Swot Analysis Of Tv Substitutes

810 Words4 Pages
Rivalry of existing competitors Rivalry is strong between broadcasters in relation to the purchase of broadcasting rights for the most popular programs, public events and sporting events. The main rivalry for Dish Network Corporation is DirecTV, which is the strongest player in the pay TV industry in USA. Both companies putting pressure on one another and fighting for profit and market share. In general, Dish has various competitors not only among direct broadcast satellite operators, but also in all categories of television. Broadcast satellite operators like Dish and DirecTV have to compete between each other as well as with suppliers in other sectors. This factor makes rivalry even more intense. Another reasons of market’s high rivalry can…show more content…
Other forms of visual entertainment such as computers and video games, theater, opera can be considered as potential substitutes to the broadcasting and cable TV market. A significant increase in popularity of other entertainment forms could possibly impact upon viewing figures, giving rise to a potential drop in advertising revenue. Basically, TV substitutes are everything else except watching video content. There are various things to do, instead of staying in front of TV. Besides, consumer’s switching costs are low, meaning that a person could go for a walk or do any other activities which will not cost nothing or just a bit of money. Moreover, doing some sport, reading, visiting cultural places and most of the other activities are bringing much more positive value for a person than watching…show more content…
The power of content providers, as well as equipment suppliers, is strong for the industry. Content providers such as FOX, CBS, ESPN, and CNN have power over Pay TV industry, because the TV service providers want these channels on their packages that they offer the customers. So if these channels will raise their fees, it will force pay TV providers to raise fees for their services also or to cut off particular channel, which can lead to customer dissatisfaction. Equipment suppliers are needed for antennas, cables, smart cards, remotes and receiver boxes. There are not many suppliers for the equipment that the providers use. For Dish Network, EchoStar is still reminding the main supplier of all needed equipment and services. Also, if Dish or any other TV provider would switch suppliers, the providers would have to take the time to change each individual customer’s equipment. They would also have to take the time to train the installation workers. And for this industry speed is a very important tool for success and the possibility to gain competitive advantage by launching a new product or services faster than

More about Swot Analysis Of Tv Substitutes

Open Document