Tv Guide Case Study
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TV Guide has become a staple in both the magazine and infotainment industries since 1955. With a weekly circulation of 14.5 million, TV Guide is the largest magazine in the United States (McDonald, 1998). Although faced with increasing competition, the magazine still managed to increase its number of ad pages and revenue in 1993 and 1994 (1998). The competition is both with growth and technology, as well as with consumer distribution options that have become available since the Radnor, Pennsylvania companys inception.
Since TV Guide pioneered weekly regionally targeted editions and moved toward an electronic production process, there has arisen a bevy of consumer distribution alternatives. Among those include the Internet, free guides contained within Sunday newspapers and daily edition capsules, as well interactive cable menus with television listings. Competition also extends into the advertising world, where advertisers now have more magazines, as well as television alternatives, at their disposal (SAS, 2005). Despite these changes, TV Guide has continued to thrive and plans to.
The profile for television listing guide customers consists of the following geographic, demographic, and behavior factors:
Geographics
United States
Newsstands via various retailers
Subscriptions delivered via direct mail
Targeted consumer Ð- 55 million television viewers
119 editions
Capital cities Ð- 683,000
Country areas Ð- 220,000
Demographics
21 million television viewers
Hard copy
14.5 million subscribers
Internet
67.9% have Internet access
12.4% made online purchases in the past 30 days
$53,579 is the median household income
Average issue is opened four times per day Ð- 28 times per week
51% Male/49% Female readership
(McDonald, 1998).
People want a variety of methods that will offer various forms of entertainment news, as well as television listings. Many do not want to pay for a weekly subscription to a magazine that gives them virtually the same information that can be obtained electronically for free. More and more people are using newer technology such as the internet and onscreen television listings to obtain their entertainment news. Cable companies offer on-screen TV listings. Prevue Networks is TV Guides largest competitor which boasts over 41 million on-screen subscribers (1998). StarSight Telecast Inc., another of TV Guides competitors, owned patents for interactive program guides, or I.P.G.s for short (Kuczynski, 1999). In 1997, Starsight was bought by a company called Gemstar, which bought TV Guide two years later in 1999 (1999). This merger will help TV Guide stay competitive in a fast growing technology dominated industry.
SWOT Analysis
The following SWOT Analysis shows the strengths and weaknesses of TV Guide, as well as looking at its opportunities and threats.
Strengths
1.1.1.
Brand recognition and brand loyalty
1.1.2.
Largest magazine circulation in the United States
1.1.3.
Geographically targeted editions
1.1.4.
Powerful publishing technology
1.1.5.
Easily accessible listings
1.1.6.
iGuide enables users to tailor content to their tastes
1.1.7.
TV Guide demographics attract advertisers
1.1.8.
Cross-marketing ability with parent company (News Corp)
Weaknesses
1.2.1.
Magazine format is dated and digest-sized
1.2.2.
Production of 119 different editions increases overhead
1.2.3.
Must use sophisticated database technologies
1.2.4.
Program listing section is in a constant state of flux
Opportunities
1.3.1.
Develop iGuide into a full-blown, full-service electronic tool
1.3.1.1.
Users can create personalized TV grids
1.3.1.2.
CineBooks offers information on 30,000 films
1.3.1.3.
Venue where text, sound,, and images are hyperlinked to other Web sites.
1.3.2.
Develop format that will lure younger subscribers
1.3.3.
Competitors onscreen service is limited in differentiation service capability.
1.3.4.
Integrate customer data across all platforms
Threats
1.4.1.
PreVue Networks with over 40 million cable subscribers
1.4.2.
Free channel listing services available to cable subscribers
1.4.3.
StarSight Telecast Inc. more advanced and poised to branch beyond cable
1.4.4.
Increased number of companies offering TV listings and entertainment news
1.4.5.
Technology