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

1. Online Video Distribution:
Netflix, Hulu and iTunes
by Hien Le, Alex Fass, Ana Sena and Isaac Rosales

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. 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. 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. Netflix’s Resources
• Company Culture & HR approach
• Marketing Strategy
• Relationship with Content Providers
• Relationship with Device Manufacturers

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. Marketing Strategy
● Customer service
● Customer guarantees
● User friendly website
o Category Search
o Optimized content suggestions
● Clever advertising

8. Relationship with Content Providers
● Revenue Sharing Agreement
● Profit sharing
● Netflix to pay-per usage
● Lower overhead on content

9. Relationship with Device Manufacturers
● Netflix-Ready Devices
● Automatically launch
● Netflix button with logo

11. Hulu’s Resources
● User Base
● Content Supplier Relationships
● Quick Release Window Access
● Big Data

12. Exclusive Content • Revenue Sharing

14. Next Day Availability

15. Big Data: Hulu Originals

16. Big Data: Swappable Ads

17. ● 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

18. 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

19. Recommendation
EST
Original Content
• Original Programming
• Electronic Sell Through
Conclusion