This document analyzes and compares the marketing strategies of Apple TV and Western Digital TV. It discusses their product definitions as streaming media players and reviews their web-to-TV services and applications. Financial projections show streaming revenue growing significantly through 2016. Surveys found Apple customers prefer the brand for its ecosystem while WD lacks awareness. The document recommends WD improve brand awareness and form a gaming console alliance while Apple could enter the gaming market.

1. Apple TV vs Western Digital TV
Marketing Strategies Analysis
Group 8
Yamen Nanne
Sandra Godinez Sainz
Theresa Yu Wang
Micael Dawley
Ivan Velazquez

2. Product Definition
Streaming Media Player (SMP)
– An internet connected digital device that allows you
to utilize Web-to-TV or Over The Top (OTT) Video
Services to watch streaming media content
– SMPs also allow you to use your home network to
view existing videos, pictures, and audio files
directly on your TV

3. Web-to-TV Services & Applications

4. Market Outlook
Financial Projections
– By 2016 OTT Services  US$ 20 billion in revenue
– US TV download revenue will triple between 2012 and 2015
– In 2011, unit shipments of SMPs were approximately 8 million
($800 Million at $100 / Unit)
– 12 Million units projected for 2012 & 73 Million units by 2016

5. Customer Analysis
• Secondary Data using User Reviews & Comments
– Amazon Reviews, Various Web Forums & Websites
• Focus Group w/ Friends and Colleagues
– Get a feeling of driving factor for customer choice
• Web Based Survey (Qualtrics)
– See if there is link between Brand Loyalty and Purchasing Choice
– Customers’ perception about the brand’s market strategy
– Understand who would recommend the product based on brand
awareness
– What is the UnMet need is for streaming media players

6. Secondary Data: User Reviews
Amazon
WD TV Live
Apple TV
Best Buy
WD TV Live
Apple TV

7. Forums
Apple TV
• Pros
– Ease of Use
– “The beauty of ATV is the
interface”
– Connectivity (mirroring) to
other Apple Products
(ecosystem)
• Cons
– It’s “Apple’s Way, or the
Highway”
– Slow loading/ buffering time
– Loses video quality
WD TV Live
• Pros
– Ease of Use
– “Stream nearly every video file
format”
– Great picture quality
• Cons
– Interface is not as “snazzy” as
Apple TV’s
– Slow loading/ buffering time
– Will not play protected iTunes
Store content

8. Magazine Reviews
• Apple TV
– “Best Solution for
Apple Fans”
– “If you’re a die-
hard Apple
aficionado, Apple
TV may be the
better choice”
• WD TV Live
– “Best Solution for
hard-core tech
geeks”
– “For that
consumer (tech
enthusiast), the
best choice we’ve
seen to date is
the WD TV Live”

9. Apple TV Focus Group
• Why did you buy Apple?
– Ease of use, own other Apple products, quality, physical
appearance, brand loyalty, etc.
• Why did you not buy other brands?
– Were not aware of other streaming media players, did
not trust them, etc.
• Have you heard of WD TV Live? Most said No
• What can WD do to encourage switching?
– All answered: More advertising, “put themselves out
there with Apple”, “cannot compare if we are not
familiar with their products”
• Technology aside, why Apple and not WD?

10. 74 Respondants
86% said they were average - very knowledgeable.
Age
73% of respondants were within the ages of 24 - 39
Qualtrics Survey Demographics
Annual Household Income

11. Do you own an Apple Product?
84% - Yes
2.65 Products on Average
Qualtrics Survey Results
Do you own a WD Product?
50% - Yes
1.97 Products on Average
How did you hear about Apple?
What Feature or Quality Do You like The Most about Apple ?
How did you hear about WD?
What Feature or Quality Do You like The Most about WD?

12. Qualtrics Survey Results
How Likely Are you to Recommend Apple Products
to Others?
In evaluating Apple's competitive position, they are: In evaluating Western Digital competitive position, they are:
How Likely Are you to Recommend WD Products
to Others?

13. Qualtrics Survey Results
Which of the following streaming media players do you own?
Do you own a streaming media player (SMP)?
Which of the following streaming media players would you be most
likely to buy?

14. Product Evolution
• From a few start ups
to a broad rage of
Device Manufactures
• Constantly Evolving
technology
• Introduction of
Internet connectivity
• Increased
performance
• Lower Prices
PerformancePrice

15. • Wireless connectivity
• Better resolution
• Better sound
• Smaller size and larger capacity
• Compatibility w/ current technology
• Creating the “Entertainment Hub”
Evolution of SMP Technology

16. Industry Evolution
VS.
• Entrance of video game
consoles, Blu ray players and
networked DTV’s that
support web-to TV video and
other services

17. 3M’s of Apple TV & WD TV Live
Advertising Analysis
• Mission
– Apple TV & WD TV Live
• Informative advertising (“SMP” new product category)
– Released 1st gen 01/07 vs 10/08
• Apple TV units poised for growth – 50% of 2011 total units sold
@2.8 mil; 1.4 million units Q1 2012 –wikipedia great/informative
http://en.wikipedia.org/wiki/Apple_TV
• WD grade D at best: cold feet
http://en.wikipedia.org/wiki/WD_TV
• Message
– Apple TV – single message aligned with their products
• Big-time entertainment. One small box.
– WD – WW/CF-M grassrootish, NOT PRIMETIME – NEED single message multiple
meanings
• Entertainment your way
• Channel You
• Bring your life to life – WD Hub

18. • Apple TV
• Apple provides a YouTube video of AppleTV
– http://www.youtube.com/watch?v=1HpHyMQR058
• WD TV Live – Need to be as proactive as resellers
• You Tube channel, “Channel You” few hits - WWM
• Rely mostly on reseller videos & 3rd party product reviews

19. WD TV Advertising
Channel You Campaign
http://www.youtube.com/watch
?v=hb6jeoLEakY

20. Apple Tv Advertising
Promos
Apple communicates its features and benefits: stream data vs.
flawlessly elevate your entertainment experience with options
plus it connects two other Apple products: Mac and iPod with
the TV. -DATED
http://www.youtube.com/watch?v=1HpHyMQR058

21. Media
- Advertisement is mostly through their proprietary website’s
with the small addition of
- Place Advertisement in particularly Point of Purchase
- Product comparison editorial/"Buyers Guide” – FOIPAh
(Fix our image pronto, amigo)
http://news.cnet.com/8301-17938_105-20025670-1/which-streaming-media-device-is-right-for-you/
Interpretation - way down
on the list & recommend
the competitors
"Who shouldn't buy it? If you don't
have a hard drive full of your own (non-
iTunes) movie and music files, opt
instead for the Roku or Apple TV .....”
Harsh review for WD and they didn't
show a WD product on the main
picture. They only showed Apple TV and
Roku (HD&LT).

22. Other Promotions
• WD uses 3rd party marketing
– Co-marketing arrangements with other companies –
• Newegg on WD TV Live Streaming Media Player $20 off with promo
code EMCNEHE64 – D’ing value range, Wishy, washy (consumer
has to hunt for a good deal)
• Apple at best
– Discounts Refurbished units which you may by, availability
dependent, on their website

23. Replace video
Replace text
Increase brand
awareness and
market share
Strengths Weaknesses
Opportunities • Popular and unique
services
• Personal cloud
• Video game console
• In house
manufacture
• New market
• Low product
awareness
• Performance is
limited by other
devices
Threats • Evolving technology
• Competing services
• Smart TV
• Competitors are
more specialized

24. Industry Opportunity
• WD TV Live
– Form an alliance with one of the major gaming
counsels
– This will allow to WD TV Live to expand their
market share
– Develop an Integrated Content Marketing Plan
to Improve Brand Awareness
• Apple TV
– Keep selling on the Mirroring Technology
– Enter the Game Counsel Market
– Apple already posses the all the necessary
components to enter this market