Mis 3
Mis 3
to the internet?The rise of the internet has certainly disrupted the traditional TV industry, and many people believe that it will
Problems created by these competitive forces:
eventually lead to the demise of traditional television as we know u. Sales of DS in retail music stores have been tidily declining while sales of songs downloaded through the met
to iPods and other portable music players are skyrocketing. Moreover, the music industry is still contending with millions of people illegally downloading songs free. Will the
television in astry experience a similar fate?Widespread use of high-speed Internet access, powerful PCs with highly ens, Phones, iPads, other mobile handhelds, and leading-
edge file-shingade downloatling of video content from movies and television shows facerec and often illegal downloads of some TV shows are abundant. But the latinet also prav
ways for television studios to distribute and sell their content, and they are trying to take vage of that opportunity.You Tube, which started up in February 2005, quickly became
the most popular sadood site in the world. Even though YouTube Is original mission was to provide a nuthen for filmmakers, clips of copyrighted Hollywood movies and television
showes soon profienned YouTube Web site. It is difficult to gauge how much proprietary content from TV shows eb eur the up on YouTube without the studios/ permission.
Declining viewership: Traditional TV networks
Viacom claimed in a 2008 lawsans that over 1 50, 1 00 unauthorized clips of its copyrighted television programs had appeared in YouTube.YouTube tries to discourage its users
from posting illegal clips by limit of 1 0 minutes each and by removing videos when requested by their copyrtetit mer. YouTu also implemented Video ID filtering and digital
fingerprinting technology that allows copyn it owners to compare the digital fingerprints of their videos with material YouTube and infringing material. Using this technology, it is
face dwindling audience numbers as viewers
able to filter many vis lelive Bey appear on the YouTube Web site. If infringing videos do make it online, they can be tracked usu Video IDThe television industry is also striking
back by embracing the Internet as another delivery systefor its content. Television broadcast networks such as NBC Univernal, Fox, and CNN lave p television shows on their
owWeb sites. In March 2007, NBC Universal, NewsCorp (the owner ofFox Broadcasting), and ABC Inc. formeHulu.com, a Web site offeringtreaminVido at television shows and
movies from NBC, Fox, ABC, Comedy Central, PBS, USA Network, FX, Speed, Sundance, Oxygen,Onion News Network, and other networks. Huld also syndicmes ieshosting to
shift to online streaming platforms and
other sites, including AOL, MSN, Facebook, My Space, Yaliool, and Fanrast.com,d allows users to embed Hulu clips in their Web site. The site is supported by advertinimu
commercials, and much of its content is free to viewers. CBS's TV.com nad loont are other popular Web television sites.Content from all of these sites is viewable over iPhones.
Hulu has blocked services such as Boxee that try to bring Hulu to TV screens, because that would draw subscribers away from cable and satellite companies, diminishing their
revenue. According to Hula CEO Jason Kilar, Hulu has successfully brought online TV into the mainstream. It dominates the market for online fullepisode TV viewing, with more
alternative content sources.
than 44 million monthly visitors, according to the online measurement firm comScoreMonthly video streams more than tripled in2009, reaching over 900 million by January
2010. What if there are so many TV shows available for free on the Web that "Hulu households" cancel their cable subscriptions to watch free TV online? Cable service operators
have begun worrying. especially when the cable networks posted some of their programming on the Web. By 201 0, nearly 800,000 U.S. households had "cut the cord," dumping
their cable, satellite, or highspeed television services from telecom companies such as Verizon's FiOS or AT&Ts U-verse. In their place, they turned to Web-based videos from
services such as Hulu, downloadable shows from iTunes, by-mail video subscription services such as Netflix, or even old-style over the-air broadcast programming. Although the
"cord cutters" represent less than 1 percent of the 1 00 million U.S. households subscribing to a cable/ satellite/telco television service, the number of cordcutting U.S.
Loss of advertising revenue: With fewer
households is predicted to double to about 1.6 million. What if this trend continues?In July 2009, cable TV operator Comcast Corporation began a trial program to bring some of
Time Warner's network shows, including TBSs My Boys and TNTIs The Closer, to the Web. Other cable networks, including A&E and the History Channel, participated in the
Comcast test. By making more television shows available online, but only for cable subscribers, the cable networks hope to preserve and possibly expand the cable TV
viewers tuning in to traditional TV channels,
subscription model in an increasingly digital world. "The vision is you can watch your favorite network's programming on any screen," noted Time Warner Chief Executive Jeff
Bewkes. The system used in the ComcastTime Warner trial is interoperable with cable service providers/ systems to authenticate subscribers.The same technology might also
allow cable firms to provide demographic data for more targeted ads and perhaps more sophisticated advertising down the road. Cable programmers stand to earn more
advertising revenue from their online content because viewers can't skip ads on TV programs streamed from the Web as they do with traditional TV. Web versions of some
advertising revenue declines, posing financial
television shows in the ComcastTime Warner trial program, including TNTIs The Closer, will carry the same number of ads as seen on traditional TV, which amounts to more than
four times the ad load on many Internet sites, including Hulu. Many hour-long shows available online are able to accommodate five or six commercial breaks, each with a single
30second ad. NBC Universal Digital Entertainment has even streamed episodes of series, including The Office, with two ads per break. According to research firm eMarketer,
these Web-video ads will generate $1 .5 billion in ad revenue in 2010 and $2.1 billion in 201 1 .For all its early success, Hulu is experiencing growing pains. Although it had
challenges for networks reliant on ad sales.
generated more than $1 00 million in advertising revenue within two years, it is still unprofitable. Hulu ls content suppliers receive 50 to 70 percent of the advertising revenue
Hulu generates from their videos. Some of these media companies have complained that this revenue is very meager, even though use of Hulu has skyrocketed. One major
supplier, Viacom, withdrew its programming from Hulu after failing to reach a satisfactory agreement on revenue-sharing, depriving Hulu viewersof such popular shows as The
Daily Show with Jon Stewart and The Colbert Report. Other companies supplying Hulu ls content have pressured the company to earn even more advertising dollars and to set up
a subscription service requiring consumers to pay a monthly fee to watch at least some of the shows on the site. On June 29, 201 0, Hulu launched such a service, called
Piracy: Illicit distribution of copyrighted content
HuluPIus. For $9.99 per month, paid subscribers get the entire current season of Glee, The Office, House and other shows from broadcasters ABC, Fox, and NBC, as well as all the
past seasons of several series. Hulu will continue to show a few recent episodes for free online. Paying subscribers will get the same number of ads as users of the free Web site
in order to keep the subscription cost low. Paying subscribers are also able watch shows in high definition and on multiple devices, including mobile phones and videogame
consoles as well as television screens. Will all of this work out for the cable industry? It's still too early to tell. Although the cable programming companies want an online
through file-sharing platforms undermines the
presence to extend their brands, they don't want to cannibalize TV subscriptions or viewership ratings that generate advertising revenue. Customers accustomed to YouTube and
Hulu may rebel if too many ads are shown online.According to Oppenheimer analyst Tim Horan, cable companies will start feeling the impact of customers canceling
subscriptions to view online video and TV by 2012. Edward Woo, an Internet and digital media analyst for Wedbush Morgan Securities in Los Angeles, predicts that in a few years,
"it should get extremely interesting." Hulu and other Web TV and video sites will have much deeper content, and the technology to deliver that content to home viewers will be
revenue potential of TV networks and content
more advanced. Netflix is a prime example of how the internet has disrupted the TV industry. It started as a DVD rental service but quickly pivoted to a streaming service, and
now has over 200 million subscribers worldwide. Netflix offers a vast library of TV shows and movies that are available ondemand, and it has invested heavily in producing
original content.
creators.
What competitive forces have challenged the television Cord-cutting: Subscribers canceling their cable
industry? What problems have these forces created?
or satellite TV subscriptions in favor of cheaper
Competitive forces challenging the television and more flexible online streaming options
industry contribute to the erosion of traditional TV
revenue streams.
Rise of the internet: The proliferation of high-
speed internet access has provided consumers Competitive pressure: TV networks must
with alternative means of accessing compete with a plethora of online streaming
entertainment content. services offering compelling content libraries
and innovative features, intensifying
File-sharing technology: Technologies competition for audience attention and loyalty.
facilitating the sharing of video content, both
legally and illegally, have reduced the need for b) Describe the impact of disruptive technology on
traditional TV viewing. the companies discussed in this case.
Streaming services: Platforms like Netflix, Hulu, ➢ Disruptive technology, such as the
and YouTube offer vast libraries of content on- internet and streaming services, has
demand, providing alternatives to traditional TV fundamentally changed the way people
programming. consume television content.
➢ Traditional TV networks have
Mobile devices: The widespread adoption of experienced declining viewership and
smartphones and tablets enables viewers to advertising revenue as audiences shift
consume content on-the-go, diminishing the to online platforms.
relevance of scheduled TV broadcasts. ➢ Companies like Netflix and Hulu have
capitalized on this shift by offering
Changing consumer behavior: Consumers are
extensive libraries of on-demand
increasingly gravitating towards personalized
content, challenging the traditional
and on-demand content consumption,
broadcast model.
challenging the linear and scheduled nature of
➢ Cable companies have had to adapt by
traditional television.
offering online streaming options and
forming partnerships with streaming
services to retain customers and remain e) Have the cable companies found a successful
competitive. new business model to compete with the
Internet? Why or why not?
c) How have the cable programming and
delivery companies responded to the ➢ While cable companies have made
Internet? efforts to compete with the internet, it
is debatable whether they have found a
➢ Cable companies have responded to the successful new business model.
internet by launching their own ➢ Initiatives such as offering online
streaming platforms and offering on- streaming options and forming
demand services to complement partnerships with streaming services
traditional TV offerings. have helped cable companies retain
➢ Many cable networks have formed some subscribers and generate
partnerships with streaming services additional revenue.
like Hulu to distribute their content
online. However, cable companies continue to face
➢ Some cable companies have challenges such as cord-cutting and declining
experimented with innovative business advertising revenue, indicating that a definitive
models, such as offering online access solution to compete with the internet has not
to cable subscribers or providing yet been found.
targeted advertising based on Ultimately, the long-term success of cable
demographic data. companies will depend on their ability to
innovate and adapt to changing consumer
d) What management, organization, and
preferences in the digital age.
technology issues must be addressed to
solve the cable industry's problems?
e) Rivalry Among Existing Competitors: Email: Enables the exchange of messages and
Information systems facilitate strategic decision- files between users over a network, facilitating
making, competitive analysis, and real-time communication and collaboration.
performance monitoring, enabling companies File Sharing: Allows users to share and access
to identify opportunities for differentiation and files stored on networked devices, enhancing
gain a competitive advantage. For example, productivity and data accessibility.
companies like Google leverage big data
analytics and machine learning algorithms to Remote Access: Permits users to connect to a
analyze market trends, optimize advertising network from remote locations, accessing
campaigns, and outperform rivals in the online resources and services securely over the
advertising space. internet or VPN connections.
6 . Evaluate alternative transmission media, types of Voice over IP (VoIP): Transmits voice calls over
networks and network services. an IP network, offering cost savings and
flexibility compared to traditional telephone
Transmission Media: Twisted Pair: Affordable systems.
and widely used, but susceptible to interference
and limited in transmission distance. 7. How does cloud computing help business
organization? Explain different types of services
Coaxial Cable: Offers better performance and provided by cloud computing.
shielding than twisted pair, suitable for high-
speed data transmission over longer distances. Benefits: Cost Efficiency: Eliminates the need
for upfront investment in hardware and
Fiber Optic: Provides high bandwidth and software infrastructure, enabling businesses to
immunity to electromagnetic interference, ideal
pay only for the resources they use on a pay-as- Business Intelligence (BI): Data Gathering:
you-go basis. Collects and aggregates data from various
sources, including internal databases, external
Scalability: Allows businesses to scale
sources, and operational systems.
computing resources up or down quickly in
response to changing demands, ensuring Data Analysis: Analyzes historical and current
optimal performance and cost-effectiveness. data to identify trends, patterns, and insights
relevant to business decision-making.
Flexibility and Mobility: Provides remote access
to computing resources and applications from Reporting and Visualization: Presents analyzed
any location with internet connectivity, enabling data in intuitive dashboards, reports, and
remote work and collaboration. visualizations, enabling users to understand and
interpret information easily.
Reliability and Disaster Recovery: Cloud
providers offer robust infrastructure and Business Analytics (BA): Predictive Analytics:
redundancy measures, ensuring high availability Utilizes statistical techniques and machine
and data backup and recovery capabilities. learning algorithms to forecast future trends
and outcomes based on historical data, helping
Innovation and Agility: Facilitates rapid
businesses anticipate and plan for future
deployment of new applications and services,
scenarios.
enabling businesses to innovate and respond
quickly to market changes and opportunities. Prescriptive Analytics: Recommends actions
and strategies to achieve specific business
Types of Services: Infrastructure as a Service
objectives based on analysis of data and
(IaaS): Provides virtualized computing
business rules, guiding decision-makers towards
resources, such as virtual machines, storage,
optimal solutions.
and networking, allowing businesses to deploy
and manage their infrastructure on the cloud Integration with DSS: BI and BA tools provide
provider's platform. valuable data and insights to support decision-
making processes within DSS.
Platform as a Service (PaaS): Offers a
development and deployment platform for DSS leverages BI capabilities for data collection,
building, testing, and deploying applications analysis, and visualization to facilitate informed
without worrying about underlying decision-making across various organizational
infrastructure, streamlining the application functions.
development process.
BA techniques enhance the predictive and
Software as a Service (SaaS): Delivers software prescriptive capabilities of DSS, enabling
applications over the internet on a subscription businesses to make strategic decisions based on
basis, eliminating the need for installation and data-driven insights and recommendations.
maintenance on the user's end, such as email
9. What are the challenges of managing IT infrastructure in
services, CRM, and productivity tools.
developing country? Explain.
8. How business intelligence and business Limited Resources: Developing countries often
analytics support DSS? Describe. face constraints in terms of funding, skilled
personnel, and technological infrastructure
required to build and maintain IT systems Society 5.0: Human-Centric Society: Envisions a
effectively. future where technology is harnessed to
enhance human well-being and address societal
Infrastructure Deficiencies: Inadequate power
challenges, such as aging populations,
supply, unreliable internet connectivity, and
healthcare, and environmental sustainability.
poor physical infrastructure can hinder the
deployment and operation of IT infrastructure. Integration of Technology: Promotes the
integration of emerging technologies like
Security Concerns: Developing countries may
artificial intelligence, IoT, and robotics into
lack robust cybersecurity measures and
various aspects of society to create smart cities,
regulatory frameworks, making IT infrastructure
healthcare systems, and transportation
vulnerable to cyber threats such as hacking,
networks.
malware, and data breaches.
Challenges: Involves managing privacy and data
Digital Divide: Disparities in access to
protection concerns, addressing ethical
technology and digital literacy skills can widen
implications of technology use, ensuring
the digital divide within developing countries,
equitable access to technological benefits, and
exacerbating inequalities and limiting the
mitigating potential social and economic
benefits of IT infrastructure.
disparities.
Regulatory and Policy Challenges: Complex
Describe privacy and data protection issues in
regulatory environments, bureaucratic Information System.
processes, and lack of enforcement mechanisms
Data Breaches: Unauthorized access to sensitive data,
can impede the development and
resulting in theft, exposure, or misuse of personal
implementation of effective IT infrastructure information, can lead to financial loss, reputational
strategies. damage, and legal liabilities for organizations.
Sustainability and Environmental Impact: Compliance Regulations: Failure to comply with privacy
Balancing the need for technological laws and regulations, such as GDPR, CCPA, or HIPAA, can
result in hefty fines, legal penalties, and loss of trust from
advancement with environmental sustainability customers and stakeholders.
is a challenge, particularly in regions where
environmental concerns are paramount. Data Misuse: Improper handling, sharing, or processing of
data can lead to privacy violations, identity theft, and
10. Explain industries 4.0 and society 5.0 and its discrimination, undermining individual rights and
challenges to manage information system. freedoms.
Industries 4.0: Technological Revolution: Surveillance and Monitoring: Widespread surveillance and
monitoring practices by governments and corporations
Focuses on the integration of digital raise concerns about privacy invasion, erosion of civil
technologies, automation, and data analytics liberties, and abuse of power.
into manufacturing processes to create smart
Ethical Considerations: Ethical dilemmas related to data
factories and enable Industry 4.0 initiatives. collection, surveillance, and algorithmic decision-making
raise questions about consent, fairness, transparency, and
Challenges: Includes managing the complexity
accountability in the use of information systems.
of interconnected systems, addressing
cybersecurity risks, upskilling the workforce to Emerging Technologies: Advancements in technologies like
AI, IoT, and biometrics present new privacy challenges,
adapt to automation, and ensuring ethical and
such as facial recognition, behavioral tracking, and
responsible use of technology. predictive analytics, requiring robust safeguards and
ethical frameworks to protect individuals' privacy rights.