CHAPTER 9 - Strategic Alliances Radios popularity gave way to TV - - PowerPoint PPT Presentation

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chapter 9 strategic alliances
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CHAPTER 9 - Strategic Alliances Radios popularity gave way to TV - - PowerPoint PPT Presentation

Mar 02, 2023 225 likes •366 views

CHAPTER 9 - Strategic Alliances Radios popularity gave way to TV Networks which held a national role until cable began to offer a wider variety but then video tapes became a staple until the public found DBS which gave

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SLIDE 1

CHAPTER 9 - Strategic Alliances

  • Radio’s popularity gave way to
  • TV Networks which held a national role
  • until cable began to offer a wider variety but then
  • video tapes became a staple until the public found
  • DBS which gave them even more flexibility but now
  • the internet and computers take up a person’s time
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SLIDE 2

How much time do we spend surfing?

  • 66% of all Americans are on-line

– 30% access at work – 55% access at home

  • 79% of all US Households have a computer
  • right now only 1/2 of them are on-line
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SLIDE 3

Strategic Alliance

  • Association designed to provide benefits to

its members

  • Convergence

– Combination and integration of the broadcast, cable, telecommunications and computer industries to develop and market information and entertainment products.

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SLIDE 4

Major Forces Driving Convergence

  • Technological

– Digital Compression – Wireless Cable – Satellite – Interactive systems – HD – Mobile

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SLIDE 5

Forces

  • Regulatory

– Electronic Superhighway opened competition – Elimination of governmental restrictions – deregulation of industry – HDTV

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SLIDE 6

Forces

  • Global Expansion
  • In USA

– 99% of all households have Radio & TV – 95% have a telephone – 90% have a VCR/DVD – 70% have cable / DBS growing

  • In EUROPE & South America????
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SLIDE 7

Forces

  • Social

– American becoming more comfortable with computers – Internet - shopping, banking, etc – Information / entertainment

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SLIDE 8

Planning (AGAIN) is the key

  • Strategic planning forms the basis of the

alliance

– objective evaluation – target market – competitive advantages and disadvantages – strategies to implement the alliance

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SLIDE 9

Reasons for Strategic Alliance

  • company wants to gain access to new

geographic markets

  • exercise control over existing markets
  • share risks in developing new products or

technology

  • share expertise

– Cable Networks and Phone Co’s

  • Programming expertise / distribution expertise
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SLIDE 10

Radio Alliance

  • Ownership (restrictions)
  • Greater efficiency in management

– consolidation of department – able to capture a larger market share

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SLIDE 11

LMA’s

  • Both Ad sales and programming

– time available to broker restriction- 15% of total time on-the-air – Prevents programming duplication beyond 25%

  • f schedule
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SLIDE 12

MERGERS & ACQUISITIONS

  • DISNEY - Cap Cities/ABC
  • WESTINGHOUSE - CBS
  • TIME-WARNER - Turner Broadcasting
  • SONY - Columbia Pictures & CBS Music Group
  • MATSUSHITA - MCA/Universal Pictures
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SLIDE 13

Advantages???

  • Growth in popularity of the media

(PROFIT)

  • Barriers to entry (buy a winner-market

share / cash flow potential)

– (google bought Youtube)

  • relaxation of ownership limits
  • tax advantages for buyers.