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The following case studies demonstrate the application of some of the services Castalia provides:
A Canadian television company is a leader in the conception and production of urban, contemporary, youth-oriented programming for broadcast and specialty, cable television channels.
While Canada has one of the seven largest economies in the world, government regulations, inflation, unemployment and competition have made past growth difficult to maintain or surpass. The successful marketing and sale of programming in many countries around the world indicates there is reason to develop a comprehensive export strategy. With no experience in the international sector, however, the company is reluctant to commit human or economic resources at the outset.
The services of Castalia were engaged to explore, identify and qualify various international business opportunities. After selecting and introducing several potential candidates, a deal was negotiated on behalf of the Canadian television company with an international group to license and develop a localized version of their music video channel in a prime Latin American market. Nearly five years later, despite intense competition from more than 60 cable channels, the service is number one in its category; and one of the top 10 channels in the market. Most importantly, the joint venture has been extremely profitable.
The 50 million people living in the Iberian Peninsula represented an attractive expansion opportunity for the producers of a leading women’s cable television channel in Latin America. Acknowledging opportunity, however, did not prompt immediate action. Castalia was engaged to assess the commercial and regulatory terrain of the Spanish and Portuguese cable markets, identify potential partners, project business plans and revenues. The end result was presented in a comprehensive report, with a simple recommendation: no action could be justified at the time.
Twelve months later, however, when conditions had improved, Castalia aided to secure distribution of the channel on cable and satellite platforms operating in the market.
A major equipment manufacturer was interested in knowing the status of its brand and its products among its major clients in Latin America on the eve of the merger with another larger equipment manufacturer. Castalia designed and executed a qualitative survey among C-level executives of 22 of the largest pay TV operators in the region. The survey produced some unexpected findings that helped our client steer its strategy during the merger and set the appropriate strategy for the following years.
A leading European television broadcaster is considering the launch of branded channels in the Americas. At issue are which markets to go into first, how to approach collaborators and competitors, and how each can impact the desired outcome.
A video presentation of the channels was produced. The parameters for potential distribution agreements were determined and a sales presentation prepared. The CEO’s of major MSO’s were approached. Potential partners were advised of the opportunity for investment, or equity-for-carriage participation. Through a matrix analysis a recommendation was made. The client established a strategic alliance with the company that clearly offered the best competitive advantage, but they decided to postpone the launch of the new channels in anticipation of a more propitious digital environment.
After assisting the business development unit of a major US media company decide to launch a Spanish/Portuguese version of their cable television network, Castalia provided marketing and sales services during the crucial start-up months. Together with senior management of the parent company and the CEO of the new venture, Castalia personnel worked on marketing activities, including a branding campaign, development of a marketing plan and management of the launch campaign, both materially and strategically. Castalia followed the project through design and building of the client’s first booth and a major Latin American trade show. On the affiliate sales quadrant, Castalia worked at defining a rate structure; creating an agreement for affiliates; preparing and executing sales presentations; selecting potential clients and negotiating and closing major MSO distribution deals.
The channel was distributed both by cable and DTH platforms and enjoyed one of the most successful launches in Latin America.
A Latin American satellite company approached Castalia seeking advice in the context of widespread oversupply in the transport capacity market. Castalia developed a business plan to build a bouquet of Latin American channels targeted at the Hispanic market in the United States. Castalia was in charge of designing the business, and later, of distribution and marketing of the channels among DTH and cable operators. Over the course of the next five years, Castalia achieved launches among most major DTH and cable companies and the client’s US Hispanic TV division is now established as one of the top independent distributors of Hispanic content in the country.