Analyse the Pay Tv Market in Sa Using the Five Forces Framework Essay

The nemesis of new entrants in the South African Pay TV market place is small(a) for reasons discussed below Capital Requirements The content train clearly states that clear TV played out in the region of R1 billion to sustain operational which shows that the capital needed to do business in this industry is steep. The case also highlight other licensees much(prenominal) as WOWtv and Telkom Media (later sold to become highly 5 Media) struggling to launch and even aside debts respectively.Further proving that the capital needed to contain in this environment is very big requiring investors with a strong financial muscle. harvesting Differentiation There is brand appellation and devotion to DStv for the simple reason that it has been the further player (monopoly) in this industry for to a greater extent than 15 years and has built enormous fences around it to couple brand loyalty by entering into long sole(a) deals with some of the biggest channels and studios in the US. appeal Disadvantages DStv has benefitted from the learning and experience curve and world that it has been the only player in the market for a long time it has exploited this by entering into long easy lay deals, putting proper technology basis to avoid technical glitches that for instance realise TV experienced. These cost advantages positions DStv well forwards of new entrants or discourages new entrants.The nemesis of new entrants is also low because of the rubbish muscle DStv has in fighting off new entrants as it demonstrated to perish TV, by coming up with a new range of packages that also targeted the lower LSM groups which sneak TV had targeted. This repositioning of DStv had Brobdingnagian repel effects on Top TV to a point that Top TV is fighting to stay in business. Last but not least(prenominal) DStv has gained economies of scale in research, marketing and financial support over the years they have been operate as a monopoly.