MTV Case Swot Analysis

Because of MTV’s connection to popular culture, it attracts the young adult population, who are some of the strongest money spenders, to be their number one demographic of viewers. It is effortless for young adults to be loyal to MTV because it shows them what they want, such as coverage on music, lifestyle, fashion, and film. Having the loyalty of the young adult population is very important to MTV’s success because this demographic is typically known for being trendsetters in popular culture.

Its first-mover advantage in the industry also played a huge role in establishing and maintaining a connection with the youth audience. This dominance over the young adult population has led cable networks and advertisers to have a high demand for advertising on MTV, which is another one of their strengths. Advertisers are eager to gain advertising slots during MTV’s most sought after programs such as the MTV music awards. Many companies, such as Burger King and Foot Locker, have sponsored MTV so that they can reach out to young adults across the country.

Because MTV lead to the success of many artists, many of them hope to be affiliated with MTV so that they will continue to be relevant in today’s pop culture. This is another strength for MTV because it’s alliance with so many celebrities is another factor of why they have such a strong following in the young adult market. MTV has been successful in its expansion into the global market because it localizes itself to fit the interests of its audience.

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Its mergers with companies such as the Philippines’ National Broadcasting Company has also made them more relevant to the local culture.

MTV has become a global brand through its expansion to China, Europe, India, and other places around the world. MTV’s support for political and social causes, such as the 2004 presidential elections or relief for Hurricane Katrina, has made it more even more relevant to viewers across the country. This has led to their influence and power in entertainment media. Another strength is that the MTV network has various channels that as a whole cater to an even broader demographic.

For example, they own Nickelodeon, which is a channel primarily for children, or they own BET, which focuses on African-American music and entertainment. Weaknesses MTV continuously risks losing its dominating position because it solely serves momentary on-demand interests. This is difficult because it means that MTV must constantly find out what these interests are and be the first to expand them no matter how fast they might change. Because cable television offers several other alternatives, MTV must work even harder to continually grasp the attention of its audience.

Another weakness that MTV has is the fact that their many cultural misunderstandings have led to them have difficulties reaching local audiences. In order to better reach these local audiences, it must use advertising and branding that is more appropriate to their culture. Opportunities MTV saw many of its competitors as opportunities as opposed to threats. When competitors such as BET, The Box, or VH1 gained large success across the country, MTV sought to purchase these companies and add them to their MTV networks unit, which has increased MTV’s revenue significantly.

The digital age has also presented MTV with an opportunity to expand its market. Merging with mobile and Internet companies could lead to a wider distribution of their products. Also, a lot of MTV’s success has come from being a channel that is interactive with its users, so technology could add to their success by allowing them to hold polls for the VMA’s (Video Music Awards) on their mobile phones, for example. Globalization has also been a huge opportunity for MTV to expand into emerging markets, such as BRIC countries, Brazil, India, and China.

For instance, the 12-34 age group, MTV’s target market, accounts for nearly two-thirds of Asia’s population. Increasing advertising in these countries also provides MTV with an opportunity to increase its advertising revenue. Threats Although MTV has bought out many of its competitors, it still has a lot of competition to face against companies such as FuseTV. New technologies that have emerged in recent time have led to the creation of even more channels that MTV has to compete against.

Also, MTV initially had a hard time providing international local cultures with program material that would be of interest to them. Instead, they provided them with English speaking channels and American music without thinking that they might enjoy something that is more in line with their cultures. Although MTV has since done a better job of catering to those local cultures, many different countries such as Germany had created their own local music channels by then that started to compete with MTV.

Those countries have a familiarity with the local audiences that MTV doesn’t and needs to have, giving those local music channels a competitive advantage. Also, another threat to MTV’s success is the fact that their advertising revenue has started to decrease ever since cable networks have started to lose their appeal. Because an increasing number of people are using digital cable to watch their shows and skip ads or watching shows online, advertisers are spending less money on advertising on MTV. MTV’s late addition of their online site has also put them behind on making money from online advertising.

MTV’s dominance over the 12-34 market can be a threat to them as well because they, the MTV Generation, are growing old and will soon be uninterested in this channel since it largely caters to the youth. MTV needs to find a new market to please as this generation gets older, and it is a threat to their success that the young adult stage is a very short-lived stage in a person’s life. Young adult’s interests are also extremely quick to change, which could make it difficult for MTV to effectively keep up with them.