...Caso Capítulo 4. Personal Video Recorder (PVRs) 1. ¿Cómo las PVRs afectarán la demanda de los anunciantes? Debido a que esta tecnología permite fácilmente “saltar” los cortes comerciales, los anunciantes no podrán tener la certeza de cuántas personas ven sus anuncios. La mayoría de los anunciantes hacen la planeación de sus campañas televisivas y miden los resultados en base al rating, los PVRs provocarán que el rating disminuya durante los cortes comerciales, con lo cual los anunciantes no llegarán a sus objetivos de audiencia y buscarán llegar a su público objetivo mediante otros medios. 2. Dada la ecuación de demanda Qd = 30 – 0.0002P + 26V a. La meta es maximizar los ingresos totales con un millón de televidentes esperados * ¿Cuál sería el precio? $ 140,000 * ¿Cuántos minutos de publicidad vendería? 28 minutos * ¿Cuál sería el ingreso total? $ 3,920,000 b. Suponga que el precio anterior permanece fijo * ¿Qué le pasaría a la cantidad demanda con 0.5 millones de televidentes? La demanda bajaría a 15 minutos * Calcule la elasticidad de los televidentes. La elasticidad sería de 0.91, 3. Si más televidentes usan PVRs ¿qué pasará con los ingresos de los principales canales? Sus ingresos totales bajarán, a menos que aumenten los precios. Sin embargo, esto no es posible, de acuerdo a la ley de la demanda, ya que a menor demanda los precios tienden a disminuir. 4. Discuta los efectos a...
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...Personal video recorders (PVRs) are digital video recorders used to record and replay television programs received from cable, satellite, or local broadcasts. But unlike VCRs, which they replace, PVRs offer many more functions, notably the ability to record up to 80 hours of programs and easy programming. A PVR consists of an internal hard disk and microprocessor. After the owner installs the hardware, the PVR downloads all upcoming TV schedules to the hardware via a phone or cable connection. Users merely enter the name of the show(s) they want recorded and the system finds the time and channel of the show and automatically records it. Users must subscribe to a cable or satellite system if they wish to record programs off these channels. Besides ease of programming and much larger recording capacity than videotape, PVRs allow the user to watch a prerecorded show while the unit is recording a new program, pause watching live programs (for example, if the phone rings) and then resume watching the rest of the live broadcast, view instant replays and slow motion of live programs, and skip commercials. In effect, PVRs, like older VCRs, allow viewers to control when they watch broadcast programs (called “time shifting”). However, PVRs provide much sharper pictures and are much simpler to operate than VCRs and PVRs allow the user to download the television schedule for the next week. Two companies currently sell the hardware and provide the subscription service: TiVo and ReplayTV...
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...Marketing Theories & Practices Assignment # 1 TiVo in 2002: Consumer Behavior Submitted to Mr. Abid R. Khawaja Submitted By Muhammad Bin Zaheer 2011-NUST-EMBA-17 1. According to Keast, “there is a mystery in the sharp contrast between the inertia of prospects and the evangelical zeal of TiVo users.” As an emerging expert in consumer behavior how would you tackle that mystery? What do you think could be going on? Beyond your pet hypothesis, try to be creative and list a large number of conflicting hypotheses by taking multiple points of view. What might “evangelists” mention as a cause of their failure to sell TiVo to their friends? What might a “couch potato” say about his reluctance to buy TiVo? What would you expect a top executive at NBC to say about the situation? What explanation would the founder of TiVo love to hear? Hate to hear? For an emerging expert in consumer behavior, research is very important. This can include surveys and feedbacks from both current and potential customers. These surveys help develop not all but a little understanding of the consumer and consumer behavior while at the same time, they also help identify changing needs of the consumers and so these results can be analyzed, quantified and evaluated to make your product and consumer needs meet at a common point where both the marketer and consumer are satisfied. To sum up: * Identify potential customers and understand their needs based on their past practices and from interactive...
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...Unit II Case Study Instructions 1. Discuss how PVRs will affect the demand from advertisers. In order to examine the effect that PVR has on advertising companies, we need to consider the needs of society and how will it benefit from this video recorder. Comfort is an important issue in today’s society. The easy programming and the large video recording space, which reaches up to 60 hours, makes this devise very desirable. Moreover, the flexibility to play the recorded program repeatedly at the viewers’ most convenient time removes the need to schedule your day based on the programs. Advertising Companies depend on programs to promote products or services based on the client. However, because of PVR the viewer is capable of forwarding the recorded program, and skipping easily advertisements during the show, thus decreasing the advertising product popularity and as well affecting the advertisers demands. Due to the flexibility of fast-forwarding viewers will without knowing skip advertisements that could have been important for their wellbeing. The requests of these advertisements will without decrease affecting their revenue as well as the sponsor advertiser company. Article Personal Video Recorder 2. Suppose you are in charge of setting the price for commercial advertisements shown during Enemies, a top network television show. There is a 60 minutes slot for the show. However, the running time for the show itself is only 30 minutes. The rest of the...
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...HARVARD BUSINESS SCHOOL 9-501-038 REV: OCTOBER 14, 2005 LUC WATHIEU MICHAEL ZOGLIO "Look at these guys ...Thetj decide what we watch and when we watch it. ..." "Network programmers-who needs them? Program your own network. TiVo. TV your way." Between these two lines, the TiVo commercial showed a pair of burly men throwing a TV network's chief programmer out of the window of a tall office building. Brodie Keast, TiVo's vice president of marketing and sales, had replayed the ad a dozen times on that morning of May 2000, and he still found it to be as hilarious as the first time he saw it. The TiVo digital video recorder, beyond its many advanced features, made a big idea real-if you owned the TiVo black box and subscribed to the TiVo service, you could really control what you watched and when you watched it. TiVo's marketing team intended to get that big idea across through a catchy communications campaign, with a boldly humorous tone that would help consumers envision how TiVo restored the fun of television. Fourteen months into the launch, TiVo had signed up 42,000 subscribers, with a current rate of 14,000 new subscribers per quarter. With 102 million TV-watching households in the U.S., that was only about .04% penetration, despite availability in most major consumer electronics stores across the nation. Yet everyone who owned TiVo seemed satisfied with it, with 72% of owners even claiming that...
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...broadcasting. High Definition digital broadcasting is the new wave of broadcasting, overtaking the analog world. With the evolution of the digital world comes the evolution of advanced functionality within digital equipment. The progression of the newly developed HD Digital Radio is the base system for which I would like to see the advancements occur that have evolved for other digital equipment. High Definition TV’s hit the market like an earthquake. To watch a High Definition TV properly a person needs an HD digital cable receiver. As digital cable utilizing HD receivers came about the Digital Video Recorder (DVR) was born. The Digital Video Recorder (DVR) is a device that records video in a digital format to a disk drive or other memory medium within a device. The term includes stand-alone set-top boxes, portable media players (PMP) and software for personal computers which enables video capture and playback to and from disk. (http://en.wikipedia.org/wiki/Digital_video_recorder) The progression of the standard analog TV evolved into the High Definition digital and recordable TV. With the evolution of radio now following stride and developing the HD digital radio it is only a matter of time before the user can digitally radio record (DRR) the...
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...Background Fourteen months into its launch, a new technology that enables households to record and play back their favorite shows had only sold a few thousands units. This new technology was TiVo and it should have been a hit. It was founded in 1997 by Jim Barton and Michael Ramsay. Lagging TiVo Sales in Early 2000 Sales of TiVo’s digital video recorder (“DVR”) lagged in sales in early 2000 due to lack of retail execution, improper pricing, and lack of awareness. Lack of Retail Execution Marketing for TiVo’s DVR at the point of purchase failed in early 2000 because its product: * required extensive explanation and physical store demonstrations, * the manufacturer representatives did not give the amount of support required to market the product, * distribution partners did not have a proper appreciation for its sense of urgency, and * 50% turnover in electronic stores’ sales force made training a challenge. For example, inadequately trained sales employees pitched TiVo as a “high-end” VCR while the press called it, in part, a personal video recorder (PVR), personal digital recorder (PDR), and intelligent video recorder (IVR) collectively resulting in consumer confusion of the product. Improper Pricing Initial pricing for the product was around $1000 USD which TiVo reasoned was reasonable for those early adopters of the DVR technology. However, the price point was twice as much as most satellite systems and more expensive than most television sets. Without...
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...Study Unit II Case Study Instructions 1. Discuss how PVRs will affect the demand from advertisers. In order to examine the effect that PVR has on advertising companies, we need to consider the needs of society and how will it benefit from this video recorder. Comfort is an important issue in today’s society. The easy programming and the large video recording space, which reaches up to 60 hours, makes this devise very desirable. Moreover, the flexibility to play the recorded program repeatedly at the viewers’ most convenient time removes the need to schedule your day based on the programs. Advertising Companies depend on programs to promote products or services based on the client. However, because of PVR the viewer is capable of forwarding the recorded program, and skipping easily advertisements during the show, thus decreasing the advertising product popularity and as well affecting the advertisers demands. Due to the flexibility of fast-forwarding viewers will without knowing skip advertisements that could have been important for their wellbeing. The requests of these advertisements will without decrease affecting their revenue as well as the sponsor advertiser company. Article Personal Video Recorder 2. Suppose you are in charge of setting the price for commercial advertisements shown during Enemies, a top network television show. There is a 60 minutes slot for the show. However, the running time for the show itself is only 30 minutes. The rest...
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...TIVO Case Analysis by Agata Amorim Analyze the situation from the consumer’s standpoint. What is TiVo? TiVo is a black device in a box shape, which incorporates a digital video recorder that allows viewers to watch what they want, when they want to watch it, and it allows pause and instant replay functions of live TV by storing information on a hard drive. It enables a person or a group of persons in a household to create their own personal television schedule by using the regular television programs. The additional features include the ability to skip commercials, and input their own viewing preferences. What factors facilitate its adoption? * In contrast with other devices, TiVo allows consumers to record over 30 hours of television without the need to use video tapes or other types of storage units. * TiVo offers independence to viewers since it allows them to watch what and when they want. The device also allows viewers to pause live television and attend to their needs like cooking, answering the telephone, and going to the bathroom, and other activities. * It makes TV viewing enjoyable, backed by the fact that everyone who owned TiVo seemed satisfied with it and 72% of the owners claimed that TiVo had made TV viewing a lot more enjoyable. * Also, TiVo offers better recording quality from its digital technology, easy-to-use features for setting up the recording as well as the capability to skip commercials fast. * TiVo also have popular features...
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...in renting copies of movies and video games to retail customers. DPI also sells new and used copies of these products, and offers “memberships” entitling members to unlimited use of DVDs or video games for one year (one DVD or game at a time). With over 7,000 stores worldwide (approximately 5,000 in the U.S. and 2,000 in 23 other countries), DPI is among the top two or three companies in the industry. Founded twenty years ago, it has been an audit client of your CPA firm for the past three years. For several years, the traditional movie and video game rental industry has been saturated, and recently has been declining by an average of 4% per year as measured by industry gross margins and by 6% per year as measured by industry profits. Lately, companies in the movie rental industry have been facing stiff competition on a number of fronts. First, competing companies such as Netflix offer internet-based subscription services, taking business away from traditional stores like DPI and forcing them to discontinue charging late fees to customers, a significant source of revenues. Second, companies such as Wal-Mart, Circuit City and Best Buy have been selling new copies of both newly-released and classic DVDs at rock-bottom prices, sometimes even at a loss, also taking business away from traditional stores like DPI. Finally, many customers have turned to video-on-demand cable and satellite providers (often in conjunction with digital video recorders, or DVRs) to satisfy their desire...
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...The San Jose Consulting Group A Strategic Analysis on . Performed By Junior Analysts… Ed Work Randy Seese Tom Jozinovic David Bolhorst Lawrence Kuechler Strategic Introduction The digital video recorder (DVR) market is experiencing rapid growth, with an expected consumer base of 19.6 million DVR units in homes by the year 2006. Tivo implemented an aggressive marketing strategy in the late 1990’s; as a result Tivo Inc. has become the most recognizable brand name and thus setting the standard in this exploding industry. But Tivo is not without shortcomings. It faces inabilities to effectively reach large amounts of the DVR market due to the current monopolies that cable and satellite companies enjoy. The fairly expensive retail price of the Tivo unit could possibly jeopardize the company’s ability to stay competitive in the market for an extended period of time. The rapid growth of this industry is also creating increased competition for Tivo, and it seems the management of Tivo will be left with some crucial decisions to make if they are to continue to survive in this industry. Currently, Tivo develops DVR software and stand-alone units with a selling focus towards television viewers seeking an improved and interactive viewing experience. A DVR unit is a set-top box that performs three different main functions: 1. Tivo and live television – Tivo allows the viewer to pause and rewind live...
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...ALICE M. TYBOUT AND JULIE HENNESSY TiVo As Brody Keast, TiVo’s senior vice president of marketing, pored over research reports and market forecasts, his excitement grew. In one report Odyssey Research concluded, “We have never seen a product test better in terms of consumer intent to purchase.” A report from AC Nielsen Vantis was equally enthusiastic, noting, “Of forty-four consumer electronics concepts we have tested, we’ve never had a product test as high in what we call the trifecta: intensity of liking, new and different, and need fulfillment.” TiVo’s market prospects seemed even brighter than Keast had dared to hope. At the same time, Keast recognized that the TiVo launch would need to be managed carefully. The company’s goal was extremely ambitious: it hoped to revolutionize how Americans watch television and become a central player in the emerging interactive TV industry. Competitors such as ReplayTV had similar products and designs on the future, so TiVo’s success was far from guaranteed. Keast believed that the product positioning at launch would play a key role in determining who would win the race to personalize television viewing. The Vision Americans have a love/hate relationship with television. In all, 98 percent of the country’s 100 million households own at least one TV. On average, each household has 2.4 TVs and spends seven hours and fifteen minutes per day viewing television. In 1999, 78.1 million households spent $34.4 billion to receive cable TV service...
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...Companies need an approach to CRM that marketers — and customers — can embrace. Embraceable CRM starts with a simple premise: The most important part of the database isn’t the base; it’s the data. To gain the information necessary to embrace the customer, relationship programs must be based on two principles: * First, they cannot wait until the first purchase is consummated to begin to understand consumer interests, concerns, desires, and habits. The key to unlocking value is to recognize that different customers follow different purchase paths. Effective CRM systems must dive deep into the purchase decision before the purchase is made. Call this purchase-cycle intimacy. * Second, because different customers follow different ownership paths, effective CRM systems must link deeply and broadly to the individual’s ownership experience — the consumer’s relationship with the car throughout the ownership cycle. Acting on these two principles requires companies to bring otherwise separate technology programs together in complementary ways. For example, Internet-enabled communication systems make it increasingly possible to capture valuable insights about consumers in the middle of the purchase process. Interactive kiosks in dealerships — or in alternative sales venues, such as malls — are proving to be excellent tools to begin to engage consumers in dialogue. Online activity at home or in the office represents another vital opportunity to achieve purchase-cycle intimacy. The...
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...✓ Distinctive competencies ✓ Corporate value chain ✓ company resources ✓ Strengths and Weaknesses ✓ IFAS 5. STRATEGIES ALTERNATIVES AND RECOMMENDED STRATEGY ✓ SFAS ✓ TOWS ✓ Strategies Alternatives ✓ Strategies recommendation 6. Implementation ✓ Corporate & business strategies ✓ Functional strategies 7. EVALUATION AND CONTROL ✓ Establishment of Standards ✓ Evaluation of Performance Jim Barton and Mike Ramsay were the founders of TiVo inc. both founders were working at silicon graphics and were very much involved in entertainment industry .Jim Barton was involved with an on demand video system. Mike Ramsay was responsible for products that created movies’ special effects for companies like ILM and Pixar. Both thought to redefine television entertainment by delivering the promise of technologies that up until then had only been promised, incorporated in Delaware and originally named teleworld, TiVo was founded as a company on august 4, 1997. The hardware was designed by Tivo inc. but manufactured by other companies including...
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...Synergos is a company that provides cable television, high-speed Internet, and digital phone services for residential customers and businesses in Western Pennsylvania. This paper will examine the external and internal forces and trends that affects the company. The eternal forces that will be examined are legal and regulatory considerations, technological considerations, innovation, and competitive analysis. The internal forces and trends that will be examined are company goals, culture, and technologies. There will also be a critique on how well the organization adapts to change. The supply chain operations will be analyzed, and issues and opportunities will be identified. A hypothesis and research questions will also be generated for each issue. External Forces and Trends Legal and Regulatory Issues Synergos must comply with Federal Communications Commission and Federal Trade Commission regulations. One of Synergos' goals is to provide affordable high-speed Internet access to low-income families. However, the company must comply with the Federal Communications Commission net neutrality rules. Synergos must also work with attorneys to comply with the Securities and Exchange Commission regulations as well as other federal, state, and local agencies. Synergos formed a legal regulatory group to adapt to changes in regulations by the Federal Communications Commission and the Federal Trade Commission as well as the Securities and Exchange Commission and other agencies. Synergos'...
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