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Post on 03-Mar-2017
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Asaad Jaber Lu Jiang Gabriela Herrera
Shirin Lamba Keshav Padia
DISCOVERY COMMUNICATIONS
Core Brands New Brands International
Free to Air New Genres New Platforms
TV MEDIA NETWORKS IN THE MEDIA INDUSTRY
Content Producers Content Distributors& Network Providers General Consumer
Market
CONTENT
Cable Service Operators
DTH satellite service
providers
Telecommunication Companies
On-demand & Streaming Platforms
SETTING THE STAGE FOR DISRUPTION
StreamingVideo
Nonlinear Viewing
40%+Nonlinear viewing by 2018 -
Digital Evolution
Exhibit 1. Executives who Anticipate Moderate or Massive Digital Disruption through 2016, by Industry
Source: HBR.org
INDUSTRY IMPACT-2% decline in quarterly
subscriber rate – Bloomberg
Costing the industry $1 Billion in annual revenues - WSJ
PAY-TV BUSINESS MODEL: PROFIT FORTRESS
BUND
LE
DISTRIBUTIONADVERTISING
increase in U.S. online advertising
revenues from 2010 to 2015
7xOnline Channels
VOD
Advertisers Spending
Online
INDUSTRY SCRAMBLING TO DO WHAT?Consolidation
NBC + ComcastWalt Disney + NetflixFox + HuluTime Warner + Turner & HBO
Shifting content onlineOnline channelsTV-everywhere
Content-crazeNetflix 50-50 allocation scheme
DISCOVERY SCRAMBLING TO DO WHAT?Higher pricing models How sustainable is this? How long can they keep raising prices to keep revenues steady?
Discovery GO migrate to Everywhere TV business model
Strategic M&A and Licensing Deals
HOW SHOULD ENTREPRENEURIAL LEADERS RESPOND? Digital Migration
Diversification
Modify accordingly:-Marketing-Operations-Strategic resource allocation
DIGITAL MIGRATIONPayTV Model TV Everywhere Model
Universal Remote
Distribution Disintermediation
Marketing, Operations, Resource Allocation Implications
SCOPE OF IMPACT: TRENDS TO WATCHBehavior shift to mass
customization
AI, IoT, Big Data
AR Technology
NECESSARY MODIFICATIONSOperations:
- Enhance data capture process of supply chain
Marketing:
- B2B marketing targeted to school boards & teachers
Investments in technology:
- AR technology to bring the classroom to life
- Big Data to personalize experiences
MEDIA AND EDUCATION COLLIDELeverages reach to create loyal base
Caters to student needs more effectively
Increases teachers’ productivity
Creates interactive collaboration among
classmates
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