UNIVERSAL NETWORKS INTERNATIONAL

Universal Networks International

Universal Networks International

Introduction:

Universal Networks International, the global channels division of NBCUniversal, is one of the world's premier entertainment networks, delivering quality content and compelling brands to over 387 million subscribers in over 150 territories across Europe, the Middle East, Africa, Latin America and Asia. The portfolio includes the brands - Syfy Universal, DIVA Universal, Studio Universal, Universal Channel and 13th Street Universal and now also, with the acquisition by Comcast Corporation, E! Entertainment Television, The Style Network and Golf Channel. These brands deliver a full range of entertainment experiences to local audiences across the globe. Universal Networks International also operates Movies 24 and has an interest in the KidsCo joint venture.

Universal Networks International is part of NBCUniversal, one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Comcast Corporation owns a controlling 51% interest in NBCUniversal, with GE holding a 49% stake.

 

Threat of Entry:

 In the case of the UNI the threat of a new broadcasting firm entering the market is not very high due to the large capital requirements. Furthermore, there exist other barriers to entry, principally product differentiation due to brand identification.

 However, the impacts of digitalisation and  technological advancements that have made this market more competitive and mean to end present forms of spectrum scarcity, thus removing the

Near-monopolistic conditions broadcasters have enjoyed.  Although new competition policies exist that impose control of transmission the UK is said to have a “uniquely favourable regulatory system based on the early liberalisation of telecommunications and the gradual development of competition in broadcasting.”

 Threat of Substitutes:

 Substitutes refer to similar products of different brands (Sky, ITV, etc) or different products itself (movies, other means of entertainment and news like the internet).  UNI is affected by many substitutes, some more than others. The movie industry seems to be the main substitute .If there is a must see movie on at the cinema, viewers may decide to go and view that instead.  Another key substitute is events such as concerts and sporting events. However, these do not take place that often and hence do not greatly affect the UNI's profitability.

 

Threat of Buyers (Bargaining Power):

 UNI's main customers are the viewing public and the many companies that advertise their products on the UNI .  The viewers share a very high bargaining power as there is a lot of competition in the industry.  If viewers do not like what they are seeing then they will switch over to another channel and not watch UNI .  This is illustrated by the fact that many shows do not make it past the pilot show.  The UNI's profitability is thus dependent on the amount of viewers it can attract.  The more viewers it can acquire the more profitable the UNI will become.  Therefore, this bargaining power of customers has a great impact on the UNI's overall profitability.

Companies advertising on UNI however will have limited power as although there are many broadcasters that are reliant on commercial ...