Page 9 - SCS May 2018 - Day 1 Tasks

Chapter 3

COUCHWEB – FAMILIARISATION AND

KEY THEMES

1 INTRODUCTION

It is absolutely crucial that you completely familiarise yourself with the pre-seen information prior
to attempting the Case Study exam. Merely reading through the materials is unlikely to be
sufficient and it is also important that you consider which aspects of the three technical subjects
may be useful and relevant for the Case Study.

The exercises in the following three chapters will help you to gain a thorough understanding of
the Case Study scenario and ensure you are fully prepared to attempt the Practice Tasks later in
this Workbook.
Solutions to these exercises are provided but are not exhaustive. It is important that you attempt
the exercises yourself and makes notes of your answers before reviewing the solutions.

2 OVERVIEW OF PRE-SEEN

The pre-seen for the May 2018 Strategic Case Study involves a company called Couchweb, a
media streaming company based in the fictional country of Mayland.
The basic business model for Couchweb is that it offers subscribers the opportunity to watch its
catalogue of TV programmes and movies over the internet in return for a monthly payment,
currently set at $12. The examiner would appear to have used the real world company Netflix as
the inspiration for this case.
Couchweb was set up 20 years ago by 3 co-founders, all of whom still hold Executive positions on
the Board of Directors. The company started by renting DVDs via the post to its members, but this
operation was both costly and administratively difficult. Recognising the growth of broadband,
the company reinvented itself to offer streaming services a few years ago.
The company has grown significantly since it was founded, both by organic means and by
acquisition. It still has a strong presence in Mayland (where the national language is English), but
has expanded into many other parts of the world – it now streams content into more than 100
countries and in over 20 languages.
Couchweb’s main competitive advantage over traditional terrestrial and satellite broadcasters is
cost. Both of these need to raise revenue from advertising, which disrupts the viewer’s watching
of the programme, and satellite broadcasters have to charge much higher subscriptions in order
to pay for the hardware needed, a satellite dish and receiver box. By contrast, all a viewer needs

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