1. The On-Demand Video Market
Threat Of New Entrants
Threat Of Substitute Products
Medium/Low
High
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
Power Of Suppliers
High
Good Content Needs Talent
Talent Needs Money
Bargaining Power Of Consumers
Intensity Of Competitive Rivalry
Great application of Porter. There are over 400 programs out there. The days are gone when the big studios and the broadcast/cable networks had a lock on TV style programming.
High
High
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

2. 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
Following-up on your earlier slide, another value driver for Netflix, which may serve as a future barrier for competitors, is the database at the disposal of Netflix, Amazon, YouTube, etc. Their information takes more of the guess work out of projecting success. Also as markets become more fragmented the firms with business models that can sustain profitability with smaller audiences will have an advantage. Another words, firms will have to learn to scale downward to smaller homogeneous segments.

3. 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.
Nice overview of competitors’ weaknesses. I would still be careful with Amazon, they have some interesting programing now and more to come. Also they have very deep pockets. As you noted before, it is about quality content and a firm’s ability to bid on it and find an audience for it.

4. 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

5. Potential Broadcasters For MRC
Live Broadcasting (Periscope, Meerkat)
Podcasting
App Video Games
Webinars

6. Sources /
images-istock/
- demand-36645/attachment/nielsen-age-distribution-tv-vod-users- sept2013/
demand-36645/attachment/nielsen-age-distribution-tv-vod-users- sept2013/
catogories/
united-states/