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.
Over the centuries, the media has played a significant role in the shaping of societies across the globe. This is especially true of developed nations where media access is readily available to the average citizen. The media has contributed to the creation of ideologies and ideals within a society. The media has such an effect on social life, that a simple as a news story has the power to shake a nation. Because of this, governments around the world have made it their duty to be active in the regulation and control of media access in their countries. The media however, has quickly become dominated by major mega companies who own numerous television, radio and movie companies both nationally and internationally. The aim of these companies is to generate revenue and in order to do this they create and air shows that cater to popular demand. In doing so, they sometimes compromise on the quality of their content. This is where public broadcasters come into perspective.
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.
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 mixture of these four factors creates great rivalry among teams chasing sponsors, licensees and fans for a fixed pool of revenue with covering high and often increasing costs.
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...
Competitive rivalry examines how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each is capable of doing. (Arline, 2015).
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)
Gome Electrical Appliances: Competing for Channel Leadership tell us a story about the legendary development of Gome Electrical Appliances. Its low price sales strategy and the countermeasures toward the price control of the color television price alliance to maintain channel leadership. This case analysis identified two major problems of market strategies Gome took in the channel leadership battle, provided two recommendations, and then analyzed the feasibility of the recommendations.
The intent of this paper is to perform an analysis of the cable industry's external environment. The first sections of the document will discuss environmental scanning and define the telecommunication niche that is currently occupied by cable operators such as Comcast. The next section will identify the macroeconomic variables that currently impact cable operators and will compare two variables to two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities facing the industry. An external analysis of the industry will provide a clear picture of the environment as well as any opportunities and threats faced by Comcast. By understanding the environment, opportunities and threats a company has the ability to create strategies to support its business goals. The primary process by which Comcast will gain an understanding of its external environment is environmental scanning.
The digital evolution began to transpire on November 1, 1998. Since then there have been many other forms of digital technology adopted by our society and digital television quite possibly is next. “The speedy conversion to digital technology will have profound interest benefits, permitting efficient spectrum use, optimizing the development of new technologies and services to consumers, and fostering diversity and competition(FCC).
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.
Market structure breakdowns into various categories based on the number of sellers, type of products, and the level of market penetration. In the online streaming industry, Netflix is categorized in a monopolistic competition market. As Irvin Tucker (2010) defines, “monopolistic competition is a market structure characterized by (1) many small sellers, (2) a differentiated product, and (3) easy market entry and exit” (p.268). By using t...
Sources:Strategy and the Business Landscape, by Pankaj GhemawatBritish Satellite Broadcasting versus Sky Television. Harvard Business School Case
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.