Entitle has also since gone public, with soaring profit and growth. They enjoyed competitive advantage from their size and scale, providing limitless selection of titles and extensive shipping coverage throughout the States. They keep their customers happy by maintaining their brand loyalty, leveraging their big pool of user Information. 2. The shift In trend towards online streaming gives birth to numerous competitors such as Amazon, Hull, Bud, and Redbook Instant. The acquiring content cost for Entitle ash steadily increase from $48 million in 2008 to $2. 1 billion in 2013.
The treating licensing deal is also troublesome for Nineteen’s long term planning and cost estimation because the rates vary. Some studios may offer a flat rate, while others can charge more for more valuable content.
Entitle is also troubled by the practice known as windowing. With channels such as HOBO claiming exclusive rights to certain content, Entitle Is shut off from the opportunity to make that content available for their users. Another problem that the growing company has to face Is rejection from companies such as Time Warner and HOBO, preventing Entitle to get streaming rights for some wows such as Game of Thrones.
Since Entitle is now seen as a big competition, the stations and other companies are scared that if they allow Entitle to stream their content, their consumers will flock to Entitle. 3.
Entitle uses disintermediation by moving to original content creation although technically it is still sponsored by studio partners. Original Entitle series such as House of Cards, orange Is the New Black and Arrested Development is actually licensed from other studios. These series are Nineteen’s Investments that have been paying off really well.
They also secured partnerships with MAC for Mad Men and trite a huge deal with Disney for streaming access to Paxar, Marvel, Localism and Disney movies. 4 1 nee user data Is more setup than ten ratings Entitle receiver Vela DVD- DAY- mall.
The data analysis drive the customer’s recommendations, tailoring the options and filtering the titles to match their needs, and used to improve their service over time. This data allows Entitle to make wiser investment decisions as well This data is also utilized for ultraviolet audience promotions, such as producing seven different trailers for House of Cards to appeal to different users.
The data has also affected casting decisions on their original series. 5. Entitle had such a unique business model that it managed to kill Blockbuster in the past.
However, since then, the streaming industry has been so saturated with competitors everywhere, and Entitle must also deal with the rising costs and their difficult- to- control cost structure. Entitle has a lead but the market it is competing on remains very fragmented, with so many holes for other business models to slip in anytime. Amazon is a big threat because it is a big company that is already successful with so many things that it does.
Apple‘s tunes and Microsoft are notable threats, as well as Youth, Google TV, and Hull. Many Internet service providers are not happy with Nineteen’s growth because they cause network- clogging traffic hog. Another threat that Entitle is facing is the bandwidth cap that is applied by these internet providers. If the bandwidth is capped, a Entitle customer may be penalized simply Just for being a customer. Entitle may be forced to cut deals here and there to keep up their streaming, losing money here and there in the process as well.