Chapter 3 Will Tv Succumb to the Internet?

1. What competitive forces have challenged the television industry? What problems have the forces created?                                                                                      

The main competitive force for the television industry that has challenged it it anyway would be the Internet.   There’s not really too many competitors for television, but the internet is a big one.   Anyone with Internet access would be able to access websites such as, YouTube, Hulu, and Netflix. These websites give subscribers access to full television episodes and movies for a low fee if not free.   The low costs of these websites may cause some users to cancel their cable subscriptions all together.

2. Describe the impact of disruptive technology on the companies discussed in this case.

The impact of disruptive technology is steadily occurring to the companies from this case. Cable companies one side of the issue are enjoying the internet as a way to broadcast their shows to other potential customers, but companies like Hulu, as stated in this case, are still practically unprofitable.   The company Hulu, produced $100,000,000 in advertising revenue in the first two years of business, but they may have to add more advertisements or higher subscription fees to their costs.

3. How have the cable programming and delivery companies responded to the Internet?

The cable programming and delivery companies are responding the only way they can, combat it with something else new and exclusive to the television subscribers.   The internet has provided new ways for television studios to distribute and sell their content. Television networks have began to put television shows on their websites. In July 2009, Comcast Corp. began a trial program to bring some network shows to the web. By making more shows available online through the Internet cable companies are hoping to keep their current customers and hopefully add a few more.

5. Have the cable companies found a...