Cable Programming and Delivery Companies Responded to the Internet

Question 2

How have the cable programming and delivery companies responded to the internet?

The television industry is also striking back by embracing the internet as another delivery system for its content. Television broadcast networks such as NBC Universal, Fox, and CNN have put the shows on their own websites. NBC Universal, News Corp and ABC Inc. had set up Hulu.com in march 2007. Hulu.com is a website that offering streaming video of television shows and movies from NBC, Fox, ABC, and other different channels.

Question 1

What competitive forces have challenged the television industry? What problems have these forces created?

Internet appear to be playing an increasingly important role in television business strategy than it has in the past. Youtube, which start up in February 2005, quickly became the most popular video sharing website in the world. Television is starting to losing viewers to the internet streaming of television programming. The advertisers and viewers is change to use for the internet as delivery system for content which keep the television industry lose revenue.

Describe the impact of disruptive technology on the companies discussed in this case.

Disruptive Technology or disruptive Innovation is an innovation that makes a product or service better by reducing the price or changing the market dramatically in a way it does not expect. Christensen, 2000, stated that ''disruptive technologies are typically simpler, cheaper, and more reliable and convenient than established technologies'' (pg. 192). Internet technologies can now allow cable and satellite prescribers to watch their programming anywhere. This also allows more opportunities for advertisers. Laudon & Laudon, 2012, "The same technologies might allow cable firms to provide demographic data for more targeted ads and perhaps more sophisticated advertising down the road." (pg. 119)