Submitted by: Submitted by jreincke06
Views: 18
Words: 1648
Pages: 7
Category: Business and Industry
Date Submitted: 04/19/2015 06:52 PM
Hulu - An Evil Plot to Destroy the World
Question 1:
List the various groups of customers that Hulu’s business encompasses. Would it be possible for Hulu’s decisions to satisfy all parties simultaneously?
Response:
The Hulu platform business model encompasses the following groups of customers.
* Content Owners
* Content Distributors
* Users
* Advertisers
Content Owners:
“Hulu is about the Content Owners taking matters into their own hands - about participating in the value created through distribution of their content” - Andy Forssell
* FACTS:
* July 2009 - Hulu has 170+ content partners including ABC, NBC, FOX and various independent Content Owners
* Many legal hurdles involved in content acquisition - Who owns what!?
* Hulu content contracts were NOT exclusive - Owners were free to make deals with other platforms
* COMMERCE:
* Equity Partners - Receive 70% of Hulu generated Ad Revenue for owned content
* Non-Equity Partners - Receive varying percentages of Ad Revenue for content
* CHALLENGES:
* Content Owners hesitant to distribute content through Hulu for fear of eroding their TV Ratings and DVD Sales
* Content Owners wanting to make content exclusive to their own distribution platform (own website)
* Cable Operators taking a “hard line” with Cable Networks by imposing restrictions and causing networks to balance a desire for online video distribution with existing business relationships
Content Distributors:
“The core idea was to bring the content to the audience, rather than forcing the audience to come to one site to watch shows” - Hulu Case
* FACTS:
* July 2009 - Hulu had deals with 30+ affiliated websites
* Distributors enable Content Owners to connect with Users across platform
* Distribution Network helps Content Owners discover new viewers and monetize their content - emphasizes Hulu as connection platform...