Analyze the differences, failures and successes of Netflix and Hulu as they entered the market and...

Analyze the differences, failures and successes of Netflix and Hulu as they entered the market and matured. Intended Outcomes: Understand the factors determining timing for market penetration. Determine traits of a dominant design. Recognize factors of being a pioneer in industries. Assess how to demonstrate increasing returns of adoption.


How did Netflix and Hulu innovate as they matured?

What factors do you think influence whether consumers and content providers support Netflix or Hulu?

What are the factors that will determine whether Netflix and Hulu will survive in the market?

Does having two providers benefit or hurt consumers? Does it benefit or hurt content providers?

Homework Answers

Answer #1

Innovation for Hulu and Netfix:

  • They leveraged the technology to gain an advantage of growth of digital services demand of online streaming
  • The worked to create a new kind of viewing experience
  • Their model was ad-supported but also was user-friendly. Viewers could choose which ads they wanted to see. This kept customers happy as well as increased the value for advertisers.
  • Gave an access to an extensive subscription video-on-demand library of TV shows and movies
  • Always focus on original content, helped them accelerate growth in subscribers
  • Huge investments on content
  • They have been adept at knowing when to pivot and when to be persistent

Factors in support:

  • Existing amount and variety of content, user friendly accessibility
  • Different Value propositions among these organizations in terms of variety of content
  • Better understanding and catering to consumer sensitivity to price with options available

Factors determining survival:

  • When licensing agreements expire, these suppliers may chose to renew/ terminate their license, hence here suppliers will also be a determining factor
  • How customers keep subscribing in terms of volume/ frequency
  • Demand for digital-on demand market and digital streaming providers is increasing nowadays, globally

Having two providers can benefit customer, as they will have options which to chose, based on the accessibility in their area/ pricing/ service benefits they receive/ type of subscriptions they want etc. factors.

It may hurt service providers only in terms of gaining or maintaining the market share. However, it brings more competitive spirit in terms of technological and product innovation, which can be good for both the services providers to grow further.

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