Monthly Archives: October 2014

Cable television: the new old-timer

Posted on by under COMM 101
Photo via Digital Trends

Photo via Digital Trends

Do people still watch TV through cable? With the rise of online media streaming structures such as Netflix, consumers have begun to steer away from cable television altogether. These are the rising concerns of telecommunications companies such as Rogers and Shaw, as detailed in this Huffington Post article. These two companies have collectively lost approximately 193,000 cable subscribers in the past year.

Netflix is a disruptive innovator. By creating an incredibly successful online TV and movie streaming subscription service, it has effectively disrupted the cable industry and poses major threat and competition for old-timer industry oligopolies, Rogers and Shaw. With today’s technology, people are able to stream Netflix or other online media streaming sites straight from their TVs. Owning TVs no longer automatically correspond with having cable subscriptions. Telecom companies are now forced to reevaluate their services and consider marketing to a different consumer segment. Cable television is something that I, personally, have not enjoyed for a very long time. Despite having multiple TVs in my family home, I prefer to watch videos on YouTube or shows on Netflix, as is the case with many of my peers. As telecom companies attempt to compete against disruptive innovators such as Netflix and YouTube, it will be interesting for consumers to see how new services emerge onto the market.

 

Will Vancouver’s housing market ever crash?

Posted on by under COMM 101
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A house that sold in Vancouver. Photo by Darryl Dyck for the Globe and Mail

The average price of a detached single-family home in Vancouver sells for upwards of $1 million – it’s safe to say that housing prices in Vancouver are crazy. An article by the Globe and Mail titled “How a housing market decline could put retirement savings at risk” elaborates on the effects a crash would have on the retirement plans of Canadians nearing that point in their lives. Many Canadians have the majority of their savings invested in their real estate. For them, an increase in interest rates would add additional costs onto mortgage payments and have a large impact on plans for retirement.

This topic hits close to home because the demographic that this article speaks of includes my parents. Having purchased a home in Coquitlam only two years ago, my parents pay a large mortgage and will rely on high housing prices when they sell our home. Our house is their primary source of retirement income. On the other hand, as a student hoping to graduate and enter the workforce in the next couple of years, the housing market is less than desirable. With a decent downtown single-room apartment renting out for a minimum of $1,000/month, renting accommodation is proving to be neither sustainable nor economically smart. For 20- and 30-somethings in the process of moving out and renting or purchasing housing in the city, a crash in the housing market may be even welcome. Analysts have been predicting a housing market crash for the past decade, yet prices have continued to skyrocket. As long as banks continue to lend money at low interest rates, people will continue to buy. It’s a difficult problem whose answer has yet to be found.

First Nations Land Claims

Posted on by under COMM 101
Fish Lake, BC. Photo by Garth Lenz/Special to The Sun

Fish Lake, BC. Photo by Garth Lenz/Special to The Sun

Ever since European settlers first arrived to Canada hundreds of years ago, the possession of land has been much disputed. To this day, the Canadian government and First Nations groups are struggling to find balance between aboriginal claims to land and economic plans. This article by the Vancouver Sun exemplifies a recurring situation – where firms looking to do business on land with aboriginal claims are faced with barriers. In the case outlined in this article, a mining company, Taseko, faces opposition in the beginning stages of New Prosperity mine, a $1.1 billion copper-gold project at Fish Lake, BC. The Tsilhqot’in people who have claim to the land oppose the project, and rightfully so, as the proposed mine would destroy many of the area’s thriving ecosystems.  From Taseko’s standpoint, external social and political factors pose significant barriers. Political factors would include environmental laws and treaties with First Nations groups. Social factors would be public attitudes against the construction of a mine highly likely of harming the environment. External factors must be taken into serious consideration and strategically planned for by any successful company.

Marketing in a Digital Age

Posted on by under COMM 101
Ingrid Nilsen (screen name missglamorazzi) is a YouTube "beauty guru" with nearly 3 million subscribers

Ingrid Nilsen (screen name: missglamorazzi) is a YouTube beauty guru with nearly 3 million subscribers

The Globe and Mail article titled “Twitter conversation more important than blatant advertising” brings forth the increasingly important marketing strategy of this digital age – social media. As an avid user of social media myself, frequenting websites such as Facebook, Twitter and YouTube multiple times a day, I can wholeheartedly say that not only is a brand’s output on social media important, a brand’s reputation through the eyes of consumers is even more so. The brand’s page on social media is like a TV advertisement. Consumers do not believe every claim or click every link that a brand tweets; mostly these are tuned out or ignored. Instead, consumers follow the advice and recommendation of fellow “regular people” on social media sites.

On YouTube, there is a massive community of “beauty gurus”, girls and women who make videos about makeup and fashion. These women film makeup tutorials, product reviews or product recommendations, usually from the comfort of their bedrooms. They gain hundreds of thousands of hits on each video they post and have fiercely loyal viewers that trust their opinions and purchase products based on what they rave about. Company’s who partner up with these individuals understand how important it is to market their brand to consumers, through consumers.

 

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