Question

Andersen Media Inc (AMI) is a digital streaming media company. AMI produces its own shows for its cable channels and for its own streaming service. Development of a show takes approximately eight to twelve months. Its Product Division (PD) releases four movie series every two months. These series are offered to its Cable Division (CD) and to its Streaming Division (SD) for distribution. The Cable Division negotiate the price of the series and has the option to refuse the series if they determine that it is unlikely to garner sufficient ad revenues. The Streaming Division also negotiates the price and has the option to refuse the series if it believes that viewership is likely to be insufficient. During the planning phase for the next season AMI’s Product Division consults and takes input from both Cable Division and the Streaming Division. Here is a conversation at the planning meeting. PD: We analyzed last season’s viewership and competitors’ development efforts and we recommend that AMI shift from Action and Sci-Fi genres to Comedy and Comic Drama. Over the next 6 months our recommendation is to develop two pure comedy, 2 comic drama and 2 action series. We do recommend any pure dramas or Sci-Fi series. SD: Over the past six months, our viewership in Drama has been substantive. Drama is golden! We recommend that you consider four pure drama series and two Comic drama series. CD: We are expecting several new series from HBO and Hulu within the action genre. We like to stay competitive and we recommend a shift towards action series, rather than comedy. PD: How did you learn about HBO’s and Hulu’s plans? CD: My son is friends with the families of HBO and Hulu executives. He told me. You know, these plans are well kept business secrets. SD: My gut instinct is to go with what we have been successful this year. Drama has always worked. So, let’s stay with this genre. Our recommendation is with pure drama and comic drama. Why not, we can always market comic drama as both comedy and drama. How can we go wrong with that. PD: Our data says that the trend is shifting away from… SD: Your data is not always accurate. We are your customers and this is what we see over the next twelve months. We will be back for two action series, two pure drama and two action series. Question 1: Review the above mini case and analyze the decision process for determining the scheduling for the next season. Apply your learning on rational decision making and human behavior and human biases. You must clearly demonstrate your learning of these concepts.

Answer 1

In the above case mentioned ,there is the work behind every decision making process and it shows that how the whole system works.We watch TV series for our entertainment purpose but in the case mentioned above ,it shows that how companies do hard works for our entertainment and how they want to provide us what we want to watch.This case study shows how the debate is going on between product division which is responsible for making tv series ,cable division and streaming division responsible for distribution purposes. Under the case both three are discussing that which type of tv series they have to provide know future because if product division doesn't take the permission of cable division and streaming division, they have the powers to refuse the series if they think that tv series is not according to them which they want and consumer demands. According to me ,based on above case, both action and drama series should be included for future because both streaming division and cable division are involved in distribution so they knows better what consumer wants to watch. I strongly believe that if in any situation you have to take decisions on a random basis, then just take decision in the side of which  has the maximum possibility of happening .This is human nature that if we don't know what to decide ,we decide what we mostly like to decide and  have the maximum possibility of occurrence. And in this case also we know that a person which is dealing with consumers ,has the maximum possibility of right decisions for consumers. So it's better to decide which we think has the maximum chances of occurrence.