CUED

Market and Financial Analysis for Video Production Corporation with
Community Television Network

The study found that in the initial three years the VPC should be operated as a sheltered program of CTVN; a for-profit business at this time is not feasible. We identified a largely untapped market of lower-end jobs that CTVN has been penetrating in the past and that the VPC can pursue more intensively. The financial analysis shows that the VPC will require an initial start-up period of at least three years before this market can provide the number of jobs necessary to maintain the VPC. On the basis of these findings we suggest the following: The VPC enter a three-year start-up period which will combine subsidies along with revenues generated from video services in order to cover operating costs. The subsidies would be decreased progressively as productivity increases, quality and management improves, the lower end markets become familiar with video, and the VPC establishes a good track record. The VPC develop a specific organizational structure which is sheltered by CTVN for the first three years. The VPC engage in a strong marketing campaign targeted toward the low end jobs in both the community and city wide.

We believe that there is considerable potential for the VPC to succeed as we have described in this report. However, it will be essential to monitor the operation closely in order to avoid failure.

This website is maintained by Cedric Williams, Manager System Services,
UIC-Center for Urban Economic Development