This is a part of our Strategy course where we make strategic Recommendations for a Technology firm

1. TEAM ONE
Tyler Altrup
Matt Conn
Napo Delinia
Amit Kumar
Limin Liu
Noel Twigg

2. Overview
Industry Environment
Positioning
Sustainability
Issues
Dynamics
Strategy
Recommendations

3. 1

4. Start-up
Originators
Current Position

5. Rapidly growing industry
Disruptive Technologies
Two-Sided Network
Competitors
Supplier/Buyer Power

6. Going forward
•Mobile
•Print and Digital Media

7. hulu Crackle YouTube Netflix iTunes TiVo TV
Price Free Free Free Subscription $$$ $$$ $$$$
Medium;
Quality High High Varies High High High
HD
Cable; Cable;
Streaming; Streaming; Streaming; Streaming; Satellite; Satellite;
Delivery Download
Embedded Embedded Embedded Physical Fiber Fiber
Optic Optic

8. hulu Crackle YouTube Netflix iTunes TiVo TV
Price Free Free Free Subscription $$$ $$$ $$$$
Medium;
Quality High High Varies High High High
HD
Cable; Cable;
Streaming; Streaming; Streaming; Streaming; Satellite; Satellite;
Delivery Download
Embedded Embedded Embedded Physical Fiber Fiber
Optic Optic

9. hulu Crackle YouTube Netflix iTunes TiVo TV
Price Free Free Free Subscription $$$ $$$ $$$$
Medium;
Quality High High Varies High High High
HD
Cable; Cable;
Streaming; Streaming; Streaming; Streaming; Satellite; Satellite;
Delivery Download
Embedded Embedded Embedded Physical Fiber Fiber
Optic Optic

10. hulu Crackle YouTube Netflix iTunes TiVo TV
Price Free Free Free Subscription $$$ $$$ $$$$
Medium;
Quality High High Varies High High High
HD
Cable; Cable;
Streaming; Streaming; Streaming; Streaming; Satellite; Satellite;
Delivery Download
Embedded Embedded Embedded Physical Fiber Fiber
Optic Optic

11. Short-Term Liquidity Problems
Low Advertising Capacity Utilization
Multi-Platform Strategy

12. hulu’s Independence
Slow Movement of Advertising Online
Cable/Satellite Revenue Conflict
Video Posting/Sharing

13. Video
Changing Changing
Bundling Social
Quality
Consumer Business
and
Versioning Websites
Preference Model
Content

14. Disruptive Tech
(NBC/Universal)
New Partners
Aggregator
Potential
Data Mining &
Long-Tail
Mass
Impact
Customization

15. New Pricing
Leverage DVR Model:
Versioning
hulu
Expand Contractual
Platform Advertising
Presence

16. 2010 DVR penetration
Must use data as a sales tool
DVR problems for advertisers
• Indifference to ads
• Recorded = not watched at target time
• Demographic disconnect

17. “hulu beams TV directly
to your portable
computing devices.”
2
Next wave of platforms
• Gaming consoles
• Mobile applications
3

18. Cost of Super
Bowl ad to hulu:
$0
Important factor
in new partner
negotiations 4

19. CPM
Premium:
$50
• Mixed variety of value-added criteria
Mid-Level:
$40
• Genre + one premium criterion
Basic:
$30
• Standard, genre-based package

20. 5
“30 Rock is available to be viewed on
nbc.com, hulu.com, iTunes….uh…Verizon
phones, and United Airlines, and occasionally on