Many television companies such as Time Warner Cable suffer quarterly losses of TV subscribers to internet live streaming. The internet is a threat to the company which renders that TIme Warner Cable needs a new strategy.

According to Porter’s generic strategy, Time Warner Cable target scope is industry wide while trying to differentiate their cable company from their competition. Similar to the problems discussed in class about Netflix, Time Warner Cable needs to find a new strategy that would generate more profit. An option could be that they have their own online streaming website for their subscribers that display shows exclusive to Time Warner Cable.

In this scenario, Time Warner Cable decided to purchase content, hence reaching an agreement to distribute Al Jazeera America. New York Times state that this is a “win-win proposition” for both companies, but to me it seems like Al Jazeera America gains more from this agreement. For Al Jazeera America, the company will have more exposure in their geographically targeted areas (New York and Los Angeles) and will increase the number of viewers ratings.

Despite the likelihood of increased viewer ratings for Al Jazeera America, this does not necessarily guarantee that Time Warner Cable will be able to increase their number of subscriptions. In the long run, Time Warner Cable might suffer a loss from signing this contract as they might not break-even.

Sources

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