Growth through Concentrated Media and Evolving Markets

Growth through Concentrated Media and Evolving Markets
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Growth through Concentrated Media and Evolving Markets
Success over Time
Media is among the most evolving industries. With people becoming more connected while enhancing their demands for entertainment and information, media houses have resorted to developing new avenues of becoming relevant. Partly, concentration is one of the strategies that such media outlets pursue with the aim of making bigger impacts. Even amidst the strategic changes through alliances, media outlets have stayed only strategic to revitalize their operational portfolio to match the consumer needs (Renée, 2016). Home Box Office (HBO) is one such media outlet that has showcased insightful growth since mid-20th to mark their relevance contemporarily.
HBO is one media outlet that has seen a positive trajectory in economic growth since the mid-20th century. In 1972, HBO declared itself as an entity fixated on the already failing industry of pay-tv. On its opening night, HBO only had 400 subscribers (Popoptiq, 2020). The company was further not well resourced to reach out to most of its target consumers in the U.S. The principal operational segment for HBO was Pennsylvania, a place in which the brand was not even preferred. The opening night coincided with a rain-interrupted broadcast that further pushed HBO into failure. By the 1980s, the end of the mid-20th century, HBO still only had 9.8 million subscribers in the U.S. market, a share that was limited considering the growth of television in the 1980s (Renée, 2016). The principal source of income in the 1970s and 80s for HBO would be equity sales with Sterling’s $3 million direct investment and raised Time’s equity in the company translating to $6.4 million (Popoptiq, 2020). 40 years later, HBO has seen a notable global transformation. HBO is the largest pay-tv service in the world with operations in the U.S., the Pacific Rim, Latin America, and Europe, with subscribers totaling 114 million in the U.S. alone. The company also raises $3 billion in annual revenues. Presently, HBO is among the most recognizable brands in the world.
Impacts on Growth Potential
There are multiple factors in the media industry that affect the growth trajectory in various organizations. Primary among such factors is technology. Technological developments affect how media outlets interact with their consumers (Aspden, 2011). With the advancements in technology, media outlets can receive efficient and fast feedback from their subscribers. The feedback information can be employed to deliver efficient services to those consumers. One area in which technology has been vital in the growth of television is the advancements in streaming services. Since 2007, media companies have been scrambling to be the best streami...