Calyx & Corolla Persuasive Essay Example

the option to pause, replay, slow motion, and have flexible time; and convenience, as it requires no supplies and has user-friendly programming. TiVo acts as an intermediary in the entertainment service industry and uses new technology to solve potential customer problems relating to entertainment consumption. This is similar to the role of internet portals and search engines, such as Yahoo or Google, which aim to resolve potential issues in information consumption. Like these products, TiVo has the potential to change the value chain of the entertainment consumption process, resulting in altered relationships between buyers and suppliers. The media communication provider (such as cable or satellite) and media hardware provider (TV manufacturers) are directly affected by TiVo. Meanwhile, TV networks and advertisers are indirectly impacted by the service. TiVo will have a negative effect on pricing power for cable/satellite providers due to customers having limited budgets, resulting in TiVo's gain being their loss. However, there will also be positive effects in terms of market expansion.The effect of TiVo on various players in the entertainment industry is discussed below through four categories: cable/satellite providers, TV stations, TV manufacturers, and advertisers. While the effect overall is uncertain, some specific positive and negative effects are outlined. Cable, being a mature industry, may not be greatly affected. Niche TV channels may benefit from increased viewership, although larger networks may lose advertising revenue from primetime programs. However, daytime program revenue may offset the losses. Furthermore, TV networks may indirectly benefit by reducing cable/satellite power if TiVo becomes the preferred access point for end-consumers. The budget constraint of customers may negatively affect pay-channels whereas specialized channels may benefit. High-end TV manufacturers may

see a positive effect in terms of demand for their products, and advertisers may benefit from the targetability of customers. Finally, there is a significant change in technology in the entertainment industry with customers converting from analog to digital devices and TV competing with PCs to be the centerpiece of home entertainment appliances.With the proliferation of TV channels, there are now numerous options that target different segments and sub-segments of the population, such as the Travel Channel, Weather Channel, Spike for men, and Lifetime for women. Additionally, pay channels like HBO and Showtime have grown significantly and do not rely on advertiser support. Customer analysis shows that TV viewing behavior varies widely and can be categorized into patterns such as the couch potato, TV geek, sports fan, busy viewer, and TV-hater. Customers are now overloaded with subscription-based services like cell, DSL, and cable/satellite, making it difficult to start a stand-alone subscription service. Uncertainty about price and future technology standards also leads to customers postponing purchases, while concerns about privacy arise when service-providers use customer information to earn additional revenue.