecasts. Only FMCG
companies stuck to DD because of its terrestrial network to reach the rural and semi-urban
audience. In spite of having over 21,000 employees, DD outsourced 50% of its programmes
from the private producers. In late 1990's DD faced number of allegations of large-scale
scams and irregularities. Under utilized infrastructure, improper investments and poor
financial management plagued the performance of DD. In 1992, when the Government
opened airwaves to private players, DD faced the heat of competition from private satellite
channels. In the Cable & Satellite (C&S) homes it was found that there were hardly any
viewers for the DD programmes. The depleting Television Viewer Ratings (TVRs) of the
DD programmes was also a cause of concern as advertisers deserted due to its low viewer
ratings. Analysts felt that DD would need a budgetary support of 5 bn during the fiscal 2000-
01 to sustain itself as its revenues would not be enough to meet its expenditure. Analysts
questioned the capacity of the Government to own DD and many felt that privatization
would be the only solution.
Questions
1. Was DD unable to assess the changing business environment? ( Reason)
2. Do a SWOT analysis for DD?

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