Learning Activity

1
Learning Activity

• Draw an arrow pointing to the place in the media
  growth cycle where each medium is now located.
• Below the chart, give the reasons cited by your
  test on why they are in their present position.

2
BROADCAST TELEVISION

• A very mature industry at the point of
  saturation unless new technology and fresh
  programming cause it to revive.

3
CABLE TV

• Penetration can grow, but not 100
• Exciting new digital products such as VOD, high
  speed access new .
• spent on new equipment are drain on profits.

4
SATELLITE TV

• Reaches most US TV Homes, but only 14 subscribe.
  
• Large menu of digital channels now
• Doesnt carry all broadcast stations
• Merger could leave only one distributor.

5
RADIO

• AM IN DECLINE FOR 30 YEARS.
• FM STATIONS SATURATED
• DUOPOLY AND DIGITAL HELP, BUT LOSNG LISTENERS TO
  INTERNET FREE MUSIC.

6
SATELLITE RADIOXM and Sirius

• Neither XM or Sirius on growth track predicted.
• 400 for eqpt 10 -13 a month per radio.
• 100 coast-to-coast stereo channels, most
  commercial free

7
DAILY NEWSPAPERS

• Circulation less than 50 of households
• Inability to target ads efficiently due to lack
  of 18-34 readers.
• Circulation declining while costs increase
• Internet threat to classified advertising sales

8
MAGAZINES

• Decline in reading hurts circulation
• Reaching 18-34 market difficult even using
  magazines aimed at this demo.
• Competition, postal rates, threat from Internet,
  ad economy

9
INTERNET

• Still low penetration of market. Huge upside in
  audience, revenues, profits.
• Subscribers slow to pay for content.
• Effective ad strategy yet to be developed.