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Countdown to a Blackout - the wholesaler 3 Obviously the...

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Countdown to a Blackout Robert McGill BA 181 Foundations of Marketing 12 March 2011
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Countdown to a Blackout 1. What is the channel arrangement between Viacom, Time Warner, and consumers? Who are the  intermediaries?  The channel arrangement between Viacom, Time Warner, and consumers is that Viacom produces the  channels and the programming, Time Warner distributes it to the consumer, and the consumer pays for and  watches the programming. Time Warner Cable is the intermediary in the relationship between Viacom and the consumer who enjoys their  programming. 2. What is the Channel Conflict between Viacom and Time Warner? Time Warner Cable and Viacom were suffering a Vertical Channel Conflict, a conflict between the producer and 
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Unformatted text preview: the wholesaler. 3. Obviously the conflict between Viacom and Time Warner has strained their relationship. If you were in charge of one of these companies, what steps would you take to improve their channel relationships? I would attempt to negotiate a solution that was beneficial to both parties. I would determine the maximum increase in price that could be paid to Viacom without infringing upon the overall profitability of selling their programming while, at the same time, not passing the cost on to the consumer....
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