Television Industry

CASE STUDY ANSWERS

1. What competitive forces have challenged the television industry? What problems have these forces created?

- An increasingly important role of Internet

- Widespread use of high technology ( high-speed Internet access, powerful PCs, iPhones, iPads, leading-edge file-sharing services...)

- Free and often illegal downloads of some TV shows

=> More people start to watch TV online instead of watching through television.

=> "the number of cord-cutting US households is predicted to be doubled to about 1.6 million" (Laudon & Laudon)

=> A major problem for the television industry: loss of customers and revenue.

2. Describe the major impact of disruptive technology on the companies discussed in this case.

- Internet technologies can allow cable and satellite prescribers to watch their programming everywhere.

- It also allows more opportunities for advertisers.

=> "The same technology might also allow cable firms to provide demographic data for more targeted ads and perhaps more sophisticated advertising down the road"

3. How have the cable programming and delivery company responded to the Internet?

They have all responded to the Internet very well:

- NBC Universal, Fox and CNN have put television shows on their own Web sites.

- NBC Universal, News Corp and ABC Inc. Hulu.com ( a website that offers streaming video of television shows and movies, also syndicates to other sites which are supported by advertising commercials.

- Some companies began a trial program (making more television shows available online, but only for cable subscribers and earning more revenue from advertising).

4. What management, organization, and technology issues must be addressed to solve the cable industry's problems?

People: Those Chief execution officers in the television companies should try to come up with a new and innovative way about how to integrate the old traditional television industry with newly technology for people to watch movies and TV shows.

For example, they should try to improve their service quality and think about how to attract more subscribers.

Organization: The traditional television companies and those companies that provide free websites for people to share movies and shows are involved. These organizations should try coordinate