What Competitive Forces Have Challenged the Television Industry? What Problems Have These Forces Created?

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

Internet appears to be playing an increasingly prominent role in televisions business strategy than it has in the past. The case study explores tendencies in television industry's recent endeavors from an IT point of view. Television industry is losing viewers to the internet streaming of television programming. According to Laudon & Laudon, 2012, "the number of cord-cutting U.S. households is predicted to double to about 1.6 million."(pg.118) A major problem that has been created for the television industry is the loss of revenue from prescribers and advertisers the television industry is embracing this change by using the internet as another delivery system for it content.

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

Disruptive Technology or disruptive Innovation is an innovation that makes a product or service better by reducing the price or changing the market dramatically in a way it does not expect. Christensen, 2000, stated that ''disruptive technologies are typically simpler, cheaper, and more reliable and convenient than established technologies'' (pg. 192). Internet technologies can now allow cable and satellite prescribers to watch their programming anywhere. This also allows more opportunities for advertisers. Laudon & Laudon, 2012, "The same technologies might allow cable firms to provide demographic data for more targeted ads and perhaps more sophisticated advertising down the road." (pg. 119)

How have the cable and programming and delivery companies responded to the internet?

Cable programming and delivery companies have responded well to the internet. Cable programming has embraced the internet. Laudon & Laudon, 2012, "Television broadcast networks such as NBC Universal, Fox, and CNN have put television shows on their web sites." (pg. 118) NBC Universal, News Corp, and ABC Inc. formed Hulu.com. Hulu.com is a website that offers streaming video of televisions shows. Hulu syndicates to other sites which are supported by advertising commercials. All of this content can be viewed over iPads, iphones and other smart phones.

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

The first issue is finding a balance with the amount of ads that will be shown online. Laudon & Laudon, 2012, "Although the cable programming companies want an online presence to extend their brands, they don't want to cannibalize TV prescriptions or viewership ratings that generate advertising revenue." (pg. 119) Convenience and minimal advertising are two of the reasons online programming has become