Are Online Streaming Services Outgrowing Traditional TV Broadcasters

Are Online Streaming
Services outgrowing
traditional TV
broadcasters?
2016
LEWIS HOSKINS

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1.0 Declaration
 I declare that all of the work I will have submitted for this investigation will be
my own and does not involve any plagiarism or help from any others except
for those who are authorised to do so. All sections that use quotes or describe
an argument developed by another author have been referenced, including all
secondary literature used, to show that this material had been adopted to
support my investigation.
 I understand that this declaration covers all work submitted for assessment for
Semesters 1 and 2, 2015 and 2016, in this subject and any others which are
related.
Signed: Lewis Hoskins
Date: 01/04/2016

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2.0 Summary of Findings
This investigation provides an analysis and evaluation into whether online streaming
services are outgrowing traditional TV broadcasters. The research has been
collected from various different secondary sources, and two separate primary
sources. The first primary source was a questionnaire which totalled ten questions
and helped to establish what preference consumers had in terms of platforms and
their thoughts into this. The second type of primary information gathered was an
interview through Julian Aquilina (Enders Analysis) who provided a wealth of
information helping shape the third section of the investigation. This allowed for a
better understanding into the differences in streaming with older and younger
generations, and the implications of job security to employees in the different
companies.
Some of the research collected allowed attention to be drawn to the idea that Netflix
and Amazon were both beginning to outgrow the BBC in terms of content due to the
number of premium content shows they are showing but on top of that the number of
exclusives that have been secured over the BBC and other major networks. This
points to the idea that both Netflix’s and Amazon’s are bringing in more consumers
daily due to the availability of access to everyone and anyone at any time, which is
why their streaming services are becoming so appealing over their TV counterparts.
Further investigations revealed that there is a correlation between the generations
with streaming and who watches it. Netflix and Amazon’s more difficult to attract
consumers are the middle aged to older generations, many of whom don’t
understand how streaming works. However younger generations are flourishing with
streaming content and continue to grow as they watch less traditional TV. Job
security is also an important factor which is being affected by the growth of
streaming services. Research has indicated that although TV is not dying out just
yet, there has been a shift in the number of employees who are moving towards
online streaming companies as they provide a more stable position due to the
security of being allowed a whole season on a programme compared to the
broadcasters who only contract employees for a pilot episode then if they reach their
targeted audience numbers, they then renew the employees contracts for the rest of
the season.
Diversifying is becoming an important factor in both services due to the level of
creativity that employees can bring with it, and the content they can create from their
own background and experiences. All of this adds up to providing the consumer with
a next level product which will entice consumers to use their services (either TV or
streaming in this case). Carrying out an enquiry into the CEO and how their decision
making skills and planning can affect the whole company and not just themselves
shows that the different methods CEO’s employ can affect how their company
grows, and what differentiates themselves from their competitors.

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3.0 Acknowledgements
I would like to thank my course leader and group tutor Lynn Bissett of the Business
Department at Dundee and Angus College. The door was always open whenever I
ran into any trouble or had a question about my research or writing. She always
made sure that this paper was my own work, but ensured I was going in the right
direction when she thought it was needed. In fact all of the lecturers that helped and
guided me throughout the year, and provided me with the correct knowledge to
complete this investigation.
I would also like to thank all of the participants who were involved in my research,
completing my questionnaire and interviews which allowed me to gain a better
understanding of what I was investigating, and give me a different view point which
was helpful in completing my investigation.
Finally I would like to thank the support I have had from my parents, and my
girlfriend who encouraged me throughout the months of study, and the course of
researching and writing my paper. This would not have been possible without them.
Thank You.
Lewis Hoskins

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Contents
1.0 Declaration...................................................................................................................1
2.0 Summary of Findings................................................................................................2
3.0 Acknowledgements...................................................................................................3
4.0 How the issue affects the BBC, Netflix and Amazon Prime ...........................6
4.0.1 Introduction.................................................................................................................6
4.0.2 Background on Netflix ..............................................................................................6
4.0.3 Background on Amazon Prime ...............................................................................6
4.0.4 The affect the issue has had on Netflix and Amazon Prime ..............................7
4.0.5 Affect the Issue has had on the BBC .....................................................................7
4.0.6 How the issue has impacted their presence to grow online ...............................8
4.1 Analysis of Primary and Secondary Research collected................................8
4.1.1 Outgrowing the BBC.............................................................................................8
4.1.2 Online streaming struggles with live sports and news broadcasts....................9
4.1.3 How online streaming has revolutionised how companies do business ..........9
4.1.4 Profit and Satisficing Maximisation.........................................................................9
4.1.5 Influence of shipping costs on Amazon Prime’s Profit Maximisation............. 10
4.2 An Assessment of these Implications............................................................... 10
4.2.1 Difference in Younger and Older generations with streaming .................... 10
4.2.2 Implications of job security for employees ......................................................... 11
4.2.3 Implications of creativity with employees and effect it has on the companies
............................................................................................................................................. 11
4.2.4 Diversifying can help with creativity levels ......................................................... 11
4.2.5 Implications to CEO with decision making and strategy planning .................. 12
4.3 Conclusions taken from the Investigation & Recommendations based
upon these findings........................................................................................................... 13
4.3.1 Online Streaming has outgrown TV Companies ............................................... 13
4.2.2 Difference in generations with streaming & how this is changing viewing
habits of consumers and effecting the job security of employees ............................ 13
4.3.3 Innovation and freedom to be creative it crucial in effectiveness of online
streaming companies....................................................................................................... 14
5.0 References .................................................................................................................... 15
6.0 Bibliography ................................................................................................................. 17
7.0 Appendices ................................................................................................................... 19
Appendix 1......................................................................................................................... 19
Appendix 2......................................................................................................................... 20

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............................................................................................................................................. 20
Appendix 3......................................................................................................................... 21
Appendix 4......................................................................................................................... 23
Appendix 5......................................................................................................................... 24
Appendix 6......................................................................................................................... 25
Appendix 7......................................................................................................................... 26
Appendix 8......................................................................................................................... 27
8.0 Activity Log ................................................................................................................... 28

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4.0 How the issue affects the BBC, Netflix and Amazon Prime
4.0.1 Introduction
The issue to be investigated is whether online streaming (OS) services are
outgrowing traditional TV broadcasters, in this instance the BBC as they are the
largest organisation in the world in terms of number of employees. The overall aim of
the investigation centres on whether online streaming services (OSS) such as Netflix
(NX) and Amazon Prime (AP) are putting an end to TV broadcasters mainly the
BBC, and the implications this could have on all of these companies.
The first objective identifies whether OSS are growing, and more specifically if this
correlates to their recent dominance over the exclusive TV show rights they have
been attributing to their sites. “House of Cards” being an excellent example of an
exclusive TV show on Netflix which has won numerous awards, and is the first
online-only TV show to do so. Focusing on F84T 34 Managing People and
Organisations and F7BX 34 Marketing: An Introduction can help to identify how
these companies are gaining new consumers daily.
Objective two is assessing how OSS are changing people’s viewing habits, and how
NX and AP offer whole seasons of a TV show compared to the linear viewing of TV
broadcasters. Marketing offers an in-depth view of how these companies are
changing consumer’s perceptions on what makes viewing great.
Objective three is evaluating how OS allows NX and AP to become more efficient.
F7J6 35 Economics 1: Micro Macro Theory and Application can help to understand
the methods both NX and AP have been implementing to increase their efficiency in
the market, over each other and their competitors. F7J7 35 Business Culture &
Strategy can provide a greater understanding of how the aim of the investigation is
affecting both internal and external customers.
4.0.2 Background on Netflix
Netflix was founded in 1997 by Marc Randolph in California, and started up where
people could order movies they wanted to watch, and have it sent by post. They set
up their website in 1998 with 30 employees at that time. They became the biggest
source of internet traffic in North America in 2010 and in 2011 they announced they
would restructure to a multi-national OS company.
4.0.3 Background on Amazon Prime
Amazon Prime was launched by Amazon in 2005, it essentially offers the same
services as Netflix but due to Amazon being an internet retailer there was added
benefits. To differentiate from Netflix they incorporated benefits such as free same
day delivery, unlimited cloud storage for photos and other discounts when paying a
yearly fee of £79.

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4.0.4 The affect the issue has had on Netflix and Amazon Prime
Both OSS innovations have impacted how they have grown into the multi-national
companies they are today. More screenwriters and producers are moving towards
the likes of NX, due to the attractiveness of contracts where they are guaranteed to
an entire season or two, compared to the BBC where they may only be contracted
for the pilot episodes depending on the success of that show. “Netflix also uses this
data to determine what type of original content the company should create. This has
led to Netflix having a higher success rate in manufacturing hits” (Investopedia,
2015). The success they have had in allowing showrunners to pursue their own
vision has meant TV companies being forced into paying more for talent and giving
them more freedom.
4.0.5 Affect the Issue has had on the BBC
The BBC is the public service broadcaster for the UK and is the oldest national
broadcasting establishment. It was founded on the 18th October 1922 by John Reith.
As a result OSS is beginning to affect how they show their content. The competition
from NX and AP ensured that to keep up with the demands from consumers, the
BBC launched iPlayer which is a catch-up service for people in the UK. This is just
one of the ways OS has affected their company, since it pushed them into the new
business model of OS. This has affected the whole organisation, as they have had to
create more of an online presence to keep in line with consumer needs. NX and AP
are growing in popularity, and changing how people think in terms of where, when
and how they watch their content. Between 2011 and 2015, streamed on demand TV
series & programs increased by 121% in that 4 year period (Anders Erlandsson,
2015), showing how much OS is affecting the way we, as consumers view our
content.

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4.0.6 How the issue has impacted their presence to grow online
The BBC having had to increase their presence online, shows not only where our
civilisation is headed, but that their need to head down this route is an effect of how
popular OS companies are. Their need to become a cross-platform brand, where
people can access their content from anything from a gaming console, to a
smartphone shows the efforts they have made to ensure their content is alongside
NX and AP. The BBC started to use social media as a method of promoting their
brand (Philip Kotler, 2013). This is the fastest way of communicating with the
customers and getting feedback from them. NX and AP are utilising the cost effective
method of social media to push their marketing across to the masses allowing it to
grow. OSS have affected how the BBC promote their brand, and anticipate
consumer’s trends in viewing habits. Before they would have relied on TV adverts to
get across their new content, but now as a result of OS, they have had to utilise new
methods to compete. OSS such as NX and AP, have affected the BBC in that they
have had to cut over 1,000 jobs as they look to reduce spending by £1.5 billion a
year (Dearden, 2015). This is due to a fall in revenue from license fees as
consumers move away from live TV, and shift to catch-up services like iPlayer. OSS
have put pressure on the BBC to improve on their digital services.
4.1 Analysis of Primary and Secondary Research collected
4.1.1 Outgrowing the BBC
Becoming more efficient in business is crucial for NX and AP to continue the growth
they have been seeing over the past 10-15 years. Netflix has taken OS global and
has been instrumental in helping them outgrow TV broadcasters, such as the BBC.
Outgrowing the BBC is not just about beating the figures, it is about becoming more
efficient in the process. One of the ways, especially in 2015, has been the number of
premium content shows which Netflix have launched. This has been a major turning
point in the battle for ratings. OS allows NX and AP to show whole seasons of a TV
show, meaning people can watch it whenever they wish, even watching entire
seasons at once (Appendix 1 & 3), adding to the efficiency of their USP. Last year
has proven that Netflix can compete with the likes of American broadcasters such as
the Discovery channel, who are now trying to launch their own subscription
streaming services due to the level of success NX has had (Lizzie Plaugic, 2015).
Comparing this to the BBC who still run a linear network on top of their on-demand
service have seen the link between younger people and OS. As they moved their
BBC Three channel to online only less young people are watching linear TV (Sillito,
2016).

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4.1.2 Online streaming struggles with live sports and news broadcasts
Although NX and AP have been successful recently, this has not meant that being
online will mean they become more efficient. In most cases they have definitely
changed people’s perceptions but they have not taken over yet. If given the choice,
out of the 44 respondents 50% (Appendix 2) would pick TV over any online service.
This suggests they are missing out on certain services, keeping TV broadcasters
from being pushed out of the market. The problem for NX and AP is that they can’t
replace the news, or live sport. Until they find a way to overcome this, they won’t
completely replace TV broadcasters in the near future (Appendix 3 & 4).
4.1.3 How online streaming has revolutionised how companies do business
OS has revolutionised how companies in this industry do business. Netflix held a
quarterly earnings interview in January 2016, in which Reed Hastings (CEO of Netflix
Inc.) was quoted as saying “We’ve got over 50 countries in Q4, so we’ve had a lot of
experience, Ben, at predicting these markets, and then we launched in Japan in
early September and Spain, Portugal, and Italy in mid-October”. In Q1 of 2016 alone
Netflix released more content to their site than a lot of networks would in a whole
year, which says something about the efficiency that Netflix are managing to
continue to grow. This hints that Netflix is still in its growth stage, meaning that sales
are climbing quickly, and contributes to the growth Netflix have had over the past 5
years (Philip Kotler, 2013).
AP costs £79/99$ a year, giving consumers access to free same day shipping on
millions of items, subscription to thousands of TV shows, movies, music, books and
unlimited cloud storage for photos. This is attracting more consumers into using this
subscription service. Not only have they added on a streaming service, but they have
offered something which both Netflix or the BBC cannot do (Philip Kotler, 2013), and
that is maximising their consumer base through extra services, which itself is
differentiating from others in offering something of superior customer value
(Appendix 3).
4.1.4 Profit and Satisficing Maximisation
Profit Maximisation (Appendix 5) has been a key implementation in AP’s efforts to
earn more than the £79 a year subscription fee from consumers. They are looking to
maximise the difference between total revenue and total cost so it is at its greatest,
meaning they will make the most profit (Anderton, 2006). Not only have they looked
to increase their profits but AP have stated that they have expectations to save in the
long-term rather than capitalise on short-term profits (making smart savings that over
time will produce a greater return). Being optimistic will see their rate of return on
investments such as this rise (Anderton, 2006). This is some of the objectives they
have set in place lining up with H. Simon’s (1959) theory that firms can seek
objectives other than profit maximisation.

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4.1.5 Influence of shipping costs on Amazon Prime’s Profit Maximisation
Amazon have managed to entice consumers who are signed up to AP, “to spend
nearly twice as much on Amazon as non-prime members do”. They are maximising
their profits from offering these extras, tempting more consumers into spending
more. The effect of shipping fees on order occurrence has shown to be influential,
AP attracts more consumers as they aren’t deterred by shipping fees. It has been
proven that consumers back out of the transaction due to the shipping fees, “Market
Research has showed that from 52% (refer to Direct Marketing Associations Report
2004) to 60% (refer to Jupiter Communications report 2001) of online visitors
abandons their online shopping carts when presented with shipping and handling
fees” (Mingming Leng, 2009), AP have integrated their business so that OS allows
them to become more efficient. They have managed to increase their membership
by 53% in 2014 (D'Onfro, 2015).
4.2 An Assessment of these Implications
4.2.1 Difference in Younger and Older generations with streaming
The area in which NX and AP are having trouble is with the older generation. This
segment of the market is not shifting (Appendix 3). They are an online only company
so inadvertently or not, are targeting younger audiences who are technologically
advanced (Philip Kotler, 2013). Younger generations spend on average 15 hours
and 30 minutes a week watching TV during Q3 of 2015 (18 -24 year olds). This
indicates an 11.8% drop year-over-year in Q3 of each year between 2011 and 2015.
Overall this has fallen by 35% in these 4 years. (Appendix 6). Adults aged 65 or
older spend an average of 47 hours and 33 minutes watching TV in a week. This has
risen by 20 minutes a week from the previous year (Charts, 2015). The data hints
that OS is growing among the younger generations, but not so much among the
older generations, especially 65 years old and above. The implications to an older
generation is missing out on exclusive content as more of the younger generations
move towards OS. Younger generations are having a bigger influence on the future,
they are becoming the driving force for a more technologically driven atmosphere,
where linear TV as we see it, is dying out.

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4.2.2 Implications of job security for employees
Linear TV dying out does not mean the end for TV itself, as the week of the 15th
February 2016 46 million 351 thousand people (BARB, 2016) tuned in to watch a
programme on BBC 1 (for a minimum of three minutes). The BBC has to shift its
focus on how they get their content across to viewers. This can be because the BBC
still controls a considerable amount of exclusive content, meaning viewers will have
to tune in weekly to watch a programme. The BBC differentiates from this allowing
them to continue to compete with NX and AP. The implications of exclusive content
for both OS companies and the BBC’s employees, allows for a degree of security in
their positions, as they know that with this content, they will be able to continue to
bring in viewers. The insecurity for the employees in the broadcasting sector is that
as OSS continue to grow (Appendix 3) eventually the exclusives will not be enough
to keep customers loyal. The problem that linear TV has is that consumers have to
wait each week to watch their TV programme, which nowadays people just don’t
have the patience to do. This is why NX and AP have become so popular in being
able to watch it at your own pace.
4.2.3 Implications of creativity with employees and effect it has on the companies
The biggest difference in terms of employee’s implications at the BBC and both of
the online streamers (NX and AP) is the level of creativity at the companies. Netflix is
growing a name for itself in terms of creativity and innovation, as employees at
Netflix have been allowed to flourish more compared to the BBC. The BBC has a
more traditional hierarchical structure to it. Netflix have established a more flexible,
matrix-based organisational structure meaning that managers can build project-
based teams faster. It allows for a more rapid deployment of employees, and
introduces a more productive use of resources which will increase creativity, new
ideas and innovations (Bilton, 2007). The implications of growth in Netflix have had
major advantages having grown and structured to allow for more creativity with
employees.
4.2.4 Diversifying can help with creativity levels
Diversifying is important to bring cultures together helping to increase creativity. The
downside of this to the BBC is that they have a more outdated structure meaning
employees don’t see the benefits of creativity as teams can’t be assembled as fast,
and their talents become underutilised, meaning they’re ideas may be not taken
advantage of, leaving employees at the BBC feeling dissatisfied. The BBC is failing
to attract minority workers to their organisations, with only 12.2% of their staff being
of a minority, failing to meet their own targets of 14.2% by 2017 (Martinson, 2016). It
is affecting the level of creativity its employees have. This has implications outside of
the organisation and could see consumers viewing habits changing further.
Employing more diverse personnel can bring a new culture with them, and in turn
new ideas, which will change what kind of content consumers are watching.

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4.2.5 Implications to CEO with decision making and strategy planning
OS has had a big effect on the BBC’s CEO (The Lord Hall of Birkenhead) having had
to carry out a SWOT analysis to assess what his company’s strengths and
weaknesses allowing him to formulate strategies which they can implement to
compete with the growth of OS (Griffin, 1999). Currently the CEO of the BBC does
not understand the customer’s needs, as they begin to fall behind in the race for
overall control of viewing figures. NX and AP CEO’s understand the needs of their
customers, by taking the feedback on board. This been a major influence in their
strategic planning (Appendix 7). The owners of NX and AP have understood Porter’s
generic strategies (Griffin, 1999) and evaluated what strategy is best suited to their
organisation and how this affects their decision making and planning. In both cases
they would be linked to a differentiation strategy as Netflix was the first major
streaming service which created a whole new market with streaming, and AP have
differentiated themselves by the benefits they allow with their subscription. By linking
their SWOT and Porter’s generic strategies, it has allowed both companies to build
better foundations for their creativity, innovation and diversity with employees.
Netflix’s CEO has led the way in this area, having implemented unlimited vacation,
no expense approvals and no yearly reviews, treating their employees like “fully
formed adults”, giving them great amounts of freedom so they can take risks and
become innovators without being clogged with red tape (Stenovec, 2015). This may
be one of the reasons for their creativity increasing which links back to changing
viewing habits, as the CEO invests more time into his employees; they feel more
integrated and can improve productivity. This boosts their revenue as they bring out
new content for consumers which have been a major factor in changing viewing
habits over the past 10-15 years. It also reflects on the culture of the organisation
and how external customers see them from the outside.

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4.3 Conclusions taken from the Investigation & Recommendations
based uponthese findings
4.3.1 Online Streaming has outgrown TV Companies
Netflix and Amazon Prime have outgrown TV companies in terms of the content they
are producing. This can be correlated to the number of TV shows such as “House of
Cards” and the number of nominations it has won. This success shows that OSS
have grown, and are continuing to do so. The problem that the BBC have had is the
linear way in which consumers are forced to watch their content, in this modern day
and age, consumers don’t have the time or particularly want to wait to view their TV
shows. Having to tune in weekly is not suitable for the modern individual. Including
the lower cost of OS in the decision making process for an individual makes it
appealing and is why it is continuing on this growth cycle. It has outgrown linear TV
which would have died out if it had not been for live sports or news broadcasts which
NX or AP doesn’t yet provide. My recommendation to OSS would be to fill this gap,
and utilise some of their resources to start their own news and sports channels to
compete with the TV companies meeting the needs of the customers who still use
TV to watch the news and sport.
4.2.2 Difference in generations with streaming & how this is changing viewing habits
of consumers and effecting the job security of employees
The difference in generations in terms of who uses a streaming service is a crucial
factor in how effective OSS are in changing consumer viewing habits. Intentionally or
not, OSS is targeting younger generations who are technologically advanced. The
older demographic population simply aren’t plugged in or the content available is not
what they would watch. The BBC still control a number of exclusive TV show’s rights
which have allowed them to continually compete with both streaming services and
looking forward to the future could be a vital factor in their survival. This can relate to
the job security of employees in both sectors, as the different demographics keep
both companies in business through different reasons such as exclusivity rights or
loyalty. However it is shifting in favour of OSS as the new generation of consumers
grow up and look to replace the older generations. For personnel who are employed
by the BBC it is becoming increasingly less secure (at a relatively slow pace
currently) as OS continues to grow, and consumers begin to lose their patience over
the linear service which they rely on currently. There are factors which keep
consumers coming back such as news and live sports, but if OSS were to invest
more resources into producing a service such as this, it could jeopardise what keeps
consumers coming back to them currently. A recommendation to the BBC would be
to focus on producing more exclusive shows which can bring consumers back. To
invest more time in understanding what is appealing to the younger demographics in
terms of OS and how they can utilise this information to adapt their company for the
future. Utilising the change curve diagram (Appendix 8) can help to reduce the
negative impacts seen on the company from the employees who may be resistant to
the changes at first.

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4.3.3 Innovation and freedom to be creative it crucial in effectiveness of online
streaming companies
Innovation has been the key in both OS companies success; they employ
screenwriters and producers for whole seasons at a time, adding to the value of their
organisation. This makes it more appealing to potential employees who may be
interested in this area of the market. Netflix is using the data they gather from their
site to create more successful shows, and are more appealing as they allow more
freedom. This has forced the BBC to pay more for their talent. It is another indicator
that OS has not only grown, but is outgrowing TV companies. They are dictating how
other competitors do their business and how their effectiveness has meant that the
BBC has had to adapt to compete. If they don’t allow producers and writers more
freedom to be creative then there would a surge in the number of employees moving
to a major streaming service since they allow for more freedom to use their talents.
The CEO’s of all of these companies are a big factor in how effective their
employees are and how diverse their companies are. Diversifying can help to boost
creativity levels and provide an increase in productivity helping with the CEO’s
decision making process, as they see the benefits more clearly through their
employees work. Keeping up with NX and AP is essential for the BBC’s survival in
the future and a recommendation would be to invest more time into their current
streaming service as linear TV isn’t where the needs of their consumers are currently
at. The free service on offer currently can be used by anyone with an internet
connection in the UK meaning they are not utilising the profit margins available to
them showing potential for a new stream of revenue.

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5.0 References
Anders Erlandsson, Z. A., 2015. TV & Media 2015. [Online]
Available at:
:http://sixtysix.wirelab.ericsson.net/res/docs/2015/consumerlab/ericsson-
consumerlab-tv-media-2015-presentation.pdf
[Accessed 11 January 2016].
Anderton, A., 2006. Economics. 4th ed. Edinburgh : Pearson Education.
BARB, 2016. Viewing Summary. [Online]
Available at: http://www.barb.co.uk/whats-new/weekly-viewing-summary
[Accessed 1 March 2016].
Bilton, C., 2007. Management and Creativity. Hong Kong: Blackwell Publishing.
Charts, M., 2015. Are young people watching less TV?. [Online]
Available at: http://www.marketingcharts.com/television/are-young-people-watching-
less-tv-24817/
[Accessed 09 February 2016].
Dearden, L., 2015. BBC to axe more than 1,000 jobs in drive to cut spending by £1.5
billion a year. [Online]
Available at: : http://www.independent.co.uk/news/media/tv-radio/bbc-to-axe-more-
than-1000-jobs-in-drive-to-cut-spending-by-15-billion-a-year-live-10360579.html
D'Onfro, J., 2015. Half of US Households will use Amazon Prime by 2020. [Online]
Available at: http://uk.businessinsider.com/analyst-amazon-prime-growth-2015-
2?r=US&IR=T
Griffin, 1999. Management. 6th ed. New York: Houghton Mifflin.
Investopedia, 2015. How Netflix is chaning the TV Industry. [Online]
Available at: http://www.investopedia.com/articles/investing/060815/how-netflix-
changing-tv-industry.asp
Lizzie Plaugic, R. M., 2015. How Netflix and Amazon have changed the rules of TV.
[Online]
Available at: http://www.theverge.com/2015/12/30/10647736/netflix-hulu-amazon-
original-shows-streaming-tv-2015
Martinson, J., 2016. BBC Struggles to hit targets for staff diversity. [Online]
Available at: : http://www.theguardian.com/media/2016/mar/03/bbc-staff-diversity-
trevor-phillips

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Mingming Leng, R. B.-A., 2009. Joint Pricing and Contingent Free-Shipping
Decisions in B2C Transactions. Production and Operations Management, 19(4), p.
390.
Philip Kotler, G. A. L. C. H. N. P., 2013. Principles of Marketing. 6th ed. Harlow :
Pearson Education.
Sillito, D., 2016. BBC Three moves online after final night as TV channel. [Online]
Available at: http://www.bbc.co.uk/news/entertainment-arts-35578867
Stenovec, T., 2015. One Reason for Netflix's Success - It treats Employees like
Grownups. [Online]
Available at: http://www.huffingtonpost.com/2015/02/27/netflix-culture-deck-
success_n_6763716.html

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6.0 Bibliography
A.E.S, 2013. Is Netflix killing cable television?. [Online]
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diversity
BBC, n.d. Stakeholders. [Online]
Available at:
http://www.bbc.co.uk/schools/gcsebitesize/business/environment/stakeholders2.sht
ml
Coughlan, S., 2016. Time spent online 'overtakes TV' among youngsters. [Online]
Available at: http://www.bbc.co.uk/news/education-35399658
Daniel, 2012. Do we really need cable TV?. [Online]
Available at: http://thrivedetroit.net/do-you-really-need-cable-tv/
[Accessed 26 January 2016].
Economics Online, n.d. Sales and Revenue Maximisation. [Online]
Available at:
http://www.economicsonline.co.uk/Business_economics/Sales_and_revenue_maxim
isation.html
Huebsch, R., n.d. Traditional Hierarchical organisational structure. [Online]
Available at: http://smallbusiness.chron.com/traditional-hierarchical-organizational-
structure-26174.html
Investopedia , 2015. How Netflix is changing the TV industry. [Online]
Available at: http://www.investopedia.com/articles/investing/060815/how-netflix-
changing-tv-industry.asp
Lizzie Plaugic, R. M., 2015. How Netflix and Amazon have changed the rules of TV.
[Online]
Available at: http://www.theverge.com/2015/12/30/10647736/netflix-hulu-amazon-
original-shows-streaming-tv-2015
Netflix, 2016. Diversity. [Online]
Available at: https://jobs.netflix.com/diversity

18 | P a g e
O'Brien, K., 2015. Amazon's most important stakeholders. [Online]
Available at: http://www.huffingtonpost.com/great-work-cultures/amazons-most-
important-st_b_8051946.html
Perry, K., 2014. BBC 'doesn't respect or value ethnic minority staff', says axed
reporter. [Online]
Available at: http://www.telegraph.co.uk/culture/tvandradio/bbc/10776845/BBC-
doesnt-respect-or-value-ethnic-minority-staff-says-axed-reporter.html
Pettinger, T., 2011. Profit Maximisation. [Online]
Available at: http://www.economicshelp.org/blog/3201/economics/profit-
maximisation/
Roettgers, J., 2015. Inside Netflix's plan to boost streaming quality and unclog the
internet (Exclusive). [Online]
Available at: http://variety.com/2015/digital/news/netflix-better-streaming-quality-
1201661116/(
Scanlon, J., 2014. Netlfix Partners with 3 Cable Providers to bring content to TV.
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Available at: http://www.cheatsheet.com/entertainment/netflix-partners-with-3-cable-
providers-to-bring-content-to-tv.html/?a=viewall
Troutman, K., 2015. Top 3 reasons why the internet will kill TV. [Online]
Available at: http://www.cheatsheet.com/business/3-reasons-the-internet-will-kill-
television.html/?a=viewall
Williams, C., 2015. Principles of Management, Mason : Cengage Learning.

19 | P a g e
7.0 Appendices
Appendix 1
Question 1. What is your age?
25 to 34
Question 2. Do you have any subscriptions to online streaming services?
Yes – Netflix and Amazon Prime
Question 3. How often would you say in a day you spend watching TV?
2 to 4 Hours
Question 4. How often in a day would you spend using an online streaming service
or multiple services?
2 to 4 Hours
Question 5. Do you prefer to watch TV our use online streaming services?
Online Streaming Services
Question 6. If you picked TV or online streaming serivces, can you explain why you
prefer to use this choice?
No ad breaks, can generally watch an entire season -don't have to wait for
weekly instalments and I can choose when I watch them
Question 7. If you could only use TV or one of the following streaming services,
which one would you use?
Netflix, Progs up to date and frequently updated (why did you make this
choice?)
Question 8. If you use both services compared to TV, is online streaming services
quality and content better, worse or about the same?
Better
Question 9. If you do not use any online streaming services, what would they need to
do in order to make you more likely to use their services? N/A if not applicable
N/A
Question 10. Has your viewing habits changed as a result of online streaming
services becoming more popular?
Yes, binge watching is now commonplace! (Can you explain why you made
this choice?)
Source: Sample questionnaire from Survey Monkey

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Appendix 2
Source: Survey Monkey Data from questionnaire
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
TV
Netflix
Amazon Prime
Other (if so specify which service below included in
your answer)
Percentage of people who picked this service(%)
Services
TV Netflix Amazon Prime
Other (if so specify which
service below included in
your answer)
Responses 50.00% 36.36% 4.55% 9.09%
If you could use TV or one of the following streaming
services, which one would you use?

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Appendix 3
Interview Questions - Julian Aquilina (Enders Analysis)
Question 1. What would you say is the biggest benefit NX and AP have added to
TV?
I would have to say that it would be in terms of consumers the level of content they
have added to the internet (along with being a cheaper alternative to TV). I mean
content alone there is a lot of choice, not only that but you can watch it when you
want to, which has been a major benefit to NX and AP which is attracting more and
more consumers daily to their sites.
Question 2. Do you think that people will move from TV to online streaming anytime
soon?
How would I feel if a TV wasn’t in my house, well now-a-days my laptop does
everything my TV can, and more but there is still a need for TV’s at present, and for
the near future, I think that linear TV is dying out and is being replaced as we speak,
but TV itself won’t go away anytime soon. If you were to look at your parents, or their
parents they all watch the news, and yes you can do online, but for the older
generations, using the TV is convenient and what they are used to, so shifting this
market will be nearly impossible meaning that for the near future in my opinion
people will move yes, but not completely as of yet. I think there is still a need for
TV’s.
Question 3. Do you think that online streaming as a market is growing?
I think the simple answer to this is yes, yes it is. In fact I think it’s outgrowing their TV
rivals, as more and more people are adapting to the idea that they can watch what
they want when they want and for a cheaper price. Netflix especially have had so
much success in growing that they are enticing more and more employees away
from networks, and broadcasters to their company with the benefits that working for
a streaming company can bring, for one they have added job security knowing that
unlike the BBC where they go on whether the pilot is successful or not, Netflix go on
a season, sometimes even two. So they know they’ll be employed for more than an
episode. Focusing more on Amazon Prime, they are really growing fast considering
they started the streaming service only 11 years ago. Although they do not have the
content as of yet which Netflix has, they are catching up, along with the added things
like the free shipping, and other discounts they are offering more for your money
than a traditional streaming service does.

22 | P a g e
Question 4. Where do you think NX and AP will have most difficultly in (in terms of
customers, externally)?
I think that as I have mentioned before, attracting consumers who are of an older
generation, even above the age of 30, you will have trouble getting them to move
online the further up the age brackets we go, as older people do not have the type of
technology we do now in their day, and people stick to what they know best, so
shifting these consumers into online streaming alone will be a task which I think
would be unsuccessful, so leaves linear TV somewhat on its last legs, down but now
out yet. I will have to say that the younger generations are pushing this with a lot of
steam, and we will see a shift majorly in the future, I can’t be certain when but it will
be inevitable.
Question 5. What about inside of these companies, what do see you the effects
being there?
Well I think that in terms of the BBC, it is a valued place to work with a big credit to
your name, but that is slowly changing, as people just have so much choice, making
it even harder for them to stand out. I think that for their employees they will see a lot
of them making a shift into other online streaming companies as they continue to
grow, it looks more lucrative and exciting. I think that for the shareholders, you could
see a shift into more online streaming services, and this is because of the growth in
the market, and the continuation of it, so far. The BBC are shutting down, and
closing departments, whereas Netflix are opening new ones, and expanding, the
difference is clear.

23 | P a g e
Appendix 4
Question 9 of Questionnaire (three responses from three different individuals)
Question 9: If you do not use any online streaming services, what would they need to
do in order to make you more likely to use their services?
Respondent 1 TV still has content which you can’t get online yet such as soaps, or
older TV shows from the 70s and 80s etc.
Respondent 2 I can’t watch the news on Netflix or Amazon Prime, which is what I
would do every morning, but I also can’t watch any live sport which
would be an important factor in me being able to switch to online
only.
Respondent 3 Although I can binge watch a TV series whenever I choose to, there
still isn’t enough quality there yet for me to completely switch over,
and some of the TV shows I enjoy watching you can’t get online.
Which if anything would be a reason for me still watching the telly.

24 | P a g e
Appendix 5
Source: Economics Help

25 | P a g e
Appendix 6
Source: MarketingCharts.com analysis of Nielsen data

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Appendix 7
Source: BBC Higher Bitesize

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Appendix 8
Source: www.mindtools.com

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8.0 Activity Log
Date Activities Undertaken Resources Used Time
Allocated
Experiences & Personal
Development
10/01/2016 Research Investigation topic –
objective 1
Time, laptop, pen,
paper, internet
1000-1800
(8 hours)
Better understanding of
online streaming’s growth
objective 2
Time, laptop, pen,
paper, internet
1100 – 1900
(8 hours)
Allowed me to better grasp
what has changed with
viewer habits
objective 3
Time,laptop,
paper,pen,
internet
0900 – 1500
(6 hours)
Got to grips with
effectiveness online
streamingserviceshave had
with being online
16/01/2016 Creating Blank Investigation for
layout
Time, laptop 1200 – 1600
(4 hours)
Understood the layout and
where everything went
17/01/2016 Creating a questionnaire Time,Laptop,Survey
Monkey, internet
1600 – 1800
(2 hours)
Allowed me to think about
what questions to ask
19/01/2016 Continuing with questionnaire Time,Laptop,Survey
Monkey, internet
1200 – 1700
(5 hours)
Took more time to complete
which allowed me to better
focus on right questions
22/01/2016 Completing and distributing
questionnaire
Time,Laptop,Survey
Monkey and Email,
internet
1700 – 2000
(3 hours)
Appreciatedhow hard it was
to get responses & effort
needed
23/01/2016 Continuing with research on
objectives
Time,laptop, internet 1200 – 1700
(5 hours)
Realised how much they
related to my overall aim

29 | P a g e
24/01/2016 Carrying out interview for
investigation
Time, Pen, Paper,
Internet, Word
1100 – 1300
(2 hours)
Gained a deeper
understanding of the
complexities of carrying out
an interview, but also a
better experience into the
topic I am investigating
25/01/2016 Collecting and Typing up
interview questions and answers
Time, Word, Internet,
Paper notes, laptop
1500 – 1900
(4 hours)
Learned how much effort
and time it takes to type up
and analyse the answers
which were given to me, and
then put them into a format
which is easily readable and
thoughtfulto help further the
investigation
26/01/2016 Working on collecting and
analyzing some of the results
from questionnaire
Time, laptop,
internet, word
1900 – 2200
(3 hours)
Understood how to analyse
the results to help with
report
28/01/2016 Investigating results from
questionnaire and if they help the
report
Time, laptop, word,
internet, survey
monkey
1300 – 1900
(6 hours)
Understood that some of the
questions better helped me
than others
05/02/2016 Start with creating bibliography Time, internet, word,
laptop
1200 – 1400
(2 hours)
Got to see how what
information actually went in
this section
07/02/2016 Filling out declaration of own
work
Time, word, laptop 1000 – 1100
( 1 hour)
Helped me to realise how
important it is to be my own
work
10/02/2016 Create a page for summary of Time, word, laptop 1100 – 1200 Allowed to gain a better

30 | P a g e
findings (1 hour) understanding of what this
section is
15/02/2016 Start off section 1 of the report Time, word, internet,
laptop
1100 – 1600
(5 hours)
Experiencedhow hard it is to
start off, a lot of mind blocks
to start with
16/02/2016 Section 1 of Report, How the
issue has affected all three
organisations
Time, word, internet,
graded unit
worksheets, laptop
1200 – 1500
(3 hours)
This gave me a better grasp
on the issue at hand
22/02/2016 Research for Starting section 2 Time, word, internet,
laptop
1500 -1700
(2 hours)
Allowed to gain the correct
information to help answer
my objectives in this section
23/02/2016 Section 2 – collating research and
looking to answer objective 3
Time, Word, Internet,
Graded Unit
Worksheets, laptop
1000 – 1200
(2 hours)
Realised how important
section 3 is to this report
24/02/2016 Section 2 – Research for more
Secondary information
Time, Internet, pen,
paper, laptop
1700 – 2000
(3 hours)
Found out what types of
information can help with my
report
25/02/2016 Section 2 – Continuing with report
on objective 3 & how it relates to
the efficiency of online streaming
Time, Internet, Word,
Worksheets, laptop
1500 – 1800
(3 hours)
Understood that online
streaminghas advantages in
that their costs are lower in
areas
01/03/2016 Section 3 of the report Time, Internet, Word,
Graded Unit
Worksheets, laptop
0900 – 1230
(3 hours 30
mins)
Gained a better
understanding of the amount
of time and effort needed to
complete this section
03/03/2016 Continuing research for
investigation, and adding
Textbooks, laptop
1500 – 1900
(4 hours)
Able to understand how
adding appendiceswork and

31 | P a g e
appendices what I should put there
07/03/2016 Completing Section 3 of the
Report& Moving onto Section 4 of
the investigation
Graded unit
worksheets, laptop
1300 – 1700
(4 hours)
Fitting all of my thoughts
into the word count is more
difficult than first thought
08/03/2016 Section 4 of Investigation, basing
recommendations on conclusions
found
Graded unit
worksheets, laptop
0900 – 1300
(4 hours)
Found out how difficult it is
to get the conclusion to
follow from investigation
within word count
10/03/2016 Completing Section 4 and Tidying
up Report for a first draft
laptop
1500 – 1800
(3 hours)
Learnt how to properly lay
out my references section,
and what my investigation
actually concludes with so I
understood whatI have been
looking to answer and finally
able to answer my objectives
and aim
14/03/2016 Tidying up report and making it
look presentable
Time,word,reference
book, laptop
1200 – 1600
(4 hours)
Able to see how an
investigation should be
presented, gave me an
understanding of what it
should look like
28/03/2016 Proof Reading Report Time, Word, laptop 1400 – 1700
(3 hours)
Understood how important it
is to proofread my report as
to correct any mistakes not
seen before whilst typing it
up.

32 | P a g e
30/03/2016 Filling out the Checklist Time, word, laptop Got to grips with what
section was where in the
investigation and how it has
all formed together
01/04/2016 Submission Time,Internet, laptop 1500 – 1510
(10
minutes)

33 | P a g e
Developing Section of Graded Unit 2: Project
Section
Included in
word count
Included in
report
Paragraph
reference in
report
1 Title Page Yes Page 1
2 Declarationof ownwork Yes 1.0
3 Summaryof findings Yes 2.0
4 Acknowledgments Yes 3.0
5 Contentspage Yes ContentsPage
(Pages4 and 5)
6
Section1
Detailedexplanationof howthe issue affects
the organisationororganisationschosen.The
explanationshouldbe justifiedbyexplicit
reference tothe datacollectedandto
conceptscoveredas in the mandatoryUnits
of the Group Award.The explanationshould
be consistentwithobjectivesatthe Planning
stage.
Yes
Yes
4.0
7
Section2
Analysisof the primaryandsecondary
sourcesof informationanddatacollected.
Yes
Yes
4.1
8
Section3
Assessmentof the implicationsof these
effectsforthe chosenorganisationor
organisationsshouldbe analysedinrelation
to the organisation(s),the business
environmentandthe impactuponcustomers
and shouldmake reference toconceptsand
topicsstudiedwithinthe mandatorysection
of the Group Award.
Yes
Yes
4.2
9
Section4
Statementof the conclusionsdrawnfromthe
investigationandanyappropriate
recommendations tobe made to the
organisation(s).These shouldbe explicitly
relatedtothe issuesbeinginvestigatedand
the needsof customers.
Yes
Yes
4.3
10 References Yes 5.0
11 Bibliography Yes 6.0
12 Appendices Yes 7.0
13
The report shouldconsistof 2500–3500
words,and mustbe presentedinaformat
suitable forabusinessreport.
Yes

34 | P a g e
14
Produce a log of activitiescarriedoutby the
learner.The logmustinclude activities
undertaken,resourcesusedandtime
allocated.
Yes 8.0

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