Final Industry Analysis Paper

Today many forms of entertainment are streamed

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Today many forms of entertainment are streamed digitally. Movie entertainment companies should license companies like Netflix so that they can earn more money, and more viewers will watch their movies. Music companies should do the same by licensing their music to online digital music companies. Piracy Movies, TV Show, Music, and other forms of media are subject Much of this Piracy is happening overseas, where piracy laws are less stringent. 6
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to piracy. Entertainment companies need to speak with foreign governments about piracy and becoming more stringent in their piracy laws. New Pricing Models Because of the change from tangible entertainment to non- tangible entertainment, there is no pricing model where companies can figure out how to best market their products. Hire pricing model strategist that will create pricing models for companies in the entertainment industry. Make sure the pricing model strategist account for digital technology since it has never been used before and is new to all industries. SWOT Analysis of the Top Three Companies Walt Disney STRENGTHS Largest media & entertainment company in the world Great influence in Hollywood 11 Theme parks Innovative Ideas Among the most popular brands in the world WEAKNESSES High Operating Cost Poor working conditions in factories that produce their merchandise Limited range of target audience (children) Disney has been accused of treating animals poorly in the Animal Kingdom Theme Park OPPORTUNITIES Move into different segments Market development in untapped countries Reduction in operating cost Disney Music Chanel THREATS Security threats due to terrorism & piracy Employee retention High competition in media industry Social and ethnic groups Fierce competition (Universal, Paramount, Six Flags Theme Parks) News Corp. 7
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STRENGTHS Diversified media & entertainment business Strong influence with viewers Ever increasing revenue & profit growth WEAKNESSES No clear successor to CEO Rupert Murdoch Strong history of being biased especially towards socially conservative ideas OPPORTUNITIES Alternative media outlets Newspaper & broadcasting market growth Multi-year sports agreements THREATS Increasing use of DVRs Growth of online & alternative media Regulatory risk Political situation Online Piracy Time Warner STRENGTHS Substantial entertainment programing Different revenue outlets (Cable, Telephone, Internet) Increasing market share DVR is accessible for all of its clients Strong brand equity WEAKNESSES Decrease in AOL revenues Lack of advertisement Current Asset turnover ratio for company is very low Slow revenue growth OPPORTUNITIES Joint partnership serve as a way to increase customer base Internet can serve as a huge advertisement opportunity Global expansion Alliance with Google THREATS Competitive environment
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