2. Group E Group E

3. Business Concept Economical feasibility Economical feasibility Asia’s number 1 satellite broadcaster Asia’s number 1 satellite broadcaster Present the Asian perspective of Asia Present the Asian perspective of Asia Produce a balanced east-west entertainment Produce a balanced east-west entertainment English + Chinese / Multiple languages English + Chinese / Multiple languages

4. Business Concept audience advertiser Revenue

5. Key success factors First-mover advantage First-mover advantage AsiaSat 1 as satellite platform AsiaSat 1 as satellite platform Multiple-language broadcasts possible Multiple-language broadcasts possible

6. Key success factors Supported by complementary resource ===> distribution network Supported by complementary resource ===> distribution network Re-broadcasting agreement Re-broadcasting agreement Free to air programmes Free to air programmes Hotels --- well-travelled business classes Hotels --- well-travelled business classes

7. Complementary Resources Complementary Technology Complementary Technology Marketing Marketing Competitive Manufacturing Competitive Manufacturing Distribution Distribution Finance Finance

8. Complementary Resources Complementary Technology Complementary Technology –Availability of reception dishes –Cost of reception dishes –Changing to use other satellite

9. Complementary Resources Marketing Marketing –Advertising to the public –Market segmentation –International client advertisers –Deep penetration –Change of advertisement

10. Complementary Resources Competitive Manufacturing Competitive Manufacturing –Ready-made programmes –Cost –Competition for better programme

11. Complementary Resources Distribution Distribution –Free of charge –Redistribution –Competitors’ programmes

12. Sustainable Advantages

13. Complementary Resource Finance Finance –Funded by advertising –Revenue was insufficiently covering costs –Losses as high as $5 million per week

14. Complementary Resource Finance Finance –Funded by advertising –Revenue was insufficient covering costs –Losses as high as $5 million per week –Source of fund raising was limited

15. Threat Potential competitors existed Potential competitors existed –Planned to launch or replace their own satellites –Allied with other channels =>Substitution effect for the viewers

16. Lead Time Advantages First-mover advantages First-mover advantages –Extensive brand name recognition –Considerable viewer loyalty Difficulties of the entry for the competitors Difficulties of the entry for the competitors –Insufficient fund to set up –Lack of experience –Lack of client base

17. Sustainable Advantages

18. Strategic Options Pay TV Pay TV In-house programming In-house programming Strategic Alliances Strategic Alliances

19. Pay TV Pros: Pros: –Increase revenue –Technical improvement makes this idea more commercially viable Increase revenue

20. Pay TV Cons: Cons: –Deter producers to release popular and newest programmes –An efficient system to collect money is needed. –Risk of killing new viewer growth.

21. In-house programming 1. Increase the degree of vertical integration 1. Increase the degree of vertical integration –Huge amount of money and experienced staffs is need. –Guarantee the channel is long-lasting. 2. Acquire high-quality programmes 2. Acquire high-quality programmes

22. In-house programming Main consideration: Main consideration: –Less appealing for international advertisers. –Big advertisers vs local advertisers.

23. Strategic Alliance Pros: Pros: –Financial support –Experiences Cons: Cons: –Culture may differ from that of Star’s

24. Recommendation Recommendation Pay TV Pay TV In house programming In house programming

25. Why Pay TV ? Standard TV structure Standard TV structure –80% subscription fee –20% advertisement revenue Need subscription revenue Need subscription revenue

26. How to implement Pay TV Market segmentation strategy Market segmentation strategy –Urban area »High living standard »High population density »Charge a fee –Rural area »Low living standard »Low population density »Free of charge

27. Why In house programming ? Support the Pay TV strategy Support the Pay TV strategy –Tailor made programme, fit the local market Attract local advertiser Attract local advertiser

28. Problems Lack of financial support Lack of financial support –Huge sum of money to implement the strategies –Losing money, difficult to get loans Lack of experience Lack of experience –Need hand on experience –Take long time to produce

29. How to solve it ? Form strategic alliance Form strategic alliance –Gain financial support –Get help to produce high quality programme

30. Which company? TVB TVB –Ready made programmes popular in Asia market –Richard Li would maintain control

31. Sustainable Advantage