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MTV Global Strategy
Transcript of MTV Global Strategy
Ben Elaine Nicole Perry MTV's
Global Strategy Company Overview
MTV's Initial Strategy
What led MTV to change its strategy
MTV's New Strategy
Recent Strategic Shift
Discussion Contents The world's largest television network and the leading multimedia brand for youth
MTV channels are seen in 412 million households in 164 countries and 18 languages
Company was incorporated in 1990 and operates as a subsidiary of Viacom International Inc. Company Overview 1 August 1981
Music Television launched as the first 24-hour video music network in the united States
MTV launched a second US network called Video Hits 1
MTV's first reality TV series 'The Real World' aired Timeline 1 August 1987
MTV Europe was launched as a pan-European 24-hour entertainment cable and digital television network. Over the subsequent 15 years, numerous individual country stations would be founded
20 October 1990
MTV Brasil was launched, the first channel in South America
MTV.com was launched on the internet Employ a single feed across Europe
Globally standardized products
Convergence of tastes
European audience vs American programs MTV's Initial Strategy Less than expected growth
No connection between customers and products
Local companies outmaneuvered MTV
Standardized strategy ran its course by 1995 Outcome 1. Coca-Cola
2. Disney Other Global Companies Strategy: Allows different packaging, distribution and media in each country/area
Understands weaknesses of a global strategy
Emphasis on local consumer adaptations Coca-Cola Strategy: Flexibility and adjustment to local preferences
Problem: Employ a true global Strategy
Hong Kong Disneyland
US culture as cultural invasion? Disney Concept of globalization
Examples: MTV, Coca-cola and Disney Globalization "Think Globally, Act Locally" Since 1995, MTV has adopted a 'glocalisation' strategy
Glocalisation is the process of globalisation involving mutual influences between the global and local (Appadurai, 1990) MTV's New Strategy Began to launch separate channels for its different regions, for example, MTV India, MTV Korean and MTV China
Produce programs to suit local tastes and preferences MTV's New Strategy For MTV Asia,
1. MTV is given access to a channel by a cable operator on the condition that it programs local music and hires local staff
2. Use of the local language
3. MTV targets younger ages (16-34 year olds) by using the cable network MTV Asia First, MTV catered to needs by broadcasting in their local language and then later moved onto locally produced shows.
Reorganised programs to match local viewing preferences, purchased materials from local studios and producing shows locally.
Locally produced shows are their highest form of localisation. MTV's New Strategy MTV’s strategy for Asia is to support content with thought for local customer taste.
Concentrated efforts on cable TV, targeting a younger age group to cut marketing expenses.
For example, MTV Japan planned to feature original Japanese programming and base future programming decisions on the customer feedback received and market research. MTV's New Strategy:
MTV Asia MTV's New Strategy:
Benefits and Drawbacks Huge increases in advertising revenue
Large increases in local viewership
Increased its global presence to 72 channels, 321 million household viewers in 14 different countries Benefits Reduced its music coverage air time and started covering other programs related to lifestyle, entertainment and films Drawbacks MTV continued to increase the amount of local programming in its global networks
MTV India had up to 21 'home-grown' shows in the early part of the 2000s
Europe and South America also saw the development of locally conceived shows Post-1995 Strategy MTV has veered away from its post-1995 strategy
Begun to take ideas developed in national subsidiaries in order to see if it can find ways of leveraging them globally
Most significant example of this new strategy is the Jersey Shore franchise Recent Strategic Shift Main US MTV channel began broadcasting Jersey Shore in 2009
Due to vast success, MTV commissioned a number of versions in foreign countries Jersey Shore Franchise In 2011, a British version, entitled Geordie Shore, was launched
Filming has recently begun on a Spanish version, Gandia Shore, and there are plans to launch a French version in 2013
As well as Jersey Shore, various MTV shows which originated in the United States (e.g. Punk'd and The Real World) have equivalents in different countries on their respective MTV stations Rather than representing a refinement of MTV's post-1995 'glocalisation'strategy, this new shift towards globally leveraging ideas developed on MTV's US network represents a retreat from the strategy
In essence, MTV has chosen to fit local tastes into an Americanised template
Rather than developing programming inspired by local preferences and demands, MTV has elected to take an idea conceived in the United States market and rebadge Shifted its global target market from the older Generation X to the Millennials
MTV President: the Millennials represented the chance for MTV to again reinvent its strategy
Globally, MTV will continue its transition from a solely music-based network to a collection of different stations catering to multiple consumer interests Future Direction In 1987, MTV decided to distribute their channel overseas, starting first in Europe
"...going for the most shallow layer of what had united viewers and brought them together."
-Tom Freston Global Expansion Unchanged business model applying core competences created in US and transferring to Europe
Global strategy - standardised product
Treated the globe as one large market with one source of supply with little variation in MTV's product Initial Strategy Strengths
Limitations Global Strategy Conservation of time, money and executive talent
Gains on economies of scale and scope
Expansion into uncertain market allowed for the benefits of the experience curve effects and 'delay principle'
Large degree of flexibility Strengths
of Global Strategy Highly centralised and tightly coordinated limiting transfer of knowledge from distribution to MTV HQ
Limited local responsiveness with standardised product
MTV unaware of local tastes and interests
Unable to broadcast music of shows to individual countries Limitations
of Global Strategy 1995-1996
MTV began its push into Asia with two 24-hour channels launching in both Mandarin and other language service was launched in 1996 whilst further individual MTV stations were launched in 2001 and 2002
20 March 1997
MTV Australia was launched and can currently be seen in over 1.5 million households
26 April 2003
MTV becomes the first and only 24-hour brand to launch in China MTV changed its strategy accordingly to the changes in tastes and preferences of its target audience. Conclusion http://mcdepk.com/mtvpartnership/downloads/mtv_global_fact_sheet.pdf
http://citation.allacademic.com/meta/p_mla_apa_research_citation/0/9/1/8/7/pages91877/p91877-1.php [Accessed: 17 Sep 2012]
ftp://ftp.repec.org/opt/ReDIF/RePEc/blg/journl/538dumitrescu%26vinerean.pdf Reference List 1. What would have happened if MTV did not change its initial strategy?
2. Do you think there are other strategies that MTV could have/can employ? Why? Discussion Questions