Mtv Networks: Case Study

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Table of Contents

Mission, Objectives and Strategies……………………………………………………..3

Company History………………………………………………………………………...3

Industry Analysis………………………………………………..……………………….4
Supplier Power………………………………...………………………..…………4
Buyer Power………………………..………………………………...……..……..4
Competitive Rivalry………………………………………………………...……..5
Threat of Substitutions…………………………..………………………...………5
Threat of New Entry…………………………………………………………..…..5

SWOT Analysis…………………………………………………………………..………6
Strengths……………………..……………………………………..……………..6
Weaknesses…………………......……………………………………..…………..6
Opportunities………………………………….…………………..……………….6
Threats………………………………………………………………………….….7

Recommendations and Strategies……………………………………….………………7

Works Cited…………………………………...………………………………………….9 Mission, Objectives and Strategies
MTV began as a unique and entertaining concept. A non-stop music video channel, which “served as a new promotional tool for recording artists, a new advertising vehicle for manufacturers, [and] a unique program format for cable operators” (Benjack 280). For most of the 1980s MTV remained an outlet for performers to simply get their new music noticed and attract new fans with creative videos.

One of the earliest and greatest cable success stories; MTV was established by Warner Amex Satellite Entertainment Company (WASEC) after extensive marketing research. Originally music videos were provided free by record companies. “This inexpensive source of programming would make MTV a profitable venture more quickly than other forms of programming” (Benjack 282).

MTV has diversified its musical offerings from traditional rock and roll to rap, dance music, and heavy metal. To some extent these genres have been segregated into their own program slots: Yo! MTV Raps and Club MTV are examples. At the same time, the move toward separate programs has increasingly become a move away from music videos and into a more general form of entertainment.

Company History
August 1, 1981 was MTV’s first day on the air; it featured a music video clip called Video Killed the Radio Star, by The Buggles. The title proved a bit prophetic as MTV greatly transformed the nature of the music industry over the next few decades. At the same time, MTV became a major presence in the cable TV industry and in the overall American culture.

Since its premiere, MTV has revolutionized the music industry. Slogans such as "I want my MTV" became a part of pop culture history and the concept of the VJ,video jockey, was introduced. MTV has evolved into a more full service network, offering news, sports, documentaries, cartoons, game shows, and other traditional TV programs. MTV has spawned a handful of sister channels in the U.S. and dozens of affiliated international channels around the world. (Hoover’s, Inc., 2008).

Industry Analysis
Supplier Power: In the case of MTV, the supplier is the music industry which provides content and programming. The executives of MTV should have an intrinsic understanding of the industry and the ways in which suppliers are directly involved. These include the suppliers’ core interest, a variety of products offered, and the alternative resources that are available. It is most appropriate to build win–win relationships with suppliers. This is exactly what MTV did. “The fundamental ‘win-win’ nature…is the most important reason for MTV’s success” (Benjack 286).

Buyer Power: If the MTV will maintain its integrated organizational structure in which distinctions between the advertisers, music industry and cable television operators are part of one broad market player, buyer power will be high since it will be able to dictate the prices of its raw materials incurred from the suppliers. In MTV’s case this would include, but not limited to, the price of videos.

Competitive Rivalry: Advances in technology and globalization are reasons for increased competition. There is new technology to be exploited that will expand...
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