Question

How are online video streaming services such as
hulu, Netflix, and Amazon affecting the movie
industry? (in 450 words)

Answer 1

The convenience of viewing your favorite program at your own leisure on any device makes these video streaming services a mainstay for modern consumers.

Video services such as Netflix, Hulu and Amazon Prime Video offer a large library of television programs and movies that have already aired or premiered in theaters, allowing consumers to view programs they had previously missed. Contractual agreements with major networks let these services distribute past and current seasons of popular television programs. Similarly, major networks have formed their own platforms for reaching consumers through digital technology. (AT&T's HBO, for example, offers HBO GO and HBO Now through a variety of distribution channels.)

Currently, Netflix, Hulu and Amazon Prime Video operate in the same industry with extensive libraries that often overlap. However, the foundation, financials and business models differentiate these three popular services.

As the binge-watching culture continues to grow, consumers are offered a variety of video-on-demand services to satiate their viewing needs. Netflix, the undisputed leader, boasts a robust market share, currently operates as a subscription-based service and offers video streaming starting at $7.99 per month. With original content and a robust library, Netflix remains on top of video on demand.

Conversely, Hulu operates in support of major cable networks. Offering both free and premium services, Hulu generates revenue through on-screen advertising, premium Hulu Plus subscriptions, and Hulu's Live TV services.

While the movie theater industry continues to weather the storm when it comes to issues such as video piracy and box office flops, the industry continues to work on new ways to draw in today's consumer.

As there's a "clear sign" that cinemas are adapting to ways of offering better movie experiences, with chains investing in areas like bigger screens, luxury, bars, reserved seating and new technology to ensure consumers come back for more.

"I wouldn't say the exhibition industry is under threat, it's proved to be resilient for over a century by being receptive to innovation and embracing technology,"

"If anything, exhibition is undergoing the same transformation airports and sports stadiums have in recent years: offering a better experience at different price-points."