Sony is introducing Internet TV to the Philippines, allowing viewers to search across both live and on-demand TV programming as well as internet content like YouTube, Facebook, and Twitter directly on their TVs. Sony's new Internet TV models combine the power of an HDTV with full internet search capabilities. This new category of television created by Sony delivers an unparalleled entertainment experience by merging multiple content sources into an easy-to-use interface.
Page 1 of 5Strategy in Practice Assignment #2Chapter 4EV.docxalfred4lewis58146
Page 1 of 5
Strategy in Practice Assignment #2
Chapter 4
EVALUATING A COMPANY’S RESOURCES,
CAPABILITIES, AND COMPETITIVENESS
Please read these excerpts derived from the Netflix corporate Web site; then, fully respond to the questions that follow.
Netflix is the world’s leading Internet television network with over 53 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause, and resume watching, all without commercials or commitments.
Netflix’s Long Term View:
Internet TV is replacing linear TV, Apps are replacing channels, and screens are proliferating.
As Internet TV grows from millions to billions, Netflix is leading the way around the world.
Linear TV is popular, but ripe for replacement.
People love TV content and still watch over a billion hours a day of linear TV.
But people don’t love the linear TV experience, where channels present programs at particular times on non-portable screens with complicated remote controls. Consumers have to navigate through a grid, or use DVRs which add an on-demand layer at the cost of storage and complexity. Finding good things to watch isn't easy or enjoyable. While hugely popular, the linear TV channel model is ripe for replacement.
The evolution to Internet TV apps has begun.
The world’s leading linear TV networks, such as HBO and ESPN, are moving into Internet TV. The ESPN app runs on many Internet platforms and is specifically designed to showcase sports, both real-time and catch up. HBO’s app makes its films and series more accessible than on HBO’s linear channel. The other major linear networks are not far behind.
Internet TV is better than linear TV in ways consumers care about. While Internet TV is only a small percentage of video viewing today, it will grow to replace linear TV because:
1. The Internet is getting faster, more reliable and more available;
2. Smart TV sales are increasing and eventually every TV will have Wi-Fi and apps;
3. Smart TV adapters are getting better and cheaper;
4. Tablet and smartphone viewing is increasing;
5. Internet TV apps get frequent improvement updates;
6. Streaming is the leading source for Ultra HD 4k video;
7. TV Everywhere provides an economic transition for existing networks; and
8. New entrants like Netflix are innovating rapidly and driving improvements.
Eventually, as linear TV is viewed less, the spectrum it now uses on cable, fiber, and over-the-air will be reallocated to expand Internet data transmission. Satellite TV subscribers will be fewer and more rural. The value of high-speed Internet will increase.
This transformation is occurring at different speeds in different nations. In the UK, for example, the BBC is already programming for its iPlayer app as well as its linear channels, .
Page 1 of 5Strategy in Practice Assignment #2Chapter 4EV.docxalfred4lewis58146
Page 1 of 5
Strategy in Practice Assignment #2
Chapter 4
EVALUATING A COMPANY’S RESOURCES,
CAPABILITIES, AND COMPETITIVENESS
Please read these excerpts derived from the Netflix corporate Web site; then, fully respond to the questions that follow.
Netflix is the world’s leading Internet television network with over 53 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause, and resume watching, all without commercials or commitments.
Netflix’s Long Term View:
Internet TV is replacing linear TV, Apps are replacing channels, and screens are proliferating.
As Internet TV grows from millions to billions, Netflix is leading the way around the world.
Linear TV is popular, but ripe for replacement.
People love TV content and still watch over a billion hours a day of linear TV.
But people don’t love the linear TV experience, where channels present programs at particular times on non-portable screens with complicated remote controls. Consumers have to navigate through a grid, or use DVRs which add an on-demand layer at the cost of storage and complexity. Finding good things to watch isn't easy or enjoyable. While hugely popular, the linear TV channel model is ripe for replacement.
The evolution to Internet TV apps has begun.
The world’s leading linear TV networks, such as HBO and ESPN, are moving into Internet TV. The ESPN app runs on many Internet platforms and is specifically designed to showcase sports, both real-time and catch up. HBO’s app makes its films and series more accessible than on HBO’s linear channel. The other major linear networks are not far behind.
Internet TV is better than linear TV in ways consumers care about. While Internet TV is only a small percentage of video viewing today, it will grow to replace linear TV because:
1. The Internet is getting faster, more reliable and more available;
2. Smart TV sales are increasing and eventually every TV will have Wi-Fi and apps;
3. Smart TV adapters are getting better and cheaper;
4. Tablet and smartphone viewing is increasing;
5. Internet TV apps get frequent improvement updates;
6. Streaming is the leading source for Ultra HD 4k video;
7. TV Everywhere provides an economic transition for existing networks; and
8. New entrants like Netflix are innovating rapidly and driving improvements.
Eventually, as linear TV is viewed less, the spectrum it now uses on cable, fiber, and over-the-air will be reallocated to expand Internet data transmission. Satellite TV subscribers will be fewer and more rural. The value of high-speed Internet will increase.
This transformation is occurring at different speeds in different nations. In the UK, for example, the BBC is already programming for its iPlayer app as well as its linear channels, .
1. Sony Philippines, Inc.
8/11th floor Marajo Tower, #312 26th West cor. 4th Avenue, Bonifacio Global City, Taguig, MM, Philippines 1634
Telephone: +63(2) 860-3333
make.believe in the TV of the Future:
SONY BRINGS INTERNET TV TO THE PHILIPPINES
This summer, Sony is redefining the way you view television.
If in the past, you would just sit on your couch and browse through TV channels until you find something
you like, starting today, you can now decisively determine the shows that get aired on your TV. Believe
in a TV that can search for different kinds of content, from the popular to the obscure. Imagine the
expansive, almost endless, content universe that is the internet, and believe in entering into this
goldmine of programming, without leaving your home. Believe in the paradigm shift taking over the TV
viewing landscape, transforming it from a passive experience into one that is not just active, but
interactive.
Sony is bringing you a new way of being entertained, as the global leader brings you, the fusion of
internet and TV.
"Sony Internet TV combines the big-screen impact of HDTV and full Internet search to deliver an
unrivalled entertainment experience," said Takao Kuroda, President and Managing Director, Sony
Philippines. "Finally, you can seamlessly search your favorite TV programs and web sites on the same
screen.”
Because of Sony's hardware, software and engineering expertise which provide a unique user
experience, merging multiple content sources in one easy-to-use interface. From broadcast to streaming
video from the World Wide Web, Sony Internet TV offers the ability to quickly search and watch content
from wherever, whenever.
"We are very proud to bring this new entertainment category by delivering the true Internet TV
experience. Sony Internet TV creates value by introducing new and compelling ways to enjoy a variety of
content. You can now enjoy watching YouTube™, cheering friends in Facebook™, twitting your followers
2. Sony Philippines, Inc.
8/11th floor Marajo Tower, #312 26th West cor. 4th Avenue, Bonifacio Global City, Taguig, MM, Philippines 1634
Telephone: +63(2) 860-3333
in Twitter™ or even chatting with your relatives and friends in Skype™ right in your living room without
even booting your PC." added Larry Secreto, National Sales Director, Sony Philippines.
Sony Internet TV leads the new array of BRAVIA TVs available in the Philippines, launched as part of the
Sony Summer HotSpots 2011 campaign. New models of the BRAVIA 3D and HDTVs were also presented,
expanding consumer options to fulfil their vision of 3D and HD Worlds created by Sony.
Continuously inspiring the dreams of home entertainment enthusiasts, Sony Philippines also introduced
new connected Blu-ray Disc players, the BDP-S380 and BDP-S485, and a new Sony 3D Blu-Ray Disc Home
Theater, designed for discerning consumers looking for optimal 2D or 3D entertainment experiences.
The wide product roll-out showcases the company’s unique ability to combine technology, products,
content, and services to deliver the ultimate consumer entertainment experience. “For this year,
Filipinos will notice many dazzling new networked products, content, and services, along with
innovative, future-focused technologies,” said Mr. Takao Kuroda, President and Managing Director, Sony
Philippines. “It’s a proposition that no other company can match, and it’s an impressive, concrete
testament to the strength and vision of Sony.”