Eliminating The Middleman

MTV vs Channel V in Asia

Current Strategies

MTV: global standardization (pre-1995), transnational (post 1995)

Markets: SouthEast Asia- only Thai own language (Phil, Thai, Indo, Sin, Mal), India, China, Japan, Korea, Taiwan/HK

Channel V: local customization (local offices, full independence)

Markets: China, India, Taiwan, Thailand, Korea, International (for other Asia countries)

PEST Analysis and implications

Political: Government regulations on TV channels particularly in Asia, censor board on RA content.

Implications: longer lead time, increasing expenses

Economy: Increasing spending power in Asia, improving economies

Implications: increasing sales of subscription, improve distribution channels.

Social: growing Asian population, globalization (western trend, youth culture)

Implications: more affluent culture, convergence of taste of preferences, declining local customization

Technology: Internet, better audio visual equipments

Implications: reach wider audience e.g. dvd, cd, tv, online broadcasting,

Porter Five Forces and implications

Potential entrants: medium to high barriers to entry. Huge investment to set up a TV channel. Strict government regulations esp in Asia (on tv content)

Industry competitors: among MTV and Channel V - duopolistic

Threat of substitutes: medium to high. People can enjoy music from other means, like dvd, cd, radio etc.

Bargaining of customers: teenagers to young adults, advertisers, satellite companies, tv channels (terrestrial).

Power: high for advertisers, satellite/tv channels, esp due to the fierce competition between the two.

Bargaining of suppliers: record companies, music producers, movie companies

Power: medium to high, although it is an important distribution channel, but there are many others, e.g. radio, cd, tv (non-music).

Competitor Analysis

Channel React to competition Core competencies Capabilities Goals/strategies

MTV -Product differentiation to suit local preferences and taste

-conduct market survey

-increase distribution channels (tech) -Strong branding

-first mover advantage

-international networks

-strategic