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Apr 3, 2024

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Streaming services allows the watcher to view what they want to watch, where and when they want to watch it on compatible devices. This type of service has grown drastically, with several different services that provide original series, popular shows and movies. How does a potential customer know which service is right for them. “83% of US households have at least one streaming service subscription” (Katatikarn, 2024). For a company like Hulu, two of their biggest competition is Netflix and Amazon Prime Video. Hulu operates off of a custom digital business model. This allows the company to modify pieces from each model in order to create the best operating system to attract customers. Their digital business model includes subscription model, ad-supported model, on demand model, and the freemuim model. The benefit of having the custom digital business model is being able to offer features at different rates and bundles, essentially having something for everyone. A drawback to Hulu’s offerings would be that their library is not as big as competitors and their originals are not as binge worthy as the competition. Netflix is one of the biggest names in the streaming game. They started off as a combination of a subscription model and product as a service model; they would physically send shows and movies through the mail to reach customers. As technology advanced, so did their business model. Currently they are a combination of a subscription model, and on demand model. Netflix does have a lot of subscribers and great original content. Where they drawback is being on the expensive side and limited on how many viewers can watch on different devices at the same time. Even with their new technology of trying to eliminate account sharing; “Netflix holds 39% of the crowded subscription video-on-demand market, while Hulu holds around 18%” (Cuofano, 2023). Amazon Prime Video is another competitor in the streaming industry. Amazon alone is a big name with 220 million prime users, basically a household name. “Amazon is a household name and global giant in the e-commerce and technology industry” (Pereira, 2023). Prime users alone already have access to the Prime Video services as part of their membership. Amazon has a strong online presence, marketing is everywhere and they operate under a ecosystem model. They started out selling physical items and gradually grew into an entire experience in one place; shopping, music, videos, pharmacy, etc. Customers that do not want to pay the price of a Prime account can have a membership to just Prime Video for $9 to $12 a month. Drawbacks for Prime Video are that their interface is not as user friendly as competitors and they do not separate their pay/rent content from the included content which can be annoying. Hulu, Netflix, and Amazon Prime Video, are three of the top competition for streaming videos. While there are many similarities to where they market/advertise their services, how they utilize them are different. A business model can help the company cover many aspects; however, there are always going to be areas for improvement. A major problem in any streaming platform is going to be account sharing also known as password sharing. Account sharing decreases the amount of subscriber paying for the service and lowers the finances for the company. “Whiles services such as Netflix initially championed

the habit, or at least turned a blind eye- that has begun to change as streaming companies grow larger and companies look to increase profits” (Labonte, 2023). Hulu also suffers from the same password sharing problem, as their current custom business model does not motivate or utilize the current customer base that they have. The current business model addresses subscriptions and bundles which I great for the customers signing up or switching packages, on-demand model allows the customer to enjoy the service immediately and the freemium model allows a potential customer to try out the service before purchasing. Where the model is lacking is taking current subscribers and making them spokespeople; they have an account, have them motivate friends, family etc, to join. The current model leaves out the potential advocates that Hulu could have. While Hulu’s current business model holds great foundation for the company, modifying the custom model can make Hulu stronger and stand out from the competition. If Hulu were to add affiliate marketing model into the mix they would benefit by “leveraging the business audience as an asset” (Kriss et al, 2021). Hulu can equip their subscribers with a referral code and offer incentives for getting new member to sign up. Customers want to know what is in it for me. If there is no incentive to not give out login credentials, then why not? By allowing customers to earn Hulu exclusive rewards, subscription sign up will increase and it will be less costly than losing revenue from account sharing. By offering this incentive program it will help Hulu stick out from the competitors and still gain subscribers. Overall, this additional marking model has the potential to make Hulu a stronger company. When the market is saturated, companies have to find creative ways to stick out and satisfy the customer. Growing the product can help promote to the target market, especially when the product can be accessed wherever they are and has price ranges and bundles to satisfy individual needs.

Sources: Cuofano, G. (2023, November 7). Hulu business model . FourWeekMBA; What is The FourWeekMBA. https://fourweekmba.com/hulu-business- model/ Katatikarn, J. (2023, November 9). Streaming statistics: The ultimate list in 2024 . Academy of Animated Art. https://academyofanimatedart.com/streaming-statistics/ Kriss, R., Murphy, R., & Murphy, R. (2021, April 13). Business models: Types, examples and how to design one . NerdWallet. https://www.nerdwallet.com/article/small-business/what-is-a-business- model Labonte, R. (2023, August 10). Disney plus & Hulu next streamers to crack down on password sharing . ScreenRant. https://screenrant.com/disney- plus-hulu-password-sharing-crackdown/ Pereira, D. (2023, January 10). Amazon SWOT analysis. Business Model Analyst . https://businessmodelanalyst.com/amazon-swot-analysis/

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