A strategic group map of major companies in the cable and broadcasting industry.

1. Strategic Group Map
Time
Warner
Comcast
Cable
Subscriber Base/
Price DirecTV
Dish
Network
Services
Price:
We choose to use this variable because price is a key component when it comes to this
industry so much so that Standard & Poor’s has named the stiff competition battle of the
bundle’s or bundle wars. The price of cable and broadcasting is also becoming standard and if
anyone goes outside of the normal price range consumers want to make sure they are getting
their perceived value. The prices of substitutes are relatively low when you consider Netflix
which offers their services at $8 a month and Hulu which is only $10 a month. Industry members
must compete against companies like that by being competitively priced. The arrival of new
mediums of entertainment has intensified price competition as well especially with them being
able to offer their services at a lower price. The group map is organized so that from top to
bottom it’s higher and lower prices. It also takes into account the amount of pricing options that a
company has as well like bundles/packages and individual services.
Subscriber Base:
The subscriber base is key to industry members since a vast amount of their revenue is
dependent on individual consumers. There are also benefits to having more subscribers
according to several companies 10-K’s. The benefits are explicitly stated but they relate to
programming expenses. Industry members are also showing the increased importance in
acquiring new customers. This is an important component that can’t be over looked by any

2. industry members. The key to gaining revenue is by acquiring more subscribers. Industry
members incorporate a majority of their strategies and services to acquire more subscribers as
well. This is why we choose to use this as a variable. The group map is organized so that from
top to bottom it will show a company’s subscriber base from high to low.
Services:
We choose to use services as a variable because this can help differentiated industry
members from the competition. The variety of services offered can help create a competitive
advantage for companies. For instance DirecTV offers an NFL service package to subscribers at
no charge. Comcast has Xfinity TV a web portal online that allows its subscribers to access their
content online. Consumers want the best services especially with free and cheap substitutes
available. The more services offered and the most innovative services will allow companies to
stay ahead of competitors. Industry members just can’t rely on offering consumers expected
services but, must go above and beyond what the consumer can get some another company. The
group map characteristics from left to right are based on the amount of services. The amount of
new and innovative services is also taken into account as well.
Time Warner Cable
Price
Time Warner Cable recognizes the importance of price according to their 10-K. They
mention that with competitors offering small and inexpensive prices it’s made pricing
promotions more aggressive. TWC offers its services on a tiered level which allows them to offer
competitive prices to consumers. Their video service offers Basic, expanded basic and digital
basic subscribers and increase in price from left to right. Subscribers are also able to purchase
additional or premium services as well. This allows them to offer their cheapest service and still
make money off of subscribers because of add-on services at a low cost to subscribers. Their
broadband services has the same tiered model but, with 4 levels at different speeds at different
monthly rates. They are also one of the few competitors who offer individual services to their
customers as well but, they are more expensive. The prices listed below aren’t definitive as
prices do vary from location to location and there isn’t information on how price is determined
for each region. Time Warner cable is definitely one of the most expensive industry members
which is why they are positioned higher than all the other companies on the group map.
TV $49.95/month
Phone $39.95/month
High Speed Internet $34.95/month

3. Subscriber Base
Time Warner cable and industry members are not only attempting to increase their
revenue but, their subscriber base. Time Warner Cable has done several things to increase their
subscriber base one being improving their customer service. Their customer service satisfaction
increased by 3.4% in 2011. TWC is the 2nd largest cable provider in the U.S market with 12.8
million subscribers which lags behind Comcast. Despite that fact they do continue to defend their
market share and maintain a high subscriber base. Time Warner Cable controls 15% of the
market share in the U.S Market. They are positioned more towards the middle because although
they don’t have the highest number of subscribers they are on par with other industry members.
Selected subscriber-related statistics were as follows (in thousands):
December 31,
2010 2009 % Change
ReResidential video(a)(b) 12,257 12,699 (3.5)%
C Commercial video(b) 165 160 3.1 %
Residential high-speed data(c)(d) 9,469 8,994 5.3 %
Commercial high-speed data(a)(c)(d) 334 295 13.2 %
Residential Digital Phone(d)(e) 4,385 4,153 5.6 %
Commercial Digital Phone(a)(d)(e) 111 67 65.7 %
Primary service units(a)(f) 26,721 26,368 1.3 %
Customer relationships(a)(g) 14,496 14,572 (0.5) %
Double play(a)(h) 4,866 4,900 (0.7)%
Triple play(a)(i) 3,680 3,448 6.7 %
Services
Time Warner cable must continue to innovate and offer diverse services. They have
continued to improve their customer care services by introducing SignatureService which is a
specialized customer service feature. They also offer online services by offering things like
eCare and MyService to allow customer to get 24/7 customer service and avoid repeated trouble
calls as well. Time Warner Cable offers about the same amount of services when compared to
competitors products and services section on 10-K’s. They may offer the same number of
services but that is not a reflection of innovative new services. They are one of the few
companies to offer wireless capabilities to their subscribers. TWC has lagged behind the
competition by not being truly innovative in its services. The service that TWC does have isn’t
anything new from their competitors so they have simply copied other companies new service
innovations. This is why they are positioned more towards the middle of the the group map
because they offer the same amount of services that are expected from industry members and
nothing really to set them apart.

4. Dish Network
Price
Dish network offers a variety of pricing options and packages to consumers. According to their
10-K they claim to have been historically viewed as a low cost provider. They also mention that
they seek to offer the lowest prices after promotional periods have expired. Dish network also
mentions how one of their primary business strategies is offering consumers great value. One of
the promotions they have going on at the moment is when you buy a package you can lock in
that price until 2013. There are a list of packages they offer below with their prices listed next to
them. They are positioned on the group map because of their lower prices and packages that are
competitively priced when compared with other industry members. Dish Network offers
consumers a great value for any consumers budgets which is why they are positioned lower on
the group map.
Dish Family $19.99/Month
America’s Top 120 $29.99/Month
America’s Top 120 Plus $34.99/Month
America’s Top 200 $39.99/Month
America’s Top 250 $44.99/Month
Subscriber Base
Revenue is primarily derived from subscribers than any other source. One of their business
strategies is to have outstanding customer service so that they can and will increase customer
retention According to their 10-K as of December 31, 2009, they had approximately 14.100
million DISH Network subscribers compared to approximately 13.678 million subscribers at
December 31, 2008, an increase of 3.1%. During that same period they were able to increase
their total revenue for the year. Dish network has been able to increase their subscriber base for
the past 3 years (2007-2009). Even though they have more subscribers than Time Warner Cable
they don’t have the same market share and receive as much in terms of revenue. They are
positioned more towards the middle on the group map because they don’t necessarily have a
huge subscriber base when compared to its competitors but they are on par with other industry
members.
Services
Dish Network does offer the same standardized services expected from industry members
but, does differentiate itself with some other services. They offer remote access with their DVR
service that allows consumers to control their DVR with Smartphone, tablet and laptop devices.
Google TV is also an innovative service that Dish network offers that allows subscribers to do a
variety of internet based things while watching TV. Blockbuster movie pass is something new
that they are offering subscribers and is suppose to rival Netflix. Dish Network also has the NFL
Sunday ticket service that allows subscribers access to a vast amount of football games. They

5. also offer the same service for different sports depending on which sport is in season. Dish
network has been able to not only give subscribers what they would expect but, offers something
new and fresh. They are positioned more towards the right end of the group map because they
have offered innovative and new services.
DirecTV
Price
DirecTV is one of the few companies that don’t mention anything about its prices on their 10-K.
Despite that fact DirecTv is has been competitively priced when compared to some of the major
players like Comcast or Time Warner Cable. Their Packages can be compared with Dish
Network especially when it comes to their pricing models. This is why they are so close when
you look at the group map above. They also have Spanish and English packages as well at
different prices as well. There is a table below with more price information
English Package Spanish Package
Choice $29.99/Month $22.00/Month
Choice Extra $34.99/Month $29.99/Month
Choice Ultimate $39.99/Month $39.99/Month
Premier $83.99/Month $94.99/Month
Subscriber Base
DirecTV is one of the few industry members involved in other markets other than the U.S. They
have operations in Latin America according to their annual report they have 8.9 million
subscribers. In the U.S market they have an approximately 19.2million subscriber which is the
closet subscriber base to Comcast. They are closer towards the top because they operate
internationally and their subscriber base is the only one that is comparable to Comcast’s’
subscriber base.

6. Services
The notion “Don’t just watch TV DirecTV.” is truly emphasized in the services they offer
subscribers. They don’t just offer the standard services expected from industry members but, go
above that and truly please their customers. They offer a lot of international packages which is
something unique to their company because they go beyond the usual Spanish package. They
have a variety of packages for consumers who speak Brazilian, Cantonese and Mandarin among
others. They also offer the Whole DVR home service that allows their subscribers to
watch/record from any room in the house. They also distinguish themselves with a better movie
selection than their competitors so although they offer the same VOD service as competitors the
selection and variety has been improved upon to enhance the customer’s experience. The
services they do provide closely mirror those of Dish Network which is why they are positioned
so close to each other but, they have distinguished themselves with some services. This is why
they are closer to the right of the group map
Comcast
Price
Comcast has very competitive prices especially since they are one of the few industry members
that offer individual services. There individualized services are also priced competitively
especially when it comes to their TV services. There TV service can be compared to Dish
Network/DirecTV especially when you look at their prices. They also offer a variety of prices for
new customers and their current subscribers. Comcast also offers special prices for online
customers. They are positioned a little more towards to the top because they offer a lot of price

7. variety but they aren’t the cheapest among industry members. They are the most competitively
priced when compared to other industry members.
TV Services High Speed Internet Voice
Digital Starter----$29.99/Month Performance---$29.99/Month Unlimited---$29.99/Month
Digital Preferred----$39.99/Month Blast Extra---$39.99/Month Local with more---$34.95/Month
Digital Premier---$84.99/Month
Subscriber Base
Comcast easily has the highest the most subscribers in the industry which is an amazing feat
when you consider they operate mainly in the U.S market. In 2010 Comcast was able to increase
their total subscription base by 1.3 million subscribers. Comcast has continued to increase their
subscription base continually and has the largest subscription base. Competitors don’t come
close to Comcast’s subscription base. Just one of their segments accounts for another companies
total subscription base.
Video Customers 22.8 Million
High Speed Internet Customers 17 Million
Internet Customers 8.6 Million
Services
Comcast is the most innovative industry member and continues to offer some of the best and new
services to consumers. Xfinity TV is something that has changed the industry for a variety of
companies. Xfinity TV allows subscribers to see movies the same day as DVD releases. It also
allows them to watch entire seasons of certain TV shows. Comcast also offers On Demand
packages along with the content they already offer with Xfinity TV. Comcast also is the only
company that offers internet security with their internet service as well. Comcast among anything
else not only has a variety of services but they offer the most dynamic and innovative services to
subscribers. This is they are positioned to the furthest right because they offer the most services
and the most innovative services as well.