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A quick comparison between Netflix, Hulu, iTunes and whatnot

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This is a presentation for the final project of Marketing Strategy class.

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A quick comparison between Netflix, Hulu, iTunes and whatnot

  1. 1. Online Video Distribution: Netflix, Hulu and iTunes by Hien Le, Alex Fass, Ana Sena and Isaac Rosales
  2. 2.  (from the Big Bang to Tomorrow) 1992: Original South Park Short Produced 2007: Netflix switched to Internet VOD 2008: Hulu was launched by Disney, NBCUniversal & News Corp 2014: 1st Golden Globe Award for an Internet show (House of Cards – Netflix) 2016: Season 20 of South Park exclusively distributed by Hulu. A brief history of TV Streaming
  3. 3. Performance Comparison 50M  Subscribers
 
 63%  of  US  Online   TV  market
 6M  Subscribers
 
 35%  of  US  Online   TV  market 800M  account.
 
 67%  of  digital  TV   download   market
  4. 4. Financial Performance Company Market Cap Revenue ROI Profit Margin Netflix 24.42B 5.5B 7.8% 4.5% iTunes
 (Apple) 659.21B 18.07B (182.35B) 26.2% 21.6% Hulu
 (Private) Est. 2B Est. 1B N/A N/A
  5. 5. Netflix’s Resources • Company Culture & HR approach • Marketing Strategy • Relationship with Content Providers • Relationship with Device Manufacturers
  6. 6. Company Culture & HR Approach ● Act in Netflix’s best interest: o Rely on your own logic and common sense o Don’t rely on formal policies ● Eliminate formal performance reviews ● Managers build their own teams ● Leaders build company culture ● HR should think like business people
  7. 7. Marketing Strategy ● Customer service ● Customer guarantees ● User friendly website o Category Search o Optimized content suggestions ● Clever advertising
  8. 8. Relationship with Content Providers ● Revenue Sharing Agreement ● Profit sharing ● Netflix to pay-per usage ● Lower overhead on content
  9. 9. Relationship with Device Manufacturers ● Netflix-Ready Devices ● Automatically launch ● Netflix button with logo
  10. 10. Hulu’s Resources ● User Base ● Content Supplier Relationships ● Quick Release Window Access ● Big Data
  11. 11. Exclusive Content • Revenue Sharing
  12. 12. Next Day Availability
  13. 13. Big Data: Hulu Originals
  14. 14. Big Data: Swappable Ads
  15. 15. ● What is EST? o Transactional o Ownership o Downloadable ● iTunes as a Digital Media Collection o Establishment of EST originally as iTunes Music Store, launched 2003 o Own music and take it with you o Value-added incentives dealt blow to music pirating o Replacement of physical media collection with digital collection iTunes: The EST Model
  16. 16. iTunes: Resources ● The Apple Ecosystem o Brand loyalty leads to ownership of multiple Apple Devices o Hardware and software integrated with iTunes ● Quality and Quantity o Wide selection and downloads stay even if media is pulled o Streaming by temporary download ● Other Advantages o Season Pass o iTunes Extras o Early/Concurrent movie releases
  17. 17. Recommendation EST Original Content • Original Programming • Electronic Sell Through Conclusion

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