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1.2 Competitive advantages

1.2 Competitive advantages. Is the market that you enter a concentrated one? Who are the dominant players?. Yes. According to the Writers Guild of America, most cable channels are owned by fewer than ten companies.

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1.2 Competitive advantages

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  1. 1.2 Competitive advantages

  2. Is the market that you enter a concentrated one? Who are the dominant players? Yes. According to the Writers Guild of America, most cable channels are owned by fewer than ten companies. Major players: Liberty Media, AOL, Viacom, NBC, Cablevision, MGM, Disney, AOL Time Warner, News Corp, Comcast, and USA Networks. Competing channels: Nickelodeon (owned by Viacom), Cartoon Network (owned by AOL Time Warner), Disney Channel (owned by Disney).(Source: http://www.caucus.org/Downloads/WGA%20Report%203.pdf)

  3. Who are your customers (think beyond the audience)? Audience: Young children (aged 3-12); adolescents (aged 13-17); young adults (aged 18-24); parents (who pay for the subscription). Cable companies: The major players are Comcast, AT&T, Time Warner, RCN. Advertisers: Toys, food, restaurants (fast food, family restaurants), video games, new technology, youth fashion (such as Vans).

  4. Are there switching costs and search costs? If yes, what are they? Audience: the switching costs and search costs are low. The audience can change the channels anytime they want. They can search for this channel and other channels easily through TV listings. Cable Companies: the switching costs are high; search costs are low. Cable companies may find the audience complain if they drop the channel. Cable companies can search for any cable channels easily. Advertisers: the switching costs and search costs are low. They can drop their ads after the contract ends. Advertisers can search for any cable channels easily.

  5. Is there proprietary technology involved? Yes. DVD format is Region 1 in the US and Region 2 in Japan. DVDs imported from Japan have to be re-formatted for broadcast.

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