The subscription based market consists of a number of players. Some of the prominent competitors to Netflix, besides Blockbuster are: Hulu Plus, Redbox, Amazon Prime, Apple iTunes and Vudu. We will evaluate Vudu to analyze how much of a threat it is to Netflix.
Vudu (owned by Walmart) is emerging as a prominent player in the movie rental business. It is more of an instant streaming service that features on-demand service (video-on-demand). Comparatively, Netflix is a subscription-based provider of video-streaming service as well as DVD-by-mail rental business. One can choose either of the two programs or a bundle including both for a higher membership fee.
Vudu.com was recently (2011) bought by Wal-mart to expand its service based offering in the video-streaming content category. It offers 20,000
...titles that can be viewed on multiple devices with Internet access (Computers, TV, Sony's PlayStation3 and other Blu-Ray disc players). The biggest selling point for Vudu is that ‘it claims to offer movies the same day they come out on DVD’.
These movies are available to rent for a price ranging from $1 to $5.99 or to purchase for $4.99 onwards. VUDU has a competitive advantage over quality with its HDX and Dolby Digital Plus 7.1 surround sound. With the recent price hike at Netflix for both streaming and DVD by mail rentals, millions of users have unsubscribed or switched to competitor services resulting to huge losses. In contrast, VUDU does not have a subscription fee and charges per-movie which can be controlled by the user.
Comparatively, Netflix has a number of advantages over Vudu. Some of them being: * The feature o
creating a queue wish list which is used to send consumers movies avoiding the delay in shipping (DVD by mail program). * On registration, the preference sheet helps the company recommend movies that the consumer would like (personalized experience).* It also offers the option of freezing an account for periodic intervals of time. * It has no commercials which is a huge selling point.
* Given that it’s been around since years, it is a well established brand with an already established reputation which can be leveraged to introduce new products and services. * Netflix offers a wide selection of movies and documentaries (more than 100,000 titles on DVD and Blu-ray and > 20,000 for streaming) as compared to the limited list offered by Vudu.
VUDU is rapidly following Netflix, but has not yet reached at par with the grandfather of the movie rental business. However, it definitely poses a threat due to its very business model of zero subscription, offering movies the same day they come out on DVD, its HDX quality and Dolby Digital Plus 7.1 surround sound.
- Advertising essays
- Audience Theory essays
- Competitor Analysis essays
- Consumer essays
- Marketing Management essays
- Marketing Mix essays
- Marketing Plan essays
- Marketing Research essays
- Marketing Strategy essays
- Point Of Sale essays
- Price essays
- Procurement essays
- Product essays
- Product Differentiation essays
- Promotion essays
- Promotion And Marketing Communications essays
- Retailing essays
- Trademark essays
- Anheuser-busch essays
- Brands essays
- Detergent essays
- Product Placement essays
- Research Design essays
- New Product Development essays
- Advertisement essays
- Brand essays
- Sales Promotion essays
- Advertising campaign essays
- Consumer behaviour essays
- Offer And Acceptance essays
- Wal-Mart essays
- Discover essays
- Accounting essays
- Andrew Carnegie essays
- Automation essays
- Business Cycle essays
- Business Intelligence essays
- Business Model essays
- Business Operations essays
- Business Software essays
- Cooperation essays
- Cooperative essays
- Corporate Social Responsibility essays
- Corporation essays
- Customer Relationship Management essays
- Family Business essays
- Franchising essays
- Harvard Business School essays
- Harvard university essays
- Human Resource Management essays
