Media Studies 2a Project Paper Assessment Answer

1.1 MultiChoice to be part of the communication market.

The communication market does indeed include MultiChoice. The communication market includes a wide range of goods and services relating to the transfer of knowledge and enjoyment, which is in line with the primary services provided by MultiChoice. MultiChoice offers a range of media and entertainment services, such as streaming (Showmax), sports broadcasting (SuperSport), satellite and digital terrestrial television (DStv and GOtv), and content creation (M-Net). These services involve delivering information and entertainment to a large audience and allowing them to consume it.

Additionally, MultiChoice's mission to build a "world of more for Africa" through its platform and services highlights the company's active involvement in the communications sector. Through its many media and content platforms, MultiChoice seeks to engage and empower people across sub-Saharan Africa. This fits with the essential tenets of the communication market, which are focused on knowledge sharing and audience participation.

1.2 MultiChoice deals in media products and services

Media products refer to the content and services created and distributed by media companies for consumption by audiences. They are intangible goods that are designed to convey information, entertainment, or both. Media products have several unique characteristics: they have a relatively long production and distribution cycle, they are costly and time-consuming to develop and produce, they are easily copied, and they are often consumed by large audiences simultaneously.

Due to their distinctive qualities, MultiChoice's media products are commercially separate from other sorts of products. Media products, in contrast to tangible items, are intangible and have non-rivalrous consumption, which means that one person's use of the product does not affect the product's availability for other consumers. Additionally, the costs of producing and distributing media items can involve high initial outlays but relatively modest marginal costs for each additional user.

For instance, MultiChoice invests in content creation and acquisition (such as TV shows and sporting events) before distributing it to a sizable subscriber base in sub-Saharan Africa. Once the content is created and delivered, it costs very little to distribute it to every additional subscriber. Contrary to traditional goods, where the cost of manufacturing and distribution is inversely correlated with the output, this economic individuality.

Examples

Examples include:

• Broadcast media:

Film and video, including television and motion pictures, as well as the radio industry

• Theatrical media:

Musical theatre, including theatre and opera

• Print media:

Comics, newspapers and magazines

• Digital media:

Computer games, including video games and arcade games

• Mobile games

Software, including computer software and video games

Social media, including social networks and blogs

Interactive media, including web sites, social networks and blogs

1.3 Difference between Intermedia competition and Intramedia competition using MultiChoice

Competition between various media or communication platforms is referred to as intermedia competition. In MultiChoice's situation, intermedia rivalry would entail vying for viewers and audience attention with other media channels including terrestrial television, streaming services, and radio stations. For instance, MultiChoice competes for viewers in the African market with terrestrial broadcasters and streaming services like Netflix.

Contrarily, intramedia rivalry takes place within the same platform or type of media. Intramedia rivalry for MultiChoice can include rival TV channels or content providers on its own DStv or GOtv platforms. In the same satellite or digital terrestrial television ecosystem, these channels compete for viewers and ad income.

MultiChoice faces intermedia competition from various media platforms: YouTube, which is owned by Google, which also owns Facebook, which also has launched its own video platform.

"The beauty of multiple choices is that there is no one choice," said Ms. Tate. "MultiChoice is offering a new, interactive way for users to watch their favorite content."

For those people that are unfamiliar with mobile television, MultiChoice offers a quick introduction:

"Mobile television is a wireless, interactive viewing experience that will be accessible to smartphone and tablet owners through the SmartView app. This application will allow users to experience a seamless video viewing experience."

The service, when it becomes available, is expected to attract mobile TV adoption by giving customers a way to watch TV content on their smartphones and tablets.

"Consumers now have the convenience of viewing their favorite entertainment content on the go through an innovative new viewing experience," said Michael Markham, CEO of MultiChoice. "We are thrilled to launch MultiChoice mobile television and introduce a service that combines entertainment and technology."

Within MultiChoice's own platform (intranetwork competition), there are instances of intramedia competition: within cable TV, between DSTV and Startimes; cable TV and DTT; cable TV and FTA. DSTV is in the process of launching video on demand.

There is intense intramedia competition between different online channels on the Internet.

DSTV has a large market share in the pay TV market, however it faces increased competition from Startimes.

Another new competitor to DSTV is Netflix, which has been around for years but is only available in Africa recently. They are not in the same market but Netflix has a product differentiation of its own. They could pose a threat to DSTV.

1.4 Different forms of Media Concentration

The ownership and control of media outlets within a certain market is referred to as media concentration. There are various types of media concentration, including:

Horizontal integration: This happens when one company buys or has influence over several businesses in the same sector or media category. Through its ownership of multiple media channels, content production firms, and streaming services including DStv, M-Net, and Showmax, MultiChoice has demonstrated horizontal integration.

Vertical integration: In the media sector, this entails having control over several phases of the production and distribution process. By using M-Net to create its own content and DStv and GOtv to broadcast it, MultiChoice practices vertical integration.

Network effect: This phenomenon appears when one business has a market share of more than 70% and can benefit from economies of scale. A good example is MultiChoice, which holds 84% of the pay-TV market in South Africa.

Media convergence: MultiChoice, DStv, and Showmax are creating a more coherent approach to preserve market supremacy. Media convergence is the blending of media types, media consumption techniques, and content creation and distribution. Additionally, it has been used to assemble advertising and marketing campaigns and develop a cross-platform media strategy.

Ownership of numerous media sources, including TV, radio, newspapers, and online platforms, is referred to as cross-media ownership. MultiChoice does not represent cross-media ownership because it primarily operates in the TV and streaming sector and has little to no presence in other media, such as print or radio.

1.5 MultiChoice as a "Special Enterprise"

The term "special enterprise" usually refers to state-owned or government-regulated businesses that serve a specific public interest, frequently involving the media and communications sector. However, MultiChoice is a privately held business that operates in a cutthroat market. Although it offers services vital for the spread of news and entertainment throughout Africa, it does not meet the conventional description of a "special enterprise." Instead, it runs as a business, seeking to make money for its owners while meeting the entertainment demands of its patrons.

MultiChoice has a strong incentive to make money, not to provide news for free or low-cost to poorly resourced households. As a business, it is incentivized to offer channels and packages that appeal to its customers, not to provide those channels for free. As a private business, MultiChoice's goal is to satisfy its customers, not to educate citizens.

1.6 The Information Chain

The invention, production, distribution, and consumption of media content are all part of the information chain. Using items from MultiChoice as an example:

M-Net, a division of MultiChoice that produces material, generates original TV shows and buys the rights to broadcast foreign content.

Production: Content is created, edited, and ready for broadcast through collaborations with studios and production companies. The process involves writing, shooting, editing, and producing the video.

Distribution: MultiChoice offers content via Showmax, a streaming service, as well as DStv and GOtv, satellite and digital terrestrial television platforms. Through the networks of the various media firms, content is distributed and made available to customers for viewing on TV, online, or as a CD. Although this is still the most common procedure, media businesses today prefer to make use of the knowledge they have amassed in each of these three fields. The number of employees engaged and the number of phases in the process can both be decreased, which is something that many businesses desire to do in order to cut expenses..

Consumption: Viewers engage with the content for amusement and information by accessing it on their televisions, computers, or mobile devices.

The people who the media company wishes to reach are considered the audience. A variety of audiences are targeted by media firms. Media businesses can target different demographics with their advertising thanks to this segmentation.

Additionally, media organisations develop channels that aim to cater to specific audience categories.Advertising that is specifically targeted to the consumers who are most likely to buy a company's items might be advantageous. They can also target particular regions of the world with their advertisements. Certain nations outlaw all forms of advertising. Media companies can reach a larger audience by adopting tailored advertising.

Depending on the programming they run, media businesses can target different kinds of audiences. Businesses typically air advertising during popular shows.

marketing has

1.7 Corporate vs. Business Strategy

Corporate Strategy: Decisions about the broad scope and direction of an organisation are included in corporate strategy. It involves decisions regarding which markets to enter, the degree of diversity, and the resource distribution between various business units. MultiChoice's corporate strategy may involve entering new markets or introducing new product lines. A successful corporate strategy is built on a long-term plan that strives to satisfy all of the stakeholders, including shareholders and other parties, while also accomplishing the organization's goals. MultiChoice has a corporate plan to expand, improve financial performance, boost customer service and satisfaction, introduce technology to advance product development and enhance customer service, save operational costs, and gain a competitive edge. Operational strategy serves as a guide for MultiChoice's organization's daily practises, processes, and policies. The goal of this strategy is to preserve a competitive edge in the media sector. In order to satisfy customer needs, reduce operating costs, and increase quality and operational efficiency, MultiChoice's operational strategy involves introducing and improving new products and services. The operational strategy directs how the organization's resources are used.

Business Strategy: The focus of business strategy is on the competitiveness of a given business unit or division within its targeted market. Pricing, marketing, product development, and competitive positioning choices are all part of this process. Business strategy for MultiChoice may include price plans for its many subscription packages, content development and acquisition, and marketing initiatives. Some divisions may also be used to compete with new firms, which may also have an effect on the company’s overall strategy.

1.8 MultiChoice's Corporate Strategy

Business Purpose: The provision of media and entertainment services throughout sub-Saharan Africa is at the heart of MultiChoice's business strategy. This includes streaming (Showmax), sports broadcasting (SuperSport), satellite and digital TV (DStv and GOtv), as well as content creation (M-Net). Consumers are searching for new and innovative ways to get material from a wider range of displays as the entertainment industry becomes more and more digitally integrated. Customers are also switching from traditional linear pay-TV (DStv and GOtv) to digital video subscriptions (Showmax) and ad-supported services (DStv Compact). MultiChoice continues to be committed to providing their clients with greater choice because there is an increasing demand for more diverse product packages that address their specific demands.

Portfolio Management: To meet the needs of various client segments, MultiChoice maintains a diverse portfolio of goods and services. They provide a variety of subscription options and channels to meet the needs of a wide audience in terms of entertainment. They provide the following items, among others:

DSTV. This is the greatest choice for people looking for the highest-quality TV service because it offers more than 158 premium and entertainment channels. Depending on their DSTV plan, subscribers can use their multi-view feature to stream video to 4 different devices. The least expensive choice is DStv Compact, which runs R636 per month.

GOtv. The second choice, generally referred to as the satellite TV platform, comes with about 115 channels at a somewhat higher cost.

MyView. For people who might not be able to afford the other two options, MyView offers premium TV and DStv services. Small groups can use DStv MyView, which has a monthly minimum price of R179.

TV Now DS. As implied by the name, DStv Now charges subscribers for live streaming services on a selection of channels. Only apps that the consumer has installed on their smartphone can access it.

Play on DStv. A less expensive option that offers material on a few channels is DStv Play. Both computers and mobile phones can use it.

MultiChoice has a distinguished past as a result of the range of services it provides. To assure its existence and success, it has entered into a number of strategic alliances and acquisitions. A few of these are:

M-Net. The parent firm of DStv is this one. They offer a huge selection of family-friendly and premium channels.

StarLife. On the African continent, this channel mostly focuses on South Africa.

Production strategy: MultiChoice purchases the rights to a broad range of international content in addition to producing its own content through M-Net. This tactic guarantees a steady stream of engaging content to its subscribers. MultiChoice provides a variety of payment options. The first is through DStv Explora (or the DStv Boxer), the company’s own set-top box, which runs on the internet protocol (IP) platform. DStv Explora comes in two models, a single tuner, and a multi-tuner model.

MultiChoice’s second payment method is to use the DStv Explora Box, which has an external, plug-and-play module, allowing users to insert their own decoder. The multi-tuner model of DStv Explora has space for six modules, allowing viewers to add other decoders for their choice of satellite or cable provider.

1.9 MultiChoice's Competition Strategy

Porter's competitive strategies, which include cost leadership, distinctiveness, and focus, are in line with the business strategy employed by MultiChoice to compete in the communications market:

Cost Leadership: MultiChoice caters to budget-conscious clients by offering a variety of subscription packages, including more economical ones like GOtv. To reduce operational costs, they also make investments in effective distribution systems and state-of-the-art technology. A well-known company, MultiChoice offers a variety of satellite television packages that provide top-notch entertainment to millions of homes across the continent. They keep making investments in the development of new technologies, goods, and services.

The business is without a doubt in charge of the pay-TV market in Africa. Because they are a wealthy company, they can afford the quality content they offer. They possess a sizable number of satellite TV transmissions in Nigeria, which gives them a monopoly over the market share. This is made possible by their investment and market positioning techniques. They formed a relationship with TSTV to widen their market reach even more.

Differentiation: MultiChoice sets itself apart from the competition by offering exclusive material, live sporting events via SuperSport, and regional programming specifically designed for African audiences. Its streaming service, Showmax, provides exclusive programming not found on other platforms.

Focus: Within sub-Saharan Africa, MultiChoice concentrates on particular markets and consumer segments. They customise their products to satisfy the demands of various geographies, linguistic groups, and demographics.

MultiChoice hopes to maintain a competitive edge in the communication sector while providing a range of consumer services by implementing these tactics.

References

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Owusu‐Frimpong, N., 1999. Patronage behaviour of Ghanaian bank customers. International Journal of Bank Marketing, 17(7), pp.335-342.

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