What competitive forces have challenged the television industry? What problems have these forces created?
The television industry is one that has faced several competitive challenges on its operations. The major challenge that the television industry faces comes from the internet sector. On the other hand the capability of downloading of television programs to You Tube makes television content to be on the internet without television consent. The internet has killed CD sales of music leaving internet compliant options like ipods to dominate. These mobile gadgets also allow the download of television programs without permission. Some legal guidelines need to be made stricter to regulate entrants into the field, while cable operators must improve their operation strategies and processes to meet the needed changes.
2. Describe the impact of disruptive technology on the companies discussed in this case.
Disruptive technology has caused companies like Viacom to have many of their television programs aired on YouTube without their permission. This led to over 150,000 clips playing on YouTube without prior authorization. There is need for cable companies to lay down new strategies like mergers for the best adaptation to the technological changes facing cable TV. Through mergers, cable TVs will find it easy to benefit from each other’s innovations and using it to their profitable advantage. Disruptive technology has had Hulu as a fast mover. It has however had an impact on its revenue with returns from adverts not growing to the rate through which the number of viewers is escalating. This makes the company to give their viewers new packages with every subscription.
Despite the many unethical occurrences that take place through the YouTube platform, YouTube does not expressly allow its users to display copyrighted material through it. It warns against posting of illegal clips thereby limiting the length of unloadable movies to play for not more than 10 minutes. It also has a video ID filtering mechanism, which ensures that any clips with copyrighted material do not display on it. The cable television providers ought to develop new strategies and possibly come up with new products that can meet the needs of the new market craving for internet broadcasts.
3. How have the cable programming and delivery companies responded to the Internet?
The cable industry is trying to catch up with the speed of the internet by broadcasting through it. There is evident effort in the trial to manage required transitions effectively. As much as this is necessary, cable networks must maintain a relationship with their customers taking advantage of the loyal and adjusting processes to fit the needs of defaulters. This has been showcased by television stations like CNN, FOX, NBC Universal, News Corp, and ABC Inc. some of the cable stations have also formed websites through which television programs can be streamed. These sites do not act as content display channels alone, but also present advertising grounds. Web television sites therefore try to meet the race set by the internet to compete in the fast pacing web world. The cable industry has the opportunity of using technology to gather information that can give it chances for improvement.
4. What management, organization, and technology issues must be addressed to solve the cable industry’s problems?
There impends the need for synchronizing the web television and cable. This is one aspect that web television like Hullu tries out so as not to take over from what cable TV provides. It blocks its Boxee relays so that television programs are not interrupted. This gives cable a chance for existence and capability for earning revenue. Posting cable television programs over the net can kill the cable industry. TV operator therefore needs to provide a change in their operation systems to meet the increasing change in the needs of television viewers. Just like Comcast Corporation did, an evaluation into new operational strategies must be laid for cable TV to stay in operational. This thing cannot leave technology out of the way. Through technology, cable TV can authenticate its legitimate subscribers and make sure that they receive the quality of television programs through internet as they desire.
5. Have the cable companies found a successful new business model to compete with the Internet? Why or why not?
Provision of television programs online is a thing that still needs further study and testing. This is possible through corporation from various cable networks like in the case of Comcast Corporation, A & E and TNT doing their test research on the market. From current findings, cable networks to identify strategic advertising methods can exploit it. It can open ways for advanced digital advertising for cable and that means that research is still underway to ensure that cable television providers compete effectively with internet. Since change takes legal, social and technological turns in a business, it is necessary for these companies to keep their management costs as low as possible to balance transition expenditure and profits.
6. If more television programs were available online, would you cancel your cable subscription? Why or why not?
With more programs online, I would not discard my cable. Reason being, for as long as I am in control of the content to watch like being able to skip interruptions from adverts, I can take advantage of the choice. However, this would depend on the costs provided for subscription since it is apparent that the internet has so many free program options. Cable networks not only need to provide more programs online but they need to make sure that their offers are competitive. That would give me more reason to enjoy my programs online with moderated interruptions.
