Battle of Media Streaming Services
Grace Chang
On-demand media streaming services has grown vastly worldwide within the past few years. Services such as Netflix and Hulu Plus all are the most well known and common media streaming services that compete against each other. The popularity of both services have increased in their total revenue is due to the consumers’ demand of tv shows or movies for entertainment. In result, the battle of who is the better on-demand media streaming service takes place.
The three services all differ in price and what they have to offer. Netflix’s membership begins at $7.99, but increases to $11.99 as you receive more benefits. On the other hand, Hulu plus offers their members a membership at $7.99, but they do not have other benefits to branch off of. Netflix may gain a larger profit due to the differing memberships whereas Hulu may not have as large of a profit due to an even playing field for all consumers.
Benefits for Netflix have greater option of movies, TV shows, and documentaries while offering a low price. They also do not have ads for paid members. Downsides to this streaming service is lower quality videos and not as updated content. The benefits of Hulu Plus are more updated and recent content with higher quality videos. The drawbacks are that there are ads for paid viewers and a smaller options for content. In a survey out of 7,095 tweets, 29% have Netflix while 20% has Hulu Plus. 48% of these consumers have not tried Hulu Plus’ service. Although 51% said they have both. That 51% receives both of the service’s benefits, but has to pay double the price of one membership. 52% of those individuals cannot decide which service they prefer.
On-demand streaming services has increased drastically within the past few years due to consumers’ constant demand of watching what they want whenever they want. With options such as Netflix and Hulu Plus, they are able to provide for their consumer’s wants even though it is not something they need. When individuals choose just one media streaming service, their opportunity cost is losing some of the benefits from the opposing service.
Works cited:
Curtis, Jacqueline. "Netflix vs. Hulu Plus vs. Amazon Prime Comparison." Money Crashers. N.p.,
n.d. Web. 21 Feb. 2017.
Epstein, Zach, Jacob Siegal, Yoni Heisler, and Mike Wehner. "Netflix Beats Hulu Plus in Social
Streaming Showdown [infographic]." BGR. N.p., 11 July 2011. Web. 21 Feb. 2017.
"Hulu vs Netflix Comparison." Diffen. N.p., n.d. Web. 21 Feb. 2017.
Kastrenakes, Jacob. "Hulu Now Has 12 Million Subscribers, but Growth Is Slowing." The Verge.
The Verge, 04 May 2016. Web. 21 Feb. 2017.
Kyle. "Netflix Vs. Amazon Prime Video Vs. Hulu Plus: Which Is Right For You?"
Rather-Be-Shopping.com. N.p., 10 Nov. 2016. Web. 21 Feb. 2017.
"Number of Netflix Subscribers, Users 2016." Statista. N.p., n.d. Web. 21 Feb. 2017.
I think the reason why both of these services are so in demand, and why most people can't determine which one is better, is because they counteract each other. Hulu always has the latest episodes while Netflix has more shows/movies that have long been released. I can understand why most people don't want to choose just one, since my family also has both. I hardly ever watch TV live, and with Hulu I can watch the shows I missed with my busy schedule, and with Netflix I can watch shows that my friends recommend to me. That's the reason why they are both so popular- they both have different features so paying for both doesn't seem like as much as a waste.
ReplyDeleteYou had a very strong blog post overall. There was strong data, including a survey to show the preference of consumers and it was clear that you are very knowledgeable on the topic. The only part that could be improved is your conclusion, because it seemed a little repetitive of the introduction. While it is important to restate your thesis, I would recommend maybe adding some new thoughts that you want to leave the reader thinking about. Nice job!
ReplyDeleteGreat examples and analysis of the opportunity cost for either side (or even the middle one in which the individual pays for both), as well as the demand, consumers' wants & needs, the total revenue, and the businesses' profits depending on the consumer's choice. It's a simple and commonly applicable situation in our society, and not just a dilemma that affects a smaller percentage of United States citizens (though I'm sure they're available to far more people than just us).
ReplyDeleteI believe that the battle between the different services is strange, because they all offer different things. Like Grace said above, Hulu has more updated content which would be nice to have on netflix, Netflix has way more options to watch. To me, I believe comparing these two services is like comparing apples to oranges. While they are both fruit, their benefits and downsides, are completely unique to each other. The continuing competition really has no effect because depending on what consumers want out of their service, that is what they are going to choose. There is no use making them exactly like each other, but instead being able to provide different options for the consumers.
ReplyDeleteNetflix is defiantly the biggest movie streaming app, but I think Hulu plus will eventually be reach the popularity of Netflix. I have Netflix and Hulu, but I'm only paying for the basic version, which has advertisements, unlike Netflix. Hulu is more like a cheaper version of cable, because it updates it's TV shows more often than Netflix. The trade off for streaming newer episodes is the higher monthly subscription price, or ads during the show.
ReplyDeleteI feel like Neflix used to be a lot cheaper back in 2010, like $5. I suppose it makes sense for it to be more expensive now, given that its working harder to obtain its own exclusive, critically acclaimed properties in order to differentiate itself from other streaming services since they're becoming so common. With these exclusives, they're able to stand apart from other services like hulu, although they're loosing the crowd that just wants the vanilla content. In a couple years, I imagine people might need to subscribe to multiple services in order to get all that's out there whether its exclusive or not, unlike before when Netflix was the only competitor and had a large selection of non-exclusive content.
ReplyDeleteAltough the price for both is very high leading to people just chosing one and not both. Because of this one company earns those cosumers money while the other does not insted of them both earing cosumer's money. Overall the benefit of choseing both is good, the cost may drive consumer's away from chosing both
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ReplyDeleteI think this is a very interesting topic. I personally use Netflix, but I have not yet tried Hulu. It is very interesting that more people use Netflix. Many people enjoy watching Netflix because there are no commercials, unlike when watching TV. Many people have both because Netflix has movies and Hulu has many shows, so both of the services should have the same demand and there should not be a battle between the two since they are two different things. I really liked your post and you had many details.
ReplyDeleteI think it is hard for people to choose between the benefits and downfalls of these services. Although similar, the subtle differences create trade offs. I also think it is interesting how close in competition these two services are. Although Netflix has a slightly higher percentage of users, HuluPlus is right behind them. What amazes me the most though is how many people have both. They pay double just to receive a few more benefits. This has a large opportunity cost, in my opinion. Eight dollars a month could be saved if the people could accept not having a couple benefits that come with having both services.
ReplyDeleteI don't have either hulu or netflix, and don't watch that much TV in general. But if someone was debating what service to purchase, they should just focus on the shows that it conatains. Don't worry about the ads, or quality, just focus on the shows, and purchase the service that has the shows they want the most.
ReplyDeletePersonally, I have Netflix and I am satisfied with the programs they offer,and the price. I have never tried Hulu because it'd didn't have as many additional shows, movies, or documentaries. The opportunity cost is greater when it comes to purchasing Netflix. I receive more benefits or programs.
ReplyDeleteMy family would fall in the 51% of people who have both netflix and hulu, and in my experience it is a lot more beneficial to have both of those. My family does not have cable tv, so we use hulu to stay up to date with our favorite tv shows, while we use netflix to watch older shows that are no longer on the air, or to watch movies because of the vast options. This way my family can still cover our needs and wants from both providers, without losing benefits from not having one.
ReplyDeleteIt is surprising that 52% of people who voted in the poll have both streaming services accounts. Both, Netflix and Hulu, offer different services that are fulfilling people's wants and needs, however paying extra to have each of their benefits does not seem worth it, even if they are different in some ways. It is a smart idea for these two companies to add different benefits, such as no ads. This adds some competition to the two, increasing their total revenue from people purchasing both of the accounts. It would be interesting to see which service fulfills people's needs more than the other, and how that one is, in a way, better than the other. I, personally, use Netflix and I believe that their benefits and streaming services fulfill my needs.
ReplyDeleteThis post covers a lot of Important information. One thing I would have liked to have seen is what would happen if one of these two won the "Battle of the Streaming Services". Would that lead the other to take its place and customers or would small streaming services take an opportunity for growth.
ReplyDeleteBoth Netflix and Hulu share a very similar product, a place to watch movies and tv shows. With the rise in demand for on demand movies, Netflix and Hulu have both made great efforts to beat each other in sales. Many people enjoy one or both of these and use them very often.
ReplyDeleteThere are significant trade-offs to be considered when making a decision between the two streaming services because the pros and cons to each one are just enough different. It forces people to take a moment to consider their choice. Like Brooke said, it’s a lot like apples and oranges--the same concept, but slightly different in what they can offer. It all comes down to trade-offs and opportunity cost, so it really depends on the individual who is choosing to pay for these streaming services and their wants and needs.
ReplyDeleteI don't have either of these streaming services but all my friends have Netflix, which Netflix is nice because you get to watch what you want, when you want and without commercials. Therefore with that said I have never been on Hulu or heard people take about it but with that Grace said above with how it has more recent shows and higher quality. I would agree with that if people have one of these streaming services and not the other or neither than yes they are missing out, but I don't agree with how this should be a battle between the too because it's really just what people prefer to watch from old shows to new shows.
ReplyDeleteWhen looking at the data, I find it a little hard to understand why so many people are struggling between Netflix and Hulu Plus. Each service offers different things and it all really depends on what a person is looking for when they are deciding which streaming service they are looking for. All people really have to do is do a little research on each to figure out which one fits them the best. I know that a lot of people don’t want to take the time and effort to do this, but if they truly want what is best for their streaming needs, I feel like it has to be done.
ReplyDeleteNo matter which one you choose, you will always run into problems. I just recently got a Netflix and I keep running into the issue of not finding the shows or movies that I want to watch. I feel like the same thing happens with Hulu Plus. As streaming becomes more and more common and popular, people have a higher demand and expectation for these streaming services. These services can only do so much. People have to think about the opportunity cost when choosing.
Also, I feel like some people want to watch current shows or new series that they want to catch up on. They feel frustrated when these streaming services don’t have that they are looking for. Why can’t people just record series on their DVR? They are already paying for their TV service, why not take advantage of it? Or, why don’t people just go to the channels website and watch a episode they missed on there? I feel like there are so many other options than just Hulu Plus or Netflix that people aren’t finding the time or effort to look into. Yes, Netflix and Hulu are great, but they can’t be perfect.
Netflix is for sure a huge money maker in today economy. You wonder how many problems Netflix causes for companies where workers spend too much time watching Netflix and not enough time working. I wonder if there will ever be a new source of movie watching that blows Netflix out of the water. It has seemingly dominated the movie industry for the past few years, but just like red box and family video stores there is always change and new competition. If they end of finding a better solution to movie watching I wonder what the next step will be?
ReplyDeleteI feel like Netflix is the go to for most consumers. It's always "Hey did you catch the new show on Netflix" not "Did you catch the new show on Hulu Plus". For other companies to catch up and be any real competition they are going to have to come up with something revolutionary. Whether it be a broader range of titles to choose from or something else, but currently Netflix is too far ahead of the other companies to really call anyone else a competitor.
ReplyDeleteNetflix is the more advanced and ahead of the game option. Netflix, though it has less updates, gives the customers what they want in ad free movies and shows with a wide range of titles. Hulu plus has to find a way to get a bigger range of shows and movies along with eliminating the prospect of trying to eliminate unnecessary ads.
ReplyDeleteI feel like Netflix is definitely the most complex out of the two streaming services. While Hulu Plus probably brings different shows and such into the streaming world, Netflix is just so deep into the game that they have the big edge. For example, Netflix pumps out "Netflix Originals", that is exclusive to their service. I'm sure that Hulu has some of their own as well, but Netflix has an impressive inventory to choose from. From what I see, Netflix is currently far ahead of other streaming services, and personally I don't see anybody coming close to what they have done and how they changed the way that people watch TV.
ReplyDeleteI believe Netflix is what most consumers use currently. Most of my peers have steered away from live television and indulged themselves into the streaming service known as Netflix. I believe that it is smart for Netflix to provide various memberships because I believe that many will not want the basic membership and go for the top of the line resulting in higher overall revenue for them. They provides thousands of movies and shows, and continue adding more and more which is way they have skyrocketed into one of the top streaming services in the world and are beginning to dominate others. I don't think this will fall off like movie stores or red boxes. I believe this will be at the top of the food chain for years to come.
ReplyDeleteIt caught me off guard on the chart of the percentage of people who have either Netflix, Hulu plus, or both. But the 9% that Netflix has on Hulu is a lot more than people might think it is. That is was astonished me. Althought their membership price is $4 higher than Hulu's, they are still making more money than Hulu.
ReplyDeleteWhen it comes down to it, consumers must choose between one or the other. As you mentioned, Hulu Plus doesn't exactly offer all the "extras", while Netflix has greater upgrades as the price goes up. It's a great target for our demographics, because as a lot of people have it, they often watch it during school hours. The more people that watch it, the more money netflix is potentially making. As netflix may not have all the shows Hulu Plus has and vice versa, some people have both, but in the end, Netflix is more populated.
ReplyDeleteMy family has memberships to both Hulu and Netflix, and I enjoy both services for different reasons. Netflix has older TV shows that are fun to watch because they're shows our parents watched or were popular when we were too young to watch. Hulu has a lot of recent shows, which is nice because if you forget to record a show, you can probably find it on Hulu. Also, sometimes Netflix takes awhile to release the latest season of a TV show, but on Hulu, it's accessible to watch pretty recent after its release. Ultimately, I think there is a demand in the market for both because they have different libraries of movies and shows and different release dates. Also, from a price standpoint, both services are pretty inexpensive and affordable.
ReplyDeleteVideo streaming services are a very large part of our economics as majority of people shovel out at least $7.99 a month to watch TV shows and movies. I agree that the competition between the two drives them to provide better, faster, and higher quality services to consumers, but I also wonder that if at any point it will result in a vanishing of cable companies, or if Netflix will ever get bought out by a company like AT&T or other cable companies. I feel like this would be beneficial for them, as it is common for many people to not have cable, and just watch things on Netflix or Hulu Plus. This may never happen though as it could be viewed as a monopoly with no room for competition. Until something changes, though, Netflix and Hulu Plus do a good job boosting the economy through competition.
ReplyDeleteI am one who uses Netflix religiously, but I think that some of the movie options are very bad, and you have to wait a very long time for a show to get put on it when the season ends. With Hulu Plus you can watch everything right away. Like for example, everyone is waiting for Shameless on Netflix, but Hulu already has it. So I mean if I didn't have to pay, I would much rather have Hulu, but it is expensive.
ReplyDeleteI was surprised by the statistic that said 51% of the tweets had both Netflix and Hulu Plus. My family and I have just Netflix and we are mostly satisfied with it. Sometimes we wish that they had better movies and that we didn’t have to wait so long to get updated content but I found out from this post that you can pay more to get those benefits. Our family had talked about switching to Hulu but we like to watch movies more than TV shows which makes Netflix more appealing. I feel like Netflix has been established longer and still has more customers. There is another competitor thought that has been thrown into the mix and that is Amazon Prime Video. I’m sure that once they start to establish themselves better then, more people will move to them because they are Amazon Prime members.
ReplyDeleteYou bring up a debate that has undoubtedly surged in popularity in recent years. Netflix and Hulu Plus are the unquestionable dynamos of streaming services, and -- as you said -- both provide numerous benefits for their consumers. With Hulu, you have more recent episodes of shows and get different movies than you would with Netflix. On the other hand, with Netflix, you get amazing exclusive shows and movies-- including hits such as House of Cards, Daredevil, Luke Cage, Stranger Things and so many more. Personally, I would side with the 51% majority that has both services -- as each service provides great benefits. However, I know that paying the regular fees for these services is out of the question for some, so the choice between these two platforms is undoubtedly still a difficult one for many.
ReplyDeleteHulu Plus offers many more up to date shows that are on live TV as soon as the day after, which is why it could be a good replacement for cable television. Netflix updates its shows and movies once a month, which isn't as nice when you're looking for something new. Both services offer company-specific shows that that they've created which spikes demand up, because shows like The Mindy Project for Hulu and Orange is the New Black for Netflix make people want their services over others.
ReplyDeleteMy family recently got a Netflix account and it significantly changed the way we watched television. I do not know much about Hulu other than it is a competitor of Netflix and that it is less used. Personally I would say Netflix is a better option and a more profitable company because there are no commercials and I think that is what draws people's attention and brings in more money. Although Netflix is very popular I do not see it beating out cable TV companies any time soon. I think Netflix would have to alter a lot of different aspects of their channel, for example updating it with more shows more frequently, ect. Overall I think both Hulu and Netflix are both successful businesses.
ReplyDeleteI have both Hulu Plus and Netflix, yet my family still continues to keep cable. I truly think we could live without cable, but the image quality on cable is better than the Hulu app on my WII. However, my favorite show is modern family, and there is only one season on Hulu. That would be my opportunity cost if I cut the plug on my cable and only went with Hulu and Netflix. They are super awesome services, but I think full cable also is unique on its own.
ReplyDeleteSeeing the part that says people have both doesn't surprise me. People like a variety and sometimes you cant get all the shows you want from one website. I myself have both. To me netflix has more of a variety, it has a lot of movies and shows. While Hulu has more recent things, If i were to just have one I would most likely choose hulu because hulu has more recent shows. They have shows that are currently on TV so as soon as a show airs on TV it gets put on hulu.
ReplyDeleteWith Hulu and Netflix being coming increasingly popular, I would say that the cable companies are having to compete with the instant streaming services too. We have both Hulu and Netflix, and even Amazon Prime, but we continue to have cable. However, with my mom doing some research, it's less expensive to have Hulu and Netflix instead of cable. In the years to come, I think cable will become fade out, and the streaming services will take over.
ReplyDeleteI have both, and I've found having both benefits me. For me personally, Netflix has a better variety of movies and old content whereas Hulu Plus has better variety of TV shows and newer content. I've never get commercials on Hulu Plus, so when you said you do and you're a paid member that was strange to me. I personally like watching old content and new content, so having both services benefits me in this way. But I guess it all depends on what kind of "watcher" you are. If you prefer watching old, not current content then Netflix is usually your best bet, versus if you like watching new content then Hulu Plus is usually your best bet. A lot of people however like both so getting both makes sense, even though it's costly. Most people who have Netflix and Hulu Plus don't have a regular television provider I've found. Meaning, they don't pay for extra television channels that feature the shows they like, and instead just use cable television and watch their favorite shows on Netflix or Hulu Plus. I am one of those people and I have found it does help you save if you're not paying for regular television. But of course it all comes down to what one prefers to watch.
ReplyDeleteI didn't realize that Hulu had more updated content. I have Netflix and have never thought to switch, however I also have Amazon Prime so whatever I don't get on Netflix I usually get on Amazon. The debate for which is better is very interesting because TV memberships is a growing market that a lot of people will throw their money into. So plenty of companies are charging for The demand for TV is very large and people want the quickest, most efficient way to access the latest shows while avoiding ads. Now a lot of people actually skip out on paying for cable and instead put their money into Netflix or other streaming companies because they know what shows they like and it is a cheaper option. Seeing if cable sales for companies like AT&T and Direct TV have dropped recently would be interesting.
ReplyDeleteIn a way, I am glad that we are presented with these different options of TV shows/movies. This allows for competition within our entertainment branch. If Netflix and Hulu Plus were never created, On Demand would just jack up their prices along with the other cable networks because they are only competing against each other. The cable companies would create a trust between each other so consumers would have to pay higher prices for their services. Anyways, there are benefits to Hulu Plus, On Demand, and Netflix I think it is based on preferences as to what one wants to watch whether it is more recent shows or older shows (all the seasons).
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ReplyDeleteI believe that Netflix has the better system because it offers a more wide range of TV shows, Movies, and Documentaries but it doesn't update as often as it should as a down side they up their prices from $7.99 to now $11.99 increasing their profit but a monthly pay. With Hulu Plus I personal haven't tried or watched Hulu ever so I don't know their system that well but from the blog post it has ads but only pays for $7.99 which is good but I don't like ads in my shows and movies so Hulu Plus doesn't interest me that much, although it has updated movies I rather have a wide range of shows and movies than a small list.
ReplyDeleteIt's interesting to see the varying opportunity costs that come with choosing between streaming services whether it be paying double the money to be members of both, or simply choosing between one or the other. Based on the data you have provided, as well as personal experience, I prefer Netflix over Hulu due to the increased options of what to watch. Many TV services offer the option to record shows viewers are interested in, which could be an additional competitor to these streaming services. Although it may be an additional fee to simply having a TV service, it could potentially outweigh, or equalize, the cost of owning both streaming services due to the higher/more individualized selection of shows offered.
ReplyDeleteNetflix and Hulu Plus are both really popular places to stream shows and movies, like you said, they both provide numerous benefits with their costs. Hulu has a lot more new content, whereas on netflix you get a larger variety. It surprised me when you said there was a 51% majority that had both. For my family, and many others, paying the regular fees for these services is out of reach and just to much. So the choice between these two can be a really difficult decision.
ReplyDeleteIt would be interesting to find out which platform producers prefer to release their content on. Netflix and Hulu obviously pay the creators of the content in order to get the show and or movie on their streaming service. I wonder if the creators of the content have a preference of streaming service or if it’s just who will pay more. Another fact that has to be taken into account during the battle of streaming platforms is that Netflix has their own original shows. Overall the original shows they have came out with are a big success. Stranger Things, Orange is the New Black, Narcos and The OA are just a few examples of this.
ReplyDeleteI agree with Danielle when she says that she was surprised that only a 51% majority that had both. Although, I actually understand how the dealing with the financials of both could be hard for some families. The choice in choosing Netflix or Hulu can be a difficult one because Netflix offers a lot of different genres of shows and movies and also some originals while Hulu has newer content. I personally prefer Netflix to Hulu. Yet, I hold the opportunity cost of missing out the newer, popular shows and movies.
ReplyDeleteStreaming services are and will likely continue to be popular. It is interesting to see everything each site does to create product differentiation between themselves and gain more consumers. Something I think is important to mention is the Netflix-original shows available to subscribers like Orange is the New Black and Stranger Things. This is a great way for Netflix to make even more profit. I would be interested to hear more statistics on the amount of revenue each streaming service brings in annually.
ReplyDeleteThis is an interesting debate for sure, but I would add another side to it. Amazon Prime Video. Although it charges for the latest movies, it has unique originals while also offering a wide range of other services, like kindle and Amazon music. I think that, while I prefer Netflix, Amazon's venture into the on-demand video industry is one to be noted.
ReplyDeleteI personally have Netflix and have never tried Hulu. I really enjoyed using Netflix at first, but then I realized a lot of the shows I wanted to watch were not featured. I wish that they had more updated content like Hulu. I could see how more people would have both streaming services because Netflix has more older shows while Hulu offers more updated content. I think Netflix is more popular due to the younger generation unintentionally marketing Netflix. Sayings were created with Netflix being involved and graphic shirts were even seen with the logo. Overall, both companies are doing a great job marketing to their consumers and will continue to increase their business.
ReplyDeleteStreaming services definitely have tough competition between each other! Personally, I am only a Netflix user. Netflix had that recent update which allows viewers to download content. I think that would boost theirs sales over Hulu because of the benefit of not needing the internet every time. Even though Hulu has more recent, updated content, people are still loyal to Netflix. From my personal experience, Netflix has great original series, as well as a wide range of movies, especially really great lesser known movies that Hulu doesn’t have.
ReplyDeleteNetflix and Hulu Plus are both really popular places to stream shows and movies, like you said, they both provide numerous benefits with their costs. Hulu has a lot more new content, whereas on netflix you get a larger variety. It surprised me when you said there was a 51% majority that had both. For my family, and many others, paying the regular fees for these services is out of reach and just to much. So the choice between these two can be a really difficult decision. But netflix would be my preference because it is the most popular among teens.
ReplyDeleteI believe streaming services will be come even more popular. Live television will be a thing of the past, even cable boxes are beginning to start going towards HBO features. What did not surprise me is that Netflix is much more profitable then HULU.
ReplyDeleteI personally have only used Netflix as a streaming service. The main thing I do not like is the outdated movies and the lack of updates as you said. I still believe that these services will continue to be popular and possibly even grow bigger than they already are. The competition between these platforms will hopefully make the producers come out with new and innovative features, to try and get an edge on their competitors.
ReplyDeleteI agree that there's competition between the two major streaming services however I do think that netflix dominates the industry. Most people I know use netflix, and netflix has almost become a normal name to use. For example if you need a tissue you say can I have a kleenex, which is a name brand, if you're watching a streaming service you would probably say you're watching netflix regardless. That name brand recognition has really helped netflix expand their demand, especially with their monopolistic original series.
ReplyDeleteI have Netflix and I only use it to watch shows, because they are very lacking in the quantity of movies offered. Now, I know that HULU has a greater variety of shows and movies, which proves why they are more profitable. However, Netflix still has the name brand. You don't often hear people say, "I'm going to watch HULU". I think that if HULU were to take over the name brand of this industry, they would dominate Netflix and maximize their profits.
ReplyDeleteI found this article interesting because I am a big Netflix user, but I've never really known that much about Hulu Plus. I think something that makes Netflix the better competitor here is the brand recognition they have over other services like Hulu Plus. If you want to watch a movie, or a show, or you want to hang out with some friends, at some point in the conversation someone will bring up the idea of watching Netflix. It's just the thing to do now. People don't really ask to watch Hulu Plus, just because that service doesn't have as great of brand recognition as Netflix. This marketing strategy for Netflix really does boost their economics because more people will be in demand for the product that is more popular. The popularity of Netflix can also sometimes take away from the fact that they don't have as updated or higher quality movies and tv shows as Hulu Plus. If the debate is over which company has been proven most successful in this competition between streaming services, I would say that Netflix comes out the winner because of their brand recognition and the additional benefits that they give their customers.
ReplyDeleteThe current generation is getting out of touch with the cable, due to the advancement in the technology. I am sure every person in our modern society, had some experience on these massive streaming services. The prominent reason of their popularity would be, the convenience. Companies like Netflix or Hulu Plus, created their services in a way where consumers could stream at any place or at any time. This process had become a big advantage for the companies because retailers know that consumers are much connected to various devices, which led them to create an ubiquitous service and gain profits. I would infer that these companies are competing in a perfect competition, since they stream the same tv shows or movies. Overall, streaming services will always have high demand for their convenient structure.
ReplyDeleteAs with any oligopoly, the real problem for these companies is differentiating their product. For people to buy both, they must recognize a sinificant difference and benefit to each. Both streaming services face the constant competition of pirated movies and tv shows, so they must offer lots of content, easy accessibility, and exclusive options that are only available on that platform. For example, Netflix original shows such as Stranger Things make that platform more competitive and give consumers a reason to subscribe. Because of the popularity of streaming in culture and media, it is nearly inevitable that most consumers will purchase at least one of the subscriptions. This leaves content, consumer reviews, media attention, and advertising to dictate which service will be favored by consumers.
ReplyDeleteI think interesting to see the opportunity costs when choosing between streaming services. Some people would rather choose pay more for a better Netflix membership or pay less for Hulu Plus. Also some people might even want to pay double the money to be members for both. Based on the data you have provided, I was surprised to find out that 51% of people have both Netflix and Hulu. This was surprising because I would think one TV service is enough when they both offer generally the same stuff. I personally prefer Netflix over Hulu because I like that they offer original shows that are only offered on Netflix. For example Orange Is The New Black, and Stranger Things. These shows are very popular and they are only offered on Netfilx and I think that can sway peoples decisions when choosing which streaming device to have.
ReplyDeleteI think it is good that there are competing steaming services. It keeps prices low and companies up to date on shows to keep the consumers happy. I did not know Hulu offered more recent content. I personally have cable and Netflix, but I can see why if people do not have cable, Hulu might be the next best option so there isn't an opportunity cost of losing recent shows. Overall I think this is good because it keeps the services on their toes and causes them to provide more to the customers.
ReplyDeleteI think this is an interesting article, especially considering that most high school use one of these streaming services to watch their shows and movies. Personally, I use Netflix and even though I don't pay for it I also agree with you that the different options for memberships allow Netflix to reach more consumers. These streaming services are also starting to produce their own T.V. series that are attracting more people. Overall, the streaming service industry is doing very well and making a pretty solid profit.
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