Question

Blockbuster was significantly challenged by mail rental businesses such as Netflix, by discount retailers such as Walmart that sell DVDs at low prices, and by the advent of kiosks like Redbox. Cable TV companies are facing similar competition from video streaming sources such as Netflix, Hulu, Amazon and other groups. like satellite TV (e.g., DirectTV). How are these companies differentiating themselves and what recommendations do you have for cable companies to remain competitive given the increased competition?

Answer 1

Answer: There are three ways in which the live video streaming companies are differentiating themselves as different from the cable TV companies. These ways are

1. They position themselves as better as they offer options for entertainments as per the choice of the viewers. The Viewers can stream their desired programs as per their choice and not as per the choice of service providers
2. The live streaming companies project themselves as convenient as the viewers can stream their favorite programs and movies as per their wish, time and at any location. The live streaming can also be done while on a move on a smart phone.
3. They also project themselves as economical option as compared to cable TV

The cable T.V companies are recommended to take the following actions to fight the competition

1. They should make their packages cheaper and highlight that watching live streaming also involves internet charges
2. They should provide more flexibility to the viewers while selecting their packages
3. They should upgrade technologically and offer features similar to the live streaming services like any time access to the favorite programs