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. (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 these two options: Joining Forces with Other Public Broadcasters
Answer
Joining forces with other public broadcasters like BBC and Channel 4 can provide several advantages, such as sharing resources and pooling funds to improve content delivery and reduce operational costs. This collaboration could help ITV to build a stronger OTT service to compete with Netflix.
However, ownership conflicts and differing objectives might arise, as each broadcaster has distinct goals, which could lead to organizational challenges. Additionally, regulatory hurdles might affect the joint venture’s success.
Step 2
Evaluate these two options: Operating Independently
Answer
If ITV operates independently, it will have more control over its content and strategy. This could facilitate faster decision-making and the development of bespoke content that caters specifically to UK audiences. ITV's current market is already saturated, and relying solely on its current user base may not yield sufficient growth. The move towards individual streaming services is costly, and ITV would need to secure significant investment to develop a competitive offering, especially in a dynamic market.
Step 3
Recommendation
Answer
Considering the current landscape of the streaming market, a strategic joint venture with other public broadcasters would likely provide ITV the synergy required to remain competitive against global giants like Netflix. By combining resources, ITV could take advantage of economies of scale, broaden its content library, and enhance its service offerings, ultimately making it a viable competitor in the OTT space.