German Television Market:
The German television market has been a major part of the country’s cable network operations that has continued to generate huge revenues in the recent past. Actually, the digital television market accounts for more than 70 percent of cable network operators as usually forecasted. There are three major drivers of growth in the nation’s cable television market i.e. digital Pay Television, telephony, and the Internet. As the revenues from Pay TV continue to experience steady growth, the Internet has played a crucial role in the German Television market. While there were fears that the Internet would replace private television channels in the country, it has complemented it and contributed to its significant growth. The role of the Internet in the expansion and growth of the German television market is evident in the fact that over 15 percent of cable TV customers receive Internet access from the cable provider (“German Cable Market 2012”, n.d.).
Emergence of IPTV Product:
As previously mentioned, the Internet has played a crucial role in the recent growth and productivity of the television industry in Germany. This has led to the emergence of IPTV product, which is a new competitive product that is being marketed by several major stakeholders in this market. Private television channels have specifically taken advantage of this new product to increase their share in this industry, which has traditionally been controlled this industry. One of the most significant measures taken by these channels is the creation of ARENA by smaller German cable companies as a new competitor to Premiere, which was the main cable television in the country. Moreover, digitalization of IPTV product contributed to an exp...
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...rs between some players that televise programs and events of the same genres. Large market players try to dominate this market and control sources of revenue like Internet television because they own multiple television channels. The size of these players and their attempts to control revenue sources implies that rivalry can be strong in this industry.
Generally, the industry has intensified rivalry and competition because of these factors and the recent market stagnation. The strong competition is also fueled by the fact that the various television channels, particularly independent companies continue to fight large competitors for the limited revenues. It is expected that this industry will continue to experience strong competition because of increase in media diversity and advances in communication technology that increases the number of television channels.
Growing from a small provider of a few thousand, the company has grown to be a massive conglomerate encompassing far greater than simply cable services. Now owning NBC Universal, Comcast exerts great power within the market, employing a variety of strategies to expand itself and remain profitable. When it attempted to merge with Time Warner cable, several strongly opposed when considering the massive power it already possessed. In addition, growing sentiment against cable providers has resulted in the reduction of subscribers. Despite this, Comcast is in a high period of expansion within the business cycle. However, it should remain cautious of the changing environment of how consumers obtain television
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
Electronic media content can be viewed differently according to personal opinions, but the First Amendment Rights of the United States Constitution lay the foundation for the legal system that is to be followed. These rights form a guide that help citizens have a stronger grasp on what is and isn’t acceptable within the eye of the law. Narrowing down to electronic media content, there has been a rise of tension involving first amendment rights of content regulations. The spectrum scarcity rationale has made it possible to control licensing schemes, along with direct content control to make sure rules are being followed according to the First Amendment. The differences between cable TV versus broadcasting are similar, yet contrasting.
The market penetration of TiVo has been very poor. Fourteen months after its introduction only 0.04% penetration has been achieved out of the total of 102million TV watching population. This is also reflected in the poor revenue position of the company. Exhibit 3 shows that the company recorded a loss every quarter since the introduction of the product in September 1999 and has been getting worse.
Through the efforts of globalization, television has grown to be more than just a source for the facts. Presently, television cable channel stations seem to be more interested in capturing viewers interest and ratings than reporting the most significant events of the day. More than likely, without thinking about it, viewers fail to recall that cable network stations are in the business of making money first, then attempting to keep the public “infotained”. In other words, keeping you well informed with quality news broadcasting while simultaneously entertaining you at the same time.
This battle for supremacy over who will control the future of communication will be fought largely between the telecommunications companies and the Cable TV companies. Perhaps mergers will be sought, or some companies will be run out of business because of their inability to keep up. Millions of dollars will be lost and billions will be made, but the end product will create a closely-knit global community, able to communicate instantly regardless of language or location.
In this case study we will gain a better understanding of TiVo, Inc. and how it has struggled to find success in a market they are known to be the innovator. At this point there are very few television viewers in North American that do not know what TiVo does for TV viewing. However, most consumers do not know the history or struggles this company has been through since creating the product in the late 1990’s. After reading this case study it is clear the creators of the TiVo were visionaries but it is also clear they were not business people too. Sadly, this might be the eventual demise of the company that clearly had the market in the palm of their hand. We will examine some of their flaws and how TiVo might regain some of the momentum to become a profitable organization.
The year is 1952 and a young John Rigas purchased a cable company for a mere $300 in Coudersport, Pennsylvania with high hopes of building the company into a successful family owned and operated business (AICPA, 2005, para. 3); a business that would remain unparallel to the rest of its competition. In the late 1990s his dreams came to fruition; John Rigas, along with a few close family members and investors, purchased Century Communications for $5.2 billion and merged the companies together becoming the 6th largest cable company serving more than 5.6 million subscribers (AICPA, 2005, para. 4). Ensuring that the majority of Adelphia’s voting stock and control of the board remained in the hands of f...
The idea inspired Reed Hastings and Marc Randolph, and then they founded Netflix in Scotts Valley, California in 1997 (Netflix, 2014). The company comes into play by developing a subscription-based streaming platform for movies and television shows. Unlike the traditional movie rental businesses such as Blockbuster and Redbox, Netflix’s innovation offers service via Internet, and it does not have any physical stores but instead delivers DVDs through postal mail in the U.S. Since then, Netflix has become the world’s leading internet television network with constant growth of customers to over 48 millions members in more than 40 countries in the North America, Europe, and the Latin America (Netflix, 2014). In this analysis, the main focus is examining the current market environment for Netflix. It identifies the type of market structure that Netflix is currently competing. The analysis also expands on the competitions, product differentiation, pricing strategy, and measuring the level of easy entry-and-exit.
Streaming video content over the internet continues to grow in popularity with consumers for a variety of reasons, including the widespread availability of high speed internet, attractive video content, easy to use video streaming devices and the rising cost of cable television service. Some consumers use streaming video to enhance or supplement the typical offerings available from their local cable provider. Others take a more extreme approach and use streaming video as a means to eliminate the need for a cable television subscription altogether. Presently consumers cancelling their cable TV subscriptions are still considered a minority of all subscribers; nevertheless their steadily increasing numbers have earned the moniker of “cord cutters.” Those looking to ditch cable TV can also find a growing number of online resources that will ease their transition to cheaper online television viewing.
There are many contradictory arguments about cross-media ownership. Some people said it is an effective way to manage media company. Also, some people argue that a media company can offer high quality information and product since they have broad network and huge capital. This information and product cannot be made with small capital. However, there are concerns that media concentration affects our society negatively.
The findings of this study offer view on multiple sides involving opportunies and challenges for broadcast media companies and digital platform partners to exploit audience participation for the purposes of profit and the strategic expansion to multi-platform formats.
Examination of the eight factors of rivalry intensity shows a number of competitors with many of them producing very similar product lines.
In recent years, the importance of news broadcasts has increased. More people need to access the news to stay in touch with the rest of the world’s affairs. More TV channels have developed to give viewers more news. Both commercial and government networks are used to present the news to the general public. However, because of the different fundings and target audiences, different networks will focus on different aspects of the news, to make as many people of their target audience watch their particular broadcast. Therefore the separate channels can bring in a far larger audience, and take away another channels audience, therefore reducing competition.
Finally, observing the traditional organizations and how they used to associate themselves to the physical forms by which they distributed their products – television broadcasting company, radio broadcasting company, newspaper, book or magazine publisher. Recently, these media firms had to restructure their business in order to be successful in this digital world. Hence, they had to widen their delivery medium rather than limiting it, and be exploiters of content wherever content is available to be exploited.