The Strategy Statement of Music television Channel

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The Strategy Statement of Music television Channel (MTV)


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Music Television Channel (MTV) is a pioneer of new era popular culture of music.  Because of MTV music is widely distributed and demanded heavily.  MTV reshaped today’s youth, include 12-34 year old population. Its content and programming meet demands and desires of youth.  In this era of global digitization, the end less possibilities have to met, in order to still be triumphant and aggressive in the following generations to come.  The circumstances of 21st century are far multidimensional, where MTV does not only have to meet new innovations but also new entrants.  The question arises whether the MTV impression will endure and whether cable TV can continue the attack of digital media and wireless applications.

This study tries to bring understanding to the future of MTV by presenting a comprehensive strategy statement so as to formulate strategic options for the business organization, generate sound recommendations and develop feasible implementation plans that will address the issues that confront the long-term operations of the company.

Strategy Statement

MTV advances its strategy of super-serving audiences across the globe at every platform; acquiring entertainment companies enhances the company’s multiplatform strategy of building an appealing world of music, gaming, amusement, news and interactivity for targeted viewers. Organization’s overall selection is suitable with the strategy of super-serving its global audiences with a relevant and innovative media experience, uniquely positioned across every screen.

Assumptions of strategy:

            In 21st century MTV has been so challenged to meet several hungry competitions by rival music channels and other multimedia applications.  New innovations have diverted viewers’ attention to mobile networks and the Internet, MTV need to find a way to incorporate itself to wireless and digital applications.

An aggressive and dynamic strategy is required exploit the turbulent market’s receptivity.  A proper shift mechanism should be adapted from Music Television to Music in the Internet, Wireless solutions and other digital substitutes.

The SWOT analysis (appendix. table A) has suggested a wide scope of global alternatives and possibilities which will be MTV’s challenge to meet.  It will have to focus its multi-domestic strategy by providing more culturally oriented entertainment to target market. This analysis portrays the current strategic position of company, also helps to set objectives, and design strategies for future.

MTV success Factors:

             In the case of MTV, there are major success factors that can establish and forecast the optimistic results and payback of the organization strategic options. In media industry, core competencies include the content, distribution, and marketing.

Company strategies for these critical factors are:

·         In order to be constantly acknowledged, MTV will continue using music as raw material, with a widest range of distribution.

·         In order to meet success, MTV must constantly meet is multi-domestic strategy by expanding and global distribution.

·         Will continue to be more aggressive in its partnerships, coalitions and acquisitions with other companies to advance its marketing efforts

Implication of Porters five forces:

            Five forces model of Michael Porter focus on the threat of new entrants, buyers’ power, suppliers’ power, substitutes’ threats and competitors’ rivalry (Table B).

Assessing the mechanism of the rivals in the industry helps understand the latent opportunities of every industry scheme by variation of the comparable services offered by the company against other concerns. “There are at least four various resources which the firm can use to attain its targets: monetary, tangible, work force and hi-tech resources. As such, it is necessary to practically assess prospective levels of productivity, opening and risk based on five key factors within an industry so as to decide the long-term profitability of a marketplace or business segment” (Saloner, Shepard, & Podolny, 2001).

These factors for MTV strategic frame work can be assessed as under:

Production:  MTV produces the content and programming where as the advertisers      and viewers are the providers of revenue.

Operations: Music distribution is done by cable television operators.

Marketing:  MTV get payment from artists or music companies to feature their music videos and other programs. Also, advertisers pay company to feature their products.  The advertising revenue and other marketing sources enhance profitability.

Financial situation:  Finance managers face a wide array of challenges, opportunities and options to enhance the investing and financing activities of the organization in complex and challenging media industry. The task is to explore the choices and take benefit of the prospects while taking concern in managing the threats.

Stakeholders’ role:  MTV management need to perform classification of the   stakeholders; prioritization of the stakeholders; understand their viewpoints and to integrate their perspectives to the future plans of the organization.

Strategic Options Suited For MTV:

            Strong Slogan:    The slogan I Want My MTV is a devotion impression focused to the 12-34 age demographic.  This slogan provokes personalized desire that can be encountered by MTV so that this segment declares it proudly.  Viewers seek for exclusivity and want to participate of the MTV revolution.

Network Strengthening:      By forming more varieties like MTV dance and through channels like VH1 for older segment, Nickelodeon for kids, it is possible for MTV to capture a wider market. This is possible through coalitions, alliances and purchases which targets in the next strategy.

Mergers:   the merger with CBS Corporation provides advantage in news, sports and distribution.  MTV Asia also allied with National Broadcasting Company of the Philippines in the same to establish a ground channel.   These mergers enhance the operational and distribution capabilities of the network.

Multi-domestic Strategy:   MTV expands through local content which allows them to divide and reach individual markets to discover not only their music interests but also their locale.  The MTV slogan gives them a homely feel of individual culture. The customers are obviously concerned to a network that uses their language and core values.


              MTV must continue its expansion of local content to meet its global challenges through new digital and media platforms. By integrating these technologies and continuing its expansions throughout the world especially in emerging countries found in Latin American and Asia, it may continue to meet success.

MTV must first correct its weaknesses to reach out to a local audience by researching about the market.  This can be achieved through alliances with local companies. It also needs to appeal to the governments of different countries which focus on promoting their local channels.

The target market of MTV is the most difficult market to hold due to rapidly changing trends and interests, in-consistent desires and most likely, they would not be the smallest amount bit like generation that give popularity to MTV.  The 21st century is providing even more diverse challenges.  Organization has to redesign its strategic frame work to get the most of technological innovations.  As it is the trend setter of the past, it should conquer new challenges of globalization to be right at the top of music channels.

Table A

SWOT Analysis of MTV

Dominates young strong money spender adults.
Appeal to diverse group of population of varied interests.
Loyal customer base.
Lucrative appeal to advertisers.
Launch pad of new and established artists.
Expanding and exploiting other media vehicles.
Strong supporter of social and political causes.
Caters to instant short-lived on-demand interests.
Failure to cater other interests in entertainment market.
Need of thorough research of customer preferences.
Facing obstacles in meeting multi-cultural differences.
An opportunity to merge into mobile and telecom companies.
It may enjoy visibility in blue tooth technologies.
Exploring emerging markets like China, India, and South American countries.
Increasing Interest in western products in Asia.

Emergence of Cable digital networks and other alternative platforms.
Local music channels with locally produced content.
Reinforcements of deregulations by government.
Decline in adverting revenue due to global financial recession.

Table B

Porter’s 5 Forces Model for MTV

Supplier Power

Music Industry provides content and programming
Needs clear understanding of the business dynamics
to build win–win relationships with suppliers
arrange the use multiple suppliers

New Entry


Barriers to entry are low
In this market.

Competitors can multiply
Through substitute platforms.
Competitors Rivalry

local channels with locally produced material
Global rivals on cable networks
Sprouting new music channels a constant threat

Threat of

New cable networks and other digital media.
Need to adapt to the latest means of communication and make them part of the network.

Buyer Power

maintain its integrated organizational structure
Not allow advertisers, music industry and cable television operators to apply their buying power.


Saloner, G.  Shepard, A. & Podolny, J. (2001).  Strategic Management (Montreal):  John Wiley & Sons

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