In the UK the level of competition among corporate advertising production companies is high. In order to enter the market, the company needs high capital requirements. As VYP is quite successful profitable company (Appendix 5), which has good reputation it isn’t needed to enter a new market as it will be risky enough. So it would be better for the company to concentrate on drama series which made a major contribution to the sales in 2011.
As for the idea of involving BBC in this issue, here the advertising time on the BBC channel replaces the certain amount of money to be additionally paid by BBC for the VYP to be able to re-commission the drama series (since the revenue has been cut – see below) on a high quality level. VYP could offer a mutually beneficial agreement to BBC: instead of the money having to be paid for the drama series, BBC would spare some of its advertising time during the broadcasting of the drama for the Zubinos corporate advertising video to fit in there. Therefore, VYP will be able to demand more money from Zubinos since it intends to show his videos on so decent a channel as BBC. So, in the long term, there is a high extent of probability that the margins on the new for VYP market of advertising videos will increase considerably, and it may be Zubinos coffee shops to make a vital contribution to that.
