“MTV is a global brand which thinks and acts locally.
We reflect the taste and demands of our viewers and this
differs in each market. Thus the need to create specific channels ( in each country) that meet the needs of our target audience.” - David Flack, Senior Vice President of MTV Asia Introduction MTV, the first ever cable music channel, was launched on August 1, 1981 by Warner Amex Satellite Entertainment Company, a joint venture between Warner Communications and American Express. In 1984, the company was renamed MTV Networks (MTVN) MTV’s target audience had typically been people in the 12 to 24 age group. MTV encourage emerging musical talent. Little known musician became popular after their songs were aired on MTV. It credited with the success of many musicians and groups like Madonna, Michael Jackson, The Police and Nirvana. In 1986, MTVN was acquired by Viacom Inc. 1990s, MTVN launched other new channels like VH1 Classic, MTV 2, MTV U, MTV Hilts, etc to cater to specific demographics.
Over the years, MTVN became Viacom’s core network,
bringing in most of the company’s revenues. In US alone, it reached 87.6 million homes. In mid 2006, MTVN accounted for about 85 percent of Viacom’s operating profits. MTV had to overcome lot of challenges before it became a Global hit Initially, it aired only American programs with English speaking VJs throughout countries assuming that viewers would flock to the see and hear more about American programs. But, surprisingly their tastes were mainly Local except for a handful of global superstars like Madonna and Michael Jackson. MOST VIEWERS PREFERED LOCAL POPULAR MUSIC. 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 copy stations 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 ADOPTING LOCALIZATION STRATEGY Like MTV Network EUROPE- MTVN Europe launched MTV Italia. Its one of the biggest channels in terms of advertisement revenues and reach. MTV India -There were ‘Indianized’ programs like MTV Bakra, Fully Faltoo, Roadies etc. MTV India had become the leading Indian music channel in terms of advertising revenues with a 35% market share. Factors that led Success of MTV
The region centric approach – Think Globally, Act
Locally. Acquiring the local channels of many countries : Earlier the company tie up with a local company for initial launch and acquiring the channel later. MTV’s efforts to understand the tradition and culture of the country in which they operated e.g.,. Indonesia calls for prayers were aired on MTV everyday. Company’s policy of providing creative and commercial autonomy to the local channels led to innovation and vast expansion of the regional channels. MTV’s structure was also decentralize to give the local staff complete control over operation. Target Group: In 2000s- the global population in the group was estimated 2.7 billion. The rise in purchasing power of the age group, led advertisers choosing MTVI to promote at the international level. Risk of Globalization in Future Rise of Competition from – television, growth of internet and availability of online videos from you tube and my space.
Vast expansion means total commitment on the part of the
company and sometimes it becomes difficult to manage efficiently each and every region of operation.
Difficulty in understanding the culture- MTV vast expansion
can lead to cultural misunderstandings of many regions also.
The taste and preferences of the target market served by MTV