Netfix Copycats: Queens of Disaggregation
Continuing from last week let us explore some other businesses that are trying to capitalize on the breakthrough achieved by Netflix.
Today I will bring out three key competitors of Netflix and also highlight differences that they have in their own business models to carve their own path.
Amazon Prime – Videos
Amazon Prime Videos has quite a similar approach to content like Netflix, including Prime Originals, Licensed Movies and TV Shows including popular series.
Apart from Prime Video, the membership includes,
- Prime Music – Ad Free and Unlimited Downloads
- Prime Reading – A selection of free books available on all Kindle formats
- Free and Fast Delivery of products on Amazon
- Exclusive access to great deals on Amazon
I guess it is a great bundle and Amazon has created a place for itself in the world of content. It has been easier for them as dis-aggregation approach has been set is and the users have been accustomed to consuming in this fashion.
Hulu
They started with unlimited access to the Hulu streaming library with limited or no commercials including full seasons of exclusive series, hit movies, Hulu Originals, kids shows, and more. Cheaper service includes commercials. They have recently started with Live TV and provided a bundle for a complete replacement of Cable TV at home including access to live Sports and 50+ other channels. They are doing well in US and have created a niche for themselves.
Youtube – Premium
There are others such as HBO Now, DirecTV, Sony Playstation Vue, but believe that YouTube has a platform that is very well established and can easily attract customers to move to the premium channel with access to Offline Video and Audio, Background play option on devices and ad free experience.
Each of the three have used the existing Netflix model and added their own set of enhancements. The market is very big and there is space for multiple providers. We will have to wait and watch as to who is flexible enough to keep adjusting to the continuous dis-aggregation in the market place and emergence of newer ways of consumption.
Stay tuned, we will have more discussion on dis-aggregation based business models in other spaces.