Business Model Canvas for TV Now: Enhancing Reach in Germany

The Research Paper Is About Tv Now a German Video Platform,(We Had Actually Presented That In Ppt Now i Had To Write a Paper) It's About Creating a Business Model Canvas For Tv Now And Changing It To Improve More Reach In Germany. i Had Done a Presentation About That Now i Have To Write a Paper. i Had Uploaded The Info About The Paper And The Presentation. Through That, You Have To Write a Paper.

Along with the advancement of the technology around the world, the accessibility of the internet and various other technologies has grown a lot. Moreover, the accessibility of the internet to a huge amount of people also makes the audience to search for new content for their entertainment. Furthermore, the accessibility of the smartphone also makes this search for new contents for entertainment easier for the audience around the different countries of the world.  In Germany, TV Now is one of the most common online video streaming platforms and it is associated with the business of the RTL group that is TV NOW is owned by this company (Budzinski & Lindstädt, 2018). As most of the people around the world are now searching for online content as a part of their entertainment, so most of the companies are now focussing towards the online video streaming platform so that each and every people can access the content by using their smartphones easily (Sanz, 2014).

According to the study of Jenner (2016), it is reported that due to the shifting of television content towards  the internet bases content, the popularity of the online streaming platform  has enhanced greatly and Germany is not different from other countries of the world. In this regard, it can be stated due to this modern trend in the market of entertainment, around the world a rapid transition has arrived in the market and it is very crucial to understand the situation for the companies who are in this business of entertainment (Sanz, 2014).

In this paper, the market analysis of TV NOW online video streaming platform along with the future business goal and current market position are analysed in a brief manner.

HO- Application of new business model canvas will not be able to enhance the current business situation of TV NOW in the country.

HA-Application of new business model canvas will enhance the current business situation of TV NOW in the country. 

Analysis of Competitors

While analysing the market of internet based online platform market of Germany, it can be stated that like TV NOW there are various other online video streaming in the country which are offering high quality internet based content to the consumer. In this context, the main competitor of TV NOW in the country is Netflix. Due to the presence in almost all the countries in the world, Netflix is one of the greatest competitors for TV NOW in the country. Moreover, the quality and type of content is appealing to the audience of all age groups and thus these contents are accepted easily by the audiences.  Not only this, the company is associated with the production of fresh  and exclusive content all the  time and it may cause serious threats to TV NOW in case they stick to same business model or similar type of content (RTL Group, 2018).  According to the study of Newman (2018), it is reported that the trend of using paid TV shows and content is not so popular in the country and in this regard it can be stated that the high subscription costs of Netflix may work as a serious threat for Netflix in the market of Germany during expansion of their business in the country. Furthermore, it can be marked as a positive aspect for the business of TV NOW in the country. Other rivals of TV NOW in the market of Germany are Amazon Prime, Sky, Disney and Magenta TV. In case of Magenta Tv and Sky it can be stated that both the companies are involved in producing content for the working class and thus they can pose threats to TV NOW.  However, a few information regarding the business of the Sky group can encourage TV NOW to invest more in the market. In this context, it can be mentioned from the report of the Sky groups that the company is not earning much revenue from the advertisement sections and along with this the issue of high cost to avail the contents  is also their like Netflix. This flaw is also present in case of Magenta Tv (RTL Group, 2019). It is reported that the cost of watching content in the Magenta Tv increases after 6 months from 24.95 euro to 44.95 euro per month. So, it is quite evident that such weaknesses of the rival companies in the market of Germany must be utilized by TV NOW so that they can survive well in the field of online video streaming and internet based content business in the country (Briel, 2019). So, the company should identify the current situation of the market to propose new business model canvas.

Current Situation in the Market

While analysing the current situation in the market of Germany it can be stated that in spite of the presence of different companies in the market, TV NOW has faced growth in terms of business revenue and in this regard, the monetary revenue of the company can be mentioned. As per the report of 2018, it is observed that in Germany RTL group has earned a record amount of revenue in the year of 2017. As per the report of RTL group in the mentioned year RTL group had earned revenue of 6373 million euro that is 2.2 per cent higher than that of the previous year revenue of the company. While discussing about the revenue in the digital content section of the company it can be observed that the growth of the digital revenue is dynamic in nature and it is expected that it might be enhanced by 23.3 per cent and will reach to 826 million euro (RTL Group, 2018). The revenue from the platform was up by 13.5 per cent and touched the mark of 319 million euro in the financial year of 2017. The current market situation showed that although there are a lot of competitors in the market still the RTL group had managed to secure good revenue from the market and all the revenue are well distributed from all the business sector of the company. From the report of the company, it was reported that, 47.5 per cent of overall revenue had come from the TV, 20.1 per cent had come from the content and in case of digital activities almost 13 per cent of the total revenue is generated (RTL Group, 2019).  Furthermore, it was also reported that from the platform revenue the company had earned almost 5 per cent of overall revenue in the year of 2017.  While other online  video streaming platforms charge a lot for accessing  their content, TV NOW keeps it low as much as  possible. In this regard, it can be stated that this online video streaming platform has the costs of only 2.99 euro to 4.99 euro based on the type of subscriptions taken by the consumers. This low cost of streaming online video, content, online tv, sports has provided business advantages to the company in the market of Germany.  Moreover, in other online video streaming platform, an individual can only access cinema, online content, tv series and in case of TV NOW online platform, an individual has the authority to watch all those contents along with sports and live channels (RTL Group, 2019). Therefore, it can be stated as an advantage of the company.  In terms of pricing, it can be observed that the pricing issue is a crucial one for the market in Germany (Krieger, 2018). As per the report, it was reported that NETFLIX has decided to enhance the charge of subscription for their content in Europe. In this context, it should be mentioned that the company has decided to start this policy from Germany followed by Austria, Switzerland and Liechtenstein. From the data of Netflix, it was reported that for using their medium tier service comprised of HD quality and simultaneous usage in two devices will cost 11.99 euro per month from 10.99 euro per month. In case of high tier of service comprised of ultra-HD quality video and  sound along with 4 device use, the cost will be 15.99 euro per months that will enhance by 2 euro (previous price was 13.99 euro for same facility). This price change will be effective for the new customers immediately and for the existing customers it will be applicable after the one months of current subscription (Briel, 2019). Therefore, it is very important to identify the goals of the organization in order to fix their place in the entertainment business in Germany.

After analysing the company’s current market situation it can be  observed that TV NOW has not emphasized on making any specific type of content as per the market requirement of Germany.  Therefore, in order to continue their growth in the market, RTL group has decided to concentrate specifically on the thriller based online content. According to the study of Cavender and Fishman (2018), it is reported that among German audience, thriller is the most popular format for TV shows. After identifying this factor, the RTL group and TV NOW have decided to produce more thriller based content in Germany for streaming in their online platforms (RTL Group, 2019). According to the study of Vom Brocke and Rosemann (2014), it is stated that it is very important to understand the viewpoint of the audiences in order to get success in the business process. In this regard, it can be stated that the following the audiences’ preferences will also help RTL groups and TV NOW for gaining more revenue from the market. So it can be stated that this decision of making more thriller based content for their online video streaming platform will help the organization to gain business advantages over their competitors in the market. Along with this, the organization also has decided to invest more in their own productions along with help of the local actors and local production houses so that they can control the main skeleton of their business in terms of revenue generation and distribution in the market (Krieger, 2019). As they are focussing to make original content along with fresh ideas, the company has now decided to adapt stories to make their original contents and it will attract more German audience towards their online platform instead of Netflix or other online platforms. Moreover, they also have decided to cast more German actors in their contents. According to the study of Dipio  (2014), people prefers to watch their local actors and actresses during watching any format of entertainment. Therefore, the decision taken by TV NOW may be proven to be effective in terms of revenue generation in the market of Germany. Along with this, RTL group has decided to cast popular faces of German film industry for advertising as it will attract more audience towards their online streaming platform (RTL Group, 2019). Furthermore, a well set goal will help TV NOW to propose a new business model canvas and along with this will also help them to find out the flaws of the existing business model.

From the analysis of previous business model canvas of TV NOW, it can be observed that the key partners of the RTL group are mainly various channels, licensing, various other companies associated with producing original contents, studios so that they can produce quality contents without taking helps from any other groups or companies. Moreover RTL group also has collaborated with the investors for earning more revenue as they by investing more they can produce more quality contents for the audiences of their platform (Hassan et al., 2015). Apart from that the company has key activities like streaming original content for their platform, customer acquisition, development of fresh ideas through using the entertainment media and all these activities are reported to be effective for generation of more revenue by the company in Germany. As a part of the customer retention for their online streaming platform the company has a customer care help line so that the customers can easily reach the executives of the company easily.  According to the study of Saleem and Raja (2014), it is reported that the continuous support to the customers helps in the improvement of customer satisfaction and thereby the retention rate of the customers will also improve due to this support from the end of the company. As per the business model canvas of TV NOW it can be mentioned that the company has decided to spend their costing mainly for the brand promotion through tv advertisements, in the process of licensing, internet service provider sections and in customer care services. In case of customer segmentations this streaming platform mainly focuses on the daily soaps, shows, documentations and along with this the target age group of their customers are mainly the age group of 5 years to 50 years. Moreover, the organization charged only 4.99 euro for per month. This low amount of subscription charge of this online platform has proven to be successful for generating more revenue for the company (RTL Group, 2018).

As a part of the new business model of TV NOW has decided to initiate some changes in their existing business model canvas. As a part of this, they have planned to invest more in the customer acquisition section and have planned to develop more contents based on local languages and subjects. In this regard, it can be stated that the contents for family and friends along with general youth populations will also be streamed in the online platform of TV NOW. Deviating from the daily soaps, documentaries, the online platform will now show movies, tv series made by the local actors and producers in their online streaming platforms. In terms of the subscription charge of the company, it can be observed that RTL group has decided to introduce a new family pack for the friends and family member for 11.99 euro per months (RTL Group, 2018).

As a part of the monetization model of the TV NOW it can be stated that for the convenient customer groups TV NOW is totally free of cost. However, in this package the individuals have to see the advertisements provided by different business personnel. In this package an individual can watch free news and TV series after arriving 7 days. For the working class, the company has introduced a monthly pack at the cost of 4.99 euro per month (RTL Group, 2018). In this pack one individual will not have to watch advertisements and they will be able to watch all the original contents, TV shows, live streams of 13 TV channels, more than 500 different international movies and series. Moreover, this package has a free trial period of 30 days. In case of the family or friends pack an individual can enjoy all the above mentioned facilities simultaneously in four devices at a time along with U-HD experience of the videos (RTL Group, 2018).

While discussing about the cost and revenue assumption of RTL group it can be stated that the company has decided to invest almost 350 million euro in their online video streaming business. Among this total cost, approximately 300 million euro will be used for content development and 50 million euro for various other purposes. The organization has planned to achieve 3 million subscribers within next 3 years and thereby the overall revenue of the company will be approximately 431 million euro within next three years (RTL Group, 2018).

Conclusion

Therefore, it can be concluded that the generation of new business model canvas is very important for TV NOW as there are various other competitors in the market. In this context the change in the business model will help to grow in the market of Germany in terms of popularity and revenue in the country.

References

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 Briel, R., (2019). Strong growth for RTL Group’s VOD platforms in Germany and the Netherlands. Broadbandtvnews.com. Retrieved from- https://www.broadbandtvnews.com/2019/05/16/strong-growth-for-rtl-groups-vod-platforms-in-germany-and-the-netherlands/Budzinski, O., & Lindstädt, N. (2018). The new media economics of video-on-demand markets: Lessons for competition policy. Ilmenau Economics Discussion Papers, 24(116).

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