Introduction
For the past ten years, Hulu has been among the most competitive online streaming services. Beginning as a joint venture created by 21st Century Fox and NBCUniversal to “distribute their television programming over the Internet,” (Harvard 2017) Hulu has expanded generously, offering the four largest broadcasting networks. In the wake of a new television era, Hulu has the potential to serve as a Multichannel Video Programming Distributor (MVPD). The following write-up includes an analysis of Hulu’s current market standings, including an investigation of growth statistics as well as the company’s overall marketing situation.
Positive or Growth Statistics
In recent years, as a response to price increases in monthly cable bills,
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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 …show more content…
Although competition has begun delving into the realm of original programming, Netflix, Amazon, and HBO have spent millions of dollars to create original content for their subscribers. Hulu should have saved the money allocated to original programming and relied on the content created by the entertainment giants that created it, 21st Century Fox and NBCUniversal. With live streaming subscriptions available, Hulu has already differentiated itself from most of its direct competition. They should have established a stronger position in the brand-new market of alternative live streaming rather than playing catch-up in the well-developed segment of original
However, in the era of the Internet, the market has changed. Cable television has been challenged by many alternative venues of media consumption, most notably in the form of the Internet. "There has been some competition from satellite TV players and (in a few areas) TV over IP" (Masnick 2008). "Thanks to the rise of Netflix, Hulu and hardware like the Roku box and Apple TV, cutting the cord to cable TV doesn't mean cutting yourself off from your favorite shows and channels" (Glaser 2010). However, most high-speed Internet consumers receive their Internet connection from the cable company, which indirectly funnels money to support cable TV.
Hulu should focus on the ability to engage its audience in interesting and captivating content for original TV series. We saw with Netflix the premiers of popular TV shows such as Orange is the New Black and House of Cards. Hulu could also negotiate harder when it comes to content deals with different TV networks.
By the end of 2017, over 15.4 million people in the US will cut their cable. Who can blame them? Cable hasn’t evolved in last 10 years and cable is becoming increasingly more expensive annually. Nevertheless, several individuals are still paying for cable, when we have streaming services like Netflix, Hulu, and Amazon. Streaming services are a superior alternative to cable because they are cost-effective, more accessible, interactive, and uses an advanced algorithm to learn about the viewer, and they don’t have any commercials.
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.
Companies always reshape their product to grow or to obtain their goal. Now multiple companies are buying one another to get a better reach of their target market. The first article from Advertising Age states that Hulu will stop offering TV shows for free. That is quite daunting for the users you range from all ages especially millennials who are the main users. The streaming service is discarding its free platform that provided streaming viewers with a library of hundreds of movies, TV shows, and clips since 2007. Hulu's decision to terminate free streaming is a major step as it tries to gain more traction against other streaming video sites, such as Netflix, YouTube, and Amazon. Hulu becomes a lot more like Netflix by offering a monthly
Hulu is a great $13 place to watch movies and tv shows but is ut better than movie box? No its much worse because movie box has a lot more movies and tv shows AND IT'S FREE!!! Yes you have to watch one ad before every show and movie but movie box gets popular movies the day after they go on dvd nether netflix or hulu has that! They update over 100 tv shows and
Netflix is an American entertainment establishment that specializes in providing streaming media and video-on-demand online (Jensen, 2015). Furthermore, they are leading the industry with a solid mix of TV, movies and original content at a fair price. In addition, Netflix can be viewed on about any device with a screen and internet connection supporting it. Most importantly, Netflix is facing stiff competition from several companies. Hulu Plus is probably one of Netflix’s biggest competitors as this company was launched in 2008 (Jensen, 2015). Moreover, Hulu Plus has advantages of airing current episodes of TV shows that are typically available a day after the initial broadcast. In addition, Amazon has entered the streaming media business.
1. Compact Corporation is the largest cable and internet company in the United Sates as of 2015. They offer many different cable packages for consumers to choose from, some lower cost limited channel packages all the way up to more expensive, expansive channel options. There are a lot of changes happening in the television network and cable television industry and the changes directly impact Comcast. There are four big players in the PayTV industry (Comcast, DirectTV, Time Warner and Dish Network), together they account for two-thirds of the industry revenue. To understand how the industry is changing, it’s important to understand the industry value chain. Production companies create the content (TV shows, movies) and they sell their
In today’s technology- driven world there are so many entertainment outlets one can use when it comes to movies and television shows. There are many online streaming services that are available to consumers. However, the two that are most commonly used among subscribers are Netflix and Hulu Plus. Although the two are online streaming sites their content library is quite different.
2). Therefore, Hastings have changed the dynamics of the movie-rentals and entertainment industry in which people tend to watch movies whenever they want rather than waiting at video stores or entertainment channels. Moreover, Hastings adaptability of business towards the live streaming of TV shows has impacted the cable service industry because Netflix is providing its customers with the hundreds of TV channels at low cost and high portability (Copeland,
The provision of entertainment can be done in many different ways, and each company has their own unique method of doing so. Turner Broadcasting has historically lacked innovation in the growing marketplace. They have had an adaptive growth strategy through delayed acquisitions, including historical acquisitions of Court TV and Legacy Film Properties and more recent acquisitions of Bleacher Report and iStreamPlanet. When John Martin took over as the CEO of Turner, however, he introduced a change in strategy called “Turner 2020”. Turner is now focusing on being the front runner and pioneer of innovative concepts. This begins with a consumer centric strategy focusing on content creation and the increased investment in internal projects. Additionally, Turner is working “to keep audiences engaged and bring (along) new viewers” while driving change in the industry. The resulting ownership, from Turner 2020, of innovative technology as well as creative intellectual property, generates various revenue creation streams. Turner has not eliminated the capability of adaptation, however, is creating an overwhelming focus on modernization. Shifting the focus of the company from adaptive to innovative will ideally guide Turner’s growth in the
Streaming is a major part of today’s culture. Many individuals and families are cutting the cords and getting rid of traditional television for streaming services such as Netflix, Hulu, and Amazon (“Cord Cutting Accelerates,” 2016). More and more each year people are making the switch to use these services because they are more convenient offering the ability to choose not only a program, but which episode or film in a series in full HD. Some even offer this commercial free, but even those which don’t still offer their services with minimal advertising when compared to traditional cable television. All of this is given at extremely low prices when compared with the monthly payments for places like Comcast, AT&T, and DirectTV. People are always
One of the companies that are creating a great challenge for Netflix is Hulu Plus. Like Netflix, Hulu Plus specializes in providing entertainment content for its subscribers on the internet. There is one main source of Hulu Plus’ ability to mount such a challenge to Netflix. Sherman & Waterman (2016) reveal that the company has a close relationship with famous television programs and film production companies like Twentieth Century Fox and Walt Disney. These relationships make it easier for Hulu Plus to acquire content to air to its customers as compared to Netflix. However, the main undoing of this company is the presence of advertisements in its streaming platform. According to Cunningham & Silver (2013), customers do not like to view advertisements
Netflix and Hulu are the two most popular services currently streaming available for a monthly subscription, who also competes against HBO Go and Amazon Prime. There are rarely any screens that does not have Netflix or Hulu already downloaded to their device. A monopoly is a market where a single seller or firm that produces that product… The monopolist have complete control over the price, supplying a unique product
Streaming services such as Netflix and Hulu have taken this question and formed an answer that meets the satisfaction of their subscribers. Driven by anti-piracy innovation, by adopting the concept of online piracy downloads and streaming, services such as Netflix and Hulu allow various movies and television shows to be accessible across platforms such as mobile phones, laptops, computers, and televisions (). In an interview with Spanish newspaper, El Mundo, Netflix CEO Reed Hastings states “Well, you can call it a problem, but the truth is that [piracy] has also created a public used to viewing content on the Internet,” (). With piracy shifting viewers from television to the Internet, Netflix jumped on the opportunity to offer a streaming service, creating a legal version of piracy.