This is an exploratory study of how Vice Media Group brands their food channel. The case study draws on various strategy theories as a lens through which to examine the technological innovation adoption and its strategies to establish a successful food channel. The chosen theoretical framework will be discussed first.
The case study method is utilized to explore and illustrate the innovative technology adoption process and differentiation strategies adopted which established Vice as an industry incumbent. Case study research is a mature method which generates new and empirically valid insights. Through this method new insights about a particular issue or topic can be discovered, such as the disruptive elements and brand strategies of media organizations.
Introduction
Somewhere in Montreal in 1994, a few friends came together and launched The Voice of Montreal. From the start, this independent free print magazine had a ‘bad boy’ reputation due to its provocative reporting style (Widdicombe, 2013). Only a couple of years later, the decision would be made to drop the “o” changing the name to Vice (Bazilian, 2014). Surprisingly, this small-time magazine would become one of the largest digital media companies of the 21st century, known today as Vice Media Group or Vice for short.
One of the founders and essentially the face of Vice, Shane Smith, had one objective in mind which was to “be the largest network for young people in the world” (Widdicombe, 2013). In addition, Shane Smith wanted to create several verticals globally with some of the biggest partners in the world by expanding their offerings of video entertainment on online (Vega, 2011). As such, Vice currently produces a huge array of digital video content to be distributed online and has been organised into subdivisions, or verticals, namely i-D (fashion), Motherboard (technology), Noisey (music), Vice news (news) and Munchies (food).
In essence, Vice reports on various topics as mentioned above and while Vice news has grown in popularity thanks to its unique approach to journalism in the digital age (Küng, 2015) its approach to reporting on fashion, music and food is equally unique and worth exploring.
In 2014, Vice teamed up with FremantleMedia on a joint venture to create a multichannel food platform catering specifically to millennials (Spangler, 2014). Munchies was an already existing food series on Vice, however, it would now be converted into a new food channel which was dedicated to showing videos, articles, and experiences relating to the universe of food (Hollyman, 2014). Moreover, their food content would mainly be distributed via digital platforms, targeting YouTube specifically to fulfil this aim. Their new YouTube channel which currently has 4.51 million subscribers, is Vice’s third most subscribed-to channel. Therefore, the aim of this paper is to assess the question of how Vice has responded to technological innovation and how it has created a (successful) food channel online?
Vice is difficult to define accurately due to its relatively complex structure, therefore examining the entire media organization for this paper is not feasible. Thus, assessing its success through its food vertical Munchies is more suitable and will provide new insights into this media organization and its management strategies. However, before examining the success of Munchies, it is important to briefly examine how Vice Media went from a free punk magazine to one of the largest media organizations in the world – how it went from traditional reporting to focusing mainly of digital video content. Then, an analysis of Munchies will be conducted in order to assess how it became a successful venture for the Vice Media Group.
Method
This case study draws on various strategy theories as a lens through which to examine the technological innovation adoption and its strategies to establish a successful food channel. The chosen theoretical framework will be discussed in to following section. The case study method is utilized to explore and illustrate the innovative technology adoption process and differentiation strategies adopted which established Vice as an industry incumbent. Case study research is a mature method which generates new and empirically valid insights (Stake, 2000). Through this method new insights about a particular issue or topic can be discovered (Stake, 2000), such as the disruptive elements and brand strategies of media organizations.
Theoretical framework
In order to understand how Munchies was successfully established, it is important to understand the evolution of Vice through Rogers (2003) diffusion of innovation theory. According to Küng (2007), media management research mainly examines technological advances through two perspective : (1) the adoption of new technologies by individuals and (2) the introduction of new technologies on media markets. When looking at media industries, it is often discussed in terms of its content and its creation with technology streaming in as “an enabling, contributory or disruptive factor” (Küng, 2017, p. 120).
Rogers’ Diffusion of Innovation Theory
One of the most popular models used in order to examine how new innovations or ideas are adopted by organizations is described by Rogers in his book, Diffusion of Innovations. According to Rogers (2003), diffusion of innovation is conceptualized as “the process by which an innovation is communicated through certain channels over time among the members of a social system” (p. 5). For the adopter, an innovation refers to any “idea, practice, or object that is perceived as new by an individual or other unit of adoption” (Rogers, 2003, p. 11). Thus, individuals attempt to adapt to new technologies based on the fact that it has more advantages than the one it replaces, how difficult it is to use and whether or not the results of using this new technology can be observed by others. Moreover, media organizations must assess how they will continue to meet the interests of their target audience in an ever-growing digital environment.
Firstly, Rogers (2003) introduces and expands on five main characteristics of innovations : (1) Relative Advantage, (2) Compatibility, (3) Complexity, (4) Trialability, and (5) Observability (p. 206). These key points allow the potential adopter to adopt or refute the innovation. His theory then goes on to classify the adopters of an innovation based on the S-shaped degree measuring how long it takes for them to adopt said innovation (p. 281). Rogers’ theory will be necessary to explore the process of how Vice adopted the innovative and disruptive technology, YouTube.
Figure 1 Rogers’ (2003) Adoption / Innovation Curve (p. 2 62)
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Strategy of differentiation
Differentiation is the creation of unique value (Porter, 2001). According to Sharp & Dawes (2001), differentiation can allow an organization to reduce price sensitivity, create differentiation between its competitors and even lower the strength of their competitive strength.
Porter (1996) argues that strategic positioning is an attempt to gain a sustainable and competitive advantage through the distinctive features an organization can offer. Ultimately, an organization attempts to accomplish new positions in order to seduce customers or lure new customers into the market (Porter, 1996). Finding a strategic position in a given market requires creativity by attempting to locate an exclusive position which was ignored by others (Porter, 1996).
Strategic positioning online
With the explosion of the Internet, competition has been intensified, barriers for entrants have been broken down and it has increased bargaining power of customers (Porter, 2001).
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