1) I am a Sport Management major. My talents are centered around sports knowledge and management. My experiences are in management and customer service. I also have some experience with baseball operations.
2) I am offering a cable service that is not offered right now, that will most likely be the model for cable companies of the future. The unmet need here is the fact that cable companies have a monopoly and they are able to get away by offering basic cable packages. These basic cable packages force people to pay for multiple channels that they won't watch. The cable service I am offering allows the customers to choose what they want to watch on a monthly basis, competing against those companies that have taken many of the viewership from cable. The cable service could have a few innovations added which my interviewees mentioned. The best one of these additions to the cable service being partnerships with other streaming services. This would be in the form of applications along with the cable service, it would provide easier access and versatility with the product.
3) The demographic that I am offering this product to are cable cutters. These cable cutters tend to be younger adults that are attempting to save money by not having to pay for cable. Thus, they "cut cable" and switch to streaming services. This demographic isn't limited to young adults, but it is certainly made up of mainly young adults. All of the customers have in common the fact that they want to save money, and watch good television. The cable service allows for this by allowing them to switch monthly from having all the channels they want to having none for a month.
4) Customers will actually pay money for this because firstly, they are tired of the monopoly and scamming that the current cable companies have. Secondly, it is a service that will actually be used. For example, I tend to watch ESPN, HBO, and other channels that may have sports played on them. So, I would take those channels, and just use those. If for one month I don't want to use those channels, I can do so. The customers won't feel locked in, essentially they will have the same feeling they do from this cable service as they do with Netflix.
5) What sets this cable company apart is the fact that they are willing to accept some sort of loss in money to gain market share. While other cable companies are forcing customers to buy their packages and be locked into contracts, this one uses the same model as streaming services. Even though this company could be making more by offering packages in the short term, my company chooses to gain market share for the future. Because in the next few years cable companies will be moving towards this model, and trying to get their feet in the business with other streaming services. My company would already have experience and partnerships with the current streaming services. Making the company thoughtful for its customers, and setting up a great long term goal of having more market share by providing a fair service.
These elements definitely fit together. The tough part will be establishing the company to have some sort of market share. The monopolies that currently exist within the cable companies would make it hard to break in the business. Once that has been broken in, it is just a matter of setting marketing strategy and tactics to gain market share. Eventually, with more market share streaming services would want to begin partnerships with the company as they realize how it can help both sides. Overall, I think the synergy is there for these elements, the company must know that there will be an initial barrier in order to breakthrough.
I really like your idea for a new kind of cable company. I really think that it'd be something that would take off if you were able to implement it into the real world because there are an increasing mount of people who no longer wish to pay for a full cable subscription, but instead for a select few channels that they wish to order a la carte-style. It's also good that you've been able to successfully recognize some of the potential barriers to entry for your idea, and I think that greatly aids in one's understanding of the idea.
ReplyDeleteHi Daniel,
ReplyDeleteI like the idea of a new cable company because I have a similar problem as your proposed customer base. I rarely watch television and only for certain stations, so basic cable packages are a waste of money for me. I think your company would work great too if users had online access to channels. Given how cable companies have a lot of influence (check out the recent court hearings on the net neutrality act- cable companies are all in it for the money), it may be difficult to emerge on that market. But once you're established, you'd take a lot of business from cable companies.