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Please check the examination details below before entering your candidate information
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Candidate surname Other names
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Centre Number Candidate Number
Pearson Edexcel
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Level 3 GCE
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Friday 5 June 2020
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Paper Reference 9BS0/03
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Morning (Time: 2 hours)
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Business
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Advanced
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Paper 3: Investigating business in a competitive
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environment
You must have: Total Marks
Insert (enclosed)
Instructions
• Use black ink or ball-point pen.
• centrethe
Fill in boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• You may use a calculator.
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• your answers if you have time at the end.
Check
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Read the following extracts (A to D) before answering Question 1.
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Extract A
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UK’s live entertainment industry revenue hits new highs in 2017
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The West End, London debut of the hit Broadway musical Hamilton, mega concerts by U2
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and Guns N’ Roses and the return of Star Wars helped boost the UK’s live entertainment
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sector to a record £17bn in revenues last year. Growth will continue this year as the UK’s
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live entertainment economy – which ranges from cinema visits to attending music and 5
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arts festivals and live tours of TV shows including The X Factor – is forecast to surge by
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another £400m.
Revenue from live performances, such as concerts or the theatre, reached £2.1bn last
year and is expected to grow a further 7% in 2018, according to a report from Deloitte.
(Source: https://www.theguardian.com/media/2018/jan/19/uks-
live-entertainment-industry-hits-new-highs)
Extract B
Forecast UK consumer spending habits in 2022*
-2.0% 5.8% -24.1% £0.4bn
Digital music
-2.6% downloading
£2bn £5bn
£1.3bn Newspaper Video
Magazines 34.5%
games
£1.2bn
0.9% VR
0.3%
£5bn
Books £1.2bn
Live music
2.6% 18.9% 7.4% -1.7%
£1.4bn £9bn
Digital music £2bn Traditional
£1.5bn OTT** video
Cinema streaming TV and
home video
*when compared to 2018
**OTT stands for ‘over-the-top’, the term used for the delivery of film and TV content
through the internet with companies such as Netflix or Amazon Prime, without requiring
users to subscribe to a traditional cable or satellite pay-TV service such as Sky or BT Vision.
(Source: https://www.pwc.co.uk/industries/entertainment-media/
insights/entertainment-media-outlook.html)
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*P61847RA0228*
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Extract C
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ITV Chief: Now is last chance to build British challenger to Netflix
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The new Chief Executive of ITV, Carolyn McCall, declared that building a UK subscription
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video-on-demand service is a priority in order to compete with the US-based streaming
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superpowers Netflix and Amazon.
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Netflix’s core US market is close to saturation, so its international markets are driving 5
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growth. UK viewers are flocking to the US giant: Netflix has almost 10 million UK
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subscribers, compared to Sky’s 9.6 million pay-TV and Amazon Prime Video’s 7.3 million
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subscribers.
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McCall said ‘to provide the depth and breadth of programmes for an ITV subscription
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video-on-demand service, programmes that were previously licensed to Netflix must 10
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instead be kept by ITV. This means no more deals such as licensing Love Island, the
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ITV2 reality TV show, to Netflix.
‘The best chance of creating a viable rival to Netflix is for the UK’s public service
broadcasters (PSBs) to join forces’. However, she conceded that a joint venture between
the publicly-listed ITV, the licence fee funded BBC and state-owned commercially funded 15
Channel 4 – is proving difficult.
‘We all have different ownership structures and we all have slightly different objectives.’
ITV has Britbox, a joint venture streaming service with the BBC. However, it is available
only in the US. In 2007 the BBC, Channel 4 and ITV created the OTT service Kangaroo, but
it was ultimately blocked by the UK competition regulator in 2009. 20
Netflix plans to raise $2bn so it can invest in producing new programmes. The costs of
its streaming services amount to $30bn – higher than the annual revenue it expects to
receive from its 130 million users in 190 countries across the world, with the US its
largest market.
(Sources: https://www.theguardian.com/business/2018/oct/21/itv-chief-now-is-last-
chance-to-build-british-challenger-to-netflix? and https://www.theguardian.com/
media/2018/oct/22/netflix-plans-to-raise-2bn-as-it-invests-in-new-content)
*P61847RA0328*
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