EVALUATION OF BUSINESS STRATEGY IN MOVIE INDUSTRY: CASE STUDY OF VISINEMA PICTURES

• Main Author: Edina Hasiana Sitohang, Stacia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63594
• Institution: Institut Teknologi Bandung

The first movie theater in Indonesia was established in December 1900. The movie industry started with international movie penetration. After a while, local movie producers started to arose and created local Indonesian movies. The industry is growing through ups and downs in Indonesia. In 2008, Visinema Pictures was founded in Jakarta, Indonesia by Angga Dwimas Sasongko, one of the most respected movie director in Indonesia. After several years in the industry, Visinema became one of the most prominent movie production company in Indonesia. The company got many achievements and recognition. After the award, Visinema chose to grow the company horizontally as opposed to only grow vertically and gain another similar achievement. In contrast with other movie production companies, Visinema did not choose to only focus on growing the movie production capacity, instead they chose to build the ecosystem that enables them to obtain many more opportunities and have better sustainability. Visinema aims to be an agile company and does Intellectual Property (IP) development. As the result, Visinema is able to transform their IP that initially started from movies to different kinds of business model. Hence the company is able to create profit not only from the movie creation but through various businesses. Visinema Pictures successfully developed the business ecosystem by creating new business subsidiaries and transformed to Visinema Group with Visinema Pictures in it. The research is conducted to find business problems and offer business strategies that focus on Visinema Pictures as one of the biggest company in Visinema Group. In 2019, the company successfully gained Series A funding from Intudo Ventures and got other various investment schemes to support the business. Thanks to the new investments, Visinema Pictures was able to survive and innovate aggressively during the Covid-19 pandemic. In the early 2020, Covid-19 pandemic hit and impacted many industries in Indonesia, especially the entertainment and leisure businesses. Fortunately, Visinema did not face any significant problem regarding survival during the pandemic, instead, they are thinking of much bigger opportunities and problems. The company successfully survived the beginning of Covid-19 pandemic from 2020 until 2021 without any lay off or work hour reductions. The company grew aggressively during the pandemic. Angga believed that penetrating to the technology and animation market is going to be the biggest opportunity in Visinema’s road map in the near future. This research is qualitative research which is backed up with data from questionnaire. The author uses a set of frameworks to analyze the company based on interview, questionnaire, books, journals and articles. According to the research, besides the huge opportunities, Visinema is also facing problems. The first problem is low capital. Visinema Pictures needs more capital to grow rapidly. Visinema Pictures also has the problem of relatively low exposure in the market compared to its competitors. The other problem is movie and IP piracy. The piracy problem can cause huge loss to the company. The researcher recommends several business strategy solutions to improve the capital by finding new investments, do Initial Public Offering (IPO) and prioritize emergency fund for the company. The researcher also recommends business strategies to improve the market share of Visinema Pictures by expanding the production capacity, create new strong director figure other than Visinema Pictures’ founder, dominate animation industry, collaborate with other movie production company, create controversial content to be massively distributed and explore new movie genre that can attract wider Indonesian market. The researcher also recommends the company to create a massive anti-piracy campaign along with other stakeholders in the movie industry and create an easy to access piracy reporting channel.