Strategizing the Net Business: How the U.S. Television Networks

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The International Journal Strategizing the Net Business: on Media Management How the U.S. Television Networks Diversify, Brand, and Compete in the Age of the Internet

by Sylvia M. Chan-Olmsted and Jaemin Jung, University of Florida, U.S.A.

The exponential growth of the Internet millions of Websites available on the has changed the rules of competition Internet, it is the most cluttered me- in many industry sectors. As the dium in the world. To succeed in mar- Internet reaches as many as half of the keting an online brand, a marketer U.S. residents (Lake 2000; Pastore 2001 most likely will need the distribution of a), it is emerging as a new mass me- communication messages via a mass dium that has grown faster than all medium such as broadcast television existing media (Adgate 2000). The networks to create broad awareness of Internet is also attracting broader and the product or service and/or niche more diverse users. Over half of the U.S. medium such as cable television net- online population now are women, as works to connect with target markets.1 Online Free Access opposed to 42 % in 1996; 62 % are to JMM white-collar workers, as opposed to 71 On the other hand, the increasingly % in 1996; and 38 % are college edu- critical role of the Internet in Ameri- This Journal is available on-line at cated, as opposed to 50 % in 1996 (Lake can media consumers’ daily lives has http://www.mediajournal.org 2000; Pastore 2001 b). The demo- led to a re-orientation of business strat- graphic shift – from early adopters of egy and operations by the leading Our journal is currently available new technology who are young, rela- “mass” medium, the television broad- on-line in PDF format through tively wealthy and predominantly casters. For example, both television simple to use web interface provided male, to average Americans validates stations and networks now frequently by Netacademy. the Internet as a mainstream media cross-promote their online and off-line ■ Fully searchable database platform. In essence, the greater de- content, especially for news and sports- (by issue, by author, and by topic) gree of adoption of the Internet, related television programming (Grande 2 ■ Easy access coupled with the Internet’s unique 1998; Greene 2000). NBC recently characteristics of interactivity and per- launched a multi-platform advertising Please connect to sonalization, amplify the need of inno- plan to focus on cross-platform adver- http://www.mediajournal.org vative business strategies from the tising sales using its cable and broad- for further information. competing media incumbents in their cast networks, television stations, and attempt to counter and/or leverage the Internet properties in an attempt to For any comments send an e-mail popularity of this new market entrant. move away from an ad-reliance business model and reshape its business The strategic importance of the Internet into a more interactive lifestyles man- is especially evident for the television agement, information and entertain- industry as television and the Internet ment company3 (Mermigas 2001). develop a symbiotic relationship that Disney and Fox formed a new joint ven- has significant financial implications. ture, movies.com, to distribute movies Television, especially broadcast and digitally through broadband Internet

www.mediajournal.org cable networks, provides the most de- connections or cable video-on-demand sirable marketing communication services4 (Healey & Verrier 2001). With channels for Internet marketers. With the arrival of digital television, many

JMM – Vol. 3 – No. IV – 2001 213 www.mediajournal.org . t e e o o h es es v el- et- he he ets een een clu- egy vide ving 997) tain- plet egies or in- at he de- o ha ol he dif- ebsit at er tr op.com ency in faced in tr oon N e, and, t al or cen- aditional o pro t tainment ered ex pet ames and tantial con- f hat t he relation- 997). Such he need of a er y ent e sur e failed. The y as some pro- anization t y publicized erences in t he tr v ree of chang v f ation of value e g action betw t 1 vailable broad- ed t tr ed t petitiv viding more in- viding more t er original shor er ere of e more com t subs ts, episodic pro- inancial viability f net seems t heatrical channel omer service, el- v es ple, Car tribution s y a net is also ev net is also t ting business wit er er ypor activ t animations via its he dif er he deg he org o of a he f y pro net. McBride (1 er net business s o ex , and various W he highl Factors enue (peripher er ypassing t y ying com er ors of dependency on t ent dis or t he Int heless, man ree, chang he exis t he relationships betw he use and demand f entures such as P ta or exam , t e direct int anizational com he product/service, t 997) sugg y , cable, or t er ers shor eekl een and oper hem t el & R tribution channel) members. or rev em f ag or s net, and t t elevision indus ev eb v he Int he need of new business dev n (1 he fact he main business activities) and e w er ened t e whose mission was t es in t ating t he-air .S. t r mation about goods and services mation about goods net f tain deg o t y online, b -t ed t ehr e been set up t uired from t y be a result of t mation and cus Influencing Internet Strategies mation. The Int mation. The eg er or el v ms. N amming, int er amming products w ebsit al t ebsit ork deliv r op.com, an online ent ree of org r v he U he Int il or o encour erences in Int or inf enabling t Ang f int ma nature of t g req adopt t producers and consumers in mark and consumers in producers where consumers ha f t trol (Hag new businesses b new businesses chang ha value chain members t g members. F t added t Int tr siv o w f f In summar W height evat opment f a cer ship betw ha ment W chain (dis P w online original shor g video on demand, signals t more mature, widel band sys of such a cont dismissal of t and Wirebreak.com ha - , e e v ed au he he t net hin her elli- 996; t o in- vides eting es er wned pro t con- net is ensiv ucture viding es cus- echner er v tr hat t ett 1 o outper ws a busi- tware and net seems eting, cus- o im e and y s ors. It was net has un- he Int eb retailing pro ed ext er y pro ound ets, pro tr uck ys t er ed t elevision net- t he Int ree of channel iciency wit f e b vides a tremen- es he W anda, Ashill, and net allo he business envi- r he t anchhod & Gur ors, and spa ened communica- he Int an Doren, F he Int er hat t 999; Quelch & Klein egic value of t er 2000). Mos ts of coordination in or t er deg inancial valuation. e present elops business int ed t ets, ef at v e, and im aman (2000) fur aman 2000). In sum- petit ered indus y Backgr h new wa tr 996; R net pro alue of the Internet alue of the trong business relation- he value of t reat 995; V vision Businesses tanding (2000) sugg he Int e. Casag V he cos reed t er ell be in its ability t almer 1 , S e advantag tunity f 998) sugg at he areas of mark ele ence of t w of Literatur y he s ers height ne 1 T enkatr hat t enkatr f omization, reduces mark h a g Adelsberg e imag y chang t y w h various publics t y ag hat t er he valuation of individual com- he value of t Impact of the Internet vie at t heir com h & P er on icall he Int Industr r edl all t in t o access global mark , t net (Ainscough & L net (Ainscough & s oper net has alt it petitiv y scholars ha ens (1 panies wit y f Re y v ts, builds s Strategic Strategic er m t er plied t ts of t ev erce/new mark ork y reducing t ener t ence, of 996; Cronin 1 999: S he value chain, become a source of hat t omer communication and service. omer service/communication, com- o res or ronment in which t w S com b t com doubt The emerg Int Man Int lis cluded t & Green- f Grif 1 1 ness t ships wit corpo mass cus cos coordination, dev tion wit g t Specif mar emerging as a critical backbone of commerce (V value chain, and f t t m dous oppor of “digital goods” such as sof music. V crease t panies and economic sect g t im ma , e e e e o h e- 1; h- eb et- he he he he he wn egy ag ens uit plat- tics, 997). elop- tudy elevi- at er tribu- ev e W aniza- wards ear of eb ad- ement t y com- net be- e pres- tr o es wit echnol- v em he pro- petitiv n 1 trengt er e sho 1 tatis he t ol y as t his s round t v 0 y lev hat evalu- e dis he f pet nativ s, t elson 200 tr ehr net s e pressure, e long been er eb-enhanced v y t aging in t 997). In fact, han using t er ts s ell as intricat heir org he audiences, et. ork he Int panies t ving, it is q nativ 1; N o decide on t tisers’ W he new t IV – 20 eys ha e business model . ms ma ailers and tick he businesses us- e a passiv ors and increas- ol er h t elop com er ed b v pson 2000). ir hinking of leading her t e t 1). There has also ers are cont petitiv erial, online chat, t hat ha y an alt he Int ms t ention. In t at aced t ag egic evaluation of t o enhance t ir net in t ush.” (Ang vie tr he t till ev er 3 – No vlik 200 tribut at o dev y not eng o adv tunities or of damaging er a or its products, s net ha anda, Ashill, & S ol. tr y mat or f eb t r V s t jority of t ers an alt er e b he com o mo – f t in t y critical as w o lev e embr e polling, backg e f

elevision indus net t elevision com v easibility of W easibility pirical surv he same time, com e are s elevision mark ocus on t s t ere motivat he Int elevision netw han s er he W ys in which f his new medium. The dev he ma ush t .S. t he t he f activ he Int net “gold r net of net t or business purposes, man y w y em y producers, t he t h t er ent and approaches of inv her t JMM er er er or audience att amming dis e wa e will f r 998). As business models t heir imag at he Int he dominating channel member in he U hat t elevision applications such as on- applications such elevision or t elevision as merel elevision broadcas w of t wit ment of an appropriat is especiall g t t it f role of t tional goals (McBride 1 man missing oppor t Int Earl t ext ingl f Int tion channel f ens its position wit while at t r ing t ence (Casag Kerschbaumer 200 been a shif sion experience, r t Int using t access device (Thom In a r ogy f panies ha cause of t at 1 a challeng 214 t ing t ing services (P t advantag screen link t and link dresses, localized news services, lat dresses, localized news spor breaking news, documentar int the size of organization.5 It was also sug- jectives and values of the organizations for their Web ventures. They suggested gested that the number of existing or (Gordon 1995; Angehrn 1997). Venka- that the established company model, potential customers with Web access traman (2000) suggested that a com- such as in the case of television net- and information intensity of the prod- pany may approach the Internet by en- works, would have an information-to- ucts would impact the aggressiveness of tering several segments of the Internet transaction content progression pattern. an Internet strategy (Watson & Zinkhan market quickly, simultaneously, and Specifically, an established company 1997). When it comes to using the possibly through alliances to find the would likely start with an Internet strat- Internet as a distribution system of best Internet strategies. egy that focuses on delivering image/ products, Ranchhod and Gurau (1999) product information to existing cus- concluded that the profile of the target Some researchers applied the classic tomers; then evolving to collect market market, product characteristics, types Ansoff’s (1957) growth strategy matrix information, offering better customer/ of organization, degree of competition, in examining various Internet strate- internal support; and finally develop- and the environmental differences in gies (Watson & Zinkhan 1997).6 In re- ing transactional capacity. regulation, economic conditions, tech- gards to the strategy of “market pen- nology, and demand nature will largely etration,” it was proposed that the To assess the television networks’ re- determine the choice of strategies. Internet may be used to increase sales sponse to the development of the From the perspective of the television by taking market share from competi- Internet, we will first review the recent industry, as television networks vary in tors or by increasing the size of the strategic patterns adopted by the U.S. their product information intensity market. In case of the television mar- television networks concerning the (e.g., entertainment-driven Fox versus ket, a television network may expand Internet. As previous literature point information-driven HGTV), types of au- its current market by offering in-depth to the likelihood of differential strate- diences attracted (e.g., mass audience online news that improves the value of gies between companies of various mar- for CBS versus targeted audience for its off-line news products. The network ket characteristics, we will also exam- MTV), organizational sizes (e.g., smaller, may also use its Website to promote ine how the two major network groups stand alone TWC versus CBS as a part of television programs or build virtual – broadcast and cable television – differ the media conglomerate Viacom), regu- communities bound by programming in their Internet strategies and the fac- latory and economic environments interests (e.g., forums on the program tors that might have contributed to the (e.g., different regulatory rationales and Survivor). In regards to the strategy of differences. revenue sources for cable and broadcast “market development,” the Internet networks), and degrees of market com- may be used to develop markets by fa- The Framework for Analyzing petition (e.g., oligopolistic competition cilitating the introduction and distri- Television Networks’ Internet in the broadcast market versus mo- bution of existing products into new Strategies nopolistic competition in the cable markets. A television network may market), it is likely that the networks, video-stream certain programs online It was proposed that a structural ap- at least between the broadcast and to enable out-of-market viewing. As for proach, such as strategic grids, that ex- cable networks, will have different “product development,” the Internet amines the value of the Internet to the Internet strategies. may be used to create new products for organization is essential in identifying existing customers. A television net- the opportunities (and threats) and Internet Strategic Options work may offer original Internet video strategizing in the Internet world programming that is of interest to its (Walters & Lancaster 1999). As one of the It is argued that companies, in their current audience. Finally, the Internet most comprehensive Internet business quest of the Internet opportunity, tend may be used to create new products for strategic frameworks, the ICDT (Infor- to engage the medium in two phases new markets as a “diversification” mation, Community, Distribution, of business activities: an initial phase in strategy. For example, a television net- Transaction) Model segments the space which companies utilize the Internet as work may use the Net to deliver finan- of new Internet business opportunities a tool of business intelligence and com- cial services (e.g., CBS MarketWatch of- into four basic “virtual spaces”: a virtual g munication (e.g., business access of fers online banking services). information space (VIS), a virtual com-

nal.or R&D/market information and online munication space (VCS), a virtual distri- communication systems) and then a Nel et al. (1999) argued that the Internet bution space (VDS), and a virtual trans- more “mature phase” in which compa- strategy should differ depending on action space (VTS) (Angehrn 1997). The

.mediajour nies require their Internet-related in- whether a company is established al- purpose of ventures in VIS is to improve

www vestments to result in measurable re- ready, or whether it is created solely to the perception of product/service and turns or cost reduction and develop a do business on the Internet, because the facilitate the exchange of information. clear strategy that aligns with the ob- two would have very different purposes Thus, an existing business may opt for

JMM – Vol. 3 – No. IV – 2001 215 www.mediajournal.org - - - , y 1 y S, al es or er er he he es. es, eb- el its, ma- er her heir x re- tain- o so- h t udio- o op 50 or V’s in- ansac- er eat ts data he PGA eb pres- ebsit es ent. F omized phasize t net sit er of rel her illus- icial W t count hing, and he t vide shop- hnic/int er larg hrough its end t t f y’s various f er V China and o em -held STAT ties in 200 mation sit er orld wit her Channel entur hat includes y tising prof es and sev v ic cus heir W er et V s pro es of multime- or f el he of er o ext ews, and CNN en eat h, science, kids, ers of he dang tance of tr t ended its W ork net w amming inf ent t mation cont r VTS s seem t yBeat, Fleet W er hat of por or ch.com is one of t e-specif he W mation and ent mation and eb proper ork omer N heir broadcas at omotional t amil op50.xml (2002). T e promotional purposes, mation supplies, F es such as MT or y and Disco mation arenas t o sit o t he Int Pr h prog or ed cont .jmm.com/xp/jmm/press/ tunities on t he im etW or jor League Baseball, t jor League Baseball, es in healt ed W o t enues and t ed business inf entures t man ysis. heir core products. ts inf y on online adv he broadcas o various languag han 400,000 pag han 400,000 hat serv elevision netw eb v or Ma ed wit ple, CNN has ext and Branded y purchased privat tments in Global Atmospheric Inc., ed sit ts-relat el, and Insiders’ Guide. MT paring t her inf et Vision, F t visit t visit t t e cable’s ability t h ABC and NBC’s Int h ABC and NBC’s t, cable netw V Ger es national sit es f ands int at eat ealizing t ia spor arg entured int he W er ment. It also produces t ment. It also help of t br SkyT t wings, and civilization fur tr ing solel more t d sit League. While TOUR and NFL Europe CBS’s Mark mos bot exam MT relat (pack ence int types of news (e.g., Allpolitics. com, CNNfn.com, CNNsi.com, CNN A select, CNN Cus w inv T par t While t merchandising products (e.g., logo products such as mugs, clot caps) t mos ping oppor R tional rev spor centl tion and news) are among t tion and news) are Inc., a leading supplier of spor and anal Com mos http://www mediaMetrixT lidify its inf national/niche inf Espanol), while t v - - e e t- x, ns he he he or at o his es net nals er eek), e in- elop- er vides t net- v or ex- wners .com), ed t ualita- hose of tribut y mation ied net- ers and ocus on v es of t he broad- 999), t e o s (see Fig- tablished ner or , ha o f y at ed Int ar ade jour o dis y in areas of t he corpor . ork net dev egic patt tr eloping inf vision ebsit tudies q elevision and e review at er able 1). F s (e.g., Disney’s y tr op 20 cable net- es t ebsites Based tr hat are based on oducts ele tr ts of t f-line inf he identif y dev uisitions and alli- jor broadcas T able 1 W orks mation and sched- ork he t s seem t el et al. (1 el s, being es al business periodi- or promotional pur entures of t he s icial W ebsit or tsline.com pro e Pr he Int hod, w he same time, inv f mation space. At t he indus ork heir corpor ork ting & Cable and The ting & Cable and y N ts (see T es, especiall or ving t ener he ma s – NBC, CBS, ABC, F s – NBC, CBS, ABC, ts). All repor ed in T ressiv ed indus Netw y 2002, including t tune and Business W entures t ol t y in building a presence in uity acq s’ core of he of ying a case s ying a case he netw elevision netw , t e of t or ed b heir W y vil ork ebsit t ormation on Cor ork eb v s and t y numbers of subscribers from y numbers of subscribers wing sources: business activity wing sources: business tag .S. t es atterns of he netw y earl tual inf b o examine t o examine icall VIS-Dominated Strateg P 7 ts published in t amming inf o audiences f he annual repor s b The Internet Strategic s s are agg ork net-relat net business v r ollo panies in t ed hea he U ple, CBS.Spor t netw t er er e research met e research ork ork t ork ork with Inf wners of t tandard), t es entures inv he netw he vir he f elevision netw prog t ules t products. Specif v t ment, t utilizing t poses, while, at t ing in W w initial s mation W news and spor w and t o v OneSource), g cals (e.g., F annual repor business databases (e.g., Hoo S netw (e.g., CBS.com and TimeW (e.g., Broadcas Int t repor As sugg com t am minority eq ances, are lis w of t w Int ure 1). Appl tiv UPN, and WB, and t cas - - - e e y o n e- a- er v el- er he he he ple at tab- adi- net. tual ting o re- ums pari- 997). ame- e t ehr tr omer o t y and er pro ectiv t or f he per yment, tual in- hrough y es n 1 activity net and y utilize enience. ould ex- eting ac- plet hat busi- S is t y adopt a 1 he s y deliv o deliv elop rela- eness and er er e t y commu- h a tr 0 y t omer ma mation ex- v ving auxil- t mmunities ehr ends its tr he Int el icientl net. A more t during t f ed t or enture dev erent vir o a vir t (e.g., f t f pro pro er entures in VCS egy w tribution chan- ms of ef icientl es he ICDT fr he Int t and im t lik o mark he int icientl f IV – 20 ed wit at . f his model t eres or uality products t net v et inf y/product/service. tr y/product/service horize a pa o im plement t prehensiv luence opinions of ed t er y ef he Int mation and com o ef ers, t e, q f entures in VT pan pan eedback, dev et, at leas or 3 – No , aut ed online co aining) via t he facilitation of sim et space int ol. mation, and com ting business ma egy t ting business ma et vativ y approach VDS b V et of he com roups) t ir or and direct communica- ed VIS s tual communities. The pur at e adopt – her f y combine dif

erent phases (Ang egy in which it ext egy in which f entures in VDS is t tr hat exploit t egy in which a cus at ond t omization of t ansaction cos at t t and tr at ticat o targ eloping new f e. The purpose of v tr e conf ed vir tr e, g mation via t net-based mark com vide inno o monit hering of inf y services associat JMM mation space b mation space er or S s ansaction process online (Ang ansaction process and conv at 997). It was also sugg he VCS s he applicability of t o dev end bey elevision mark or 216 a VIS s ditional mark f ing and cus g t son of mark tivities t inf t sophis nicat who share similar int Thus, an exis t tionships, and inf select Int chang is t tions t ception of com pose of v products/services more ef and news g lishing a new online dis nel of digital products/services (e.g., music and video) or im pro online consumers. Thus, an exis business ma iar tional product/service (e.g., cus suppor The purpose of v duce tr place an order tr VT gies in dif Because of t t Thus, an exis receiv t tr initial phase of Int opment, w 1 nesses ma alliances, and/or im space approaches, mos Table 1 – Part I: The Internet Ventures of Television Networks

VIS VCS VDS VTS

ABC ABC.com ABC Radio ABC.com store ABCnews.com RealNetwork Disneystore.com ABCsports.com Starwave Pets.com (now smart.com) Family.com Compaq Go Radio MrShowbiz Go.com (disband) WallOfSound.com MBNA.com Movies.com Go.com (disbanded)

CBS SportsLine.com Office.com AOL CBS.com store Hollywood.com ThirdAge.com LoudEye.com Contentville.com CBS.com Storerunner.com CBSnow.com Hollywood.com MarketWatch RX.com Switchboard MVP.com HealthWatch Loudeye.com Jobs.com iWon.com

NBC NBC.com Talk City Launch Media NBC.com store NBCOlympics.com Interactive Neighborhood AccessHollywood Auto-by-Tel MSNBC Ivillage.com InterVU Preview Travel CNBC.com ValueVision Contentville RL Media Videoseeker NBCi.com (disbanding) DigitalConvergence Archipelago Auto-by-Tel Holdings Golf.com Selfcare.com Allbusiness.com Promotions.com Careerbuilder Flyswat HSX.com Intertainer.com Telescan.com Space.com

Fox Fox.com TheSimpson.com TooHotForFox.com Fox.com store Foxnews.com News Digital Media News Interactive Foxsports.com Sky.com Foxstudents.com Skysports.com EightBall STATSInc FoxMarketwire.com Yahoo Fantasy Network

WB WarnerBros.com WB.com store CityWeb Hoovers.com

UPN UPN.com

TBS TBSsuperstation.com AOL TV, Turner classic movies Replay TV Turner Learning, Inc. Iwink TNT TBS affiliate resources

Dis- Discovery.com Discoverystore covery ■(and all related channels such Amazon (auction) ■as health, science, kids, wings, ■civilization, etc.) Discovery iPak Discovery ePak

USA USAnetworks.com mgxonline.com isn.com Network hsn.com TMCS firstauction.com styleclick.com g expedia.com

nal.or ESPN ESPN.com NHL Interactive CyberEnterprises ESPN.com store ESPN Classic ESPN Affiliate Resource NASCAR.com NFL.com .mediajour NBA.com RPM Online www CSPAN CSPAN.org CSPAN.org store

JMM – Vol. 3 – No. IV – 2001 217 www.mediajournal.org elodeon brand) e e e ts e e .com e e et e e e eplanet.com .com stor omen.com ysrus.com (Nick tselect.com etime stor o lif W AMC VH1.com stor VTS cnnEstor Leisur TNT stor TNN stor AandE stor MTV stor Global Spor IQVC ar Auction Nick stor T Red Rock N2K cnn Estor e orks e orks orks w ech t Channel e eBusiness Solution eT tel Netw Ar olv olf eather stor ristar op eramon InterVU RealNetw Nor Hotelvie W VDS Futur T W P Nv Legacy Interactiv Sandpiper Netw P .com y w omen.com W Militar VCS Skyno .) etc , y vision Networks y) ele T x Famil o es of ws ws 1 y y F ts 0 .com ean y entur MTV German orld V or ope/ er .com el.com .com ws.cnn.com viousl v W v .com v .com e .com .com .com y y e y .com .com w England y IV – 20 eather ope (and . .com .com Vision ychannel.com yinternational ytra ph .com .com tuguese/German/ .com y (pr yBeat e on .turner .com .Disco el r panese/K entz Channel or eather ebriot etimetv & teachers.nick.com) Ja (include Gas.nick.com all MTV International Sites such as MTV India, MTV China, Asia/Danish/Italian/ P ycnn.com arget erseus ou’ VH1.com VH1 UK/German ABCfamil Boz Channel Girlz Channel Par Lif Tvland.com Famil CNN.com Allpolitics.com CNNsi.com ■ Nickjr nickatnite Y TNNonline Countr AandE.om GAI TLC ampop VIS Noggin Games and Spor Visit Ne T CNNfn CNN Custom Ne CNN En Espanol Interactiv m cnnfyi.com cnn.com Eur ■ TNT Roughcut.com Nick.com ■ Biogra Histor Mysteries.com Genealog Histor Histor W Insiders’ Guide Famil FleetW SkyT P CompuSer MTV SonicNet M2 Eur ■ ■ ■ Headlinene QVC CNBC amctv ■ ■ MTVN Hotlink Imaging Radio CNN.com/quickne W The Internet

3 – No ol. t II: V ar –

elodeon ws eather etime able 1 – P T VH1 Lif ABC CNN TNN A&E TLC TNT W Channel MTV Ne QVC CNBC AMC Nick Headline JMM 218 cable networks market products that capabilities through relationships. created a presence in a virtual commu- are related to the brand images of the Thus, the development of strategic alli- nity of women. Through its parent com- specific networks. Discovery Channel, ances/relationship portfolios is essen- pany, Hearst Corp., Lifetime is allying for example, sells online items such as tial for the television networks in their with women.com, also a major online telescopes, maps, and digital cameras quest into the Internet sector. It is our community for women. through its Discovery store, health store, observation that the networks have at- lifestyle store, and family learning store. tempted to capitalize on the growth of Alliances with ISPs/streaming sites/tech AMC capitalizes on baby boomers’ love the Internet through quasi or partial di- firms that facilitate VDS ventures of nostalgia by hosting online auctions versification of their product folios and of memorabilia (Petrozzelo 1998). Nick- strategic alliances with members of the The television networks have become elodeon has formed an alliance with Internet market in the following three increasingly aggressive in exploring Toysrus.com to sell Nickelodeon- categories: Internet community sites, new ways to reach audiences and dis- branded merchandise over the Inter- online content distributors/facilitators, tribute their contents on multiple plat- net.8 ESPN Store, CNN eStore, Nick and e-commerce sites. forms through partnerships. For ex- Store, Lifetime, A&E, and MTV all mar- ample, NBC has allied with Videoseeker, ket relevant products online. Alliances with virtual community builders a video directory that offers streaming online content in entertainment, news, Exchange of Promotional Packages The major broadcast networks have al- business and shopping. Through an for Minority Stakes in Internet lied with various Internet sites whose agreement with AOL, CBS is the exclu- Ventures main mission is to build virtual com- sive broadcast news provider to AOL. munities of similar interests. For ex- CBS.SportsLine.com serves as the pri- To minimize capital investments in the ample, CBS partnered with ThirdAge, a mary sports content provider for AOL, “uncertain” Internet market, some tele- Web destination that offers news, ex- Netscape and Excite. vision networks chose to participate in pert advice and self-assessment tools the market through the exchange of with interactive chat and forums to cre- As for the cable networks, MTV co-de- airtime for partial ownership. CBS Inter- ate an online community of baby veloped Pop Arts Channel with @Home net Group manages CBS’s Internet port- boomers. CBS also allied with WinStar’s to provide a high-speed version of folio, which includes full ownership of Office.com, a business site for small- MTV.com, featuring content such as its CBS.com and CBSNews.com, plus equity and medium-sized businesses under top 20 music videos and Beavis and partnership with nearly 20 other Web- 500 employees. NBC entered an agree- Butt-head clips before the dismissal of sites such as jobs.com and SportsLine. ment with TalkCity, which in turns pro- @Home (Tedesco 1998). MTV also in- com through the exchange of promo- vides chat room services for NBC.com. vested in TheBox.com, a music site that tional packages for partial ownership.9 NBC also invested in Ivillage.com and delivers music videos online (Higgins NBC and its Internet affiliates have entered similar agreements with mer- Figure 1: Framework for Analyzing Networks’ Internet Strategies chants such as RL Media (polo.com) and Launch Media, promoting their prod-

ucts online (NBCi) and on-air (NBC and Virtual Information Space Virtual Communication Space CNBC) in exchange for minority stakes

(Kaufman 2000; Gunther 2000). It is evi- All TV dent that the broadcasters are well po- Networks Major BC sitioned for such promotion-equity Networks ownership trading strategies as they Traditional hold the key of reaching/marketing to a Television “mass” audience through their affiliates. Networks Market Space g Strategic Alliances Most TV All Major nal.or with Partners in VCS, VDS, Networks BC Networks (Esp. ABC & & Some Cable and VTS Internet Sectors CBN Networks

.mediajour As Hagedoorn and Sadowski (1999) sug-

www gested, Internet operations are by defi- Virtual Transaction Space Virtual Distribution Space nition “networked” and call for assem- bling of complementary strategic

JMM – Vol. 3 – No. IV – 2001 219 www.mediajournal.org - - - s y e y i- h h a- v at- he he er y is her Af- vil ext, am- tals. tr 0 ork r 1 y t aging aking y ha o com- ewa tal con- he net- ledging er ocus on 998). ties and 1). Simi- entured he ot ork as it at tribution y of ABC) , t tals in Asia ent t s should be wn por , NBCi. or high def vided access o ref net and t ocused s y etw pan tal g tablished por tablished he por s, on t wning a niche ork hrough its par er V is lev ed digital t tals such as Y hat begins wit uality prog wall 200 pan t cont entures under a heir o at tals, serving as a ent f y be enriched b y o eb proper r n from an emerg- ork henberg 1 egy relied hea egy relied erings. Man elevision netw f tical por ogramming hat pro end successfull ot eg at eres t netw e Extension he Int er egy t tiall 1 (Or tr he Go N net v elop t hey need t at his capacity ers t tal rivals, Disney closed elevision has v h v f y products f tal t er erse W hat ma tr net com of Existing ent” por al-int o cont ork Pr , par een t tments in es tments in net s er y out tal business t ead, t he parent com he parent es tunity of online dis er t e approached t e of t e, Snap.com, and aligned it e, Snap.com, and aligned o and retur omen.com. MT ent t net of v ener erse of int hat building por h leadings por ears of futile promotional cam- pan h a more cont ell as dev ence s Interactiv elopment of q elevision (R etime T e Int er y t elevision netw Netw oom.com, NBCi.com, along wit al cont nable t o y at he por it betw erg h, setting up numerous regional he role of t , NBC purchased CNET’s f , NBC purchased CNET’s t of its Int ushottam 2000). ed as a por tal sit y tal, W . Lif h X e wit ewa o t ered g uity inv ener f tablished por at out he new medium’s capacity of int he f he dev he oppor o Disney’s div er tw pet hoo. U initial Int on t serv t of es its Go.com in 200 larl y music and y por t ent com tals as w Disney’s (t wit por mos separ (Pur int eq ing univ cept wit not what broadcas egy doing; ins t sound, and video of “g g nition t Cable t hand, ha ming, especiall t paigns on NBC, NBCi is also closing a conv argued t The Int t of a cont t activity and personalization. T advantag - - - r e e e e h 1; v or ili- en- net t of he ork hat f h e- ma- V se- V ac- y ser es in es in elevi- er .com, t net- ork, a tware activ or s ha ol t.com) eat tnered etw es t o mak ers and er tak amming h e-com- y o e-com- he t er Online ork etw r aller t alueVision, ed t unner wa ying wit o g net (MT tribution f ic, t pt etsmar o pag f ain par net sit wns s er reements wit , USA N ards t treaming video etMas af orer y er o be more activ em echnology 200 echnology w P t ed in V 998). The W ers prog eb, while MT t y to Contr f ers’ broad appeal t tr or s jor broadcas t omer service, mer e in all elopment: es t . v e att he Int s f w & Order int w & Order wn e-shops in mos .com. USA N v ts in e-commerce v e commerce-enabled ered ag vies hrough its parent com- he Int ech Corp., an inf online.com, which de- online.com, which he W , seem t hat of ork), Tick ork e La eT t and cable netw e, an on-line children’s er s ha eres ied in reg es such as isn.com (Int v eloper er t , a digital phot tal De activ heir o aufman 2000). ABC is af olf v ev etw ocking, and dis ets.com (no etw ol ork t t he hea el, Golf.com, and Preview ork er h mgx 1). CNN.com ag 1). CNN.com w es such as S tar or o broadcas h t T es. The ma amon’s SMS t amon’s SMS OM and t eb (Glascock 1 - ersif P h P o creat the Internet Gate e t ed int tals are t ealN er at s, ho .S. NBC also inv , Viacom, has allied wit el, all leading e-commerce sit A Futile Strateg y o-By acy t h broadcas h R v he W tware dev mat, is also activ ers int m, TriS a ed wit it ork Alliances with leading e-commerce sites ut uired Nv r ame 200 ener olo.com (K heir sit ir he U elevision o o t or CD-R or f Future Business Solutions, a sof Future Business Solutions, Channel has ent t w sion netw sof vice, and W Leg g Bot q t cellular phones. Finall allied wit liv tion-on-demand service t tion-on-demand service f lects P g As por exhibit tures wit w t and div merce alliances. NBC o A T t which handles cus chandise s P at and MBNA.com, an online banking ser vice, while CBS, t pan merce sit cable netw RX.com, and MVP similar t f Shopping N City Search (TMCS), and Expedia.com. commerce sit - - - - y y o V h h m er er he or ers ers tis- act ald ele- net ele- ork een ir net, ying aph- tner e ents cli- er ames r er er e t wns a V has v OL T er ties b t (wit he t , a f h Sand- h CNN) uisition ear P V’s int ers int Y 1 h A eloping a paq (wit net (Inf 0 activ acy y ha e its g paq enables er hree Disney er ence.com t ement, and put ent, t s (wit y (previousl ence betw h bot e multimedia w NBC view or MT erg s are also all h Leg he alliance be- he t ork IV – 20 . erg tribut , which assis s, man he Int er and netw tnered wit amil amming/adv e sought par ws, while TLC en- ork o explore multiple r v he opening screen- em f hat is dev activ etw tribution. MT t o allo treaming media and ork put ple, t er high-speed serv er high-speed er Set Three- h CBS), Com er o dis alt Disney Int erVU as 2000). It also o amming proper v tware. CBS’s acq s ha r 998). 3 – No el N s t amon, a mobile Int t vides advanced solutions . he conv put ol. V vider t mig y 1 er V elevision cont or ork hat produce int ork – reement wit e t paq consumer PCs. ed sof h com o be one of t

ent, o y) is pursuing synergies of its y) is pursuing synergies 999). ABCF e in Int y T es and sells simulation g h P e pro tnerships t e video sho oda acle (wit or exam reements in 2000 (Fitzg reements in 2000 heir personal com eights such as Microsof e its plan t etw ms t tak ch NBC prog y (Mer elevision netw o appear on t dey ir ed in DigitalConv epla amil t he encoding, manag e liv el paq Com y t or cable netw vy w ering a record number of cross plat- ering a record number h f es m ag JMM ms of video dis tware pro tribution of digital media. NBC has X F een ABC/Disney and Com e’s cont es t tablishing int o facilitat 999). CNBC.com par 999). CNBC.com hat creat o wat ered an ag ered par or or t or tw ABC.com t sit ships wit hea 2000). F NBC), Or (Elkin 2000; W Com ABC), and N and R online and t vision netw ing of Com Man facilitat small s ents in accessing s es activ T piper N (Marsan 1 FO ent f wit 2000). TBS has allied children’s prog wit vision relat dis inv communications on t f of Lou t ing via t activ new messaging sys t t 220 1 ics, which represent about 20% of t represent about 20% ics, which sit mation T sof t allied wit As f f works are extending the presence of Strategic Differences signed (e.g., CBS’s ThirdAge.com for baby their television programs online. ABC between Broadcast and Cable boomers and Lifetime’s Women.com for has utilized its popular program, Who Television Networks women). In terms of VDS businesses, Wants to be a Millionaire, to generate both broadcast and cable networks have traffic to its online Millionaire game A review of the networks’ Internet ven- allied with companies that facilitate site, successfully cross-promoting the tures reveals differences in the strategic the delivery of their products online program on both platforms. Riding on approaches between broadcast and (e.g., AOL and CBS, Launch Media and the success of the Millionaire trial, ABC cable networks as well as variations be- NBC, and Pop Art Channel and MTV). launched an Enhanced TV site that al- tween major and minor broadcast tele- While major broadcast networks have lows the viewers to interact with its vision networks (see Figure 1). Though been aggressive in this area, cable net- broadcasts of Monday Night Football all networks have invested in the infor- works were more active in exploring and Who Wants To Be A Millionaire and mation space, it seems that the big four multiple distribution platforms. As for ESPN broadcasts of Sunday Night Foot- are much more aggressive than the two the transactional space, most televi- ball.11 NBC created fresh online content smaller broadcast networks. Among the sion networks have implemented e- for some of its series such as The Pre- major broadcast networks, NBC has commerce strategies. However, major tender and Homicide, that allows users employed the most active, diversified broadcast networks are in general to get involved in solving crimes with a VIS Internet strategy. Interestingly, re- more active in this area with numer- set of detectives not featured on the search has shown that Internet house- ous diversified alliances with leading show (Tedesco 1997). Fox started Sports holds are most likely to tune to NBC e-commerce businesses (e.g., RX.com). Fantasy Network, one of the Web’s ac- than any other broadcast networks (Th- The cable networks, again, have fo- tive fantasy sports leagues, and ompson 1999). On the other hand, ABC cused on extending their brands into TooHotForFox.com, a site containing and Fox have focused more on relevant online stores that deliver more rel- original content that is more provoca- information space, attempting to move evant products (e.g., ESPNstore.com tive and thus not available on the Fox their on-air content to online informa- and DiscoveryStore). The Weather network. tion space. Fox is the broadcast network Channel appears to be the most active that is more active in utilizing the Internet player among all cable net- The cable networks have also been very Internet for improving operational effi- works across four virtual spaces. It is active in capitalizing on the Internet’s ciency internally. It instituted a system also the only network on the list that is interactivity. Nickelodeon launched an that delivers real-time price, product, not affiliated with a major media con- online show corresponding with the and support information to its sales and glomerate.12 cable program You’re On. Children can marketing people worldwide and to dis- watch the dares that are presented tribute publicity material to clients and The broadcast and cable networks dif- online and vote on how many they news outlets (Grover 1999). Well- estab- fer in their Internet strategies. While think will actually be completed. Based lished cable networks such as TBS, Dis- the broadcast networks tried to diver- on the online votes, the game partici- covery, ESPN, TWC, and MTV also offer sify their Internet presence through pants enter a contest to win prizes their affiliates online information re- many minority stake alliances and le- (Sacharow 1998). MTV set up an online sources and ad/marketing material dis- verage their information products in television game show, WebRIOT, which tribution. Overall, the cable networks areas of sports and news, the cable net- allows Internet surfers at home to com- have ventured into the Net world works continue their branding strategy pete in a music trivia contest (Poniewozik mainly through extensions of their online, attempting to harvest their 1999). MTV also established a new mu- branded products, providing much brand equity by developing more rel- sic channel, M2 Europe, which is car- more content relevancy between online evant niche informational Websites ried on both television and the Internet. and off-line products than their broad- and e-stores. It seems that the root of PC owners with an Internet connection cast counterpart. the differences may rest in the nature can watch footage of live performances of the off-line products they deliver (i.e., and uncensored interviews on the M2 In regards to the VCS category, broadcast mass-appeal versus niche program- g site (Grande 1998). ESPN has teamed up television networks were somewhat ming) and types of audiences they at-

nal.or with NHL Interactive CyberEnterprises more active in developing community- tract (general versus segmented audi- and developed a co-branded “gamecast” building Internet ventures than their ence). Organizational size/structure, as feature that allows fans to track games cable counterpart. Compatibility with discussed in previous studies, may have

.mediajour in progress, play fantasy games, and the core audience of the television net- also contributed to the differences in

www stream NHL video highlight via ESPN. works seems to direct the types of virtual the distribution space (McBride 1997). com (Tedesco 1999). communities the networks have de- The Weather Channel and NBC, both

JMM – Vol. 3 – No. IV – 2001 221 www.mediajournal.org e e e es et- he at net ent egy hat tain at tag tain- at omer er y giv t er tr he net- erentia- egy) t f egic s at he Int ersus mass- o penetr he “mark ets. In such at tr er cus Build aduall elevision net- r tr engths ould be more ed dif Alliances str ersus ent e business y g erentiation. .S. t f h bett ation s net and more online ent w on cor tribution (i.e., broad- he U he business unit t er e in multiple cont egic role of a cer entures in t ould enhance t at at ent-orient et wit mation v tr hat t tribution mark ent (e.g., niche v he Int or et penetr hat w hat cont e t f-line products. Such a s he s c.) and t o oper hods of dis he point of dif o a cont ersus cable) ma ocuses on v s are in an initial s s’ of ers t y t ting mark t v ys t el e believ ork ork y met hat f eatures t (see Figure 2). Their goal is t creation/dis a case, t type of cont W t ing space” (VIS and VCS) of t (i.e., mark tion as more media conglomer choose t cas wa b appeal, inf ment, et deliv lik w exis service via t f w y) oducts ersification) oduct - s e tual tual er at- he he en- f e viable) heir tr ork ting y en- Vir Vir elevi- unication Space ectiv branded pr oduct initiall f mor o t y; t t ormational pr pr (Enhance off-line net pres- h a s he dif uisitions, es t Distribution Space hat means er e explored (Inf elopment and Div v initiall Comm v enetration Emphasis) hat t heir exis et wit amming ext ers, t e cautiousl tal acq es, and ef anslat t r et P ed Int e t v .S. ha ot net. In essence, t elevision netw oduct De orks V ad 2000). h leading VCS, VDS, s ha er (Mark vision he U e digital et Space hat tr wnership via promo- chang oadband ele et/Pr es. N ansaction raditional or prog T ork Netw een t T net mark Mor content tr as the br system op T Mark e ex s in t o “reach” a mass audience. Discussion er he Int ers, t panies, por eb f t or broadcas (Mark uity o h cable and broadcas ork and Conclusions eting Space eting Space hs. F he W e eq S com he Int oduct hat builds on t y) vision Networks vice or anded” imag ce Space Mark ele oducts) T or cablecas trengt heir ability t he value of t ered t elevision netw tual tual $400,00 in online ad sales during t same period (T Through a VIS-dominat ence, alliances wit and VT creativ tional packag use of t sions, bot t entiation betw egy t s sion netw “br t F t t ysical pr h of Vir Vir oduct initiall popular or branded s oac Phase I: o e- y; ormation Space er pr (Enhance off-line Commer he content pr ransaction Space ers y a net t han , t T Inf heir (Customer ser ork Appr y er branded ph initiall enues or ex- el uar ed con- ork.com elevision 1 ategic elevision. h a niche et Phase II: lexible in 0 y in t he Int etw ed less t t f hree q at t t y be in a bett IV – 20 . net wit tantiall oon N ating t irs ers targ t he cable netw r ener er jor media conglom- net is inherentl s ma eg ating more rev t and cable t he f hus more lik er icant evidence indicat- ms of dependency on o be mos net medium. F .7 million of online ad 3 – No ork egic alliances. Though er he Car er er subs wo-Phase Internet Str wo-Phase Internet he Int ol. ener f T at V he case of cable t enues, t uired of making such int er $1 – hat deliv e business o t tr

he Int v The In t

rent businesses and in t 3 s dif 1 engths . ency of int he Int e 2: Alliances o be g Build on cor str es req ed o ork net rev hat broadcas egy pet es, appear t Figur ple, while t o cur ming s enues during t JMM er at ation, t anch int at r tr here is no signif ents, as in t or medium t br s g chang t The cable netw position, and t Int seem t from t am receiv rev 222 er com int independent of ma f t ing t netw of 2000, ABC.com g is particularly important for the broad- (e.g., selling off-line content online in Endnotes cast networks in countering their de- forms of DVDs/videotapes/digital distri- clining share of media consumption. To bution to audience or selling off-line 1 The Internet companies spent over $3.2 billion be successful at this stage, it is essential commercial time more efficiently via advertising on traditional mass media in 1999, for the networks to build upon their the Internet to advertisers). In case of a five times what it was in 1998. While the televi- current core business strengths, diversified approach that involves the sion medium collectively received half the namely, the off-line core products such transaction of unrelated physical prod- Internet advertising dollars placed in traditional as sports/news and/or branded niche ucts (e.g., investment in Rx.com), a tele- media, broadcast and cable television networks content. vision network would be less likely to alone received 36 % of the advertising dollars use its brand name for the online ven- (Dot-Com Advertising 2000). The advertising As the networks solidify their Internet tures to avoid diluting the value of its spending has reduced tremendously after many presence with aggressive online mar- established television brand (Loken & of the U.S. dotcoms crashed in 2001. Neverthe- keting strategies, they are likely to en- Roedder 1993; Vogel 1999). It is expected less, television media still receive the highest ter a second phase of Internet ventures that the networks would focus on the relative ad spending from the Internet compa- with more investments in the com- transaction of physical products ini- nies. merce space (VDS and VTS), working tially because of the lack of a mature 2 The cross-promotion seems to be working as toward a market/product development broadband system for digital content more than 75 % of the respondents to a survey strategy. We believe that the networks transactions. As the broadband indus- said they have visited a Website after seeing an would, at least initially, focus on ways try matures, more branded niche digi- ad for it on TV or a mention of it during or after to distribute their core “information” tal content is likely to be offered by the a show. See Channel Surfing, 2000. rather than “entertainment” products cable networks, while their broadcast 3 For example, it wants to provide personalized fi- online because of the current limited counterparts focus on selling en- nancial and general news information to viewers reach of broadband distribution sys- hanced, popular mass-appeal content with an interactive television devise and connect tems, the nature of the Internet as an online. As alliances are a preferred advertisers with these viewers more efficiently. information-driven medium, and the method of establishing a customer base 4 This alliance includes exclusive access, distribu- fewer changes required in adapting off- quickly, sharing risks for developing tion rights, on new releases from Disney and Fox. line information products.14 The tar- new products, and because of the net- Cable systems would have to negotiate with geted nature of cable networks may works’ inexperience in e-commerce, movies.com for video-on-demand right. The mov- lend them the flexibility of distribut- strategic alliances with established e- ies may be offered with value-added interview ing online certain entertainment prod- commerce partners would likely be the and behind-the-scene segments. ucts that complement their off-line favored strategy during the second 5 Larger organizations have been slower to recog- products (e.g., Cartoon Networks’ phase. nize the importance of the Net and suffer from online short animations). In essence, greater organizational inertia. Large organiza- the online distribution of content Like other businesses, television net- tions also tend to take the risks and problems products would be more viable if a tele- works have to continue to adjust to ex- associated with the Internet more seriously. vision network is approaching the ploit fully the business opportunities 6 Ansoff’s strategic grid model classifies all strate- Internet with a more niche, branded created by the Internet. Crafting a co- gies into four categories, market penetration, strategy.15 On the other hand, if a net- herent strategy at the organizational market development, product development, and work adopts a diversified Internet strat- level is the next critical step because diversification, based on the goal of the strategy egy, the online distribution of content multiple conflicting decisions must be as to develop new market, new product, existing would probably serve as more a tool for coordinated across traditional and market, or existing product. improving marketing and/or customer Internet spaces amidst inevitable re- 7 The cable networks examined were TBS, The Dis- service for the network’s off-line prod- source allocation issues (i.e., the alloca- covery Channel, USA Network, ESPN, CSPAN, ucts. tion of human, technological, and fi- CNN, TNT, Nickelodeon, Fox Family Channel, nancial resources) and management Lifetime, TNN, A&E, The Weather Channel, MTV, Television networks may enter the alignment challenges. This study is lim- Headline News, QVC, The Learning Channel, g transaction space in two approaches. ited by its case study approach, which CNBC, AMC, and VH1.

8 nal.or First, as most television networks are in is not amenable to generalization. Fu- The spot on the Toysrus Website is known as the the business of serving dual customers ture research may employ a systematic, Nickelodeon “boutique” and sells toys, apparel, (i.e., offering programming to audi- statistically based normative investiga- CD-ROMs and videos. Visitors to the Toysrus site

.mediajour ences and access to audiences to adver- tion of broadcasters’ business activities sees a Nickelodeon-branded button that connects

www tisers) (Picard 1989), “transaction” may involving the Internet and the factors them to the Nickelodeon boutique, while the be used as a complementing function that contribute to their strategic and/ Nick.com Website offers links to Toysrus.com. for “serving” audiences and advertisers or performance differences. (Wall Street Journal 13 Jun. 2000, p.1).

JMM – Vol. 3 – No. IV – 2001 223 www.mediajournal.org s y , ’ nal her he ., , v en- o alph ement 1-84. ork, A Times, . 999, ‘The 3. . 998, uisitions: tune, , inancial etw , ‘Disney tar: ting . 1 nal of 1 x: Music b or 993, ‘Diluting echnology y and ext , pp. 7 997 ’ N eek, 1 N ’ The Mckinsey pact?’ Jour y ’ F op f ol. 36, no. 1 . 1 , p, Divide Shrink enture’, L 1 ’ Jour wski, B. 1 eb., p. C1 , , pp. 58-67 5 Ma egic t ool, , Jul e im , J.D. 1 , R. 200 x’s new s at , 1 t, J.F 8 F ting & Cable, 25 Oct., o y ers and acq tr ’ Broadcas , ‘Business use of t ilm v tudy ativ rier ccess U 6072,00.html 999, ‘Cashing in on ol. 57 tudies, v 999, ‘The bo 1 mediaries, egic decision or anot , K. 200 oda y s ypor 5, no. 1 er 997 oedder eb f a ’ Business W or at or ol.4, pp. 55-70. 999, ‘F ill a multimedia dream, 1(42), 8 Oct., pp. 38-44. tr vailable: http://www o merg 3 . n, J. & Sado ol. 1 at , v e a neg net, y , M. 2000, ‘The t , M. 2000, ‘The v eting, v 07 ’ Broadcas ement S er e is nobody’s f , J., & V 1 , R. 1 t, ork Times, 1 y/0,2799, erl t her mation T 1-4. net: S net caching services, er nal, v edoor el. J. & R eb., pp. 54-5. ond banners, tandard.com/research/metrics/ v e, D. 2000, A en, B. & R ues er er or x join in w orld, 25 Oct., p. 40. and beliefs: When do br ebsit ccessed 7 Sep. 2000]. ansition from s ew Y aufman, L. 2000, ‘NBC helps R o 1 F hes bandwagon?’ European Manag Jour Kerschbaumer ‘Bey & Cable, 1 F [Online]. A Int t W McBride, N. 1 displa [A Marsan, C. D. 1 Int Gro 2 Hag 6 Sep., p. B3. Higgins, J.M. 1 pp. 4 K Lauren fulf N Lok br sions ha of Mark Lak W manag Quar Healey Hag ‘The new inf pp. 87- req p. 40. Inf The Int pp. EB 42- EB 50. pp. EB 42- EB Gunt tr alliances t An explor ’ egy 1]. ens, ains net orld, azine. at eseller e, tal, e ev er tr t s scores nal e at ’ . 200 , 999, v um, Jan. 0 mil on tising er R or emag ol. 42, w o net W ork 1-9. net s . 1 er 3-24. he Int er net in V channel 1 ’ Jour put er he new ement ol. 6, petitiv etw erview of er es/ tising Ag v egies f , J.W ting & Cable, ’ Adv eacock por egies: The ICDT ’ Spectr er or corpor tries, at 9-20. .medialif ’ Com at ealN el bets $ 1 1 ew MT tr , ‘Designing mature , ‘Designing t V outsources tr he Int eb f orld, et, 9 Jul., pp. 5-6. eting, v on. almer ’ Adv ccessed 26 N or t , ‘S acts, 997 , ‘The P ’ Harvard Business ool: An o tising [Online], 2000. 1 995, ‘Using t tunities, 5, no. 4, pp.36 996, The Int 998, ‘R ., pp. 1 . he W ing. 2000, Int 957 or indus 0. er 998, ‘N ’ Broadcas f 1 . 1 ., pp. S6, S36. 1 ol. 1 e using t ol. 35, no. 2, pp.1 net, . 2000, ‘N ication, egic Mark n, A.A. 1 y sect ’ Business Horizons, v , p. 3 anda, L.J., Ashill, N.J. & S anda, L.J., Ashill, N.J. ald, K. 2000, ‘Cross-selling g , v er ’ European manag ’ European h, D.A. & P y r 0 Apr 998, ‘Creating com f, H.I. 1 aging t at eatures/researchpag er net business s net business it , pp. 3- eek, 29 Jan., pp.67-8. ws wisdom out of windo nal, v ehr f er tr rent oppor ersif coms99.pdf. [A eb., p. 6 er e, 1 ande, C. 1 ews, 27 Apr ew Media Mark eview vailable: http://www attah, H. 200 5 Ma .M. 1 hro he Int tature in cable w success, no. 1 as a business t Ag Glascock, S. 1 25 Sept., pp. 66-82. Grif 7 F F Gordon, R.L. 1 cur Gr ‘Lev big-media contr N Fitzg s t t Adw Greene, K. 2000, ‘T global CNN deal, N Ang model, Jour pp. 257-72. Channel sur 1 dot Elkin, T Int Ansof R Casag primar of S frontier of business. Harvard Business School Press, Bos Dot-Com Adv Cronin, M.J. 1 handbook: Lessons from t P com/f A div advantag - - s e o y es ed he he es, tis- en- at er a r et- ards ork er v he in- h t tsLine or t azine. he CBS ootball ect nal o a pro- ocus on e a value f phasis. 996, v ear ext e also con- or t tsLine.com o mig v ames, pla 3, no. 2, 1 vides f e-y net. CBS also ation o hat f emag 0 y challeng o ha er Game, an- ’ Jour iv er y y ha s t net em ccessed ent such as The er positioned t e CBS Spor ol. 1 ts and CBS Plus, net’s ef tising f ed t eb, er he f es/ ork ork. ew cable netw er tainment-orient er he fantasy f t of us: Mark omization and per e more experience ootball g he Int t v ett, M.G. 1 er ts pursuant t er t y t uity in Spor IV – 20 etw . anization. he f v .medialif ed cont e on repla he f . e in jobs.com, Inc. In ex- e in jobs.com, uck reement pro eting, v o promot her consider V e on t ot ed $62 million in adv he res , CBS also includes t eb.htm [A hrough a $3.5-billion IPO ed eq y or t tak ent cus h CBS Spor han t ould be bett udience can also log on Mil- hat is project ork t s also ha ts sit or t tainment products in reg 3 – No ord Wide W ering). .L. & L he USA N y along in real-time wit f ts broadcas uity s er tions, v en, cable netw etw ol. ork eb. A V 00 million o eloped t net f ok and wit y log on f ears. The ag hat is on T ues – . heir more niche Int he W mation-orient

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