Regarding the video contents business, there are
heated battle going on between Hulu, Netflix, Amazon, and other broadcasting
and digital content distribution companies. This industry is growing so fast
that traditional television is under the threat. Although driven largely by
YouTube, according to comScore, people who view online video on a daily basis
has grown by 43% to over 100 million viewers compared to 2011. So, what are the
key success factors that will allow these companies to come out as victors?
First, it is exclusive deals with content provider/creators. Hulu recently
stroke a deal with CBS on rights to stream their shows. Disney and ABC have
deals with iTunes, but Amazon has rights to distribute NBC shows along with
Hulu. It is critical for these companies to provide wide breadth of contents in
order to lock in the viewers and transform them as loyal customers. Second, as
these companies are distributor of contents, they are seeking to collaborate
with device manufacturers to embed their services to TVs, laptops, mobiles, and
even console game players, such as xBox and Playstation. Recognizing the growth
of these players and foreseeing customers behavior in purchasing decision based
on embedded services, device manufacturers are also keen to partner with these
players. Apple and Amazon have a good start in this aspect. Apple, with its
Apple TV, laptops, and iPhones, it is providing great compatibility between its
devices, contributing to locking in customers. Amazon, with its high presence
in online book market and its Kindle, it has advantage over Hulu and Netflix.
As these online video distributors aggregate various digital contents and provide one-stop shop for the viewers, it will be interesting to see how far they go in terms of crossing the lines of content creator and start developing and providing their own contents.
As these online video distributors aggregate various digital contents and provide one-stop shop for the viewers, it will be interesting to see how far they go in terms of crossing the lines of content creator and start developing and providing their own contents.
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