MTV initially started as a music television, which its intention was to play music videos. An American television uses cable whose headquarters are in New York. It started its operations in the year 1980, with the main aim of influencing the young and adolescents. The cable company recently increased its operations internationally from more affiliate channels. Many of these affiliates and sister companies operate independently to increase the number of customers worldwide.
What strategy did MTV pursue when it initially started to expand internationally?
The network Started to move outside North America to different places in Europe to expand its market base. The network initially thought that the market outside the US was going to provide a good amount of money compared to their home market. The network made $2 billion in revenues from its first set up in Europe an indication that the company was going to increase its revenues. The management of the cable network targeted the youth and aging baby boomers when it started its new ventures in Europe and other places. At the time, managers of the cable company knew well that the new emerging markets were ripe for music and cable business. The management knew at the time that targeting the young generation was the only way they could increase their revenues. This is because the adolescents and the young people usually love music and many other entertainment facilities that fulfill their desires.
With increased number of languages, the channel decided to incorporate different native language branded stations to ensure every person considered in the overall channels operation. This worked extremely well because many people access same programs with their own language. This strategy increased the number of consumers in the industry, which in turn increased its revenues.
The company introduced digital and satellite technology to reduce its costs while providing different services to the international markets. This was crucial because it did increase the number of viewers while reducing the amount of money spent in all the operations. Providing entertainment to all generations was the first strategy the cable company had, which later developed too many other educational and promotional programs. Different people who have either internet connection to digital or satellite technology view the programs provided by the station worldwide.
What assumptions were managers at MTV making about foreign markets at the time?
With globalization in the world, there was a need for increased technology in different parts of the world; through this assumption, the managers at the cable company knew well that people other parts of the world were going to require their services. With the advent of the internet, the network decided to explore different places in the world because it was easy to transmit programs and information through it easily. With increased internet use, the managers at MTV knew that more people were going to desire their services. The managers at the network knew that with increased internet usage, people were going to choose the channel. This strategy was going to increase the company’s revenues to a higher level. This became true because the company earned $ 2 billion dollars in the first round of operating in the international markets.
What strategy does MTV pursue today? What are the benefits of this strategy? What are the costs?
Today, MTV pursues different other strategies to ensure a total increase of all its viewers. The channel edits most of its content before producing it to the public to ensure distinct and informative programs. The edited music does away with different references that relate to sex, drugs, racism, violence, advertising and homophobia. Censored music and programs taken to different rotations or banned altogether from the station. After a watchdog group claimed that, the channel was producing satanic information to the audience. Managers decided to censor all the productions to provide its audience with informative channels. Today, the channel does not provide any program that depicts Satanism or anti religious philosophies. This strategy has been hugely beneficial because it increased the number of viewers in the station in overall. Different people from all generations are now able to watch all the programs produced by the channel without any problem. The costs associated with this strategy are relatively low because the channel does not hire different people to perform the job for them. They use their own production stuff who censors all information before showing it live to the audience.
Currently, the cable company has increased its customers by ensuring increased number of satellites and digital networks. Most customers from Asia and Europe watch MTV using satellite and the internet alike. The use of these two technological advancements makes the channel most desired in those areas. Benefits of using digital and satellite system are many because users are able to receive information without installing different software. The customers only need to have a decoder, which transmits information from the company boasters. The costs of the whole project are relatively low. The technology is beneficial to the company because serve an audience in a short span of time.
The channel also has tried to diversify the content they produce and provide for its clients. This was decided because it was found that most of the programs provided in the US were not appealing to people in different regions where they had coverage. As a result, the channel currently produces programs and entertainment programs that suit the general population of all regions in comparison to their taste. This has increased the number of viewers worldwide because they are able to get what they are happy and comfortable with, when watching the channel. The costs associated with such a strategy is relatively low because the same people who air American music are used to air local music for the different regions.
What must MTV do, in terms of its management and organization, to implement its current strategy?
The channel managers need to ensure all employees are trained before going to work in the fields. They should also provide programs that are attractive and informative to the young and old generation. This number of viewers in the whole system will increase, leading to increased profits and revenues for the company.
Management has a duty of getting different collections of local and American music and programs to be able to provide customers with the required channel. This gives customers a choice to have a variety and chose what they want without being compelled to spend time watching a production. The strategy became successful after the channel broke different feeds for all its regions, this it did to ensure that all the customers from those areas received standard and timely entertainment. The main advantage with this strategy is that customers are able to receive what they desire at any time of the day.