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ITV could either join forces with the UK's other public broadcasters or operate on its own as 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 as a viable rival to Netflix for UK consumers. Based on the information i... show full transcript
Worked Solution & Example Answer:ITV could either join forces with the UK's other public broadcasters or operate on its own as a viable rival to Netflix for UK consumers - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Evaluate joining forces with other public broadcasters
Answer
Joining forces with other UK public service broadcasters could allow ITV to pool resources, benefiting from economies of scale. This would enable the sharing of content and technology, possibly enhancing their competitive leverage against Netflix. Collaborating with outlets like the BBC and Channel 4 could also lead to a richer content library, potentially appealing to a wider audience. However, strategic alignment would be necessary, and previous attempts like the Kangaroo project faced regulatory challenges.
Step 2
Evaluate operating independently
Answer
Operating independently may allow ITV more control over content and innovation without the complexities of partnership dynamics. This could facilitate faster decision-making and tailored content creation. However, the capital needed for technological advancements and content production might be a limiting factor, especially as Netflix invests significantly in original programming. ITV would need to find ways to sustain its financial health while competing fiercely in the OTT market.
Step 3
Recommendation
Answer
Given the increasingly competitive nature of the OTT sector, a joint venture appears to be the more strategic choice for ITV. This collaboration would enable ITV to leverage shared resources and reduce costs, while enhancing the range and quality of content available. Ensuring that all partners have aligned objectives can maximize the potential of this approach, ultimately enhancing ITV's position as a formidable competitor to Netflix.