Modern Times Group 2021

Abstract

In 2015, Modern Times Group made a crucial decision to expand their product category and enter a new industry. The new generation of millennials seems to not resonate with their current TV broadcast services. Television and entertainment rely on narratives and heroes, which were not resonating with this customer segment way of consuming media. The protagonist, Arnd Benninghoff, is in charge of finding those new digital entertainment opportunities for attracting millennials. He will decide to enter three different markets, esports, Gaming, and Digital Video. Each of those markets is a growing market with opportunities but also has different key success factors. More than growing a service organically, MTG will focus its efforts on achieving key acquisitions in order to penetrate the market. The key to success is to manage the portfolio in a sound manner and find synergies within the segment and between the segments. MTG currently also has capabilities acquired through their years of broadcasting that need to be leveraged when penetrating the market. Working in fast-evolving industries, Arnd must balance its portfolio quite well between current stable players, which will allow him to have a better understanding of the different markets and more risky assets that might pay back later. Long-term thinking is key and developing skills with talented people is a necessary condition to be able to thrive in those industries. Covid-19 was another obstacle for the growth of the Esports market due to the reliance on offline events to drive revenues. The habits of customers change quickly and MTG needs to stay ahead of the market in order to keep and develop its competitive advantage.

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