Vodafone Portugal entry in the Pay-TV market: What is the potential for profitability?

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Análise do mercado de TV por assinatura

A presente tese busca analisar as relações entre as estruturas de produto e custo e a verticalização mediante a aplicação da teoria microeconômica básica. Verificamos que os pacotes de canais ofertados ao consumidor podem ser explicados através de 3 efeitos: Discriminação de Preço, Complementariedade entre grupos de canais e Dispersão da propensão a pagar entre grupos de canais. Dentro das hipóteses indicadas acima, identificamos que a renda do consumidor, o estímulo ao consumo de um canal avançado mediante o consumo de um canal básico e/ou a dispersão da propensão a pagar justificam a estratégia de oferta mediante pacotes de canais de televisão. Constatamos que o mercado de TV por Assinatura é caracterizado pelo elevado poder de mercado associado à infra-estrutura de distribuição (custo fixo alto), e que a verticalização entre as empresas da cadeia produtiva do mercado audiovisual é um fenômeno comum desse mercado. Identificamos, ainda, que é possível existir práticas discriminatórias mediante imposição de limites ao uso de redes de distribuidora por programadoras rivais. Entretanto, a Integração Vertical pode ser motivada por questões de economias tecnológicas ou ganhos de integração de monopólios sucessivos que levam a ganhos de eficiência econômica no mercado e não configuram, portanto, práticas discriminatórias. Ao analisarmos os principais modelos para análise da estrutura de mercado, identificamos que o papel do custo fixo é determinante para a estrutura do mesmo e o número de firmas no mercado não determina a eficiência.

Strategic outsourcing? : the Philips case in the LCD TV market

This work seeks to assess the outsourcing process adopted by Philips for producing LCD televisions. The authors used the Resource-based Theory and the Transaction Cost Theory for analyzing the case. Based on industry data and interviews with ten of the company’s senior executives, this study sought to understand how the decision making process was carried out and how it affected the company’s activities in the field of LCD televisions. Philips has lost its competitiveness in the Brazilian market – it went from being the leader in 2006 to fourth place in 2009, both as far as regards its sales volume and value. The executives pointed out that the LCD panel is an important resource and that its supply by third parties represented a high transaction cost. The results illustrate the complementarity that exists between the RBT and TCT theories in a competitive environment that has few players.

Le Pay TV in Italia: sviluppo tecnologico e strategie aziendali

Con questa tesi si è voluto evidenziare lo stretto rapporto di dipendenza delle aziende televisive con gli eventi sportivi al fine di poter guadagnare fette di mercato e quindi posizione strategiche rispetto ai concorrenti. Tra le aziende televisive e il settore sportivo c'è quindi un rapporto mezzo/contenuto decisamente complementare. Nessuno dei due può fare a meno dell'altro. Da una parte, come evidenziato, le emittenti televisive, durante la messa in onda di eventi sportivi, registrano elevati livelli di audience e ciò costituisce la "cassa di risonanza" preferita dagli sponsor. Dall'altra parte lo sport, che anno dopo anno ha visto aumentare la propria dipendenza dai network dal momento che la cessione dei diritti televisivi è diventata una delle maggiori fonti di reddito per le società sportive.

Aplicação de metodologia de preços hedônicos ao mercado brasileiro de serviços de comunicação e mídia

O Brasil possui um dos mercados de serviços de comunicação e mídia que mais cresce no mundo. Grande parte deste crescimento pode ser atribuída à evolução tecnológica e às recentes alterações no ambiente competitivo, os quais favoreceram a convergência de serviços antes vendidos separadamente - voz, dados e TV. Isto elevou a atratividade destes serviços, contribuindo também para a redução de seu preço, por meio, principalmente, dos ganhos de escala, impulsionando seu crescimento. Este crescimento atraiu mais competidores ao mercado, o que, intensificado por mudanças regulatórias, eleva a importância da correta precificação dos pacotes de serviços. Portanto, um entendimento apropriado dos atributos mais valorizados pelos consumidores no processo decisório de compra destes serviços é de fundamental importância para melhorar a alocação dos recursos e maximizar o retorno, sem perda de participação de mercado. Este trabalho aplica a Metodologia de Preços Hedônicos como ferramenta para auxiliar na identificação dos atributos relevantes dos pacotes de serviços multimídia comercializados no mercado da cidade de São Paulo e seus respectivos preços implícitos. São 371 pacotes distintos contendo de um a três tipos diferentes de serviços analisados com base nos preços praticados em março de 2009. Como resultado, foram identificados intensos prêmios de preço associados aos canais do grupo Telecine, aos canais esportivos, infantis e de filmes e séries, bem como às variáveis ligadas às velocidades de download e upload.

Competition between TV platforms

The aim of this paper is to identify the factors that affect the market penetration of pay television by studying the competition that exists between three types of technology (satellite, cable and ADSL). We distinguish three groups of factors: the level of market competition, the level of competition in the industry and the quality of the product being offered. Our results seem to indicate that as market concentration increases, the television service can achieve greater penetration. This relationship is specifically captured by the level of intra- and inter-platform competition. We also examine the relationship between free television channels and pay television and find that as the amount of time dedicated to the broadcasting of advertising by the former increases, the number of subscribers to pay TV rises. Finally, we examine product quality by introducing the effect of holding the rights to broadcast Professional Football League matches and an HBO or Showtime produced series. Our results suggest that these variables are critical for the penetration of pay television.

Saving the Monopsony: Exclusivity, Innovation and Market Power in the Media Sector. Research Papers in Law, 7/2006

From the Introduction. The Media Sector has experienced a technological revolution in the last 15 years. Digital encoding of television signals made possible a more efficient use of the radiospectrum. Digital terrestrial television (hereinafter, “DTT”) allows now for the reception of a significant number of free-to-air channels.1 Moreover, the use of new transmission platforms (hereinafter,“platforms”), namely cable and direct-to-home satellite (hereinafter, “DTH”) paved the way for the arrival in Europe of pay-TV operators, which finance their activities mainly via subscription fees. This changing technological landscape is subject to further evolution in the near future, as incumbent telecommunications operators become increasingly interested in making available broadcasting content2 as part of their broadband offer and 3G mobile handsets can be used for the reception of TV signals....The present paper seeks to ascertain whether the Commission “regulatory approach” towards the exclusive sale of premium content is a sound one, in particular in view of the constant technological evolution outlined above. The assumptions underlying landmark Commission decisions will be compared with recent developments of the media sector in Italy. In the NewsCorp./Telepiù case, decided in 2003, the Commission imposed very strict conditions to allow the merger giving birth to Sky Italia, on the assumption that the operation created a lasting near-monopsony in the different upstream markets for the acquisition of premium intervened against the media conglomerate Mediaset (which controls, inter alia, the main three private free-to-air channels in Italy) for an alleged abuse of dominant position.17 In fact, and contrary to the forecasts made by the Commission, Mediaset was in a position to acquire the broadcasting rights of the main Italian football teams, thereby excluding the incumbent (and near-monopolist) pay-TV operator, Sky Italia. This may go to show that the reality of the sector is more complex and evolves faster than one may infer from the Commission practice, thus putting into question its stance regarding exclusivity. The experience of the evolution of the Italian media sector will be used as the starting point for the evaluation of alternative regulatory options.

Zon-Optimus merger: Case study

The present Work Project was performed as a Case Study, analysing the merger between Zon, a leading Portuguese Pay TV operator and Optimus, the third largest mobile company in Portugal. The Case Study was developed with the purpose of understanding the value creation of the Zon-Optimus merger, being analysed the: (i) industry trends, (ii) parties’ contribution, (iii) pre-merger events, (iv) merger rationale, (v) deal structure and valuation, (vi) competition authority decision and (vii) competitive advantages and future strategy. Was also attached a Teaching Note where synergies, implied valuations, exchange ratios, shareholder agreements, swot analysis, among others, were duly analysed.

Transatlantic spaces: production, location and style in 1960s-1970s action-adventure TV series

This paper argues that transatlantic hybridity connects space, visual style and ideological point of view in British television action-adventure fiction of the 1960s–1970s. It analyses the relationship between the physical location of TV series production at Elstree Studios, UK, the representation of place in programmes, and the international trade in television fiction between the UK and USA. The TV series made at Elstree by the ITC and ABC companies and their affiliates linked Britishness with an international modernity associated with the USA, while also promoting national specificity. To do this, they drew on film production techniques that were already common for TV series production in Hollywood. The British series made at Elstree adapted versions of US industrial organization and television formats, and made programmes expected to be saleable to US networks, on the basis of British experiences in TV co-production with US companies and of the international cinema and TV market.

Segmenting the Italian coffee market: marketing opportunities for economic agents working along the international coffee chain

Globalization, either directly or indirectly (e.g. through structural adjustment reforms), has called for profound changes in the previously existing institutional order. Some changes adversely impacted the production and market environment of many coffee producers in developing countries resulting in more risky and less remunerative coffee transactions. This paper focuses on customization of a tropical commodity, fair-trade coffee, as an approach to mitigating the effects of worsened market conditions for small-scale coffee producers in less developed countries. fair-trade labeling is viewed as a form of “de-commodification” of coffee through product differentiation on ethical grounds. This is significant not only as a solution to the market failure caused by pervasive information asymmetries along the supply chain, but also as a means of revitalizing the agricultural-commodity-based trade of less developed countries (LDCs) that has been languishing under globalization. More specifically, fair-trade is an example of how the same strategy adopted by developed countries’ producers/ processors (i.e. the sequence product differentiation - institutional certification - advertisement) can be used by LDC producers to increase the reputation content of their outputs by transforming them from mere commodities into “decommodified” (i.e. customized and more reputed) goods. The resulting segmentation of the world coffee market makes possible to meet the demand by consumers with preference for this “(ethically) customized” coffee and to transfer a share of the accruing economic rents backward to the Fair-trade coffee producers in LDCs. It should however be stressed that this outcome cannot be taken for granted since investments are needed to promote the required institutional innovations. In Italy FTC is a niche market with very few private brands selling this product. However, an increase of FTC market share could be a big commercial opportunity for farmers in LDCs and other economic agents involved along the international coffee chain. Hence, this research explores consumers’ knowledge of labels promoting quality products, consumption coffee habits, brand loyalty, willingness to pay and market segmentation according to the heterogeneity of preferences for coffee products. The latter was assessed developing a D-efficient design where stimuli refinement was tested during two focus groups.

Canal SPORTV: uma análise sobre o processo de gestão da produção dos programas esportivos na digitalização da televisão por assinatura

Pós-graduação em Televisão Digital: Informação e Conhecimento - FAAC

O mercado da TV digital: cultura, tecnologia e política

This article aims to map the development of the market of digital TV in Brazil, under the aspect of the relation among culture, technology and politics. We start with a history of analog TV, since its inception, showing matrices of Brazilian TV. Then we try to show current conditions of the TV market in the country, its ambiguous relation with the internet and the possible ways for survival of open digital TV: respect for cultural diversity, the observation of the habits acquired from other media, the consistent use of digital language and the modifi cation of public policies in favor of the collective and not protectionism of large private communication companies.

ARSTUDIO: estúdio virtual para produção de conteúdos audiovisuais em realidade aumentada para a TV Digital

“Virtual Studio” is a system developed for the creation of virtual sets, as well as any threedimensional virtual objects that can be digitally integrated to the scenes captured on a real television studio. Through techniques such as chroma-key, computer graphics , augmented reality and virtual reality is possible flexibility in producing content for digital TV, reduce cost and meet 12.485/2011 law, the Brazilian “Law of Pay TV”, which has among its objectives “to increase the production and circulation of diverse and quality Brazilian audiovisual content, generating jobs, income, royalties, professionalism and strengthening of national culture” (ANCINE , Brazilian Nacional Cinema Agency ). Based on this background, an overview of the benefits of using the technologies mentioned for the production of content for digital television is presented. This work involves the development of a system of Interactive Virtual Studio called ARSTUDIO per team of researchers from the Posgraduate Program in Digital Television: Information and Knowledge at UNESP, São Paulo State University in Bauru, State of São Paulo, Brazil.

ARSTUDIO: estúdio virtual para produção de conteúdos audiovisuais em realidade aumentada para TV digital

Virtual Studio is a system developed for the creation of virtual sets , as well as any three-dimensional virtual objects that can be digitally integrated to the scenes captured on a real television studio . Through techniques such as chroma-key , computer graphics , augmented reality and virtual reality is possible flexibility in producing content for digital TV , reduce cost and meet 12.485/2011 law , the Brazilian Law of Pay TV , which has among its objectives to increase the production and circulation of diverse and quality Brazilian audiovisual content, generating jobs, income , royalties, professionalism and strengthening of national culture (ANCINE , Brazilian Nacional Cinema Agency ). Based on this background , an overview of the benefits of using the technologies mentioned for the production of content for digital television is presented . This work involves the development of a system of Interactive Virtual Studio called ARSTUDIO per team of researchers from the Posgraduate Program in Digital Television: Information and Knowledge at UNESP , São Paulo State University in Bauru , State of São Paulo, Brazil .

Cracking the USA? Interpreting UK-to-US TV Drama Translations

For well over half a century, British TV drama production has both inherited from and aimed to appeal to nations and cultures beyond the UK, particularly the lucrative (yet notoriously tough) US TV market. However, in the context of mainstream American broadcasting, British-produced imports have never been anything more than a peripheral presence on US small screens. A currently prominent production strategy aiming to counter the mainstream US TV market's aversion to foreign-sourced drama, in an attempt to access prime-time broadcasting positions, is a process which can be labelled as UK-to-US TV drama ‘translation’: the ‘recreation’ of British-based dramas within an American cultural framework. Whilst the cultural reconfiguration of game show and reality/lifestyle TV formats has received heightened critical attention in recent years, investigation into the international translation of TV drama remains less developed. This paper investigates both the internal textual operations and the external production dynamics involved in the process of UK-to-US TV drama translation, drawing on direct interview material from industry professionals. The UK and US versions of the crime drama Cracker constitute the core translation case study, utilising the close analysis of text and production context as a lens through which to examine the mechanics of UK-to-US TV drama translation.