MTV
                         vs.
                      Channel V

            Corporate Level Strategy Case Study Analysis by:
                           Djadja A. Sardjana



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The History of Music Television
              in Asia
   MTV began broadcasting via satellite on
   the Star network in 1991.
   When Murdoch’s New Corp acquired Star
   TV, MTV left the Asian scene (1994).
   MTV Networks Asia was launched in 1995




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War within the Asian
              Music Industry

   ‘Channel V was first in the market with a
   localized approach and MTV copycatted
   that’ says Channel V
   ‘We’ve tried to stay clear of mud-slinging
   but Channel V is throwing out more smoke
   than the ice machine at a rock concert’
   says MTV Networks Asia

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Restructuring for the next phase
    of industry development

   Rapid growth and zero profits
   Channel V restructured operations,
   Greater China and India feeds; Western
   music content for Israel and Japan;
   conversion to digital encryption



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Breakthroughs

   Both channels have increased their Web
   casting / online presence:
        www.channelv.com
        www.mtvasia.com
   China has been earmarked as the market
   of tomorrow.


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Strategic Questions
   Is there room in Asia for two music channels?
   Do we think MTV and Channel V should merge?
   In this age of globalize markets, is it necessary
   to adapt the channels to local markets?
   Has Channel V done enough to differentiate
   itself from MTV Asia?
   How can the foreign music channels develop the
   China market?


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The Strategic Management Process




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Two Strategy Levels
    Business-
    Business-level Strategy (Competitive)
        Each business unit in a diversified firm
        chooses a business-level strategy as its
                  business-
        means of competing in individual product
        markets
    Corporate-
    Corporate-level Strategy (Companywide)
        Specifies actions taken by the firm to gain a
        competitive advantage by selecting and
        managing a group of different businesses
        competing in several industries and product
        markets
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Corporate Level Strategy:
                       The Winner Takes All                                        MTV dropped from
                                                                                   Star TV on 1994
What's next?               7                                                       Disagreement on
                                                                                   Local Content
• Merger/Partnership                                                       1
• Web Casting
• Mobile Music                                                                      Channel V fill the
• Artist Endorsement                                                                vacuum
                                                                                    Introduced
                                                                                    different channel
                                                                                    with emphasized on
                                                                                    Local Content
                 6                          MTV                                2
                                             vs.
                                          Channel V
 Branding is                                                                            MTV strikes
 Important:            5                                                                back on May
 • Co-Branding
                                                                               3        95
                                                                                        Customizing
 • Licensing                                                                            its product to
 • Merchandising                                                                        each local
                                                                                        major target
              Both Companies pursue the     4              In the five years
                                                                                        and relies on
              growth area :                                                             local stations
                                                           Channel V
              • India Moment of Truth                      admitted losing
              • China    Guanxi                            $100 M      Lost
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                  The Winner Takes All                     traction
Corporate Strategy Level :
                      MTV
   Web Cast:
   "Right now I don't really view (competition) as a problem because
   MTV has an Internet presence and they are the main brand," says
   Robert Routh, a managing director at Jefferies & Co.
   Merger:
        It could partner with more sites in the future a prime candidate to
        merge with Yahoo.
        As evidenced by Viacom's bid for MySpace, MTV is looking to advance
        into the social networking arena.
   Mobile Music:
        Already have production site on: http://www.mtv.com/mobile/#/mobile/
        Motorola has partnered with MTV Networks International in launching
        "Head and Body," a new entertainment series especially produced for
        mobile handsets
   Artist Endorsement:
   Work with to Motorola for special arrangement.


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Corporate Strategy Level :
                   Channel V
   Web Cast:
   Channel [v] online chat (7/3/01) has launched a new java online chat
   platform for Australia's premier music pay TV broadcaster Channel [v].
   Merger & Patnership:
        Wireless provider KongZhong (KONG) has inked an agreement with Channel V,
                                        (KONG)
        becoming the exclusive strategic partner of the music channel in mainland
        China.
        Star intends to use the Simcast system for a wide range of interactive
        applications across its network of channels. The system has been deployed in
        successful trials in China and India, involving chat and voting applications on the
        "Channel [V]", and the Hindi entertainment channel "STAR ONE".
   Mobile Music:
   Channel [V] India has tied up with cellular operator Airtel for its talent hunt
   show Mobile Singer.
                Singer.
   Artist Endorsement:
   Mr Amar K. Deb, Head Honcho, Channel V, told Business Line, "Talent
                                                                 Line,
   management is an area which is being looked at for generating sizeable
   revenues."




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Case Study: MTV vs.Channel-V

  • 1.
    MTV vs. Channel V Corporate Level Strategy Case Study Analysis by: Djadja A. Sardjana 31-Aug-09 31-Aug- STMB MM-Biztel MM- 1
  • 2.
    The History ofMusic Television in Asia MTV began broadcasting via satellite on the Star network in 1991. When Murdoch’s New Corp acquired Star TV, MTV left the Asian scene (1994). MTV Networks Asia was launched in 1995 31-Aug-09 31-Aug- STMB MM-Biztel MM- 2
  • 3.
    War within theAsian Music Industry ‘Channel V was first in the market with a localized approach and MTV copycatted that’ says Channel V ‘We’ve tried to stay clear of mud-slinging but Channel V is throwing out more smoke than the ice machine at a rock concert’ says MTV Networks Asia 31-Aug-09 31-Aug- STMB MM-Biztel MM- 3
  • 4.
    Restructuring for thenext phase of industry development Rapid growth and zero profits Channel V restructured operations, Greater China and India feeds; Western music content for Israel and Japan; conversion to digital encryption 31-Aug-09 31-Aug- STMB MM-Biztel MM- 4
  • 5.
    Breakthroughs Both channels have increased their Web casting / online presence: www.channelv.com www.mtvasia.com China has been earmarked as the market of tomorrow. 31-Aug-09 31-Aug- STMB MM-Biztel MM- 5
  • 6.
    Strategic Questions Is there room in Asia for two music channels? Do we think MTV and Channel V should merge? In this age of globalize markets, is it necessary to adapt the channels to local markets? Has Channel V done enough to differentiate itself from MTV Asia? How can the foreign music channels develop the China market? 31-Aug-09 31-Aug- STMB MM-Biztel MM- 6
  • 7.
    The Strategic ManagementProcess 31-Aug-09 31-Aug- STMB MM-Biztel MM- 7
  • 8.
    Two Strategy Levels Business- Business-level Strategy (Competitive) Each business unit in a diversified firm chooses a business-level strategy as its business- means of competing in individual product markets Corporate- Corporate-level Strategy (Companywide) Specifies actions taken by the firm to gain a competitive advantage by selecting and managing a group of different businesses competing in several industries and product markets 31-Aug-09 31-Aug- STMB MM-Biztel MM- 8
  • 9.
    Corporate Level Strategy: The Winner Takes All MTV dropped from Star TV on 1994 What's next? 7 Disagreement on Local Content • Merger/Partnership 1 • Web Casting • Mobile Music Channel V fill the • Artist Endorsement vacuum Introduced different channel with emphasized on Local Content 6 MTV 2 vs. Channel V Branding is MTV strikes Important: 5 back on May • Co-Branding 3 95 Customizing • Licensing its product to • Merchandising each local major target Both Companies pursue the 4 In the five years and relies on growth area : local stations Channel V • India Moment of Truth admitted losing • China Guanxi $100 M Lost 31-Aug-09 31-Aug- STMB MM-Biztel MM- the market 9 The Winner Takes All traction
  • 10.
    Corporate Strategy Level: MTV Web Cast: "Right now I don't really view (competition) as a problem because MTV has an Internet presence and they are the main brand," says Robert Routh, a managing director at Jefferies & Co. Merger: It could partner with more sites in the future a prime candidate to merge with Yahoo. As evidenced by Viacom's bid for MySpace, MTV is looking to advance into the social networking arena. Mobile Music: Already have production site on: http://www.mtv.com/mobile/#/mobile/ Motorola has partnered with MTV Networks International in launching "Head and Body," a new entertainment series especially produced for mobile handsets Artist Endorsement: Work with to Motorola for special arrangement. 31-Aug-09 31-Aug- STMB MM-Biztel MM- Source : BusinessWeek.com 10
  • 11.
    Corporate Strategy Level: Channel V Web Cast: Channel [v] online chat (7/3/01) has launched a new java online chat platform for Australia's premier music pay TV broadcaster Channel [v]. Merger & Patnership: Wireless provider KongZhong (KONG) has inked an agreement with Channel V, (KONG) becoming the exclusive strategic partner of the music channel in mainland China. Star intends to use the Simcast system for a wide range of interactive applications across its network of channels. The system has been deployed in successful trials in China and India, involving chat and voting applications on the "Channel [V]", and the Hindi entertainment channel "STAR ONE". Mobile Music: Channel [V] India has tied up with cellular operator Airtel for its talent hunt show Mobile Singer. Singer. Artist Endorsement: Mr Amar K. Deb, Head Honcho, Channel V, told Business Line, "Talent Line, management is an area which is being looked at for generating sizeable revenues." 31-Aug-09 31-Aug- STMB MM-Biztel MM- Source : Company Source 11