Big Media's "On-Demand" Entertainment: What's the Business Model?


Code :BSM0033

Year :

Industry : Entertainment

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: In the past, nearly every dollar that television networks used to earn came from commercials. However, with the fragmentation of the market, advertisers were growing reluctant to pay for a general audience who were tuning out from their messages. As a result, top US television networks like NBC Universal, CBS Broadcasting and ABC had abandoned their age-old policies and practices of broadcasting, to make available their top shows via video on demand (VOD) services. At the end of 2004, there were 7.5 million cable-based VOD users worldwide, and the number was expected to grow to 13 million by the end of 2005 and 34 million in 2009. But one thing was missing the business model.

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Pedagogical Objectives:

  • To highlight the trend of on-demand entertainment and the challenges faced by the industry in the absence of a business model
  • To discuss the feasibility of a business model for the on-demand service companies

    Keywords : On-demand entertainment; Video on Demand (VoD); Business model; Revenue model; Corporate Strategies Case Study; Market fragmentation; Cannibalisation; Customer retention; Distribution network; 20-120 rule; Free on Demand (FoD)

    Contents :
    On-Demand Entertainment
    The Challenges

    Case Introduction >>

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