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SWOT and PESTEL analysis of TV industry in UK (BOSKY) Essay

Although they still hold the number one spot, TV has become ND is remaining the most dominant channel at peak time hours taking a 31. 6% share of the audience compared to BBC at 27. 7%. DAVIT peak time line up is overcoming BBC schedule on 2 out every 3 evenings so far this year (67% of evenings). Moreover DAVIT has formed a bigger audience in peak time hours than all its commercial rivals can muster between them. DAVIT 31. 6% share equals to an average audience of 6. Million viewers compared to the other 6. 4 million commercial share audience average.

However, some commercial rivals such as Channel 4 has managed to break 5 million viewer barrier on certain programmer sharing success in heir side along ‘TV. On the other hand, BOSKY is gathering percentage increases in audiences rapidly especially with its large amount of variety of channels to suit all needs. However BOSKY in the past have face acts from the office of fair trading, which has been lobbied by rival broadcasters to probe abuses” by BOSKY under the competition act. Although declined to reveal any specific area of concern in BOSKY trading practices.

BOSKY kept to its promises and

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made in 1996 pay television open to rival broadcasters. TV tried to enter this market through on-digital. This investment was to a success and BOSKY were charge with overcharging for its premier channels making it difficult for rivals to make profit from broadcasting. TV on-digital dream went into administration. This has made BOSKY the leader in pay television and I-J Soot and pestle analysis oft industry in UK By mainstay TV industry Witt no real competition. I TV BBC and the all other commercial broadcasters the U.K are suppliers to BOSKY. (2. 3)

Technology

Television sector is undergoing major change. Technological developments have led to a rapid increase in the channels available, and in the number of households able o receive them. Multi-channels penetration is likely to continue to grow as a result of the progress of the satellite and cable companies, the successful launch of free view and government announced its intention to close down analogue transmissions by the decade. This clearly shows development in technology is a necessity for all TV networks in the TV industry. You may be interested in PESTLEe Analysis Turkey

The merge between Granddad and Carlton has come at a time were investment in technology is been seen as a necessity. In 2003 TV is in the forecast to receive Just over half of all television advertising revenue, down from the 60% in 1999. Its audience share has fallen from 55% to of viewers of commercial television. This decline has been very beneficial to multi-channel broadcasters like BOSKY and rivals such as channel 5. Multi-channel penetration is likely to grow as a result of continuing progress of the satellite and cable companies.

However, when taking in terms of technology BOSKY leads the market ahead of BBC and TV. BOSKY are developing and introducing technology at a extreme past. Features such as WAP (Wireless application Protocol) and WHOM (Wireless mark up Language) have released new commodities to TV, by giving viewers a broad environment that enhances the viewers to experience TV in a wholly different way such as allowing them to engage interactively while watching T. V (2. 4)

Entertainment

Entertainment on TV today is undergoing a dramatic change.

Audiences today vary from many ethnic backgrounds and possessing a large variety of new hobbies. To suit all the needs for potential audiences is challenging. This is the direction the TV industry seems to be heading towards. Providing viewers with a vast amount of variety through many channels. BBC aims of increasing viewers are to connect with al audiences. One way BBC is going about in achieving this, is by bringing younger audiences to BBC services by adopting bold and innovative programmer and ensuring that it is meeting with the needs of the audiences of all nations and regions in the I-J.

BBC possesses 8 channels, which display a variety of programmer suiting all age groups. TV on the other hand, own and display 14 channels. This is a small contrast to the leaders BOSKY who display over 400 channels. As a result TV have become supplier to BOSKY for their broadcast services. BOSKY dominate the display f big events that attract a huge audience in the I-J such as rights to premiership football and other main sporting events. BOSKY offers entertainment for all viewers of any background or interest leading the TV industry in terms of entertainment (2. ) You may be interested in PESTLEe Analysis Turkey

SWOT analysts of TV

Strengths

* Well known brand name

* Leading producer of television programming: variety of popular programmer

* Large market share

* Large viewers’ audience

* A “highly experienced and successful management team, who have a proven track record of growing the business both organically and through acquisitions;

Established reputation as a premium producer of content;

* Proven ability to attract and retain key on and off-screen talent;

* The largest pool of production talent in UK commercial television;

* A successful track record of growing its programmer production business, principally through the exploitation of existing brands and development of new ones;

* A content creation capability able to supply the growing demand for content from both single and multi platform operators – free to air and pay TV broadcasters, telecommunications operators and Sips;

* Recently created new media assets, and broadcasting assets such as Indignation with significant new media opportunities;

* A substantial programmer library with large amount of hours of programming; and

* A strong reputation and established relationship with advertisers”

Weaknesses

* mom subscription charge to BOSKY

* Unable to advertise TV sports channel on BOSKY

* Shareholder discontent over their corporate governance since merger

Opportunities

* Merger between Carlton and Granddad will enable TV to raise the economies of scale, reduce costs and increase the quality to broadcasting boot in terms to content and service.

* Acquisition of other companies to extent the market share and areas of influence Vertical integration: for example into video rental Horizontal integration: for example to other countries or regions.

Threats

* Rise in cable and pay-per-view TV

* Rise in broadband connections makes Internet the serious competitor to TV

* Potential mergers between other TV companies (NTH and Telexes) (2. 6)

PESTLE’ analysts

Technological

Technological factors have significant effect on TV industry. The fast pace of technological change.

To keep up with technological developments TV companies need to conduct updates and modifications to their service on the constant basis. Pay-per-view is the example of innovation that was made in the recent years. Companies in this industry also compete on the basis of technological development and it is vital for them to adopt the innovation before the competitors. R&D. Resulting from the fact that TV companies both produce and distribute their products (Carlton) extensive research and development is compulsory for them. R&D into demand, fashion and technology gives companies the opportunity to compete successfully on this market. Apart from that R&D of minor improvements is essential: polls, premium rate phone lines and etc.

Technological factors have high impact upon the TV industry as most of the innovations bring either cost cuts or service improvement. This leads companies like Carlton and Granddad towards adapting changes in the battle for consumer.

Political and legal

Political environment is highly important for TV companies as it provides government legislations, licenses, quality standards and other governing information. Ann-monopolies legislations and Competition Commission suggest the maximum market snare the company may nave. (International Journal to Retail & Distribution Management, 1994).

As in the case of Granddad and Carlton Competition Commission revealed that the combined group would have about 54 per cent of the television advertising market.

This was the reasons why planned merger between the TV companies Carlton and Granddad was referred for a full Competition Commission inquiry. Environmental protection laws imply certain rules on the corporate social responsibility of the companies. Taxation policies direct companies to pay high corporate taxes from profits. Due to this reason several companies donate proportion from their profits to charities, which decreases the amounts charged. Foreign trade regulations have significant impact upon the TV companies because the distribution and sales of content take place both inside and outside the I-J. Government laws affect operations of Carlton and Granddad: content, advertising space, advertising price, employment issues and etc.

Social

Social (cultural) environment consist of “institutions and other forces and affect society’s values, perceptions, preferences and behaviors” (Kettle et. Al, 1999). The fact, that Britain’s population is aging (Heartwarming, 2000) affects TV companies as they need to adapt the content of their programmer according to the tastes and emends of ageing population. Increased level of educations affects the consumer preferences, which requires TV companies to conduct continuous research for new information and entertainment products. Change in lifestyles requires TV companies to be adaptive. For example offering of home shopping.

Social responsibility affects

Carlton and Granddad in terms of recruitment policies, environmental policies and other business ethics.

The growth in single-person households, and working women influence the assortment of programmer and films that TV companies need to place on offer. Economic Economic environment is presented by the “factors, which affect consumer buying power and spending patterns” (Kettle et. Al, 1999). Interest rates affect TV industry, as when interest rates rise people spend less and when interest rates fall spending levels increase. This have the influence on the sponsors of TV programmer, which select the optimal time for their commercials to be shown. Intonation also attests prices which companies need to pay and money that they receive from the advertisers.

Level of unemployment in the country also affects the advertisers which select to advertise certain products or services, thus alter the mount TV companies receive. Level of disposable income also influence spending pattern. Availability of resources alters the costs of TV companies.

Environmental

Increased cost of energy and other resources have significant impact upon the TV companies, which forces them to search for the cheaper options and increase the price for advertisers. Despite the fact that TV transmission has almost no effect on pollution and natural resources used TV sets produces some radiation. Industrial Due to the fact that Carlton and Granddad are producing untouchable products – industrial factors do not have influence upon these companies.

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