ABSTRACT
This chapter applies a strategic management theory- strategic groups-to assess the strategic patterns of multichannel video programmers and the relation between group membership and performance. The multichannel video program distribution (MVPD) industry is inherently heterogeneous, as MVPD programmers may be supported by advertisers or subscribers or both, have the capacity to offer general appeal as well as specialized programs, and may utilize different MVPD delivery technologies. Cable TV continues to be the dominant distribution system for multichannel video programming, serving 82% of MVPD subscribers in 1999 with its increasing delivery capacity. The most significant MVPD competitor to cable is direct broadcast satellite, which represents 12.5% of all MVPD subscribers. MVPD system operators and program distributors have a symbiotic relation: The delivery systems need an ample supply of programming to attract and retain subscribers, and video programmers need access to subscribers to compete. Economic necessities have led cable operators and networks to integrate vertically.
