MTV Networks in Saudi Arabia - Case Study Example

Name: Instructor: Course: Date: MTV NETWORKS IN SAUDI ARABIA Abstract MTV Networks (MTVN) has for a long time since its inception built a platform on which it has aired content that suits the local populace of where it has subsidiaries while maintaining its overall ideology. In 2007, the Company launched MTV Arabia, an undertaking that has been regarded as one of its biggest launch in its history. The launch would also present a daunting challenge to the company in trying to balance Arab’s tastes with and its western explicit culture. MTVN had leveraged on the cluster of youths in the region, despite of the possibility of resentments it would trigger across the wider populace on account of it being associated with airing of content that would face controversy within the context of Middle East’s religious, political and cultural fundamentals. On the flipside, going too local would compromise its global outlook. This paper provides an in-depth discussion of the challenges faced by a company, with reference to MTV Networks, in penetrating new markets, MTVN’s entry strategy in the Arab world, potential challenges thereto and ultimate strategies it could adopt for its sustainability in the region (Verlag 78). Introduction Companies extend their operations to foreign markets for a couple of diverse reasons, Chief among them being to subject their products to a much wider market niche which results to an expanded sales volume. Part one of the body structure of this paper discusses the various reasons that inspired MTV Networks to venture into Saudi Arabia. The road to successful establishment is however not devoid of challenges. This justifies the discussions articulated in the second part of the body structure of this paper. Entry into a new market has to be tactical and done in a particular unique fashion. This is the principle that informs the third part which explores in detail the success strategies that MTVN leveraged on when it expanded to the Middle East. The last part portends strategies the Company could adopt in future. The paper winds up with a recommendation and conclusion sections. Rationale of MTVN’ ventures in Saudi Arabia Favorable demographics are one of the strongest factors that inspired its expanding of operations to Saudi Arabia. Around 65% of the Middle East population comprise of young people below 25 years of age. MTV Arabia would command an audience of approximately 190 million youths across the region. Projections that Middle East has a portfolio of 50 channels or even more and therefore stiff competition was rife are countered by the uniqueness of MTVN’s global outlook. The 50 plus channels that have existence in the regional are just local in scope, none of them could offer a reliable platform on which to promote local musical talent of the youth to the international stage (Hoskisson 89). Middle East is a hub of technology. MTVN would leverage on modern media such as cell phones and the internet readily available in that market to reach its audience. Technology enables one to access content anywhere, anyhow and any time one wishes to. MTV Overide, which is one of the company’s products enables connected audience to download videos swiftly while MTV Flux allows creation of own TV channel. This will lure internet service providers within Middle East to MTV. This will increase its revenue base. Various communication media already within the region with mass reach was supposed to act as a stepping stone in enhancing MTVN’s establishment in Saudi Arabia (Doole, Isobel and Robin 35). Challenges MTV is notoriously associated with airing sexually explicit videos and programs that are provocative. This deviates from religious teachings and culture of Arabs in Middle East. It is on these grounds that MTN Arabia would be compelled to re-adjust and re-align its content in order to command acceptance in the region (Makides and Costantinos 56). Middle East is a conglomerate of states and nations that are diverse in their own unique ways despite common sharing some denominators. Producing content to suit this collection of diverse local preferences would be quite a task because the region houses different countries. A production that is acceptable to Saudi Arabians could be obnoxious in Dubai. Another challenge is that of striving to balance between localization and at the same time maintain its international image. Too much localization could render the company irrelevant in the international space. The task is to play smartly to preserve its brand as well as capture the fascinations of its audience (Lavin, Franklin and Peter 47). History has defined the adversarial relations that pervade West- East interactions. Arabs in the Middle East relate with Americans with great suspicion. The US invasion of Iraq has especially intensified the already worse relationship. MTV Arabia would have to work around these deep rooted stereotypes and apparent historical animosities across this dichotomy in order in order to command space and audience in Saudi Arabia (Ismail, Tashmia and Gwen 28). MTVN’s entry into Saudi Arabia which already houses over 50 channels on air would obviously not be without considerable competition. Even before its launch there, music industry is common place in Middle East. If anybody should talk of capitalizing on favorable demographics in the region, it is the channels which are already established there because it is as good an opportunity to them as it would be to MTV. In fact, it is these local channels that command an upper hand to the audience because they understand their tastes better (Wunker and Stephen 83). Equally challenging is the fact that quite a number of artistes popular in the Arab music industry had already appended their signatures on deals with local channels. Connecting with the Arabian youth who were already within the backyard of local channels’ deals would be quite a task for MTV Networks (Pegley 83). Success strategies adopted by MTVN Localization strategy: The Company would edit its content so that it fits within the region’s religious and cultural ethos. The content will still be international in its threshold in order to preserve the brand. This content includes popular international music videos, programs and reality shows (Goodman and Jennifer 93). To lock out competitors, the company invoked differentiation strategy by offering unique products. It would present itself as a platform for airing the voices of the Arab youths and showcase their musical talent. It would sponsor shows that would audition music talent across the region, from which winners from every city would be granted free music recording opportunities (Pegley 35) The Company would act as a bridge between local music market and international market for local artistes. MTVN would capitalize on its global reach vantage to promote the musical talent of Arab youths on the international market. The audience would also have the privilege of learning global youth culture by introducing top international music and programs to the Arab region (Verlag 84) MTV Network also adopted a mixed content strategy in order to uphold its global stature while remaining sensitive to the region’s religious and cultural ethics. It programmed to air 60% international music and the remaining 40% was to be Arabic music. It would also adopt a regional version of the channels popular shows. Only 55% of the content it aired would be translated, while 45% would be locally produced (Andexer 38). Strategies to adopt in future In order for the company to enjoy its future in the region, it should with due care continue observing its local programming so that it does not deviate from the local norms. Provocative content should be censored if the Company cares about its sustained relevance in the region. The company should acknowledge the diversities prevalent within the region itself. Different countries that comprise the region are local in their own contexts. Adopting programs that satisfy the region as whole or rather balancing programming schedules so that all the nations within are equally satisfied will be crucial (Pegley 83). As the company localizes, it should be careful to avoid brand dilution. International music and programs should continue taking center stage, but in a localized version. Translation strategies will also be quite handy in keeping up with the brand preservation spirit (Andexer 78). The company should work on improving the image of the relationship that exists between USA and Middle East. It should remain nonpartisan to political issues involving the two regions. It should foster good relationships to refrain from anti- Arab and anti-American sentiments (Wunker and Stephen 49). MTV Arabia should capitalize on its unique global strengths to effectively outsmart the local channels already rooted in the region. For example, it could leverage on its monopolistic ability to reach international market in order to export local music talent to the international stage. It is through this strategy that it will be able to lure newly emerging music stars as well as the already existing to its backyard (Goodman and Jenniffer 92). Recommendations The company should pursue to localize the content. Management of the company in that particular region should also be localized. It should partner with more local actors in the industry and extend the timeframe of the partnership deals they already have. MTV Arabia should build and cement its relations with locals in terms of corporate social responsibilities all across the Middle East region. Conclusion MTV Networks has presented itself throughout this paper as having great potential to effectively take root as one of the most formidable brands in the international stage in general, and in Middle East in particular as far as music and entertainment are concerned. It has however to grapple with challenges in the region which could be a serious stumbling block to its successful future in Middle East. If it only prudently balances local tastes in the backdrop of its international objectives, it will then be one of the successful music channels to watch in the history of Arab music world. Work Cited Andexer, Thomas. Analysis and Evaluation of Market Entry Modes into the Asia-Pacific Region: Based on the Example of a German Sme in the Industrial Goods Business. München: GRIN Verlag GmbH, 2008. Internet resource. Doole, Isobel, and Robin Lowe. International Marketing Strategy: Analysis, Development and Implementation. London: Cengage Learning, 2008. Print. Goodman, Jennifer R. Malory and William Caxton's Prose Romances of 1485. New York: Garland Pub, 1987. Print. Griffin, Ricky W. Management. Mason, OH: South-Western Cengage Learning, 2011. Print. Hoskisson, Robert E, and Robert E. Hoskisson. Competing for Advantage. Mason, OH: Thomson/South-Western, 2008. Print. Ismail, Tashmia, Nicola Kleyn, and Gwen Ansell. New Markets, New Mindsets: Creating Wealth with South Africa's Low-Income Communities Through Partnership and Innovation. Auckland Park, South Africa: Stonebridge Books, 2012. Print. Lavin, Franklin L, and Peter S. Cohan. Export Now: Five Keys to Entering New Markets. Singapore: John Wiley & Sons, (Asia, 2011. Internet resource. Markides, Constantinos. Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets. Hoboken: John Wiley & Sons, 2004. Internet resource. Pegley, Kip. Coming to You Wherever You Are: Muchmusic, Mtv, and Youth Identities. Middletown, Conn: Wesleyan University Press, 2008. Print. Wunker, Stephen M. Capturing New Markets: How Smart Companies Create Opportunities Others Don't. New York, NY: McGraw-Hill, 2011. Print. Read More