Weak Broadband Infrastructure

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.

At the time of this launch, expectations for the cable industry itself were high: with many rural

stream is mostly ignored. According to a recent report published,1 90 per cent of unhappy customers never buy

Technology innovation – Netflix can work their way around the slow broadband by creating new ways to help the consumer save more data

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

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.

The telecommunications coverage in rural and regional areas in Australia has monopolistic characteristics. Telstra has a competitive advantage over Optus with 99.3% coverage of the population compared to Optus with a 98.5%, this is equivalent to an estimated 192,000 more potential customers. Although Telstra has this competitive advantage they claim that the revenue received from their rural base stations does not cover the cost of development and maintenance.3.

The Internet backbone is made of networks managed by a host of companies including Level3, MCI, and Qwest. The broadband service provides are Verizon, AT&T, and Comcast.(Robert Hahn and Scott Wallsten) Providers that carry approximately equal traffic.(Robert Hahn and Scott Wallsten) To conclude, broadband service pricing also is currently unregulated. Broadband providers must charge consumers a specific a price of zero and charge users only in certain ways.(Robert Hahn and Scott Wallsten) Knowing this, companies like Verizon, AT&T, and Comcast are wanting to charge extra just for using their

Broadband service providers could add their bottom line as a finish of withdrawal . Regulations free up broadband providers to join in the kind of economic plan that are now contraband. If this gone, Internet service providers can offer a website faster and more reliable delivery of its content in exchange for a fee. A broadband provider can also raise the transmission speed of its own content relative to that of its rivals.

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

When speaking economically, the digital music sector of the international music industry is undoubtably the most important sector in the industry. Within the last decade, music has seen cardinal changes in the way both major and independent labels distribute their products. An industry that once relied on Payola 's and mass distribution of physical records and CD 's now relies heavily on the power of the internet. The first instance of mass distribution of music through the internet was by the service Ritmoteca.com in 1998 [1]. Ritmoteca had a library of over 300,000 songs, offering individual songs for 99 cents each and albums for $9.99. After signing distribution deals with many major music labels such as Warner

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?

Ever since the emergence of humans, the demand for amusement was prevalent and constantly evolving. From watching gladiators brawl in an arena, to attending operas and plays, to channel surfing, people have continually desired to be entertained. Today, there is another alteration that is changing the way people absorb the content that they want. Streaming, the most productive way to receive internet content, has skyrocketed in our society as the internet has become a “universal medium” (Carr 573). It started with Netflix, and then it was adapted by other platforms. More and more people have gravitated towards their phones and computers as outlets for entertainment and news instead of their televisions, causing traditional media to race to conform to the innovative technology (Carr 576-577) of streaming. For example, there are presidential debates that have been live streamed, and are said to be the most popular stream in internet history. Streaming has become a trend that has yet to lose momentum, and has consistently stayed at the top of the consumer food chain.

The way the audience watches television has drastically changed since the birth of television. The viewer is “changing the rules” (Deign) of how we consume media and is no longer restricted to when they can access content. The company Netflix’s is a great example of this. Netflix is currently the dominant company in the on-demand media industry and “isn’t only changing the way that we watch television, but it’s also revolutionizing the way that it is made”(Page). Compared to old methods of television networks where the viewer is required to tune in weekly at a designated time for a television show, Netflix’s has allowed the viewer to watch

“Can you hear me now?” Shaira gasps saying, “Why does the internet have to be so slow in India?” Well I chuckle knowing the answer to her question – low demand for high speed Internet. “God this is really testing my patience! I can’t even properly conduct video conferences with my people abroad.”