New Trend Of Online Streaming Services Essay

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Recently, Time Warner collaborated with other media companies by acquiring a small percentage of Hulu, in an effort to sustain a future in the new trend of online streaming services. TW invested a hefty $583 million cash stake, joining forces with other media giants Comcast, Walt Disney, and 21st Century Fox. The timing is the reaction Time Warner is making to the onset of major competitors on the horizon such as Netflix and Amazon, and they have a long way to go to catch up. The timing was also based on Hulu’s need for big capital to stay afloat. They were on the verge of suffering a crippling $500 million loss, which the funding from TW alone saved them from. As stated by Time Warner’s CEO, Jeff Bewkes, “Our investment in Hulu underscores Time Warner’s commitment to supporting and developing new platforms for the delivery of high-quality content and great consumer experiences to audiences around the globe,”.
In order to strengthen its position within the industry, the managers at Time Warner had to complement some of its usual generic strategy with a new strategy by using product differentiating. They need to provide customers with a service or product that will attract them to TW and away from the competition. There was a strategy within the strategy which, is why Time Warner took an only a minute stake in the Hulu company. This was because Hulu’s governance structure is unsteady and TW did not want to add to it by becoming an equal partner with the three other major

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