The media had to go through $1.25 billion in damage and lost battle. In fact, the industry claims that 30-70% of the videos on YouTube are illegally downloaded. Since customers were now watching movies for free, this put a great impact on them. Sales of DVDs were declining while downloading and watching movies online were growing. So, to solve this problem, the movie and television studios decided to do something about this.
News corporations attract viewers’ attention in order to make money, basically benefiting themselves. Networks attract viewers to increase ratings, so that when they would get more advertisers, meaning more profit that they will obtain. News bias make audiences reflect upon the truth of the stories that are being portrayed. There are several deception stories in which the News denied on releasing these types of stories, but in truth, they really are exaggerated perspectives of their own. TV news simply reflects only on one side of the story, and leaves the viewer the other side of the story untold; this is the reason why TV news is biased.
• Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like cholesterol.com has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision?
They assumed that unlimited streaming service had more demand than DVD service. Before Netflix changed its pricing structure, the customers paid $7.99 per month for unlimited online streaming plan, or an additional $2 per month for the DVD-by-mail service. So the total cost for the user who wish to use both service unlimited online streaming and the DVD-by-email was $9.99 per month. However, this pricing was not financially sensible for the company because of the misconception of the demand of DVD rental service. Therefore, Netflix set the price $7.99 for both service unlimited online movies and unlimited mail-order DVDs respectively.
The competitive forces that challenge the television industry include: a. Traditional competitors: Television networks and content producers are continuously devising new, more efficient ways to increase the number of viewers and increase the amount of revenue gained from advertisers. The cable industry that relies on a captured audience of viewers who pay a monthly subscription for television content is most threatened by these changes. b. New market entrants: Web sites like Hulu.com, YouTube.com, Facebook, CBS’s TV.com, and Joost are all new avenues for people wanting to access television content on their own time schedule, with a reduced amount of advertising.
* Viacom owns Paramount Pictures and MTV Films with library of over 3,500 films Weaknesses * Declining profitability- due to the decline in the economy * Paramount subsidiary of Viacom, Inc. not making as strong showings in the box office or low numbers for DVD sales, show that the consumers choices have shifted. * Piracy and online watching of movies- due to watching movies online, purchasing illegal cable or purchasing illegal copies of movies, the incoming revenue for Viacom has decreased * Trouble with debt * The
A great example of this would be the cable company providing cable television and a substitute to the cable company would be the satellite dish, and depending on where you live would provide the same quality and at a lower cost. Monopolies fear substitute companies because of the market share they take away, in recent years monopolies have tried to improve their image threw customer service. It is far more difficult for many sellers to charge a higher price than its competition because it would be trouble-free for buyers to obtain from other sellers instead. This results in a problem for the smaller companies trying to make a move into the bigger
Video and Digital Rental Industry Though video rental companies such as Blockbuster and Hollywood video have been around for generations, the digital age has caught up with the standard rental companies. Digital rentals and online streaming has cut down profits for these types of companies to the point of sending them into bankruptcy and buyouts. With easy access of online content, consumers have chosen to place their entertainment funds into digital rental over the cost of renting films via traditional physical stores. The effects of digital content on the industry have completely changed business models all around. In the past visiting a video rental store and spending time browsing the categories and titles was the norm and almost ritual for some households.
Prior to polices established by Law of Commerce Henkel Iberica participated in aggressive pricing to increase market share. The consequences of this were a negative effect on margins, contribution margins, and profits on sales. To contend with its competitors, Henkel invested in promotions and additional product mix to increase sales, but due to lack of accuracy in long range forecast it was often left with either over stock that is difficult to reallocate or loss of sales due to out of stock products which eventually led to a decrease of net earnings in sales year before. Accurately forecasting demand is the key to every strategic, tactical, and operational decision designed to keep our business competitive. Obviously it is evident that Henkel Iberica current process isn’t working due to challenges of forecast exactness and demand variability for all the products it offers.
This could happen because when it comes to competition the people of the better networks that provide better service are able to charge more causing more people to drop and change to a cheaper provider. In this case it would be some provider that can barley run anything with their internet. On top of that some internet providers “promise” to provide the best service they can to their customers but what they meant by promise is a two hour phone call with someone at a phone that will leave the little song playing to keep you distracted and make you waste more time. So the truth behind this is that if net neutrality is passed then people would have to charge more per minute on a phone so the longer the caller waits to help the customer the more money goes in their pocket. Manne also did study on TV companies and the results show that when cable providers were able to change their prices to a higher price and more people started to drop or change.