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Iift Kolkata Mba (Ib)

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Will TV succumb to the Internet?

Presentation: * original forms of televised entertainment: analog tv, cable, movietheaters, rentals, sateiliteTV

*ppl seek convienence * Internet forces tv industry to transform:

-the internet: iph/ipad,youtube,netflix,hulu,crackle

Disruptive Technology- scared of losing customers to WWW
-high prices subscriptions, free internet vids,highspeed increastes quality of streaming, unauth. distrib. of films/shows, control ovr when u watch tv,no commercials

Cable tv RESPONSE to WWW using internet as a devlivery mode networks use huu for commercial advtsg

needs to be addressed? lower cost of cable subscrip. more options (value pkgs) deals,(quality) marketing tech, more channels, great quality vids

cable compete w/ www: use internet to benefit wider audience: reinvent diff. strategy.consider free subscrip,more visible socialnetworking,capitalize on quality of service

willing to cancel cable tv subscrip to watch online
-tv used for sports &vid.games VS. watching tv online

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Q1 how does youtube control this outside of DRM?
DRM- video ID fingerprinting DIGITAL RIGHTS MGMT- data & software issue intellectual property* 7+yrs of creator protect DRM
>>youtube has a 10 min.limit- or will remove videos if intellectual property rights are being overrided.
*Business Processes- legal processes^^^
-watermarking- embed a signal
Q2 Channels of Distribution:Broadcast tv, cable, movietheaters, rentals, sateiliteTV convergence: Cable/Sat + Internet

Ex. handheld ph w/ internet

segmentation?
Cable vs. Satelite - niches broadcast vs. cable -more channels

Q3 Do you think Netflix changing its strategy is similar to succumbing ot the WWW
(incumbent industry blockbuster) was netflix differentiated? yes

Q4 Internet competition?

Pirate- download P2P Peer2Peer - napster ,etc.. virtual networks

Streaming- watch as it shows up (buffering)

Capture technology- capturesstream

Transaction Costs >>> HULU, HBO

*Ease of Use & Usefulness- making it easier for ppl to access (transaction costs)

*IT has what affect on transaction costs? LOWERS COSTS --if low enough ppl wont pirate it?

business model: Ad supported (how they made $)
*Time Shifting
*Space Shifting

ex. TiVo (HD), random access → breaks ad-supported model ex. HULU's bus. model?( Ad supp. ) Does hulu have a sustainable business model?
Hulu+ subscription that is ad supported
HBO+ not ad supported embargo - holds out on accessing show by company when they uses timeshift ex. Hulu

**Is a Business Model Sustainable?

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