Starhub-english premier league

Assignment Help Operation Management
Reference no: EM13870484

Please read the case "StarHub: English Premier League" presented below and answer the questions:

StarHub: English Premier League

Some of the most ardent fans of Arsenal, Manchester United, and Liverpool live far from Highbury, Old Trafford, and Anfield. Until the 2006-2007 season, ESPN held the broadcast rights to the English Premier League (EPL) for Singapore. Then, in late 2006, StarHub bid and estimated $160 million U.S. dollars to beat ESPN to win the rights for the next three seasons. The winning bid paid more than ESPN had paid for the previous rights.

The Singapore government prohibits the reception of satellite TV. StarHub, an integrated telecommunications and cable provider, is the only provider in Singapore. In 2007, StarHub's major source of revenues was mobile services, which accounted for 52% of revenues and included:

Cable TV 17%

Broadband 12%

Fixed network services 14%

Equipment sales 5%

In 2001, StarHub unbundled the basic cable TV package into thematic basic packages and reduced the price from $32,95 to $20 a month. Subsequently, it added new channels to the various basic packages without increasing prices. In 2004, StarHub raised the price of the sports package from $8 to $15 a month. The sports package included ESPN Star Sports. Typically, cable TV operators pay content providers such as ESPN a royalty based on the number of subscribers to the content.

Following the acquisition of the English Premier League (EPL) rights, StarHub announced price increases to the basic packages from $20 to $24 a month in July. StarHub decided to broadcast the EPL on its own sports channel, which is included in the sports package. This resulted on an increase of the sports package from $15 to $25 a month, effective in October.

Mr. Thomas Ee, StarHub Senior Vice President explained price increases this way: "Most pay-TV operators around the world increase prices periodically, and StarHub has not done so despite a steady rise in costs over the years."

In 2007, StarHub's cable TV revenue grew by 9% from S$313 million to S$342 million. The average revenue per user (ARPU) rose by 6% from S$48 to S$51, while the subscriber base increased by 4% to 504,000 as at the end of December, 2007. Relative to the number of households in Singapore, the subscriber base amounted to a 45% penetration rate.

Source: Ivan Png (2008), Managerial Economics. This cased is based in part on the article “Singaporeans to pay more to watch EPL next season," Strait Times, 11 May 2007.

1) Identify changes in demand and costs (fixed and marginal costs relative to the number of subscribers) arising from StarHub's acquisition of the EPL rights.

2) Which of the changes in demand would be relevant to StarHub's pricing of cable TV services?

3) Do you think that, prior to the 2007 price increases; StarHub's prices had maximized profits?

4) From the viewpoint of a content provider like ESPN, which receives a per-customer royalty from a cable TV operator, explain the moral hazard to which the cable TV operator is subject.

 

5) From the viewpoint of EPL, explain how you could solve asymmetry information between EPL and cable TV operators.

Reference no: EM13870484

Questions Cloud

Divided cost management-customer interface : Andrew Shilston divided cost management into perhaps eight categories. If you have any experience with any of the issues Mr. Shilston described in any of these categories, describe whether what he says is a legitimate perspective. Pick a single categ..
Does the oregon court have personal jurisdiction over dealer : Samantha, an Oregon resident, buys a Porsche from Southside Porsche of Los Angeles, in Los Angeles, California while she is on vacation in Los Angeles. Assuming that the cause of action is valid, does the Oregon court have personal jurisdiction over ..
Identify an advertisement on TV that targets business market : Identify an advertisement on TV that targets the business market? Does this ad differ from the typical consumer ad? Explain and give reasons why you feel a difference exists/does not exist. What product benefit(s) is the company trying to sell? Is th..
What are the characteristics that define incremental : What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
Starhub-english premier league : Some of the most ardent fans of Arsenal, Manchester United, and Liverpool live far from Highbury, Old Trafford, and Anfield. Until the 2006-2007 season, ESPN held the broadcast rights to the English Premier League (EPL) for Singapore. Identify change..
Some of positives and negatives of being project manager : What are some of the positives and negatives of being a project manager? What are some essential skills for an effective project manager? How can these skills be developed?
What are the most important metrics for operations managers : What are the most important metrics for operations managers? How does each metric support the overall financial performance of the organization? What data would be used to support this metric and how would you ensure that the data are of sufficient q..
Distinguish between computer crime-computer-related crime : Criminal Justice- Distinguish between computer crime, computer-related crime, and cybercrime. Can these crime terms be permanently defined and completely understood? Why or why not?
Primary characteristic of the reframing innovation strategy : What is the primary characteristic of the reframing innovation strategy? Why is the reframing strategy difficult to execute within established organizations?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Contract administration during control procurement phase

Which type of contract requires the least contract administration during control procurement phase? Which type requires the most? Why?

  Examples would be avoidance or collaboration

Think about a conflict you have experienced either in the workplace or in a significant personal relationship. Describe the situation briefly and consider which response to conflict was demonstrated by either you OR the other person in the conflict. ..

  Divergent enough to encourage lively debate

In today’s workplace, it is expected that workers will encounter technology in some form. There are varied perspectives regarding the use of technology in the workplace. Two perspectives are presented and are divergent enough to encourage lively deba..

  What considerations or limitations should be considered

The first proposal would designate one employee as a quick-service clerk for guests registering under corporate accounts, a market segment that fills about 30% of all occupied rooms. Because corporate guests are preregistered, their registration take..

  Find company main competitors for comparison purposes

Governance mechanisms are considered to be effective if they meet the needs of all stakeholders, including shareholders. Governance mechanisms are also an important way to ensure that strategic decisions are made effectively.

  Estimating the expected cost

KLM Company is expanding its supply chain to include a new distribution hub in Miami. A key decision involves the number of trucks for the facility.

  Lead to increased conflict be addressed immediately

Provide 2 insights on conflict in organizations. Is conflict in organizations good or bad? Can conflict be avoided? Should all potential issues that can lead to increased conflict be addressed immediately? Expand your answers to show your understandi..

  Find out which project might be implemented and why example

review the project management email.write an email response in which you address the following pointsnbspdescribe the

  What are the positive and negative tradeoffs associated

What are the positive and negative tradeoffs associated with outsourcing production functions to supplier organizations. What quality systems and procedures and systems should Toyota have followed to ensure that faulty automobiles are not d..

  Why is it important for decision makers to understand

Why is it important for decision makers to understand differences between tangible also intangible resources.

  According to research by rarick and vitton

According to research by Rarick and Vitton, firms with a formalized mission statement______.

  95% of cans will contain 500 grams or more

Cans of corn are filled by a machine which can be set for any desired average amount. If the fill is normally distributed with a standard deviation of 1.5 grams, where should the quality control supervisor recommend the machine be set so that ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd