Page 7 - SCS May 2018 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

Opportunities

Continued growth by acquisition e.g. of competitor (HomeVideo? MovieMaster?) to increase
market share

Use of Press/social media to create interest in developing story lines

Vertical integration – acquire a production company (Pinto? Majik Media? Ronsteel? One of the
small producers of high quality content?)

Diversify into other areas of TV e.g. rights to broadcast live sport

Diversify into other streaming areas e.g. music (compete with Spotify?)

Enter collaborative arrangement with foreign internet companies to gain access to markets
currently unavailable e.g. China

Possibility of earning revenue from advertising?

Growth potential in emerging economies as broadband presence increases

Threats

Possibility of hostile takeover by tech giant (Google? Apple?)

Constant threat of competitors offering their own innovations

Illegal hack into IT systems – subscriber data accessed

Risk of content being ‘hijacked’ (illegal hackers gain access before it is scheduled for release and
demand a ransom or release to public forum)

Failure to comply properly with licensing restrictions in different countries may lead to content
not being made available by production companies

Risk of investing significant budget in programme that subsequently is poorly received by viewers

Threat of losing skilled staff to competitor/other tech company

Call for greater regulation of media streaming companies

Rise in subscription fees could lead to customers switching to competitors if content is not
maintained/increased

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