The Supply Chain of the Video-entertainment Industry - Essay Example

With revolutionized digital technology, now movies and other shows can be watched on various devices including the traditional television set and even mobile phones. All of this has been made possible due to the fast speed of internet connection through optical fiber cables (“Fiber to Home”, n.pag.). Television subscribers like Comcast Corp. even offered live TV streaming on mobile phones although they were not able to provide as many shows (Nakashima, n.pag.). The concept of mobile television started even earlier in Japan (“Desperate Housewives on the Phone”, n.pag.).

While the supply chain of the video-entertainment industry is not entirely digital, the development of online video services for television such as that by Intel (Ramachandran & Sharma, n.pag.) shows proves to be a threat for television subscribers as this development may provide faster digital delivery. What segment of the supply chain has the largest sunk costs? It could be said that the HDTV (high definition television) segment of the video-entertainment industry has incurred a great sunk cost due to the arrival of high internet speeds and mobile television in the recent years.

The demand for video on-demand via Netflix, Hulu.com, and other providers is increasing slowly but steadily. Even Intel has arrived on the scene with an online television streaming service. The television pay services have ranked in the bottom having an American Customer Satisfaction Index (ACSI) of 68 (Donner, n.pag.). Therefore, as internet connections keep getting faster due to gigabit-per-second connections (“Fiber to Home”, n.pag.), it is likely that demands for online television streaming may increase.

Had the FTC not stepped in the IE-Netscape case, would have Window’s market power ?been challenged by Netscape? Why or why not? Indeed, Window’s market power would have been challenged by Netscape Communications of its monopolistic practices that promote a non-competitive economic environment. The investigation done by the Federal Trade Commission (FTC) allowed the legal workers of the Justice Department to find out evidence regarding Netscape’s claims of Windows trying to dominate the market by distributing its web browser Internet Explorer as part of the operating system (“Play nicely, or not at all”, n.pag.).

The FTC intervened with a legal investigation that might allow other Windows competitors like Sun Microsystems and others to file antitrust lawsuits claiming that Windows has monopolized the market. It could also be that If you are AT&T, how do you become the most dominant player in the industry? Although television sets are popular among Americans, television pay subscribing companies like AT&T rank really low in the ACSI. In order to become a key player in the industry, AT&T should positively take up opportunities present in the external environment.

Also, it should come up with new ideas that cater to the needs and demands of its consumers rather than ignoring them. It should focus on improving the quality of its services so as to retain its customers. Also, more options should be considered as the environment provides various opportunities to counter its competitors, mainly online video streaming companies like Netflix and Hulu.com, so as to build its market shares and have satisfied customers. If you are Hulu, how do you become the most dominant player in the industry?

Hulu could improve its position in the market and be a dominant player by increasing its database of movies and shows to provide streaming of television programs so that its customers can have a similar show-watching experience as that provided by a traditional pay subscription. The