Case Study

GOES GLOBAL, WITH A LOCAL ACCENT

MANAGEMENT FOCUS
* MTV Networks has become a symbol of Globalization.

*
*

Estabished in 1981, US-based Music TV network.

Expanding since 1987 when it opened MTV Europe.

*
*

Currently, owned by media conglomerate VIACOM.

Other channel partners: Nickelodeon, VH1

Generates more than $1 billion in revenues outside US

in

* By 2004, 72 channels, 321 million household veiwership, 140 countries.

However, the most rapid growth of MTV is in Asian continent.

In Asia, nearly 3 billion people are under 35, and the middle class is expanding quickly.. TV ownership is spreading rapidly.

* *

Almost 2 million people are watching MTV around the world, the majority outside the US.

SO, WHAT IS THE SECRET BEHIND MTV's GLOBAL SUCCESS ?

MTV had to overcome lot of challenges before it became a Global hit.

Initially, it aired only American programs with English speaking VJ s throughout the Europe assuming that Europeans would flock to the see and hear more about American programs.

But, suprisingly their tastes were mainly Local except for a handful of global superstars like Madonna and Michael Jackson. MOST EUROPEANS PREFERED LOCAL POPULAR MUSIC.

Similarly, what was popular in Germany might not be popular in Great Britain. EACH COUNTRY HAS ITS OWN UNIQUE AND FAVOURITE MUSIC SCENES AND SONGS. PEOPLE WOULD LOVE TO HEAR THESE MORE THAN ADAPT TO FOREIGN MUSIC. MTV clearly failed to understand this core principle. As a result, MTV suffered and started to decline. Soon there were many Local copystations in Europe that catered to individual countries Music scenes.

* * *

Local copycat music stations soon took away viewers and large portion of Advertising revenue away from MTV. * * * In 1995, MTV completely changed its Strategy.. BY ADOPTED LOCALIZATION STRATEGY For eg: In Asia, MTV Network has an * * * * English-Hindi channel for India Mandrine feeds for China and Taiwan Japanese feed for Japan Bahasa-language feed for Indonesia and so on... .

Use of Digital and Satellite technology of transmission of localized programs greatly saved lot of time and effort.
MTV exercises CREATIVE CONTROL over these different feeds. * All the channels irrespective of the language have the same familiar frenetic look and feel of MTV. Local MTV stations are first started using Expatriates From elsewhere in the world. This helps MTV to do Gene transfer of company's Culture and Operating principles.

` *

Once estb., the network switches to local employees And Expatriates move on..

Around 60% of programs still originates in US, like The Real World' having equivalents in different countries. However, to retain its popularity MTV has been increasing the share of local programs. Some of the popular local MTV programs in India include: * * * MTV Bakra real-life comedy scenes cricket inside stories Hindi film stars

MTV Cricket in ControlMTV Houseful -

(Bollyhood)

WHAT DID THE MTV GAIN FROM ALL THESE STRATEGIES ? ?

* Between 1996 2000, MTV rating in India scaled more than 700%.
* MTV captured about 70% of its European Advertising revenue. * Similar trends are evident elsewhere in the world. * Phenomenal increase in MTV viewership across the countries. * By 2004, 72 channels, 321 million household 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, especially in non-english speaking countries like Asia and Europe. The rationale behind MTV's LOCALIZATION STRATEGY is to get 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

THANK YOU