Diversification strategies of broadcasting firms

Abstract

What are the methods in which a media broadcasting company diversifies? Does it open its new channel in house? Or does it acquire a new set of channels? Does it make sense for a broadcasting company, whose core competency is making content, to enter into the distribution business as well? This report studies the 3 main diversifications strategies expansion behaviors of 3 of India’s top broadcasting companies – Star, Sony and Zee. – The first diversification strategy is the channel portfolio expansion strategy for which the ways in which the players have expanded their portfolio of channels, the rationale behind their approach, and possible inferences from the same, have been examined. For this, the DNA of each and every channel of each of the 3 broadcasting companies has been analyzed, the target audience, its positioning, method of launching the channel and how it fits in the company’s larger strategy by complimenting its existing set of channels. The Channel Diversification matrix has been devised to better understand the strategies of each of these players. The other two diversification strategies are horizontal and vertical integration for which various the endeavors of these 3 companies to expand horizontally or vertically have been studied as well as the intentions behind each venture and whether or not the company succeeded.