Case Study
GOES GLOBAL, WITH A LOCAL ACCENT
MANAGEMENT
FOCUS
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MTV Netw Network orks s has has beco become me a sy symbol mbol of Globa Globaliliza zati tion. on.
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Esta Estabi bish shed ed in in 1981 1981,, US-b US-bas ased ed Mus Music ic TV net netw work. ork.
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Expa Expand ndin ing g sinc since e 198 1987 7 whe when n it ope opene ned d MTV MTV Eur Europ ope. e.
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Curren Currentl tly y, owned owned by medi media a cong conglo lomer merat ate e VIA VIACO COM. M.
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Othe Ot herr cha chann nnel el part partne ners rs:: Nick Nickel elod odeo eon, n, VH1 VH1
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Gener Generat ates es more more than than $1 bill billio ion n in in rev revenu enues es outsid outside e US US
* By 2004, 2004, 72 channe channels, ls, 321 mill millio ion n househ househol old d veiw veiwers ershi hip, p, 140 countries.
in
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How However ever,, the the most most rapi rapid d gro grow wth of of MTV MTV is in Asian continent.
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In Asia Asia,, near nearly ly 3 bill billio ion n peop people le are are und under er 35, 35, and the middle class is expanding expand ing quickly.. quickly..
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TV owne owners rshi hip p is is spre spread adin ing g rap rapid idly ly..
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Almo Almost st 2 mill millio ion n peo peopl ple e are are watch atchin ing g MTV MTV around the world, the majority outside the US.
SO, WHAT IS THE SECRET BEHIND MTV's GLOBAL SUCCESS ?
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MTV ha had to to ov overcome lot of of challenges before it became a Global hit.
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Init Initia ially lly,, it air aired ed only only Ameri American can prog progra rams ms with with Engl English ish speaking speaking VJ s throughout throughout the Europe Europe assuming that Europeans would flock to the see and hear more about American programs.
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But, suprisingly their tastes were mainly Local except for a handful of global superstars like Madonna and Michael Jackson.
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MOST OST EURO EUROPE PEAN ANS S PREF PREFER ERED ED LOC LOCAL AL POPULAR MUSIC.
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Simil Similar arly ly,, wha whatt was was pop popul ular ar in in Ger German many y migh mightt not not be popu popula larr in Gre Great Brit Britai ain n.
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EACH EACH COUN COUNTR TRY Y HAS HAS ITS OWN UNI UNIQUE QUE AND AND FAVOURITE VOURI TE MUSIC SCENES SCENE S AND SONGS. PEOPLE PEOPLE WOULD WOULD LOVE LOVE TO TO HEAR HEAR THESE THESE MORE MORE THAN ADAPT TO FOREIGN MUSIC.
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MTV MTV clea clearly rly faile failed d to to und under ersta stand nd this this core core pri princi ncipl ple. e.
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As a res resul ult, t, MTV MTV suff suffer ered ed and and star starte ted d to decli decline ne..
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Soon Soon ther there e wer were e many many Local Local copy copystatio stations ns in in Eur Europ ope e that catered to individual countries Music scenes.
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Loca Locall cop copy ycat cat musi music c sta stati tion ons s soon soon took took away away viewers and large portion of Advertising revenue away from MTV. MTV. *
In 1995 1995,, MTV MTV compl complet etely ely chan change ged d its its Str Strat ateg egy y..
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BY ADOPTED LOCALIZATION STRATEGY
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For For eg eg: In In Asia Asia,, MTV MTV Netw Networ ork k has has an an *
Engl Englis ish h-Hin -Hind di ch channe annell for for Ind India
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Mandr andrin ine e feed feeds s for for Chin China a and and Taiw aiwan
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Jap Japanese feed for Japan
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Baha Bahasa sa-l -la angu nguage age feed feed for for In Indone donesi sia a and so on... .
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Use Use of of Dig Digit ital al and and Sat Satel ellilite te tec techn hnol olog ogy y of tra trans nsmi missi ssion on of of localized programs greatly saved lot of time and effort.
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MTV exercises
³CREATIVE
CONTROL´ over these
different feeds. *
All All the the chan channe nels ls irre irresp spec ectiv tive e of of the the lang langua uage ge hav have e the same familiar frenetic look and feel of MTV.
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Loca Locall MTV MTV stati station ons s are are first first star starte ted d usi using ng Expa Expatri triate ates s From elsewhere in the world.
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This helps MTV to do ³Gene transfer ´ of company's Culture and Operating principles.
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Once Once estb estb., ., the the net netwo work rk swi switc tche hes s to to loca locall emp emplo loye yees es And Expatriates move on..
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Aroun Around d 60% 60% of progr program ams s still still orig origina inates tes in US, US, like like ³The ³The Real Real World' having equivalents in different countries.
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Howe Howeve verr, to retain retain its popul populari arity ty MTV MTV has has been been increa increasin sing g the share of local programs. programs.
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Some Some of the the popu popula larr loca locall MTV MTV pro progr gram ams s in Indi India a inclu include de:: *
³MTV Ba Bakra´
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³MTV Cr Cricket in in Control´-
cricket inside stories
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³MTV Ho Houseful´
Hindi film stars
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real-life comedy scenes
(Bollyhood) *
WHAT
DID THE MTV GAIN FROM ALL STRATEGIES ? ?
THESE
* Betw Betwee een n 1996 1996 ± 2000 2000,, MTV MTV ratin ating g in Indi India a scaled more than 700%. * MTV MTV capt captur ured ed abou aboutt 70% 70% of its its Euro Europe pean an Advertising revenue. * Simila Similarr tren trends ds are are evid eviden entt else elsewh wher ere e in the world orld.. * Phen Phenome omena nall inc incre reas ase e in MTV view viewer ersh ship ip acr acros oss s the countries. * By 2004 2004,, 72 cha chann nnel els, s, 321 321 mil millilion on hous househ ehol old d veiwership, in 140 countries.
CONCLUSION:
MTV Networks has become a symbol of Globalization. Adopted right International strategies and controls at the right time to regain its lost popularity, popularity, especially es pecially in non-english speaking countries like Asia and Europe. The rationale behind b ehind MTV's MT V's LOCALIZATION LOCALIZATION STRATEGY STRATEGY is to ³get inside the heads´ of the local population and produce programming that matches their tastes and preferences.
SOURCE: Case Study: Management Focus Charles Hill, Arun Kumar, INTERNATIONAL
BUSINESS,Competing for the Global Marketplace, 6TH Edition
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