Wednesday, February 15, 2006

Show Box: Showtime's new MOVE

Couple of weeks ago I was surfing through the hundreds of cable TV channels, and I stopped by what Showtime calls the new innovation in TV. It is the Show Box. Show Box is a new receiver that has a built in hard disk that is capable of letting you watch two channels and record the third at the same time. You can even create your own channel by having a built in timer that allows you to record maximum of 40 hours of selective material from different channels and play them pack again once you press PLAY. In other words you can have a channel playing your best shows, movies, music shows all on one channel.

In the marketing campaign, the slogan was “The new generation of TV viewers.” Is it?

In the Middle East the main cable TV companies are Orbit, Arabic Radio & Television (ART), Al Jazeera and Showtime. All these are competing to win the maximum market share. Four years earlier Showtime was leading the race, as they were having the first Pay per View channels, plus other popular shows as Friends, 24 and others. Then Showtime moved a bit further when they had a deal with Abu Dhabi Sports Channel who had the exclusive rights for the Italian soccer league, who was the best during the past days. Orbit and ART were in a complete mess, showing old Arabic movies and tennis grand slams.

But things changed, fours years ago ART won the rights of broadcasting the Korea Japan World cup in 2002, and that was the start of taking over. Then ART went further by introducing their first pay per view channels showing Arabic and Hollywood movies, and they moved even further by taking over the European Champions League, the most valuable European soccer championship.

Al Jazeera is the new group of TV channels, who won their great reputation from Al Jazeera news, leapfrogged Showtime to be second on the race by taking over the rights of the Italian league from them paying around 24 million dollars. That was after they announced that they have the rights for the Spanish league.
Showtime is suffering as Rotana Cinema (owned by Walid Bin Talal), Melody movies are free subscription channels showing the recent movies released. Then, Showtime tried to save what can be saved and reduced the monthly subscription from 280 Dhs to 220 Dhs giving free receivers and installation. That did not work either.

Actually I have heard of the built in hard disk receivers long time ago, they even sell it in Carrefour; I bought it for my friend as a birthday gift. The value of this receiver is great, and it fits the life style we are living in the Middle East. If you are living in a crowded city like Dubai you are spending 5 hours daily driving, so you need to catch up what’s going on with Jack Bauer (Kiefer Sutherland, 24 hero) or want to hear the latest Osama Bin laden voice tape. Show Box is valuable to such life style.

Even if the concept is new to some population, but it is definitely not to others, actually others do have the Show Box but with different brand name and they use its facilities. Unfortunately, rareness doesn’t show up here, and if they don’t really lower their prices in selling their items then, bye bye, you can’t win anything back from the large piece of cake.
ART, Orbit or Al Jazeera don’t need to imitate Showtime and acquire such a service to their customers, for simple reason as the audience are aware of this technology, they can go and buy it from Plug Ins or Carrefour. No need for the competitors even to bother.
Showtime’s organizational internal protocols and strategy are one of the best; it is clear that everybody loves to work there, but Al Jazeera is there too with huge pay checks. Al Jazeera and Showtime have a competitive advantage over ART in their internal organizational frame work.

So, congratulations for Showtime to bring out to their customers the huge innovation in TV industry, they may win some competitive advantage, but they need to work faster, it is only the beginning and winning the lead is tough, but staying there is tougher, which our Showtime guys failed in doing.

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