Netflix vs Tv for Gen Y
Netflix is still in, TV isn’t
Carlos Rodriguez
Proximity Video Analyst
As Gen Y migrates to streaming TV and movies online, the demand for a service that is convenient, has lots of content, gives a low price, and contains no advertisements has developed. This is where Netflix steps in, and gives Gen Y everything they want and desire.
In several studies conducted by Proximity groups, Gen Y will watch ads, but only if the service is free. If the service costs, they want the most bang for their buck, and they don’t want ads in the process. This presentation will outline why investors and marketers should concentrate on a streaming service like Netflix rather than prime time TV, and why advertisers should realize that Netflix is decreasing the value of prime time TV ads.
Topics: * The end of Prime Time * Why Gen-Y loves Netflix * No ads? Low Cost? No problem, except for Prime time TV and its ads * Where Netflix is headed next
The end of Prime Time
Netflix has surpassed cable subscriptions.
* Comcast informed investors that the company lost approximately 165,000 cable subscribers between the months of July through September of 2011. * While Time Warner Cable, the second-largest U.S. cable operator behind Comcast Corp., lost 126,000 pay-TV accounts in the third quarter.
Why Gen-Y still loves Netflix
* Gen Y needs the most convenient service; Netflix offers that by providing both an online streaming service and a DVD mail-in service. * Netflix still has comparable prices with its competitors at $7.99 a month, with a huge library of both TV shows and movies. * Netflix offers more devices than their competitors to be able to watch Netflix, such as gaming consoles, internet connected Blu-Ray players, computers, televisions, phones and tablets, among other devices. * Many of these devices are mostly used with group viewing, which is big with Gen-Y and should be a marketer’s focal point.
No ads? Low Cost? No
Carlos Rodriguez
Proximity Video Analyst
As Gen Y migrates to streaming TV and movies online, the demand for a service that is convenient, has lots of content, gives a low price, and contains no advertisements has developed. This is where Netflix steps in, and gives Gen Y everything they want and desire.
In several studies conducted by Proximity groups, Gen Y will watch ads, but only if the service is free. If the service costs, they want the most bang for their buck, and they don’t want ads in the process. This presentation will outline why investors and marketers should concentrate on a streaming service like Netflix rather than prime time TV, and why advertisers should realize that Netflix is decreasing the value of prime time TV ads.
Topics: * The end of Prime Time * Why Gen-Y loves Netflix * No ads? Low Cost? No problem, except for Prime time TV and its ads * Where Netflix is headed next
The end of Prime Time
Netflix has surpassed cable subscriptions.
* Comcast informed investors that the company lost approximately 165,000 cable subscribers between the months of July through September of 2011. * While Time Warner Cable, the second-largest U.S. cable operator behind Comcast Corp., lost 126,000 pay-TV accounts in the third quarter.
Why Gen-Y still loves Netflix
* Gen Y needs the most convenient service; Netflix offers that by providing both an online streaming service and a DVD mail-in service. * Netflix still has comparable prices with its competitors at $7.99 a month, with a huge library of both TV shows and movies. * Netflix offers more devices than their competitors to be able to watch Netflix, such as gaming consoles, internet connected Blu-Ray players, computers, televisions, phones and tablets, among other devices. * Many of these devices are mostly used with group viewing, which is big with Gen-Y and should be a marketer’s focal point.
No ads? Low Cost? No
References: Greenberg, J. (2011, December 5). Amazon Prime vs. Netflix vs. Hulu Plus: What Is The Best Online Streaming Deal? Retrieved from http://www.ibtimes.com/articles/261456/20111205/amazon-prime-vs-netflix-hulu-plus-best.htm Dignan, L. (2011, November 22).Netflix raises eyebrows with fundraising plans. Retrieved from http://www.cbsnews.com/8301-505124_162-57329582/netflix-raises-eyebrows-with-fundraising-plans/ CNW Group. (December 7, 2011). Netflix Unveils New Xbox 360 Experience, Expands Xbox Support To Latin America. Retrieved from http://finance.yahoo.com/news/Netflix-Unveils-New-Xbox-360-cnw-1314989232.html 680News staff and The Canadian Press (2011, December 4). Netflix promises to double their content by 2012. Retrieved from http://www.680news.com/news/national/article/306288--netflix-promises-to-double-their-content-by-2012 Biddle, S. (2011, December 11). Netflix Wants All of Your Friends to Know Everything You’re Watching. Retrieved from http://gizmodo.com/5867028/netflix-wants-all-of-your-friends-to-know-everything-youre-watching DesMarais, C. (2011, September 11). Netflix Now Works on Android 2.2 and 2.3 Devices. Retrieved from http://www.pcworld.com/article/239830/netflix_now_works_on_android_22_and_23_devices.html Sarnataro, V. (2011, November 15). Netflix Revamps App for Android, iOS to Come. Retrieved from http://www.tabletpcreview.com/default.asp?newsID=2778&news=Netflix+revamps+Android+ap Trefis Team. (2011, September 8). Is Netflix Killing The Cable Guys Or Is It The Other Way Around? Retrieved from http://www.forbes.com/sites/greatspeculations/2011/09/08/is-netflix-killing-the-cable-guys-or-is-it-the-other-way-around/