“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

is changing rapidly.