Tag Archives: entertainment

SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

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Sony’s New Litter of Aibo Robotic Puppies

In the very innovative electronics industry, Sony faces a slew of competitors such as Apple, Samsung, and others. While Sony was once the pinnacle of innovative devices such as the Sony Walkman and Discman, it has been overtaken by industry leaders Apple’s and Samsung’s products including smart phones and devices. Now, Sony is seeking to reestablish itself in the U.S. with its totally charming robotic dog – Aibo (Japanese word for a pal).

Aibo isn’t totally new; it was first released in 1999 and then discontinued in 2006 – to the dismay of many thousands of Aibo owners in Japan. The new litter of Aibo puppies combines robotics with a cloud-connected artificial intelligence (AI) engine and advanced imaging sensors. And, as Aibo interacts with its owners over time, it will develop a unique personality to make owners happy and form bonds with the family members.

Like many real-life puppies, Aibo doesn’t come cheap. It has a price tag of $2,899 which limits how many families can afford to adopt from the new litter. Sony’s goal does not appear to be market penetration, but is instead using the product to show the company’s innovation skills by combining software, hardware, and services, as well as rebuilding brand awareness.

Sony wants to connect with consumers on an emotional level with Aibo. The puppy has more than 400 parts and 22 points of movement, making it move more like a real animal. The eyes are displays so that its gaze can follow its owner around the room, and it can learn doggie tricks like fetch and shake hands by using the Aibo app. Aibo can also take photos and videos to share with the family.

How much is that doggie in the window? 

Group Activities and Discussion Questions:

  1. Discuss new product innovation and its importance to electronics companies.
  2. Show Aibo Web site: https://us.aibo.com/
  3. Show Video: https://youtu.be/oGo0TwNXXuo
  4. Discuss the various promotional tactics that can be used for launching a product.
  5. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  6. Divide students into groups to work on this exercise.
  7. For Aibo, have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.
  8. Debrief by putting together the entire suggested lists on the white board. As a final step, have the entire class vote on the top three tactics to use.

Source:  Tsukayama, H. (23 August 2018). The rebirth of Aibo is also a chance to revitalize Sony’s brand. Washington Post.

 

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Product Placements on the Screen

If a brand wants to get a customer’s attention, marketers know that there is no substitute for showing the customer how a product fits into real lives in the real world. And to show a lot of prospective consumers this, brands need to show them the product on a large scale such as in a television show or a movie.

Product placement might not be an official component of the four 4Ps (product, price, promotion, place), but maybe it’s time to add it as a fifth P. While there are times that the product is very noticeable (such as BMW cars in James Bond movies), there are many times when products are used subtly (but still get our attention).Companies that are able to get their products shown on the big screen – or even a small screen – bring their products to the attention of millions of viewers, all of whom have opted-in to watching a show or movie.

Some recent placements where the products were included as a part of the show include Apple iPhones on Fox’s “9-1-1,” Anheuser-Busch beers in Netflix’s “House of Cards,” Lavazza coffee on “Comedians in Cars Getting Coffee,” Flaming Hot Cheetos in “Orange is the New Black,” and Pepsi in “Empire.”

Is it worth the cost to marketers? Considering that the average 30-second commercial can easily cost several hundreds of thousands of dollars, then several seconds of airplay of the product in use can easily recover the costs.

What are you seeing on the screen?

Group Activities and Discussion Questions:

  1. Ask students to name their three TV shows and/or movies that they recently viewed.
  2. Next, ask them to name at least three products that they can recall seeing in the show. Were those products there by accident?
  3. Show a video clip of one of the TV shows or movies. The clips can easily be found on hulu.com, www.youtube.com, and other sites.
  4. Divide students into teams. Have each team choose two products they would like to have placed in a TV show.
  5. How would these products be incorporated? What is the desired result?

Source:  Fleck, A. (9 August 2018). 6 product placements on TV so good you didn’t realize you were being sold something. Ad Week.

 

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