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Current Event Blog 4
For this SLP submission you will be asked to submit your fourth blog
entry about another important aspect of the strategic management process
and to provide examples based on current events pulled from recent
articles from reputable sources (such as a major national news source
like the NY Times, Business Week, etc.).
Recall that the main article(s) for each of your blog entries must be no older than 4 months old.
If you use an older article as your primary focal article, you will be
asked to redo the assignment. You may, of course, use older sources to
support your discussion but the article serving as the main focus of
your paper must be recent.
This final blog entry will be related to your case assignment in that
it will deal with Comcast. For this assignment consider the short news
article related to Verizon by Albanesius (2014) and the Nakashima
(2014) article that discusses a deal made between Disney and the Dish
Network. The articles deal with plans to provide video content on
mobile devices and on home televisions in an a la carte manner.
As you know, Cable companies tend to bundle programming to cause
customers to want to buy more premium packages to accommodate their home
entertainment desires. The players in the industry have been avoiding
the a la carte approach to programming in order to cause customers to pay more through the bundling strategy.
Your assignment will be to present to your blog reading audience an
argument as to whether you believe that Comcast is strategically poised
to compete with upcoming changes in the environment related to providing
an a la carte approach to programming. What should large cable companies like Comcast be doing now so as not to go the way of Kodak?
Make sure you provide at least two very recent articles to support your key points (no older than 4 months old).
http://www.reviewjournal.com/news/dish-disney-deal-envisions-internet-delivered-tv
ASSOCIATED PRESS
LOS
ANGELES — Dish Network and Disney have reached a landmark deal that
envisions the day when Dish will offer a Netflix-like TV service to
people who’d rather stream TV over the Internet than put a satellite
receiver on their roof.
The deal announced late Monday paves the
way for Dish to offer live local broadcasts from ABC TV stations and
programming from ABC Family, Disney Channel, ESPN and ESPN2 over mobile
devices, set-top boxes and other means, similar to how Netflix’s video
streams are delivered today.
No start date for such a service was
announced. It is likely that Dish will have to cut similar deals with
other programmers to make such a service attractive. A Dish spokesman
refused to speculate on what the offering would cost.
As part of
the new rights deal, Dish Network Corp. agreed to disable — for three
days after the initial broadcast — a function on its Hopper digital
video recorders that allows people to automatically record and strip out
commercials from prime-time weeknight programming. But that’s only for
programs on ABC, which is owned by The Walt Disney Co.
Dish CEO Joseph Clayton said in a statement the deal was “about predicting the future of television.”
Anne
Sweeney, co-chairman of Disney Media Networks, said in a statement that
both Disney CEO Bob Iger and Dish’s majority shareholder, Charlie
Ergen, were directly involved in carving out “one of the most complex
and comprehensive” deals ever.
“We planned for the evolution of our industry,” she said.
With
the deal, both sides are dropping a legal battle between them over the
so-called AutoHop function, which had threatened to cut into the revenue
of media companies like Disney by stripping out ads. Dish hasn’t made
public how many of its 14 million subscribers use the Hopper.
Dish
customers will also gain access for the first time to Disney’s
WatchESPN, Watch Disney, Watch ABC Family and Watch ABC apps, which
allow for live and on-demand program viewing on mobile devices in or out
of the home.
Dish is also picking up a slew of new channels
including Disney Junior, Fusion, ESPN Goal Line, Longhorn Network and
the upcoming SEC ESPN Network when it launches sometime this fall. It
also gains more access to more on-demand Disney programming.
The
companies said they would work together on new advertising models. Last
month, Dish announced a technology partnership with rival satellite TV
company DirecTV to launch a system that helps target political ads to
viewers based on where they live.
Dish and Disney said they are
looking at dynamically inserting ads into programming based on viewer
data, developing new ways of advertising on mobile devices, and
measuring viewing for longer than the current industry standard that
includes the live broadcast plus three days of DVR viewing.
The
two sides have been quietly negotiating a new deal since before the last
one expired at the end of September, deftly avoiding a signal blackout
like the one between CBS Corp. and Time Warner Cable Inc. last August
that caused massive subscriber defections.
http://www.pcmag.com/article2/0,2817,2468402,00.asp
Verizon is looking to roll out its Internet TV service by
mid-2015, with an offering that will allow viewers to pick and choose
the channels they want.
During a Thursday appearance
at a Goldman Sachs technology conference, Verizon Communications chief
Lowell McAdam said the service will likely include access to the “big
four” broadcast networks, as well as “custom channels.”
“No one wants to have 300 channels on your wireless device,” McAdam
said. “And I think everyone understands. It will go to a la carte.”
Major cable and pay TV services have long resisted
an “a la carte” approach that would let customers pick and choose the
channels they want to pay for rather than pay for a bundle of 300+
channels. For about a decade, they have argued that a la carte would result in increased pricing and less channel diversity.
And while that probably won’t change for traditional cable customers
anytime soon, McAdam acknowledged that when it comes to the Web and
mobile, a different approach is necessary.
“We do see that the millennials really want to look at…content over
the iPads and other tablet devices and their smartphones,” McAdam said.
Attitudes in the industry about accessing content online is “changing
dramatically,” he said, and execs are more open to the idea now than
they were two years ago.
“I don’t think there is any one
that would stand up here and say the only way it’s going to be offered
five years from now is linear and it’s going to be tied to your TV set
because frankly they will miss the market and they will be the ones left
behind,” McAdam said.
In January, Verizon Communications bought
Intel’s TV business for an undisclosed sum, picking up the intellectual
property rights and other assets that powered Intel’s OnCue Cloud TV
platform. At the time, Verizon said it planned to integrate IP-based TV
services with FiOS video as well as expand its mobile video offerings.
As for what type of custom channels viewers can expect, McAdam pointed to AwesomenessTV, which DreamWorks acquired
last year, but didn’t delve too much more into possible partners,
except to say that they will probably be “out of the West Coast, where a
lot of this is more home grown content.”
SLP Assignment Expectations
Your SLP assignment should be a minimum of 4-5 pages in length.
You are required to use APA formatting and you are required to cite
and reference your sources. There should be a minimum of three
reputable sources cited and referenced in your paper.
Please make sure you review the assignment rubric prior to writing your assignment.
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