Founded in 2005, UFO Moviez India Limited (UFO) was the largest satellite-based digital cinema distribution company in the world by late 2012. Within a few years of its inception, UFO had established a differentiated platform-based business model that offered benefits to the entire film industry ecosystem of distributors, exhibitors, advertisers, and audiences. The company had spread rapidly to movie theatres across India but was about to face saturation if the growth of new movie theatres was not faster than the company’s own growth. Thus, UFO had two choices to increase revenue: maintain its current strategy or explore alternative revenue sources using the same business model. In addition, there was always the threat that a new firm could copy UFO’s technology and business model at a lower cost. Thus, UFO needed to devise a strategy to counter competition, while also implementing one of its two options for growth.

Founded in 2005, UFO Moviez India Limited (UFO) was the largest satellite-based digital cinema distribution company in the world by late 2012. Within a few years of its inception, UFO had established a differentiated platform-based business model that offered benefits to the entire film industry ecosystem of distributors, exhibitors, advertisers, and audiences. The company had spread rapidly to movie theatres across India but was about to face saturation if the growth of new movie theatres was not faster than the company's own growth. Thus, UFO had two choices to increase revenue: maintain its current strategy or explore alternative revenue sources using the same business model. In addition, there was always the threat that a new firm could copy UFO's technology and business model at a lower cost. Thus, UFO needed to devise a strategy to counter competition, while also implementing one of its two options for growth.