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WITH THE NAME OF ALLAH THEWITH THE NAME OF ALLAH THE

MOST BENEFICIENT THEMOST BENEFICIENT THEMECIFULL.MECIFULL.

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I CRAVE TV.COMI CRAVE TV.COM

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GROUP MEMBERSGROUP MEMBERS

MadeehaMadeehaTariq.Tariq.

Maria Afzaal.Maria Afzaal. AmmaraAmmaraYounis.Younis.

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I Crave TV .comI Crave TV .com

Beat right place, at right time.Beat right place, at right time.Take massive, immediateTake massive, immediate

actionaction(Bill gates)(Bill gates)

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IntroductionIntroduction

I crave TV was founded by McCallum andI crave TV was founded by McCallum andWilliam Craig.William Craig.

I crave TV stands for conidian radio andI crave TV stands for conidian radio andvideo entertainment.video entertainment.

They wanted to create a new extensionThey wanted to create a new extensionmarket for the release of televisionmarket for the release of television

programming.programming. They aim to become a dominant TVThey aim to become a dominant TV

aggregator retransmitted on the internet.aggregator retransmitted on the internet.

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History of I CraveHistory of I Crave

Craig asked a question why can't you putCraig asked a question why can't you puttelevision on your computer screen to his grouptelevision on your computer screen to his groupfriends.friends.

Reaction from his group friends led him to thinkReaction from his group friends led him to thinkthat they thought it an infeasible idea.that they thought it an infeasible idea.

But with the advent of broad and penetration ofBut with the advent of broad and penetration ofinternet and cable television, into house holdinternet and cable television, into house holdMcCallum knew that the penetration of fiberMcCallum knew that the penetration of fiberoptics would rapidly spread.optics would rapidly spread.

It was estimated that by the start of 2000, broadIt was estimated that by the start of 2000, broadband access would comprise 50% of the internetband access would comprise 50% of the internetservice provided (ISP) market.service provided (ISP) market.

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An overview of the North AmericaAn overview of the North America

Broadcast Industry.Broadcast Industry.

According to the survey in 2000 98.2According to the survey in 2000 98.2percent of the total U.S household ownedpercent of the total U.S household ownedT.V sets and 75.6 percent owned two orT.V sets and 75.6 percent owned two or

more sets.more sets. Average daily use was six hours and 57Average daily use was six hours and 57

minutes.minutes.

Neilson Media research measured theNeilson Media research measured the

viewing habits of this audience and rankedviewing habits of this audience and rankedaudience size by rating points and shareaudience size by rating points and share

points.points.

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Rating points would be used by media buyers forRating points would be used by media buyers forthe purpose of determine advertising rates.the purpose of determine advertising rates.

Share points would be used by networks toShare points would be used by networks todetermine the success of each individualdetermine the success of each individual

television programmed.television programmed. The U.S television market was the target in theThe U.S television market was the target in the

would and was served by three main distributionwould and was served by three main distributionchannels.channels. National Television networks.National Television networks. Independent commercial television stations.Independent commercial television stations.

To maintain a network license commission (FCC)To maintain a network license commission (FCC)rules station must broadcast at least 28 hours arules station must broadcast at least 28 hours aweek and at least 2 hours every day.week and at least 2 hours every day.

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Broad casting television accounted for 20%Broad casting television accounted for 20%of the total U.S advertising spending.of the total U.S advertising spending.

Radio accounted for approximately 8% ofRadio accounted for approximately 8% ofthe total U.S advertising spending.the total U.S advertising spending.

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An advertising based ModelAn advertising based Model

AC Neilson acted as a paid referee. He regularlyAC Neilson acted as a paid referee. He regularlypolling consumer to determine the most popularpolling consumer to determine the most popularprogram.program.

These poll results allowed the players in theThese poll results allowed the players in the

broadcast industry to price their productbroadcast industry to price their productopportunity.opportunity. Almost all stakeholders in the industry dependedAlmost all stakeholders in the industry depended

on advertisements.on advertisements. To stay in the business, they had to satisfyTo stay in the business, they had to satisfy

subscribers, viewers or listeners by providingsubscribers, viewers or listeners by providingdesirable programs.desirable programs. U.S radio and T.V stations typically got 90% ofU.S radio and T.V stations typically got 90% of

their revenues from advertising.their revenues from advertising.

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The AdvertisersThe Advertisers

Advertisers paid to place their televisionAdvertisers paid to place their televisioncommercials on programs that wouldcommercials on programs that wouldreach their target audience.reach their target audience.

AC Neilson polled consumer about theirAC Neilson polled consumer about theirviewing habits and charted the popularityviewing habits and charted the popularityof the various television shows.of the various television shows.

Advertising agencies charge a commissionAdvertising agencies charge a commissionof about 10 to 15% of the cost placing theof about 10 to 15% of the cost placing the

advertisement.advertisement. Networks generally sold about 80% ofNetworks generally sold about 80% of

their available time slots In the advance.their available time slots In the advance. The rest of advertisements was sold onThe rest of advertisements was sold on

the scatter market.the scatter market.

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The television NetworksThe television Networks

U.S networks were divisions of largerU.S networks were divisions of largercorporations like ABC was owned by CBScorporations like ABC was owned by CBScorp., FOX was owned by NEWS corp. andcorp., FOX was owned by NEWS corp. and

NBC was owned by General Electric Co.NBC was owned by General Electric Co. ABC,CBS and NBC provided their roughlyABC,CBS and NBC provided their roughly

650 stations affiliated with about 22hours650 stations affiliated with about 22hoursof prime time per week and a substantialof prime time per week and a substantialamount of programming for their timeamount of programming for their timeperiod.period.

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Affiliated programs has been paid forAffiliated programs has been paid for

broadcasting their programming andbroadcasting their programming andnational commercial.national commercial.

Fox network, established in 1996 hadFox network, established in 1996 had211 affiliated and a prime time211 affiliated and a prime time

audience reach of about 96% ofaudience reach of about 96% ofAmerican Television Homes.American Television Homes.

Now instead of paying for aNow instead of paying for apackage of 200 channels, viewerspackage of 200 channels, viewerscan select personalize channels andcan select personalize channels andwould be billed per selectionwould be billed per selection

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In Canada there existed threeIn Canada there existed threenational television networks.national television networks.

Global. CTV and government fundedGlobal. CTV and government funded

CBC. Much of Canadian primetimeCBC. Much of Canadian primetimetelevision programming originatedtelevision programming originatedfrom the united states.from the united states.

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Broadcast Television StationsBroadcast Television Stations

Top 25owners of U.S televisionTop 25owners of U.S televisionstations together controlled 36% ofstations together controlled 36% ofthe 1200 US commercial televisionthe 1200 US commercial television

stations.stations. In Canada CHUM group was theIn Canada CHUM group was the

majority owners of the largest groupmajority owners of the largest group

of television stationsof television stations TV stations revenues came primarilyTV stations revenues came primarily

from three sources.from three sources.

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1.National Spot Advertising1.National Spot Advertising

2.Regional Advertiser2.Regional Advertiser

3.Network Compensation payments3.Network Compensation payments

A stations competitive positionA stations competitive position

depends on network affiliation,depends on network affiliation,programming quality, managementprogramming quality, managementability and technical factorability and technical factor

Television stations frequently madeTelevision stations frequently madesubstantial finance commitments tosubstantial finance commitments toguarantee their access to programsguarantee their access to programs

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Cable Television SystemCable Television System Cable System operators received signalsCable System operators received signals

from their program providers by severalfrom their program providers by severalmeans, special antennas, microwavemeans, special antennas, microwaverelays systems, earth stations and fibrerelays systems, earth stations and fibre

optic cables.optic cables. Cable providers retransmitted networkCable providers retransmitted network

broadcasts without paying them anybroadcasts without paying them anyroyalties.royalties.

Unlike broadcast television, cable systemUnlike broadcast television, cable systemproviders derived most of their revenuesproviders derived most of their revenuesfrom monthly subscriber fees.from monthly subscriber fees.

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In Canada Rogers Cable systems wasIn Canada Rogers Cable systems wasthe major player.the major player.

Although there were thousands ofAlthough there were thousands ofcable, system in the United Statescable, system in the United Statesthe industry has been dominated bythe industry has been dominated by

the top 25player.the top 25player. Cable providers could offer such newCable providers could offer such new

services as digital video, highservices as digital video, high--speedspeedInternet access, local and longInternet access, local and long

distance telephone servicesdistance telephone services Cables growth over the past 15Cables growth over the past 15

years had hurt broad cast televisionyears had hurt broad cast television

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Syndication DealsSyndication Deals

Content producers were free to sellContent producers were free to selland syndicate their programs toand syndicate their programs tocompeting and international stations.competing and international stations.

All broadcast stations obtained someAll broadcast stations obtained someprograms free independent sources.programs free independent sources.

These programs are mainlyThese programs are mainly

syndicated TV shows and syndicatedsyndicated TV shows and syndicatedfeature films.feature films.

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Syndicators sometimes soldSyndicators sometimes soldbroadcast stations a license tobroadcast stations a license to aasyndicated programsyndicated program

Cash price of syndicatedCash price of syndicatedprogramming varied, depending onprogramming varied, depending onits perceived desirability and theits perceived desirability and thenumber of times it was to be airednumber of times it was to be aired

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SWOT ANALYSISSWOT ANALYSIS

STRENGTH:STRENGTH:

They become the dominant TV

aggregator retransmittor on the internet.I crave can put television on computerscreen.It serves those who cannot receive

broadcast television such as those in theshadow of the huge can broadcast towerand those in the universities and officeswho cannot receive broadband TV and cable

access.

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WEAKNESSWEAKNESS

I crave TV is a pioneer in internet TV but could notI crave TV is a pioneer in internet TV but could not

maintain its position in the market due to lack ofmaintain its position in the market due to lack ofstrategic planning.strategic planning.

They are the retransmittor of retransmittedThey are the retransmittor of retransmittedsignals.signals.

Not advertising based.Not advertising based.

This was a real service for some people but not aThis was a real service for some people but not aservice that provides any competition to over theservice that provides any competition to over theair broad casters or cable or satelliteair broad casters or cable or satelliteretransmittor.retransmittor.

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OPPORTUNITIESOPPORTUNITIES

Huge TV market.Huge TV market.

Large number of users orLarge number of users or

viewers.viewers. Easy accessibilityEasy accessibility

Keep on doing somethingKeep on doing somethingdifferent than others. Adddifferent than others. Add

value to viewer experiencevalue to viewer experience..

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THREATSTHREATS

Broadcast industryBroadcast industry

Three big Television networksThree big Television networks

cable television system operatorscable television system operators

Emerging of media giants like ABC, NBC, CBS andEmerging of media giants like ABC, NBC, CBS andFOX for gaining further control on media andFOX for gaining further control on media andentertainment industry.entertainment industry.

Copy rights of programs.Copy rights of programs.

Laws and regulations of FCC and CRTC were theLaws and regulations of FCC and CRTC were thethreats for I Crave TV.threats for I Crave TV.

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ANY QUERY.....ANY QUERY.....

??

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