WorldSpace Satellite Radio: Fading Signals?
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
Case Code |
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BSTR239 |
For delivery in electronic format: Rs. 400; For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extraThemesCorporate Strategy |
Case Length |
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22 Pages |
Period |
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1990-2006 |
Organization |
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WorldSpace Corporation |
Pub Date |
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2006 |
Teaching Note |
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Available |
Countries
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The US, India,
Africa |
Industry |
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Media,
Entertainment, and
Gaming |
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.
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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:
» 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
Creating A New Identity
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