New Trend Of Online Streaming Services Essay

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.

Blockbuster Entertainment, Inc. was once a highly successful and profitable brick and mortar home movie and video game rental store. At its peak in 2004, Blockbuster had up to 60,000 employees and more than 9,000 stores. The idea behind Netflix came from an unsatisfied, embarrassed customer of Blockbuster, Mr. Reed Hastings, now CEO of Netflix, paid a $40 late fee because he returned the movie Apollo 13 six weeks later (Zarafshar, 2013). He began to contemplate ingeniously about a notion to change the movie-leasing pattern into a more pioneering industry. In 1997 Netflix was started as a DVD rental-by-mail business without subscriptions. In 1999, taking a stride additional in the direction of evolving the industry, Hastings began the subscription-based business mode based on renting DVDs by mail with plans reliant on the quantity of titles taken at a time. Netflix put forward 120,000 titles for limitless monthly DVD rental with free shipping no late and per title fees. Since that time Netflix has become one of the most popular subscription services in the world, and is now valued at over $28 billion and steadily increasing. What factors contributed to the success and failure of these two companies?

As a conclusion it is important to remark that an established brand as it was Netflix, failed to remain at the forefront and not continuously meet the needs of the consumers who demanded updates in accordance with technological communication updates that occurred. The company Netflix was slack and reactive rather than proactive as it should be this situation allowed Redbox took hold of a huge market. On the other hand, the blue waters can go turning into red over time, as other companies may feel very attracted to the new market opportunities that have opened.

Comcast CEO Brian L. Roberts described the deal as a "perfect fit" for the company, as Comcast would be able to bolster its role as a creator and distributor of content, with a particular emphasis on " multiplatform anytime, anywhere media that American consumers are demanding"; increasing access to NBC-owned content through various platforms. The deal would also add Comcast's own cable channels to NBCU's existing suite of cable networks, contributing to 82% of the merged company's total revenue. Despite the focus

Although what Ashley Hovey spoke about, the industry of technology and media, is not necessarily in line with my professional interests, it is definitely aligned with my recreational interests. Like many millennials, I am an avid watcher of on-demand streaming services like Netflix/Hulu, and an abandon-er of television. With the growing popularity of non-traditional media sources, there has been a mantra amongst millennial news sources that the medium of TV is dying Thus, it was incredibly interesting to hear Ashley’s perspective, as a person who works in TV, on the state of the industry. For one, it was surprising to hear how important advertising revenues are to big companies like Comcast. Although I knew that advertising revenues are high, I did not know that they are Comcast’s #2 source of revenue and in turn, a lot of its initiatives are aimed towards optimizing ad gains.

Hulu sets themselves apart from their main competitor, Netflix, by offering the current seasons of shows as early as the day after they air on TV. But, this is starting to concern one of their main investors, Time Warner. Time Warner, is concerned with Hulu’s business model because they fear consumers will drop their “pay-TV subscriptions” (Hagey & Ramachandran, 2016). While Time Warner has a stake in the success of Hulu, they are concerned that Hulu will

Abstract Comcast Corporation (NASDAQ: CMCSA, CMCSK), a company based in Philadelphia primarily provides competitive bundled-package, which consists video, high-speed internet, phone, wireless security and automation services to both residential and commercial customers, with estimated TV-market share of 24% in United States. With the introduction of Xfinity brand services, 80% of Comcast’s revenue is generated from its video services. Comcast’s innovative products/services facilitate current position in market share, however there are dynamic competing market forces like flooding of social medial and new gaming devices that are intensively changing how the American working-class and younger generations watch series of TV programs. Hence this

Moreover, AT&T was rated high of social media influences by 691 thousand followers on Twitter and 5.7 million likes on Facebook. Also, AT&T is the only telecommunications company honor to be included in Fortune's list of the most admired company in America. According the article “AT&T Ranks #1 in Telecom Globally in FORTUNE’s Most Admired Companies for Third Year in a Row”, the author reported “Our industry has never been more dynamic than it is right now. And that makes this recognition particularly meaningful,” said AT&T Chairman and CEO Randall Stephenson, and “the publication also placed AT&T at #37 among the Top 50 Most Admired companies in the world. This is our fourth year on the Global Top 50 list. AT&T is also the only communications company on the list”. Clearly, the AT&T company’s achievements are a measure of consumer confidence, and this is also attracted people believe on the company strategy. Furthermore, AT&T Company confirmed their power when they are combined with Time Warner in future. According the article “AT&T To Buy Time Warner For $85 Billion”, Zarroli said “Now, Time Warner - Time Warner is really a content company today. It does movies and TV programs. It owns HBO and CNN and Warner Bros. studios. It used to be in the cable business, but it got out of that.” Admittedly, AT&T Company is finding many ways to convince the

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Number Six. Buyout. Yahoo tried to buy Hulu in 2011. However, the deal fell through because the Hulu owners could not agree on the terms for content licensing, and Hulu was taken off the market.

Time Warner is also taking part in joint ventures which bring it more opportunities to advertise and sell its products. For example, in 1993 Time Warner and US West worked together to improve U.S. cable systems to an interactive fiber-optic data highway that could lead to such direct services to the home as music on demand and video on demand. This deal was based on U.S. West investing $2.5 billion in Time Warner Inc. which gave them a big stake (25.5%)in

One the one hand, the fertility of the industry opened the doors to corporations that sighted substantial growth potential. New entrants with big pockets such as Walmart could pose a certain threat to Netflix, by exploiting a playing card based on cost reduction. On the other hand, barriers to entry became relatively significant as established video rental retailers such as Netflix have the experience and the knowhow to market movies to people. In this industry, firms that do not have a technological advantage can’t compete. The best example is Netflix’s CineMatch program that offered personalized film recommendations based on customer’s rental patterns. This way, Netflix was able to better serve its subscribers. From a cost perspective, the movie rental industry requires high capital expenditures, and the major expenses are highly related to acquisitions of DVD library and investments in technology (exhibit 2 continued). Thus, we may say that entry is difficult in this industry as the competing firms have reputation, experience and recognizable brand names.

Netflix‘s business model and strategy compare closely to its key rivals. Although, Netflix won a patent that covered much of its business model and could be used to help stifle competition in the future (Thompson C-33) . Netflix has a team of executives that manage only the on-line DVD rental enterprise. They are well established and use a very sophisticated software program thereby making movie selection easy and fun. In my analysis, Blockbuster has many retail stores to contend with and many other facets of a business enterprise, thereby not having a unique team of individuals solely dedicated to the on-line DVD rental business. Wal-Mart would be Netflix’s greatest fear due to the enormous capital available and expertise that could be employed, yet Wal-Mart continues to lag behind Netflix. Wal-Mart’s online software needs a lot of debugging, whereas Netflix had already spent several years debugging its software (Thompson C-37).

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.