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Case Analysis of Mtv

In: Business and Management

Submitted By smeeha
Words 1793
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| MTV: Building Brand Resonance | CPS and Questions | | Smeeha Razvi | Ammar Malik | Aarij Tanvir | 11/23/2015 |

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Facts | Core Issues | Framework | Launched in 1981 as an all music video channel | Absence of an all music TV channel. Music video concept was novel to viewers | First Movers advantage | The channel wanted to portray itself as a youth oriented brand with unique brand identity and awareness | Designing suitable and consistent brand elements and imagery | The brand name, logo design, concept of VJ’s, NASA Moon flag, Rock n roll attitude | MTV model was based on receiving free videos from record companies while relying on advertising for revenue. There were 250 videos in the MTV library initially | MTV’s success depended on free videos. Initial reluctance from record companies which they had to pay to produce in addition the original recording, whereas MTV wanted the videos for free | Seeding and trial - The record companies provided videos of 2nd and 3rd tier artists which proved to be a huge success in terms of record sales at retail stores, so they started promoting top tier artists too by providing their videos for free | First year was difficult for MTV, because advertisers were reluctant to embrace an unproven cable upstart. Adding to MTV's trouble was the fact that many cable operators refused to carry the channel, keeping its audience well below the targeted 2.5 million for the inaugural year. | Lack of brand awareness | Smart advertising campaign 1982, to spike demand in unserved markets. Famous rock stars endorsed the brand by uttering the phrase "I want my MTV”. Hence brand awareness by brand endorsement. Kick off of promotional campaigns contests, giveaways etc. Merchandising | Several networks attempted to replicate MTV's success with weekly video programs. NBC developed "Friday Night Videos" and USA launched "Night Flight." The syndicated "FM- TV" also contained two hours of videos and interviews. | Early Competition – Lack of diversification | Creation of brand extensions - MTV created VH1 to counter Ted Turner's 1984 launch of Cable Music Channel. Positioned to be distinctly different from MTV by airing adult-oriented videos. 3 musical genres that wouldn't cannibalize MTV were picked: R&B, country, and adult contemporary. 11 A month after VH1 went on the air, Turner shut down the Cable Music Channel and sold its assets to MTV for $1 million. | MTV suffered a ratings decline in 1985 and 1986. From a high of a 1.2 share in 1983, MTV ratings dropped from 0.9 in the third quarter of 1985 to 0.6 in the fourth quarter | Changing Formats, rating decline | Constant reinvention - long-form programming.120 Minutes, Head banger’s Ball, Unplugged. Developed non-music programs. Beavis and Butthead, House of Style, The Real World. New direction of growth | MTV first went global with its Mr. Europe launch in 1987. At the time, MTV had a single satellite feed that broadcasted primarily American programming and used English-speaking VJs. The music and entertainment tastes of the people varied widely among European nations. Competitors took advantage of MTV’s undifferentiated broadcast by establishing locally-produced music channels. MTV watched much of its audience, and consequently, its advertiser base, abandon channel in favor of local competition. | Unprecedented growth and Global expansion, Local Competition | Adapt, think global act localOffered local contentCatered to regions taste and cultureMTV then focused on growing countries like Asia and India | MTV’s ratings slumped to around 0.5 in US from 1992-1996Grunge genre and gangsta rap becoming less popularMTV criticized for level of non-music entertainment | Changing market trends, customer preferences | MTV evolves from music to cultureBought competitors BET and The Box, leaving MuchMusic the closest competitor Acquired largest European rival, VIVALaunch of MTV2Created Total Request Live – TRLThe “franchise of the channel”Success of TRL thrived into the 2000s | While the focus on the teenage girl demographic helped MTV ratings to climb from 1997 to 2000, the emphasis of teen pop programming was alienating some of its viewers. Males and older individuals were experiencing a disconnect with the channel. | Shift from core audience target customers | Re-branding re-programmingCreated shows like "The Tom Green Show", "Undressed", "Jackass", "MTV Cribs" & "The Andy Dick Show"more balanced audience | The two companies were officially split in January 2006. Analysts expected the new Viacom to perform better ally than CBS, given its stable of successful cable channels that had generated a 16 percent annual revenue growth since 1994. Yet, paradoxically, CBS performed better than the new Viacom in terms of share price. In the nine months following the split, CBS stock rose 9 percent, while Viacom stock fell by 16 percent. Viacom's sagging performance was due, in part, to its revenue growth rate falling to 10 percent in the first nine months of 2006 as advertisers shifted spending away from cable television to the Internet, where Viacom's presence was not as established. MTV.com had enhanced offerings with the addition of broadband content on MTV Overdrive, but it still acted far fewer visitors than MySpace.com, the leading teen Internet content site (MTV.com had 7.5 million unique visitors in January 2006, compared with 30 million for MySpace). | Declining performance of Viacom | New management team. |

Question 1: Discuss the role of internet in MTV’s programming. How should MTV best integrate internet into its brand?

Answer: The MTV brand made an unauthorized online debut back in 1992 when VJ Adam Curry launched MTV.com independently. In 1993 MTV sued Curry. In 1994 MTV launched its first website, called MTV.com by partnering with America Online. By 1999 MTV.com had attracted more than 2 million visitors per month. MTV also established websites for MTV2 and each of its international channels. Each of its international website hosted content that was relevant to the country it was being aired in. They featured local artists as well as local news and concert events. MTV.com experienced a big boost when the music industry started taking the internet seriously as a platform. In 2001 MTV contracted RioPort, which was a music downloading service.
Through this MTV was able to offer music downloading for a certain fee. In 2005 this service became free for MTV.com members and was one of the most popular sections of the website. In the same year, with partnership with Microsoft, MTV launched the URGE service. It was a pay for download service which offered more than 2 million songs to download. It also contained exclusive offerings from MTV. In 2001 MTV launched the MTV 360 campaign, which was designed to lure MTV viewers to the MTV.com website as well as MTV2. It was an integrated campaign, spanning the MTV and MTV2 channel in addition to the MTV.com website. The website offered visitors the opportunity to download the live performance of a song from the band’s upcoming album at the same time when the band was playing live on the MTV channel. In 2005 the MTV Overdrive web channel was launched. It was dedicated to streaming MTC programs, live performances and music videos. It gave those who did not have cable an opportunity to experience the brand, the music it played, its TV personalities and a chance to get involved with the biggest stars.

Question 2: Discuss the current sources of MTV’s brand equity. How have they changed over time?

Answer: MTV’s brand equity came as a result of its successful implementation of its brand awareness and brand recall strategy. 25 years ago when MTV was launched, there was no such concept of a 24/7 TV station dedicated to music videos and music in general. The concept behind the emergence of MTV was to bring the disc jockey on the television. The MTV logo itself was radical and different from the usual brands of the time. It was blocky, three dimensional and used graffiti art, which was quite popular back in the 80s. It was different from anything on the TV. MTV also used the popular moon landing video, where they placed the MTV logo on the American flag. MTV also played music that resonated with its audience of the time. Throughout the year the brand has been able to evolve with time by adapting to the changing music tastes of its target market. MTV also enhanced its brand equity by being the sole platform for some of the biggest and most popular music videos of all time, such as Michael Jackson’s Thriller.
Other than music MTV has also successfully been able to launch some of the most popular TV shows of the 90s and 2000s. These include Pimp my Ride, MTV Crib, Punk’d and more. MTV’s long form programming has been responsible for keeping viewers glued to the TV set. It has made repeat visitors out of one time viewers. In its early years long form wasn’t on MTV’s radar. MTV has also successfully been able to fend off competition through its diverse offerings of channels. For example, VH1 was debuted solely to target the slightly older demography, which the original MTV channel was not targeting. By doing this MTV has been able to cover all major age groups as well as music tastes. Furthermore MTV has been able to morph itself into a source of not only entertainment, but also news. The channel was very successful in covering major events such as the 9/11 attacks and the hurricane Katrina disaster. It has also played a pivotal role in presidential elections by educating the younger audience about domestic and international issues. MTV changed the way candidates ran for elections by paying more attention to younger voters. Around the world young people turn to MTV for their news needs.

Question 3: How have MTV’s sister channels affected the parent channel’s brand equity?

Answer: Over the course of its life, MTV has launched several sister channels. The idea behind the launch of these channels was to cater to audience that MTV was unable to do so itself * VH1 adopted older positioning of age 18-49, which in turn made MTV’s positioning younger. This had a positive effect on equity because the young crowd was the biggest source of revenue for the music industry. * MTV2 played more music, made many viewers nostalgic for the way MTV “used to be,” potentially negative affect on equity. However, since it is still part of the MTV Empire, it plays a vital role in building the overall equity of the brand by giving fans of the old MTV what they want. * Various genre-specific offshoots reflective of audience fragmentation, could lead to lower ratings for parent network since it splits the overall potential audience of MTV. However, the fact that most of these channels were available only on satellite and digital cable networks negated some of the negative impact on MTV’s equity.…...

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