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ITV could either join forces with the UK’s other public broadcasters or operate on its own to create a viable rival to Netflix for UK consumers - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
ITV could either join forces with the UK’s other public broadcasters or operate on its own to create a viable rival to Netflix for UK consumers. (d) Using the data ... show full transcript
Worked Solution & Example Answer:ITV could either join forces with the UK’s other public broadcasters or operate on its own to create a viable rival to Netflix for UK consumers - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Evaluate the option of joining forces with UK public broadcasters
Answer
Joining forces with other UK public broadcasters such as BBC and Channel 4 could provide ITV with several advantages. Firstly, it would enable the pooling of resources and expertise in technology, which is crucial in developing a competitive service against Netflix. This collaboration could help ITV reduce costs through economies of scale by sharing content and infrastructure, subsequently enhancing the quality of the service offered.
Moreover, the combination could provide a diverse portfolio of content that caters to a wider audience, enhancing customer appeal. However, ITV needs to consider the potential issues related to governance and differing objectives among the public broadcasters, which could lead to conflicts and hinder decision-making capabilities.
Step 2
Evaluate the option of operating independently
Answer
Operating independently allows ITV to maintain control over its content and strategy without the constraints that might come from partnerships. This could enable ITV to respond quickly to market changes without the need for consensus from other broadcasters.
Nevertheless, the risk associated with this option is significant. Given the stiff competition from Netflix, ITV would need substantial investment to match the extensive library and technological advantages that Netflix offers. Moreover, without collaboration, ITV may struggle to achieve the necessary scale to compete effectively, which could limit its long-term survival in an increasingly competitive market.
Step 3
Recommendation
Answer
Given the advantages and disadvantages of both options, it is recommended that ITV pursue the option of joining forces with other public broadcasters. This approach would leverage collective strengths and resources to create a more viable challenge to Netflix while allowing for a more diverse content offering. Additionally, the cooperation could lead to shared financial risks and further innovation in developing an OTT platform. While an independent strategy may provide greater control, the challenges of scaling and competing with Netflix’s vast resources would be difficult, if not impossible, to overcome in the current landscape.