WorldSpace Satellite Radio: Fading Signals?
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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 |
Abstract Case Intro 1 Case Intro 2 Excerpts
"People are as developed as the information that they can access. Hence we are committed to creating information affluence. Radio also reaches out to people where other media simply can't."
- Noah Samara, Chairman and CEO of WorldSpace Corporation, in 2002.
"If people can pay for superior content on TV, they can do it for radio as well. Those who had heard WorldSpace swore by its content."
- Farokh Balsara, a senior partner and Media & Entertainment Practice Leader at Ernst & Young India, in 2006.
Creating A New Identity
In July 2006, WorldSpace India Pvt. Ltd. (WorldSpace India) launched an integrated marketing communications campaign in a bid to strengthen its presence in the country. The campaign included a new series of television advertisements as well as special events like concerts and award shows.
The company also signed on popular Indian music composer A R Rahman (Rahman) as its brand ambassador. Rahman composed a new signature tune for the company, which was to be featured in all the company's television and radio advertisements. WorldSpace India, which had launched its services in the country in 2000, was a wholly-owned subsidiary of WorldSpace Corporation USA (WorldSpace).
WorldSpace, the world's first digital satellite radio service provider, had launched its service (also called WorldSpace) in Africa in 1999. The service was initially launched with the mission of creating 'information empowerment' in Africa and other third world regions, although the company later started offering commercial channels and entertainment as well. At the beginning, WorldSpace offered the same channels in all its markets, but after its launch in India, the company adopted a region-centric approach, and launched several channels with Indian content.
The campaign launched in India in 2006 was a part of WorldSpace's attempt to create a new global brand identity for itself, under which it adopted a new logo and embarked on restructuring its business model. (Refer to Exhibit I for WorldSpace's old and new logos).
As of mid-2006, the WorldSpace service was available in over 130 countries around the world, and reportedly covered two-thirds of the world's population. WorldSpace aired a number of channels, which delivered music, news, sports, and other information. As of 2006, the company was the leading provider of digital satellite radio services outside the US and Canada....
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