Hulu Vs Netflix Case Study

Netflix is a worldwide provider of streaming movies and TV. Most people do not know Netflix has been around since 1998, but the company only sent DVD’s by mail during that period. Netflix did not begin its streaming services until 2007. Short afterwards Netflix expanded its services to Canada, and then expanded to 190 countries (Minaya, Ezequiel). As cable companies become more and more expansive, people start to switch to streaming their shows and movies instead of having a cable subscription. People have been increasing subscriptions to Netflix so much that they almost have 1 billion subscribers worldwide, even though they are in a competitive market. By being the top streaming service it helps Netflix cover its cost of production. So with …show more content…
The prime difference between Hulu and Netflix is the commercials Netflix doesn’t have any commercials while Hulu does which is the main complaint with Hulu. The difference between Amazon Prime and Netflix is the price while Netflix is 9.99 dollars a month Amazon Prime requires a yearly fee of 99 dollars. Most people do not want to pay that much money at once for a streaming service. Hulu has nearly 9 million subscribers and Amazon Prime has total of 54 million subscribers, both trailing behind Netflix even if you would add both services’ subscribers …show more content…
Fees collected from subscribers, combined with the raising of capital is the reason Netflix is able to afford licensing agreements with the owners of the shows and movies. An example of how much Netflix spends on content is the Disney deal. Netflix spend 200 million dollars in 2011 for the access of Disney movies and shows for one year (Follows, Stephen). While this is a huge amount a Netflix representative revealed that its budget for obtaining new deals and renewing expiring contracts would exceed 6 billion