introduction dawn of an empire ipek hizlikan, elena ponomareva, sanjeev masih, james freckleton
TRANSCRIPT
IntroductionDawn of an Empire
Ipek Hizlikan, Elena Ponomareva, Sanjeev Masih, James Freckleton
“Ladies and gentlemen, rock and roll,”
The BirthLaunched on August 1st 1981First MTV Video: Video Killed the Radio StarEarly videos came mostly from British artists
Second Launch1983: Expanded into Manhattan and LA
Phase 3Viacom purchased MTV from Warner Amex
http://www.museum.tv/archives/etv/M/htmlM/musictelevis/musictelevis.htm http://www.youtube.com/watch?v=XWtHEmVjVw8
Decline and Restructure
DeclineViewership decline with lack of content
RestructureStarted offering Yo! MTV Raps, Club MTV, etc.Move from only music videos to full service programming1985: Launched VH1 for soft rock and adult viewers
http://www.museum.tv/archives/etv/M/htmlM/musictelevis/musictelevis.htm
Expansion
Competition at homeBET, CMT & TNN emerged as local competitors
“I Want My MTV”1987: MTV Europe is launched1991: Asian markets1993: MTV Latino
http://www.museum.tv/archives/etv/M/htmlM/musictelevis/musictelevis.htm
Early StrategyStandardization
“One Size Fits All”
Initially treated all markets like the US market
Standardization strategySame music videos were aired worldwideAmerican programming with English-speaking veejays
However, viewer’s tastes turned out to be local
Lack of local artist representation
Audience wanted programs in their native languages
One Size Does NOT Fit All!Lost advertising revenue
Some companies could not afford to advertize across Europe
Brands differed across nations
Others were only available in specific markets
Local copycat stations started springing up everywhere
New StrategyLocalization
Solution?
Europe
Asia USA
Think Globally, Act Locally!
MTV World today:
Same look and feel as MTV USA BUT majority of local programming and content
Benefits and Costs
Value creation strategyAttractive to more European/Asian local customersSignificant revenue increase
Inability to achieve Economies of Scale through standardization
Marketing Landscape
Hurdles
MTV was pressured for local responsiveness
Strong competition in local markets
VIVA in Germany; MCM in France
Localizing would reduce benefits from Economies of Scale
Strategy
MTV proceeded with a hybrid strategy
A heavy emphasis placed on localization
Goal was to distinguish itself from rivals through more relevant programming
Local versions of popular US programs produced
Local concepts were used (e.g. Erotica in Brazil)
A smaller emphasis on standardization
Basic business model was still applied abroad
Some US programs were still screened abroad
Initial Strategy
Predominately standardization
Final Strategy
Predominately localization
Outcome
Incr
ease
d V
alue
(V
)
Lower Cost (C)In
crea
sed
Val
ue (
V)
Lower Cost (C)
Outcome
Continuing standardization spelt doom
To adapt, MTV pursued a strategy based on localization
Retained some efficiency in doing so
Scale economies: satellite beaming multiple channels
Learning effects: deeper market understanding
Location economies: look-and-feel of channel developed entirely within the US
Viewer Statistics
MTV Networks’ brands are seen globally by 560 million households in 162 countries
33 languages are represented across the 150 locally operated TV channels
The MTV channel itself reaches 387 million households worldwide
• It is the #1 media brand in the world
What does the future hold?