To start a new section, hold down the apple+shift keys and click to release this object and type the section title in the box below. Where shareholders have expectations of rapid revenue growth and evidence of expansion, diversification is often the only option. Specialised Specialised Integrated Diversified vs Diversified • Heavily focussed on on one • One or two core markets • Portolio of businesses/activities core market segment (may • Activities in adjacent markets, across multiple media sectors have multiple businesses in that typically to extend core brand and beyond segment) and increase ARPU/deepen • Low level of integration • Potentially divesting from legacy customer relationship between businesses non-core businesses • Active management of portfolio Key success • Deep expertise in a given • Strong core brand • Have strong portfolio factors market segment • Core assets and capabilities management capabilities • High barriers to entry that can be applied to other • Want to diversify risk markets (e.g. distibution • Have ability to identify, platform, advertising sales) incubate and nurture innovative business Challenges • Over reliance on one market • Accurately measuring the • Limited revenue or operational of this can cause vulnerability to contribution of brand synergies across business areas model market downturns or new extensions or adjacent competitive threats product lines • Limited rom for growth in • Balancing autonomy and scale mature markets of adjacent businesses • Making trade offs between investment opportunities Media Metrics The state of UK media and entertainment 25