Page 11 - SCS May 2018 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

Establishing and maintaining reputation in new markets
Each entry into a new market poses a risk for Couchweb. Positive brand recognition in the new
markets is vital to the continued success. Any negative coverage could adversely impact the brand
elsewhere leading to lost membership/content.

Reliance of third parties
Aside from the own production, Couchweb are very reliant on third parties for various aspects of
their operation. Production companies supply a significant amount of the content, (84% of TV
programmes & 94% of movies), they are also heavily reliant on Internet Service Providers for
delivery the content to the members device. Any issue with these, either dispute or poor
performance, will adversely impact the member experience.

Data protection
Couchweb hold a significant amount of personal data about their members from name, date of
birth and payment information through to viewing habits and preferences. Any unauthorised
access to their systems would pose a significant issue for their customers and lead to a loss of
reputation/membership.

Failure of systems
Any system failure could lead to members unable to access content and tarnish the reputation of
the company, which could lead to a reduction in subscriptions and a drop in revenue.

Payment processing
As well as being vital income for Couchweb, any glitch in payment processing could lead to
adverse publicity about the company and create concern amongst members about the safety of
their personal data.

Loss of key employees
To achieve the vision of being the best global entertainment service in the world, as a company
that encourages innovation and creativity Couchweb will need to continually attract and retain a
high calibre of employees. Any adverse actions or publicity could impact their ability to do that.
Board members/founders would also be considered in this risk area.
Currency risk
As Couchweb are operating in over 100 countries, they will be collecting subscriptions in various
currencies; almost 70% of their income comes from overseas. They will be exposed to both upside
and downside risk on currency movements on revenue and most likely some of their costs too.

Lost revenue
Members could share logins and passwords reducing the number of subscribers that Couchweb
have, as this is their main form of income it is vital they protect this.

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