BUAD441 Chapter Notes - Chapter 321-341: Hulu, Amazon Video, Recommender System
25 Oct 2016
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History: founded in 1997, separated dvd by mail subscription service (qwikster) and unlimited streaming (netflix) About netflix: wanna be the best global entertainment distribution service, 1 month free trial, target customers: everyone. Competitive industry: hulu plus, subscription fee 7. 99/month unlimited streaming, new subscribers have 1 week free trial, amazon prime instant video, only if ur an amazon prime member for a year plus perks. Strengths: subscription model, unique recommendation system, large dvd selection for online rentals, first mover advantage first significantly competitive industry to provide streaming movie services, making recommendations to the consumer. Weaknesses: popular films aren"t released by larger studios left, so not much competition among large suppliers, increases suppliers control of licensing agreements and costs. Opp: growth in mobile internet segment, international growth. Threats: rising competition, amazon, yahoo, pirating concerns. Rivalry- high: large number of firms competing in-store rental, online selection, mail delivery, kiosk, video on demand low switching costs low levels of product differentiation.
