Here is an update on my research for my group project in Advanced Business Strategy (MGMT-943).  We were asked to focus on the following question:
<blockquote>Given Comcast’s acquisition of NBC, what should NBC Universal Television’s strategy be and why?</blockquote>After doing some initial research, I focused my part of the project on if NBC should own more or less TV channels (like SyFy).

Fortunately, there have been a lot of stories on the TV industry recently, including a special report in this week’s Economist (I never read this magazine before Kellogg, but I love it now), a blog post on affiliate fees that made its way through Twitter,  and a BusinessWeek article from March on the industry’s strategy for controlling online distribution.

At this point, I’ve settled on the following ideas, but I’m chatting with a Kellogg alum, who I reached out to via LinkedIn, in the industry this week, and he may shed some new light on the subject.
<blockquote>Given audience fragmentation, NBC should acquire more TV channels to capture a larger share of fragmented audiences.  In particular, it seems that audiences are increasingly shifting toward basic cable offerings, so that is where NBC should focus any future acquisition efforts.

A few reasons why NBC should own channels instead of using contracts to distribute programming:
<ul><li>Better flexibility in distribution and programming decisions across TV channels; can use this to position programming to improve a show’s chance of success (lead-in audience, etc)</li><li>Can consolidate redundant functions, such as advertising and ad sales, to reduce costs</li><li>Are incentivized to strengthen the channels’ brands, which increases the probability that a program on those channels will become a hit</li><li>Gain leverage against other distributors and content creators</li><li>Unique cross-channel advertising and programming opportunities</li></ul></blockquote>Here is some of my data so far.

<div id="__ss_3954813" style="width: 497px;">Q01 should nbc_own_more_channels_research</embed>
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