Disruption Occurring in the Media and TV Industry

Throughout the entire semester, we’ve detailed the disruption of the media and television industry. From the rise of video giants like Blockbuster to their ultimate demise, we’ve seen how seemingly untouchable businesses can fall victim to disruption. The current landscape shows mainstream use of online streaming services. These platforms provide consumers with not only more convenient options, but increased offerings tailored to viewer preferences. With the widespread adoption of these services, along with other platforms that offer services similar to cable at a cheaper price, more consumers than ever are cutting the cord.  Watch a summary of our findings below:

 

To learn more about the processes and programs we used to facilitate our learning, click here.

Here’s our take on how to adapt to these disruptive times in the media and television industry.

 

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2 Responses to Disruption Occurring in the Media and TV Industry

  1. Andrew Lentini November 18, 2015 at 9:24 pm #

    Over time you can physically see how much has changed when it comes to how we watch movies. When I was a kid grow I had a Blockbuster in my town and I thought it was the greatest thing ever. I was about to go to a store and pick any movie I wanted plus a tub of popcorn for under $5 that is what I call a deal. Blockbuster was making a lot of money to start out, they were making 26% profit and were on pace to be the McDonalds of video places. The company was so big it was almost considered a monopoly by the government. The company ended up declaring from bankruptcy. They had 9,000 stores and went to less than 300 stores very quickly. The store in my town was closed as soon as they filed for bankruptcy. Disruption caused the video industry to collapse. The founder of Netflix was charged $40 in late fees for a VHS and got very upset at Blockbuster. So he went and started his own company called Netflix. Blockbuster was offered many times to buy Netflix for 50 million dollars but they said no each time. Blockbuster instead tried to do what Netflix was doing with mailing movies out but soon Netflix sued for violating a patient ordered to pay 4.1 million dollars. Blockbuster filed for bankruptcy in 2010 and went from being the biggest company to out of business in 10 years. The biggest mistake that company made was not buying Netflix when they had the chance. Online streaming is now running the internet legal or illegal it does not matter. A recent study found that 30% of Americans subscribe to 1 video services. Unlicensed TV shows are easy to find on google and are illegal but the government does not do much to stop it. For new TV shows they are taking a long time to start up and mostly new shows get canceled in the first year. Netflix and Amazon video however are doing very well seeing their subscriptions increase. Netflix and Amazon video have done a very smart thing and created their own TV shows. Their original series have been nominated for 46 Emmy’s this year alone. Success comes from views. After you rate shows they know what the American people like and try to make shows that everyone will want to watch. Apple is rumored to be the next big company to start making original programing. Cable companies are going to have to drop their prices in order to compete with big online companies taking some of their business. Apple TV is now offering live TV along with shows on demand which hurts the cable industry greatly. If cable companies do not start to open their eyes and see what is going on we are going to live in a cable free world where cable TV has the same fate as Blockbuster. Live news and sports is the only thing holding the cable companies above online services right now. Online services have and will change the way we watch TV forever. Cable will slowly be a thing of the past just like VCR tapes.

  2. Ryan Skolnick November 20, 2015 at 2:46 pm #

    Disruption truly is a very important aspect to consider in any business. With such large advances in technology, innovation and adaptability are truly key factors in being successful. A great example of this is the one that was mentioned in the video: Netflix and the movie rental industry. For a very long time, Blockbuster had a hold on the movie rental industry and was making a lot of money per year due to the late fees on movies they rented out. Netflix saw this as an opportunity to offer customers the same service to their mailbox, with the simplicity for returning the video— and it turned out that Netflix was the service the consumer wanted. This change forced Blockbuster to attempt to provide the same service, but resulted in a failure and legal fees since they were infringing on Netflix’s patent. Netflix continued their innovation by upgrading to streaming services, providing the consumer with the content they are most familiar with. Netflix also began creating their own content which is being uploaded to their service for consumers to stream. What is very interesting about this service is that Netflix is using the customer feedback to drive their content creation. This is a very important factor: they are utilizing the idea of customer feedback to leverage their profits. This is truly the only way that businesses can continue to be relevant— get feedback from your customers and adjust your product to fit the ever changing needs and wants of your target customers. Startups do something very similar by developing a minimal viable product (or MVP for short) and taking that MVP to potential customers and getting feedback on the basic idea. This basic idea of customer validation allows for startups to operate with significantly less risk since they make sure their product solves a need when it goes to market. However, doing what Netflix has done truly helps corporations stay ahead of the curve. Netflix continues to get customer feedback on what shows are good and why, which allows them to crunch tons of data in order to develop content that appeals to a large array of consumers. This original content has truly driven Netflix’s sales— so many of my friends have Netflix accounts simply to watch House of Cards, a Netflix original series. As I have mentioned previously, innovation is key. Without innovation, companies today will die. It is because of this capricious market that wave after wave of startups are becoming the “next big thing—” they have the right mindset when they develop their company to cary it into the future. Without this forward-thinking mindset, companies will not be able to survive since they won’t be able to navigate the confusion of the marketplace. Startups realize that customer validation is king, and pivoting is the best answer to bad feedback. If no one is interested in your product, why are you wasting much needed funds developing it? It is through answering this question that startups find success when they are created, and in the future of their businesses.

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