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Star TV

Star TV. Outline. History of STAR TV Key success factors Business concept Problems and difficulties Option Recommendation Conclusion. Great and Growing Demand. History of STAR TV. Television service in Asia Large market Growing rate of ownership Programming in Asia Limited choices

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Star TV

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  1. Star TV

  2. Outline • History of STAR TV • Key success factors • Business concept • Problems and difficulties • Option • Recommendation • Conclusion

  3. Great and Growing Demand History of STAR TV • Television service in Asia • Large market • Growing rate of ownership • Programming in Asia • Limited choices • Poor quality • Government controlled or regulated

  4. Creation Opportunity History of STAR TV • Launch of AsiaSat 1 • Huge footprint in Asia • Make use of AsiaSat 1 to supply satellite television

  5. Evolution of STAR TV History of STAR TV Growing demand + Golden opportunity

  6. Industry Sales Star TV Introduction Growth Maturity Decline Time Industry Life Cycle

  7. Key Success Factors • Product innovation • Using of lead time to gain first-mover advantages • Extensive name recognition • Considerable viewer loyalty • Difficulty in retuning • Stable programming schedule

  8. Key Success Factors • Complementary resources • Financial resources • Product manufacturing • Marketing capability • Distribution capability • Imitability

  9. Business Concept • Free to air • Target market • The wealthiest 5% • Programming • Ready-made programme • Advertising • International advertisers of luxury goods

  10. Negative Cash Flow Reasons for negative cash flow • Regulation • Three levels of regulations • Satisfying the programming restrictions of each country would reduce the number of viewers • Advertising • Advertisers were very reluctant to commit themselves to STAR TV

  11. Negative Cash Flow • Redistribution • STAR’s total lack of organization outside Hong Kong caused difficulties in collecting revenue from redistribution • Uncontrolled redistribution would cause STAR TV to lose control of its product

  12. Option • Pay TV • Improve programming

  13. Pay TV • Resources needed • Digital decoders • Content • Distribution network

  14. Households Viewing Figure

  15. Improve Programming • Aim : customized programmes • Resources needed • Marketing & Research • Production facilities • Financial support • Skilled staff

  16. Find Partners ???? Pearson Plc Vs. News Corporation

  17. Pearson Plc • Diversified group • Publishing, media, entertainment, banking • Financial support • Conservative • Hands-off • 1/3 stake, 70% control

  18. Pearson Plc • Benefit bring in • Experience in BSkyB • Top quality Eng. Lang. TV programme • Education channel • Business and news channel

  19. News Corporation • Newspaper holding • Hands-on • Operating efficiency and high tech • Sensationalism • Wanted control

  20. News Corporation • Benefits bring in • Satellite experience at BSkyB • Global distribution network • Fox TV programming • 20th Century Fox film library

  21. News Corporation Recommendation • Some Pay TV, some free to air • Improve programming • Partnership with

  22. Star TV

  23. Big Hands

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