The Fashion Channel Essay

1330 Words Nov 22nd, 2013 6 Pages
Case study Analysis: The Fashion Channel
Introduction:
“The Fashion Channel” which is a successful cable TV network and which had been started by two entrepreneurs in 1996, with up to date and entertainment features and information broadcast 24×7 which was related to fashion only.
The channel was actually dedicated to fashion only and its main audience were women of 35-54 age group. Earlier TFC’s tagline was “Fashion for Everyone” In 2006 TFC has earned the revenue of $310.6 Mn out of which their target was to earn a profit of $230 Mn only through advertisement. Till 2006 TFC was the market leader in fashion related programs and one of its more popular series in 2005 had been “Look Great on Saturday Night for Under $100.
In 2006 TFC
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Prices were expressed as CPM (cost per thousand), which represented the price that an advertiser would pay for an advertisement.
There were two main source of generating revenue for TFC and that was one by ad revenue and another was through cable affiliation fee. Most U.S. households subscribed to cable television through local affiliates of a large cable multi-system operator, multi-system operators (MSO) would sign multi-year contracts with networks that specified the fee the network would receive for each household that received the channel. The local affiliates of that MSO marketed and distributed the service to consumers in all the local markets for which they held a franchise.
There were mainly two kinds of channel were existing and that was premium channel or basic channel and TFC was a basic channel so most consumers received it automatically when they signed up for basic cable service.

Competitive threats: CNN and Lifetime were the two biggest threats for the TFC because there ratings were also higher in comparison to TFC. TFC has rating of 1.0 throughout whereas CNN had the rating of 3.3 and Lifetime had 4.4. The study showed that TFC was facing additional competitive challenges in its attractiveness to cable affiliates. On a scale of 1 to 5, TFC had achieved a 3.8 rating on consumer interest in viewing, while the two competitors with new fashion programming had scored higher: CNN had

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