Risks threatening NBCUniversal cable network division
NBCUniversal risks losing key personnel if the cost of retaining such talents rise substantially, which would affect the company significantly. NBCUniversal’s business divisions’ international operations are prone to turmoil in the universal economy, changes in local laws and trading regulations, inflationary pressures, and foreign exchange rate fluctuations. Also, NBCUniversal’s risks losing viewers and advertisement income if they fail to obtain sports telecasting rights (Comcast, 2016).
Threats of reduced distribution revenues
NBCUniversal risks losing its audience and recording low advertisement revenue if it fails to renew the distribution agreements it entered with SVOD (which allows …show more content…
Lower program ratings may influence advertisers’ inclination to pay for advertising spaces on NBCUniversal networks.
Seasonal and Cyclical Factors
NBCUniversal broadcasting television and cable networks business’ advertising revenues are prone to program ratings and advertising cyclicality. The advertising returns in the 2nd and 4th quarter these sectors are usually on high owing to increased advertising in the holiday and the spring season. In the case of major events, advertising fluctuates. For instance, during major sporting events or the U.S. presidential election, advertising revenue increases. Nonetheless, operating costs equally rise during the broadcast of major events, as production and programming outlay also tend to increase (Pelts, 2015).
Competition
NBCUniversal broadcast television and cable networks businesses are encountering serious rivalry for carriage or related fees, distribution, and programming from other media firms including the 21st Century Fox (FOXA) and Walt Disney Company (DIS). Also, the firm’s broadcast television and cable networks businesses are competing for viewers’ attention and advertisers owing to the different nature of programming provided by OTT (over-the-top) services, such as Netflix and other media firms (Comcast,
NBCUniversal risks losing key personnel if the cost of retaining such talents rise substantially, which would affect the company significantly. NBCUniversal’s business divisions’ international operations are prone to turmoil in the universal economy, changes in local laws and trading regulations, inflationary pressures, and foreign exchange rate fluctuations. Also, NBCUniversal’s risks losing viewers and advertisement income if they fail to obtain sports telecasting rights (Comcast, 2016).
Threats of reduced distribution revenues
NBCUniversal risks losing its audience and recording low advertisement revenue if it fails to renew the distribution agreements it entered with SVOD (which allows …show more content…
Lower program ratings may influence advertisers’ inclination to pay for advertising spaces on NBCUniversal networks.
Seasonal and Cyclical Factors
NBCUniversal broadcasting television and cable networks business’ advertising revenues are prone to program ratings and advertising cyclicality. The advertising returns in the 2nd and 4th quarter these sectors are usually on high owing to increased advertising in the holiday and the spring season. In the case of major events, advertising fluctuates. For instance, during major sporting events or the U.S. presidential election, advertising revenue increases. Nonetheless, operating costs equally rise during the broadcast of major events, as production and programming outlay also tend to increase (Pelts, 2015).
Competition
NBCUniversal broadcast television and cable networks businesses are encountering serious rivalry for carriage or related fees, distribution, and programming from other media firms including the 21st Century Fox (FOXA) and Walt Disney Company (DIS). Also, the firm’s broadcast television and cable networks businesses are competing for viewers’ attention and advertisers owing to the different nature of programming provided by OTT (over-the-top) services, such as Netflix and other media firms (Comcast,