A La Carte By Web Based Services Essay

As of late 2004, Verizon is already considered the world's largest telecommunication company with annual revenue of $67.8 billion. Their continued plans are leading toward acquisition and development of fiber technology, which will allow it to offer cable TV services. Apparently they are still apprehensive regarding business customer and plan to extend add-ons again into the private sector, which worked for them in 2003.

Programming expenses to continue to be Comcast’s largest single expense item in the foreseeable future. The company's video programming expenses involves the license fees charged by cable networks and fees for retransmission of local broadcast television stations’ signals and by the number of video customers the company serves and the amount of content it provides. In recent years, the multichannel video programming distribution industry has continued to experience an increase in the cost of sports

Occasionally, people use to go out and rent DVD’s to watch a specific movie from rental stores. Advancement in technology has brought a sufficient change in customer’s behaviors, today DVD rental stores have almost gone. Moreover, by time we saw enormous increase in channels being provided by cable providers, but today even that has been replaced by streaming media devices, thus my time, role of cable providers might also disappear due to the introduction of devices such as Netflix, Apple TV etc. “DVD sales have also been hit. The Los Angeles-based Digital Entertainment Group estimates DVD sales in 2008 fell 8% to $21.6 billion from a year earlier, while DVD rentals were flat.” Charny, Ben. "Viewers Tap Free Web Content." Wall Street Journal, Eastern

As an individual who is looking to cut cable and pursue a streaming service, I believe that Hulu’s $39.99 Live Stream subscription, as described in the case, could be a strong supplement for pay TV. Although margins for this offering are predicted to be low, I believe that the development of such a subscription illustrates Hulu’s ability to complete market research and listen to consumers. This package indicated that Hulu understands that consumers want Live TV, but wishes to avoid costly bills and wasted

“At the end of the day, the purpose of advertising is to sell. Marketers who ignore this fundamental usually get into trouble.” (Chimoff, 2014) Verizon has been a strong competitor in the electronic communication arena for years. Verizon totes that consumers are looking to get the latest devices, but these devices are only as good as the network they are on. They boast to be the network with the most coverage availability and fastest internet speeds. Fiber-optic technology provides the most efficient and reliable way to transmit data to your home. As the largest national provider to offer 100% fiber optics straight to the home, Verizon’s FiOS delivers a faster entertainment and communication experience simply by transmitting data as pulses of light through hair-thin bundles of glass. While other cable companies connect to homes using copper, FiOS stands alone using the latest technology that can support future innovations in communication and

Verizon communication is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, and government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, with 107.7 million total connections as of September 30, 2011. Verizon also provide converged communications, information and entertainment services over America’s most advanced fiber-optic network, and deliver integrated business solutions to customers around the world. A Dow 30 company, we employed a diverse workforce of approximately

Comcast practices the ‘Best-cost provider strategy’ in a business model that promotes convince for their customers by offering integrated services all on one bill. “Best-cost provider strategies are a hybrid of low-cost provider and differentiation strategies that aim at satisfying buyer expectations on key quality/features/performance/service attributes and beating customer expectations on price” (Gamble et. All) The elements in the best-cost provider strategy include: bundles with internet, cable and telephone services at varying internet speed, cable channels and levels of telephone service; different cable packages with different channels and promotional deals and

Thompson argued that while consumers wishes to purchase the channel or even individual show sold as a la carte, it is not as simple as many think in music industry (Thompson, 2012, para.3). In supporting arguments, Thompson stated that TV subscribers, which accounts 83 percent of U.S. households, are paying for the TV service that three bundles nested inside each other. Thompson also mentioned “Media companies

Rogers Cable is the leader in Canada’s cable television market, with a over 2.3 million cable television subscribers and 500000 internet subscribers. In 1993 the Canadian government relaxed the norms of telecommunications industry followed by an application in 1999, allowing local carriers to change the content of the information passing through their networks. This led to increased competition in the market and the customers enjoyed a lot of choice. As such Rogers Cable focused completely on increasing its subscriber base and

“As a leader in communications, Verizon's mission is to enable people and businesses to communicate with each other. We are also committed to providing full and open communication with our customers, employees and investors”

Verizon Communications is not able to achieve its objective of becoming the market leader in delivering innovative, integrated communications solutions to its customers (management).

Although there is not much competition in this market, consumers always have alternate methods of receiving the same services and more than likely the same quality of services elsewhere. Whether it is choosing to stream videos online, watching them via “Pay per View” or “On Demand” it is truly a buyer’s market considering the services rendered aren’t considered necessities.

Growing competition as a challenge represents the various companies that are now entering the market of online media-streaming. Companies such as HBO, Amazon, Google, and Hulu Plus have all began to offer media-streaming on the same electronic devices as Netflix, Inc. Currently Netflix, Inc. remains in the lead amongst its competitors; however, there is no guarantee that this advancement is a permanent one. It is inevitable that emerging companies will come up with creative ideas to gain the competitive edge and receive more consumers. For example, Amazon.com has “amplified

Video-on-demand or VOD, a service that allows users to select and watch videos over the internet, will be one of the greatest innovation as stated in the Netflix case study. It will be a great opportunity for Netflix, but it will also be a challenge to integrate or do away with its current business model. Its current business model is one that relies on the internet and the post service to deliver DVDs to its subscribers. Netflix should carefully enter the VOD market without doing away with its current model. This will allow it to maintain its growing position as a giant in this media industry. In order to better understand Netflix and the problems it faces, we must first identify its strengths. What does Netflix offer its customers that its competitors do not? What differentiates it from its competitors?

Netlix strategy by virtue of product design addresses the bargaining powers of both buyers and suppliers. It’s highly price efficient for both. The threat of new entrants is addressed by Netflix’s technologically savvoy “linear linking” of newer apps over broad band width. The company strategically designed the mapping and application of video streaming packages to where it has became highly speacilized. New entrants to the video streaming market would need equal broad band capability. Strategically, Netflix also didn’t compete against the cable service giants, rather relied exclusively on internet carrying cable outlets.