Over-The-Top Television - Assignment Example

? INTERNET TV Introduction The TV industry has advanced over the years from traditional cable operators acting as middle man between broadcasting station and the end user to the Over-The-Top Television model that eliminates the cable operator or middle man. Such transition from current model to Internet TV will be widely accepted by viewers in future because the elimination of the middle man from the O-T-T TV model saves huge cost for the viewers (Waterman, 2001, p.3). Action Plan for NBC NBC is a popular television network in the United States of America. The company started with radio broad casting network and has rapidly changes over the decades due to shift in demand or customer preference over media. The organization should position itself for the transition from traditional TV to internet TV model since the viewers all over the world rely on the internet more than TV. At the same time, it will save huge cost of the viewers. The company’s aim is to deliver news instantly across its network so that it reaches the customer on demand and at the same time faster than its competitors. The internet TV model will help the company achieve this goal. In the traditional TV model, the broad casting station had to depend on the cable operator for transmitting their news to viewers. Now, this model had limitation that some cable operator might charge extra money to viewers to watch the channel which often acted as a barrier between the company and target audience. With the new O-T-T model, the company will be able to reach their customers directly through internet. The broadcasting network will receive payments from the customers directly by shifting to the new model, as it eliminates the cable operator from the picture. Such model is beneficial for both the NBC as well as its viewers as the company will be able to receive new streams of revenues that were blocked with cable operators in the earlier model (Odlyzko, 2001, p.8). In short we can say that there will no net losers for the new model since the viewers will pay less since they are paying directly to broadcasting station and the NBC will receive greater revenues since it does not have to share its revenues with the cable operators. Action Plan for Rogers Rogers Communications Inc. is a diversified Canadian telecommunication company. The company broadcasts its network across various media including the television, radio, internet, etc. If we consider the traditional TV model which the company used to reach their customer, we will find that the model has limited scope for transmission if the company wants to be global. This is mainly because when domestic company plans to operate globally, it has to take many clearances from the promotional boards. At the same time, it will need local distribution networks. Thus, we can say that the entire process is complex as well as technically costly to implement that way. The company has the option to opt the O-T-T TV model that will enable the global viewers, thanks to the application of e-commerce industry. This model does not need local distributors, or foreign clearances. All a customer needs to see their favorite channel is to connect their television with internet using a set-top box. Thus, if Rogers implement this model, their organization will definitely have competitive advantage as well as cost advantage. At the same time, large number of viewers across the globe may be targeted without any troubles. The model is very simple and easy to implement. In short, we may say that Rogers as well as its TV viewers will be gainers if this model is implemented by the organization. Action plan for Bell Canada Bell Canada is a Canadian telecommunication and media company. The company’s main competitor is Rogers. With both the company’s working in same line of business, the company that will reach its viewers faster and smarter way will be the gainer. If Bell adapts the O-T-T model, it will significantly reduce its cost of transmission as they will not have to share their revenues with the middle-men or the cable operators. Reaching the customers directly over the internet TV will reduce the cost of viewing for the customers too (Ammori, 2010, p.14). For that reason, the organization should position itself for adapting the Over the Top TV model from traditional to Internet TV. Such shift will help Bell realize higher revenues and lower cost due to direct payment of the viewers to the company. This will give Bell competitive advantage over Rogers and both Bell’s customers and Bell will gain in the long run. Action Plan for Sony Sony is a diversified company that operates on wide range of products from TV phones to laptops. If it adapts the O-T-T model it will be the net gainers because easy access to internet would increase the demand for their products and consequently they will be able to sell more laptops and TV sets to the customers. For the viewers to use the internet TV, set-top box needs to be installed. Sony can manufacture and sale them to customer and it already manufactures laptops and TV. Therefore, there will be an increase in the sales for Sony’s products. If it can master the technology to increase the band-width of set-top box, it will gain competitive advantage over other players in the same industry. But first it needs to spend significantly for the research and development for installing the O-T-T TV model to develop mass production scale and achieve the economies of scale. Sony manufactures laptops, PS, TVs, and pictures (Madden, 2009, p.8). All these components are required for the internet TV model. Hence, the company can benefit in future by positioning themselves for the transition to Internet TV. The model is favorable for the company because Sony will be able to sell its products directly to customers without cable operators. This will increase its revenues since cable operators don’t get the share of revenue pie. This will also lower the cost of equipments for the customers. Hence both Sony and customers will be net gainers in the long run. References Waterman, D. (2001). Internet TV: Business Models and Program Content. Retrieved from: http://arxiv.org/ftp/cs/papers/0109/0109051.pdf. Odlyzko, A.M. (2001). Internet TV: Implications for the long distance network. Retrieved from: http://www.dtc.umn.edu/~odlyzko/doc/tv.internet.pdf. Madden, M. (2009). The Audience for Online VideoSharing Sites Shoots Up. Retrieved from: http://www.pewinternet.org/~/media/Files/Reports/2009/The-Audience-for-Online-Video-Sharing-Sites-Shoots-Up.pdf. Ammori, M. (2010). TV Competition Nowhere: How the Cable Industry Is Colluding to Kill Online TV. Retrieved from: http://www.freepress.net/sites/default/files/fp-legacy/TV-Nowhere.pdf. Read More