Introduction Dawn of an Empire Ipek Hizlikan, Elena Ponomareva, Sanjeev Masih, James Freckleton

“Ladies and gentlemen, rock and roll,” The Birth Launched on August 1 st 1981 First MTV Video: Video Killed the Radio Star Early videos came mostly from British artists Second Launch 1983: Expanded into Manhattan and LA Phase 3 Viacom purchased MTV from Warner Amex

Decline and Restructure Decline Viewership decline with lack of content Restructure Started offering Yo! MTV Raps, Club MTV, etc. Move from only music videos to full service programming 1985: Launched VH1 for soft rock and adult viewers

Expansion Competition at home BET, CMT & TNN emerged as local competitors “I Want My MTV” 1987: MTV Europe is launched 1991: Asian markets 1993: MTV Latino

Early Strategy Standardization

“One Size Fits All” Initially treated all markets like the US market Standardization strategy Same music videos were aired worldwide American programming with English-speaking veejays However, viewer’s tastes turned out to be local Lack of local artist representation Audience wanted programs in their native languages

One Size Does NOT Fit All! Lost advertising revenue Some companies could not afford to advertize across Europe Brands differed across nations Others were only available in specific markets Local copycat stations started springing up everywhere

New Strategy Localization

Solution? Europe Asia USA

Think Globally, Act Locally! MTV World today: Same look and feel as MTV USA BUT majority of local programming and content

Benefits and Costs Value creation strategy Attractive to more European/Asian local customers Significant revenue increase Inability to achieve Economies of Scale through standardization

Marketing Landscape

Hurdles MTV was pressured for local responsiveness Strong competition in local markets VIVA in Germany; MCM in France Localizing would reduce benefits from Economies of Scale

Strategy MTV proceeded with a hybrid strategy A heavy emphasis placed on localization Goal was to distinguish itself from rivals through more relevant programming Local versions of popular US programs produced Local concepts were used (e.g. Erotica in Brazil) A smaller emphasis on standardization Basic business model was still applied abroad Some US programs were still screened abroad

Initial Strategy Predominately standardization Final Strategy Predominately localization Outcome Increased Value (V) Lower Cost (C) Increased Value (V) Lower Cost (C)

Outcome Continuing standardization spelt doom To adapt, MTV pursued a strategy based on localization Retained some efficiency in doing so Scale economies: satellite beaming multiple channels Learning effects: deeper market understanding Location economies: look-and-feel of channel developed entirely within the US

Viewer Statistics MTV Networks’ brands are seen globally by 560 million households in 162 countries 33 languages are represented across the 150 locally operated TV channels The MTV channel itself reaches 387 million households worldwide It is the #1 media brand in the world

What does the future hold?