Tag Archives: television

by | Monday, December 14, 2020 · 8:01 am

LG’s New Rollable TV costs $87,000

It’s finally here and it is incredible! Last year at the Consumer Electronics Show in Las Vegas, LG Electronics showcased an innovative, rollable screen TV. Now, the TV is in production and will be available next year in South Korea for the price of…. (Insert drum roll)… $87,000!

Did that price surprise you? Yeah, we thought so.

The screen is 65-inches and is built around a flexible OLED panel that uses self-lighting pixel technology and dimming control to delivery an amazing picture. Since the screen is flexible, it can retract partially or fully into its base, adapting to different aspect ratios. When fully retracted, no screen shows.

The base does come in four different colors, plus the aluminum base can be inscribed with words of wisdom (such as “you paid what for this?!”). The base also includes a sound bar for premium listening.

Regardless of price, the rollable TV is truly revolutionary. Instead of owners setting up a large black screen that always is in place, even when off, LG’s unit liberates the TV from the wall.

Ready for a new TV?

Group Activities and Discussion Questions:

  1. Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  3. Show a video of LG’s rollable $87,000 TV: https://www.impomag.com/home/video/21199409/lg-reveals-jawdropping-price-on-rollable-tv?lt.lid=5f90574cfed1277042925d3d&lt.ack=ryRUDA6PD&lt.usr=71617211&utm_source=IMPO_10212020&utm_medium=email&utm_campaign=124311&utm_term=643230
  4. For specifications, view the news release from LG: http://www.lgnewsroom.com/2020/10/commercial-launch-of-lgs-long-awaited-rollable-oled-tv-marks-turning-point-in-tv-history/
  5. For LG’s rollable TV, divide students into groups and have each group work on any/all of the six steps.
  6. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  7. Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.

Source: CNET, Engadget, IMPO Insider, The Verge, other news sources

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by | Wednesday, February 19, 2020 · 7:48 am

2020 Super Bowl Advertisements

Winter may be cold, but the Super Bowl heats us up! The Super Bowl has become one of the premier venues for marketers. The thrills, the chills, the excitement and surprises – and that’s just the advertisements! At a cost of roughly $5.6 million for 30 seconds of air time, the Super Bowl is also the most expensive advertising placement of any event or show. Add to the air time the costs of designing and producing ads, plus the integration into other marketing tactics, and a company can easily spend upwards of $6 million on a single day.

Love them or hate them, Super Bowl advertisements have become a talking point during and after the game. It’s a big stage, and can also be a big risk. This year it had an audience of 102 million adults in the U.S. across multiple platforms.  And viewers are far from passive, generating $17 billion in purchases on food, team gear, TVs and more.

All this generated roughly $435 million in advertising revenue, up 20% from 2019. Who were the top spenders?

  1. Anheuser-Busch: $41 million
  2. Pepsi Co: $31 million
  3. Proctor & Gamble: $30 million
  4. Amazon: $26 million
  5. Hyundai: $20 million.

Top categories for ads included automotive, food, financial services, and technology.

Watch the ads – which ad is your favorite?

Group Activities and Discussion Questions:

  1. Bring up one of the Web sites that have all the Super Bowl ads: https://www.ispot.tv/events/2020-super-bowl-commercials
  2. Divide students into teams. Have each team select a Super Bowl ad to analyze and present in class.
  3. What is the target market, key message, and offer from the ad?
  4. How does the ad integrate with a company’s other advertisements?
  5. Are the messages integrated with a company’s Web site and social media?
  6. As a class, after each commercial have students assign one to five stars for the advertisements. Which advertisement won the class vote?

Source:  Ad Week, CBS, iSpot.tv, Nielsen, other news sources

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by | Thursday, November 21, 2019 · 7:47 am

Pricing in the Entertainment Streaming Industry

The entertainment streaming industry is on fire right now. Apple, Hulu, Netflix, Disney, HBO, and more brands are ramping up to fight it out for the monthly consumer subscription!

Here is how the current prices compare between services:

Service Monthly cost Shows
Netflix $12.99 Stranger Things
Hulu $11.99 (ad free), or

$5.99 (with ads)

 Handmaid’s Tale
Amazon Prime Video $8.99 Marvelous Mrs. Maisel
Apple TV+ $4.99 The Morning Show
Disney+ $6.99 The Simpsons
HBO Max $14.99 Friends

 

Notice anything interesting in the prices? How each price ends? Which vendor is using penetration pricing? Or below-competition pricing? Name a price model and it’s probably on the list above. Blockbusters, as well as all-new created movies and shows are all offered from multiple services and it can be hard to determine which has which. The marketing focus should be on differentiation – the services are starting to sound alike, and be priced alike.

There has been a dramatic shift in recent years about how consumers get their information and entertainment, and how many more consumers use streaming services each year. The average consumer in 2019 has 2.6 stacked services. This is up from 1.6 stacked services in 2016, but far short of the projected 4.9 staked streaming services by 2023.

Think about it… how many services are currently in your household?

Group Activities and Discussion Questions:

  1. Poll students: How many subscription services does each household have today? Add them and average it for the class.
  2. Show a video about the topic: https://www.wsj.com/video/video-streaming-services-battle-for-subscribers/AED37E41-E1EC-447A-A47F-C55D1834B7E0.html
  3. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  4. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  5. For these streaming services, divide students into groups and have each group work on setting the price level.
  6. Assign each team a different model to use (demand-oriented, cost- oriented, profit-oriented, and competitor-oriented) and have the team explain how the model was used when setting their price.
  7. Compare the various pricing models and discuss advantages/disadvantages of each.

Source: FitzGerald, D., & Flint, J. (29 October 2019). AT&T lays out price, show line-up for HBO. Wall Street Journal; other news sources

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