Friday, 21 August 2009

Transformation in TV Broadcast Value Chain

Television industry is undergoing significant change.

The following illustration combines a macro-view of the TV industry value chain and process-view for a TV channel operator.

The interrelationships between the value chain and processes (indicated by red icons V, T, P, S, A…) are key points of change and transformation.

TV-Broadcast-Value-Chain

DataMonitor’s recent report highlights the importance of transformation impact. DataMonitor analysis addresses one part of the macro value chain (channel operators):

Spending by broadcasters in North America and Western Europe on technology will reach an estimated $8.7 billion by 2012, according to a new report, “The Evolving Broadcast Value Chain, 2006 – 2012.

Using Porter’s 5 Forces model for industry analysis we can see several changes impacting the entire value chain. In this series of posts we will cover following analysis:

  • Supplier Power: How converging Telecom, Broadcast, and Online industries are impacting value chain integration and supplier differentiation.
  • Barriers to Entry: How policy and regulation is impacting change in key markets.
  • Buyer Power: How downturn economy and availability of new platforms is changing the advertising mix.
  • Threat of Substitutes: How multiple platforms, mediums and media types compete for viewer attention. How changing viewer habits are encouraging new business models.
  • Degree of Rivalry: Overall industry growth and competitive landscape.

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