WorldSpace Satellite Radio: Fading Signals?
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Case Details:
Case Code : BSTR239
Case Length : 22 Pages
Period : 1990-2006
Organization : WorldSpace Corporation
Pub Date : 2006
Teaching Note : Available
Countries : The US, India, Africa
Themes: Corporate Strategy
Industry : Media,
Entertainment, and
Gaming
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"People are as developed as the information that they can
access. Hence we are committed to creating information affluence. Radio also
reaches out to people where other media simply can't."1
- Noah Samara, Chairman and CEO of WorldSpace Corporation,
in 2002.
"If people can pay for superior content on TV, they can do
it for radio as well. Those who had heard WorldSpace swore by its content."2
- Farokh Balsara, a senior partner and Media & Entertainment
Practice Leader at Ernst & Young India, in 2006.
Creating A New Identity
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In July 2006, WorldSpace India Pvt. Ltd. (WorldSpace India) launched an
integrated marketing communications campaign in a bid to strengthen its presence
in the country. The campaign included a new series of television advertisements
as well as special events like concerts and award shows.
The company also signed on popular Indian music composer A R Rahman (Rahman)3
as its brand ambassador. Rahman composed a new signature tune for the company,
which was to be featured in all the company's television and radio
advertisements. WorldSpace India, which had launched its services in the country
in 2000, was a wholly-owned subsidiary of WorldSpace Corporation USA (WorldSpace).
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WorldSpace, the world's first digital satellite radio service
provider, had launched its service (also called WorldSpace) in Africa in 1999.
The service was initially launched with the mission of creating 'information
empowerment' in Africa and other third world regions, although the company later
started offering commercial channels and entertainment as well. At the
beginning, WorldSpace offered the same channels in all its markets, but after
its launch in India, the company adopted a region-centric approach, and launched
several channels with Indian content.
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The campaign launched in India in 2006 was a part of
WorldSpace's attempt to create a new global brand identity for itself,
under which it adopted a new logo and embarked on restructuring its
business model. (Refer to Exhibit I for WorldSpace's old and new logos).
As of mid-2006, the WorldSpace service was available in over 130
countries around the world, and reportedly covered two-thirds of the
world's population. WorldSpace aired a number of channels, which
delivered music, news, sports, and other information. As of 2006, the
company was the leading provider of digital satellite radio services
outside the US and Canada.4 |
WorldSpace Satellite Radio: Fading Signals?
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