House Of Cards:Netflix’s AceBETHANY BAUER

The On-Demand Video Market Threat Of New Entrants Threat Of Substitute Products

Intensity Of Competitive Rivalry Bargaining Power Of Consumers

Medium/Low High

High High

Power Of SuppliersHigh

• Free Media Sources Exist• Cable Networks Control Original Content

• Torrenting / Pirating Content• YouTube & Other User Created Content• Traditional Cable On-Demand Options• Premium Cable Networks: HBO, STARZ,

Showtime• Multiple On-Demand Streaming Programs:

• Amazon• YouTube• Hulu Plus

• Popularity Contest & User Makes The Rules

• High Demand & Fast Consumption

• Loyalty But System Work Arounds

• Popularity Contest & User Makes The Rules

• High Demand & Fast Consumption

• Loyalty But System Work Arounds

• Good Content Needs Talent• Talent Needs Money

Netflix’s Value Proposition

Netflix & MRC On-demand Media Content

Streaming Via Internet Low Cost Cable Alternative Flat Rate Pricing For Streaming Original TV Shows With Multi-

Seasons Program Loyalty Ability To Quickly Create New

Content To Meet Demand No Ads Compatible Technology

Netflix’s Differentiation No Original Content. Pay Per Show Model. Prime

Membership($80 Year) – High Price Point. Limited Content.

Subscription + Ads= YUCK. Technology Glitches. Original Content But Lower Quality & Not Well Promoted.

Only HBO Content. Slow To Create More Content.

Pay Per Episode Model. Technology Not Compatible With All Devices.

Commercials. Cable Provider Required.

Only Viewable On Desktop. Bad User Interface. Ads. Cable Network Provider Required.

MRC Should Create More Original

Programming High Demand Big Head Start In Industry Loyal Fan Base Talent Award Validation Enabled To Create & Better, Faster Custom

Content Artists Are Valued On-Demand Video Market Is Growing Traditional Cable Networks Restrictive &

Political Stability In Video Content Demand Netflix Has Reoccuring Revenue Via

Subscriptions & Doesn’t Rely On Advertiser Dollars

Potential Broadcasters For MRC Live Broadcasting (Periscope,

Meerkat) Podcasting App Video Games Webinars

Sources http://www.marketingcharts.com/television/pay-tv-penetration-rates-

2010-2015-58837/ http://www.tubefilter.com/2013/10/16/video-infographic-statistics-

getty-images-istock/ -http

://www.marketingcharts.com/television/whos-using-video-on-demand-36645/attachment/nielsen-age-distribution-tv-vod-users-sept2013/

http://www.marketingcharts.com/television/whos-using-video-on-demand-36645/attachment/nielsen-age-distribution-tv-vod-users-sept2013/

http://www.statista.com/statistics/277777/most-popular-us-online-video-catogories/

http://www.statista.com/statistics/271611/digital-video-viewers-in-the-united-states/