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Strategic Implications of the Segments of One TV - The Evolution of the Personalised Television Structure
| In: The International Journal on Media Management, Volume 3, No. 1, 2001 |
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Keywords:
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Strategic Management
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Parent document:
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Text type:
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journal paper
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Language:
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English
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Quality:
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double-blind reviewed
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Authors:
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Wirtz, Bernd W.
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Schwarz, Joachim
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| Abstract: |
Since the beginning of the television era, advances in technology have always had an enormous impact on the television industry. Due to technological developments it became possible to transmit noise-reduced radio signals and to sell television sets at a reasonable price. As a consequence, television became a mass medium in most countries in the 1950s (Brown-Kenyon,Miles& Rose 2000, p. 73), which was the foundation for development of the television industry. Another example one can consider is the development of recording devices for television programmes. The invention of the video cassette recorder (VCR) meant the first rudimentary form of time schedule independent programme composition. Video rental stores enabled their customers to rely less on television programmes only but on movies not broadcast by television as well.Most recently, advances in digital technology, deregulation and individualisation of customer relationships have enabled the convergence of telecommunication, media and information technology industries (Wirtz 2000c,pp 291--4). As a first product of this convergence process, a new technological innovation has been introduced into the American television market in March 1999, the digital personal television receiver (DPTR).Developed independently from two different companies (Tivo and Replay), the DPTR is essentially a video recorder with huge storage capacities based on digital technologies. So it combines traditional television as part of the media industry with the digital storage facilities as a product of the information technology industry. Based on the digital technology, further enhancements such as internet access is possible, which also means the integration of a telecommunication product. In so far, the DPTR is not only a product but also an enabler of the convergence process.From the DPTR's introductions into the US Americal television market in March 1999 until June 2000, about 100.000 DPTRs have been sold without any major marketing expenditures. Expected by the end of 2001, up to seven million DPTRs will be sold to US Americal households, with increasing growth rates in the following years. For Europe, there are similare forecasts. In 2005 will own a DPTR, and in 2010, this percentage will raise to 75 per cent (Whittingham 2000, p. 6).Due to the DPTRÕs features, vast opportunities especially for the individual programme content management are available. As a result of its rapid diffusion in the markets, it is most likely this innovation will change the existing television market. This article explores how the television industry is affected by this latest technological development. The second section describes the main driving force for the diffusion of the DPTR and illustrates its effects on the television industry.
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| Citation: |
Wirtz, Bernd W., Schwarz, Joachim(2001): Strategic Implications of the Segments of One TV - The Evolution of the Personalised Television Structure, in:The International Journal on Media Management, Volume 3, No. 1, 2001, http://www.mediajournal.org/modules/pub/view.php/mediajournal-37, [12/05/2008]
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