Photo AI
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. Based on Extracts A... 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
Join forces with the UK's other public broadcasters
Answer
This option involves collaboration with other public service broadcasters (PSBs) in the UK, such as BBC and Channel 4. The benefits may include:
- Economies of scale: By pooling resources, ITV might reduce average costs to improve competitiveness against Netflix.
- Shared content library: Collaborative efforts could lead to a richer content offering, appealing to a wider audience.
- Enhanced investment capability: Combining financial resources could support technological advancements crucial for an OTT platform.
However, challenges include potential organisational clashes due to differing objectives and the possibility of regulatory scrutiny.
Step 2
Operate independently
Answer
This strategy would see ITV act alone in competing against Netflix. The advantages could be:
- Control over content and direction: ITV would have complete autonomy over its programming and business strategies.
- Brand identity strength: Establishing a unique identity might attract specific consumers.
Yet, the drawbacks involve:
- Higher operational costs: Without shared resources, ITV could face increased challenges in funding and sustaining its platform.
- Limited content library: Without partnerships, the content offerings may not rival the extensive library available on Netflix.
In conclusion, while operating independently allows for greater control, the collaboration with other PSBs could leverage shared strengths, ultimately leading to a more competitive position against Netflix.