WorldSpace Satellite Radio: Fading Signals?


WorldSpace Satellite Radio: Fading Signals?
Case Code: BSTR239
Case Length: 22 Pages
Period: 1990-2006
Pub Date: 2006
Teaching Note: Available
 Price: Rs.400
Organization: WorldSpace Corporation
Industry: Media, Entertainment and Gaming
Countries: The US, India, Africa
Themes: Corporate Strategy
WorldSpace Satellite Radio: Fading Signals?
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

WorldSpace Corporation, the pioneer in the satellite radio service industry, was formed in 1990 by Noah Samara. The company's mission was to use satellite radio to disseminate information to normally unreachable areas in third world countries. WorldSpace was launched in Africa in 1998 and in Asia in 2000.

WorldSpace provided around 60 channels, which included music, news, sports and general information channels, in many languages. Initially the company did not have a clearly articulated business model, as the satellite radio industry was still in its infancy. The company's revenues were dependent only on the sales of its satellite radio receivers.

However, in 2004, WorldSpace introduced a global subscription model, whereby it began sell its receivers for a relatively low price, and converted most of its channels into subscription channels. By 2006, India, with more than 75% of the company's subscribers, had become the company's primary market.

This case discusses the strategies and business models adopted by WorldSpace over the years. It talks about WorldSpace's developmental programs and commercial initiatives in all its markets. The case also discusses WorldSpace's operations in India and how the company adopted a region-centric approach to succeed in this market. The case ends with a discussion on how WorldSpace could improve its revenues in future.

Issues

The case is structured to achieve the following teaching objectives

  • To analyze the nature, potential and use of satellite radio, and its advantages over terrestrial radio
  • To study the operational model of a company that was considered the pioneer in its industry
  • To examine the localization attempts of a global satellite service provider
  • To analyze the issues involved in localizing a service
  • To examine the efficacy of experiential marketing as a promotion strategy, especially in the case of new products and services using new technologies
  • To examine the weaknesses in the business model of the satellite service provider and to examine the potential sources of revenue

Contents

Keywords

MTV Networks, MTV International , Viacom Inc. , Music channels, Region-centric approach, Television programming, Localization strategy, VH1, International expansion, "Think global Act local", Online video sharing, Globalization, Channel [V], Youth brands, Nickelodeon

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