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MTV NETWORKS: A GLOBAL BRAND GOES LOCAL
MTV Networks is one of the most successful businesses at globalization; it generates over $2 billion in revenues overseas annually and has some 300 million subscribers outside the U.S. In 1987, its first year of overseas operations, MTV managers naively assumed that Europeans would be interested in American pop stars and commentary. Soon, copycats began to offer local programming, spurring MTV to create separate regional channels, including thirty-one in Europe and ten in Asia. The programming and music videos feature local performers, and all of it is delivered by local VJs (video jockeys). Ratings are growing and there is much less of a threat from copycats. Even more importantly, advertising revenues are up, especially revenues from local advertisers.
What are the benefits that MTV has received from its globalization efforts?
Describe MTV’s current global strategy, and point out any potential weaknesses that must be addressed
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