For the module Project Management, I have to write a business report for TIB.
This is about why people spend less time on watching television.
The theories of grammar, which I learnt in class ,have been applied in my report. In my opinion this is the best way to understand and master the theory. Besides the school theory, I did research on the Internet. I searched for articles on the subject in English and in Dutch about the shift from television to online.
I struggle with dyslexia. When I write large and tough reports, It is difficult for me to write the words and sentences in the right order.
I would like to give my special thanks to Agnes van der Heijde and Anne-Marie Albers .They helped me writing this report.
Table of Contents
Preface Page 1
Table of contents Page 2
Introduction Page 3
Chapter 1: From Cable TV to online. Page 4
Chapter 2: Online advertising. Page 5
Chapter 3: The opportunities for cable TV. Page 7
Conclusion Page 8
Recommendations Page 9
Bibliography Page 10
Appendix 1 Page 11
Appendix 2 Page 12
The topic of this business report is: Why do people spend less time on watching television?
In this report we analyse what the reason is for this change.
Online is upcoming. People use smartphones and the different apps like Netflix, Facebook, Youtube more often than 5 years ago. Also the interactive television gives us the opportunity to watch series and films at any time you like.
People have more options to choose from and people have to divide their time.
It is a hot topic. In the model of appendix 1, you can see the use mobile apps and TV. The use of mobile apps is growing.
In the following chapters the following topics will be discussed:
• from Cable TV to online
• Online advertising
• The opportunities for cable TV
At the end of the report will be a conclusion and a recommendation.
There will be a conclusion and recommendation at the end of the report.
Chapter 1: From Cable TV to online.
Almost everyone has a television in the living room. People use a television for watching news, soaps, good movies or watching series. In the TV guide you can find when something is broadcast. At a specific time you can watch the desired program.
Cable television has been a consistent business. But we reach a certain point were cable providers have to innovate their business models, if they would like to survive.
People are ready for innovation. They need flexibility, such as choosing when and where they will watch their favourite series.
In recent years there have been many developments in the online world. Think about tablets, Smartphones, laptops, Smart TV's etc.
At first, the television was the center of the living room. Nowadays, TV is everywhere at any time. Each different screen has access to apps which can provide series, movies, news and much more.
The viewer does not have the time to watch their favorite series at eight o'clock every evening. When he or she has the option to watch it whenever they want to, they are in control of their own watching schedule. They will be more relaxed and have more interest in the program.
By having control on their own watching schedule, they do not have to miss a single episode. You can also put it on pause if you need something to drink or have to answer the door for instance.
Another benefit is having less advertisements. When you watch an episode in your own time, the only advertisement you see, is in the beginning. Cable television has advertisements in the middle of the episode, which could be very irritating. People use these moments nowadays for taking a quick shower, get something to drink, check Facebook, Twitter or Instagram (for instance) or use the bathroom. There is to attention for the advertisements.
Chapter 2: Online advertising.
Advertising is not only on television but companies also market on internet. There are advantages to advertising online, for one it is more personal. You can select what is of your own interest:
o Google AdWords
o Bing Ads
o Facebook ads
o LinkedIn Ads
o YouTube ads
o Twitter ads
o Google Shopping
o Gmail Sponsored Promotions
o Google Display Netwerk
o Marktplaats Admarkt
o target of online advertising
o Growing online together
In the picture below, you can see what internet marketing does. The internet user will visit your website about shoes, for instance. When they leave your website, Google or another page will remember that they were searching on ‘shoes' and shows them on every other website ad's about shoes! That's how it works these days. Internet is retargeting and captures the interest of the internet user.
For example: I am searching online for shoes. My cookies save what I am searching. Next time I am on my laptop, there are ads about shoes. This is a very personal ad. It is very smart. I will buy shoes quicker. Advertising on TV is more general. It is difficult to personalize.
The Power of online advertising:
- High impact
- After television the most audiovisual medium
- A selected target group
- Possibility to interact between transmitter and receiver
- Full accountability
- Rapid deployment
- Low production costs
This video shows how we watch television. When the advertisements start, everybody start to do something else: using their smartphone, go to the bathroom, get something to drink or doing something else. No attention for the advertisement at all.
For the viewer it is fine that ads are personal because the ads are helpful and interesting.
Advertisers will have more attention to advertising on the internet.
the results of an online advertisements are easy to measure, that is a great benefit. In Appendix 2 the growth of advertising on the Internet is easy to see.
Chapter 3: The opportunities for cable TV.
Traditionally, the TV business is built on two revenue sources: advertisements and subscriptions. Because of the switch from cable TV advertising to online advertising, the TV business is getting less gaining's.
Nowadays people will take less subscriptions on cable TV, because of the competition of Netflix or HBO. They offer, for a competitive price, a large assortment of films, series and other kind of entertainment. The consumer can watch whenever they like too.
The young generation has more focus more on Netflix, HBO and YouTube, then the older generation. They will watch their favorite program at the time they can watch it on cable. The TV business determines the time instead of the viewer. Nevertheless, you can see the switch between cable and online more and more. The consequences for the TV-business will increase every year.
Watching TV is still through fixed networks such as cable, brass wire and satellite. The forecast for the next decade, is that everybody will watch television trough apps, determined by themselves when they would like to watch a program.
The providers of the traditional way of watching television have to focus more on providing fast internet services. A chance to survive this change.
The fun part of cable television is ‘zapping'. You can find programs you never watched before and would stay up late for. Cable television is still popular by news and sport.
Why do people spend less time on watching television?
In this report we did research about why people spend less time on watching television.
The switch from cable television to online is very clear to see. It is a logical switch because of the overkill on competition in this area of entertainment.
There are so many different devises developed like smartphones, tablets, laptops, smart TV's etcetera to provide information. People have to manage their time, and they like to manage their own time by choosing how and when they can watch TV. The new technology response on this phenomenon. Cable television should join this change to be competitive.
The conclusion is pretty simple. If cable providers would like to secure their own future, they will have to learn from the situation of Free Record Shop and Videoland and the development of the ‘old school' DVD's and VHS. Those do not exist anymore.
Cable television have to innovate. The switch from cable television to online is very quick. The television world have to respond to it. The pricey, one-size-fits-all cable package is history. Viewers will be able to choose from a menu of on the Internet. The user can watch whatever they want, whenever they want on whatever device they want.
The provider of cable television has to change her product to stay in the new market. They have to focus on better and faster services of internet. This is their opportunity to survive.
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