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Strategic Management - an International Media Company - Assignment Example

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This paper "Strategic Management - an International Media Company" focuses on the News Corporation - media company. They operate in several business areas such as television, cable network, direct broadcast satellite, magazines, newspapers, book publishing and films.  …
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Strategic Management - an International Media Company
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Download file to see previous pages Notably, in Italy, they have gained popularity with the introduction of ‘Sky Italia’. ‘Sky Italia’ offers digital video recorder, which allows a customer to store their favourite movies and television programmes in HD quality. For this reason, people are ready to pay for ‘Sky Italia’ (News Corporation, 2009).
News Corporation’s television business mainly includes ‘My Network TV’, FOX Entertainment and 27 TV stations. Their revenue comes mainly from advertisements of different sponsors of TV shows. Their main competitors are other TV stations and Cable Programme Networks, which compete for various TV shows, revenues from advertising and that of audiences. Around 15 per cent to 18 per cent of News Corporation’s total revenue comes from their television business. In the year 2009, their income from television business exceeded 4.6 billion Dollars. There was a decrease of 21% from the revenue generated in the fiscal year 2008 which amounted to 1205 million Dollars. One of the reasons for this decline can be stated as the selling of few television stations in the year 2008. The revenues from advertisement also decreased because of weak market conditions (News Corporation, 2009).
In the year 2010 News Corporation’s operating income saw an increase of 37% in comparison to 2009. It was recorded at $2.3 billion. All of their significant networks showed notable growth. Their revenues also increased by 8 per cent in the year 2010. The revenue in 2010 was $32.8 billion Dollars and the net income was recorded at $2.5 billion Dollars (News Corporation, 2010).
The Satellite Broadcasting Television section of News Corporation consists of ‘Sky Italia’. It provides television and broadband services via satellite directly to the home. The audio & video quality, interactive programming and better service quality are the major factors of gaining a larger market share in the respective segment. Around 11 per cent to 12 per cent of the company’s revenue comes from this segment.   ...Download file to see next pagesRead More
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