9 Live - Birth of a Tv Channel

1- In this case, CEO of the television station tm3 Christiane zu Salm is facing a situation of dire uncertainty, with the necessity to implement a large change as quickly and smoothly as possible. The main problem of this case is where to start and who would be the viewers and they would actively participate in the shows after Christiane zu Salm decided to come up with new concept: Interactive television. Now Question that needs to be answered by Christiane zu Salm was new program would find its place in the German television market? How could they finance the channel, and what were their profit drivers? Basically, they have to find right audiences and target right way in order to become profitable as soon as possible.

2- Based on this case, Tm3 tried so many new format to get more piece of German market such as transform tm3 into a fitness channel from woman’s channel or get rights for “Champions League Station” paying huge money. However these strategies were not successful because tm3 just did not have the reputation with the viewer community to push market share significantly above 1 percent. On the other hand, German market did not have any real interactive television channel and advertising market was about to decline steeply growing for the past five years (between 1995-2000) Therefore, Christiane zu Salm realized that 9live would be the spearhead of the development of innovative interactive content. Independent studies show her that strong revenue potential for interactive television and call media formats. They decided to be first channel in German to dare taping this very special market, they felt confident that 9live could pre-empt any competition and secure a leading position in this new market segment.

3- Strategic decision mangers face uncertainty in terms of new proprietary technologies, rapidly changing economic and political trends, transformation is social values, and shifts in customer demands. As I mentioned before Christiane zu Salm is facing a situation of dire uncertainty, with the necessity to implement a large change as quickly and smoothly as possible. First, she was unsure about general market environment. The concept that tm3 tried to perform in German