Mtv global expansion

read the case “MTV Networks: The Arabian Challenge”, and answer the question.

Question : Experts felt that one of the biggest challenges faced by MTV while launching MTV Arabia was the prevalent culture in the Arab world. Discuss the Arab culture. What challenges does the culture pose to MTV?

MTV was launched on August 1, 1981 with the concept of cable music channel and was a joint venture between Warner Communications & American Express. MTV began with only one channel but launched sister channels like VH1 and Nickelodeon to cater for a more divers audience. MTV’s global expansion began in 1987 when the first overseas channel was launched in Europe. Background Summary A “Think Globally, Act Locally” motto in their globalization efforts resulted in the success of MTV Australia and MTV Asia the firm incorporated local languages and local music in their channels. MTV’s global expansion: 1 billion audience 179 countries 130 channels 25 languages – AMAZING! A reason for this success is due to their decentralization strategy which gave more authority to local managers The Launch in Middle East MTV launched MTV Arabia in November, 2007 in partnership with Arabian TV Network (ATN). It was the first International music brand in the Middle East and it had the largest potential audience of any MTV channel out of the US. The reason for the launch was due to demographic reasons: 65% of Arabs are under 25 years old and there was potential for over 190 million viewers. MTV Arabia Video MTV was aware that the Arabian market was too complex for them to enter on their own - Therefore they formed a licensing agreement with Arab media group - This licensing was advantageous to both. To avoid failure in their marketing strategy, extensive market research was carried which was very much required as the Arabian culture is quite conservative and comprises of several sub cultures which are significantly different from one another. MTV aired shows that were globally successful but gave it an Arabian touch. They did not target a niche, instead they started the COMMON ARAB MTV’s market strategy in the Middle East Comment on its entry strategy of providing mixed content to the market. The 60% international and 40% Arab combination of shows and music is an ideal mix because not only does it give Arabs the opportunity to view American programmes but it also serves as a platform for Arabs to showcase their potential and talents. It also reduces the political tensions The fact that MTV handed the launch to an Arab company TBWA/Raad was quite a wise marketing tactic. - The use of famous personalities like Ludacris, Karl wolf and Akon in the launch show attracted one of a huge audience, making it the LARGEST in MTV’s history. - MTV in Arabia and the way the firm formed its entry strategy such that the Arabian culture was intact served as a good platform to reduce the political tension between the countries Do you think MTV will be able to succeed in this market? Since more than 65% of the population is under 25, MTV is most likely to succeed. Mainly because the youth of the Middle East are quite influenced by the western culture The Senior citizens maybe more conservative on the other hand Equal success cannot be guaranteed in all nations. EG- MTV is likely to be a huge hit in Egypt and United Arab Emirates where the Islamic law is more relaxed than in countries like Saudi Arabia