Hulu Swot Analysis Of Netflix

I. Social Media Interactions

Social media activities are known to be effective tools to building program engagement as well as becoming a promotional net to attract more viewers. This would in turn build loyalty among viewers and increasing ratings growth. Netflix has spent little in advertising in relative to other companies and has always relied on word of mouth as our main marketing tool. Studies have shown that the power of word of mouth can be amplified and intensified through online and social media engagement.

However, Netflix currently has a weak social media presence. With an average of 16 million users following the Netflix page, there is only an average of 1,200 likes per post. It is extremely little compared to the followers, let alone our huge numbers of subscribers. Our Facebook posts include promotional campaigns like quotes and visuals that have very similar contents from our TV Shows. The lack of interesting content leads to low engagement from viewers.

The importance of social media is further emphasized by the fact that two of our major competitors have come up with numerous ways to engage their customers.

• Hulu Plus

Hulu has 9 million subscribers, a substantial growth of 50 percent from 2014.

Even though Hulu’s subscribers are only 25 percent of Netflix’s, their recent launch of a commercial free option makes Hulu a strong competitor for Netflix. On top of that, Hulu’s in-house social media team has engaged in platforms like Facebook, Twitter as well as the Hulu blog. In fact, more than 10 percent of their subscribers are active followers of their Facebook pages. They provide fun images, custom artwork, gifs, clips that allow their followers to share with the rest of their followers. Subscribers tend to have trending conversations over images, curated contents and videos. Hulu also uses Facebook as a platform for viewers to create online profiles, allowing users to share videos and their activities with their

friends.

• HBO Now

Netflix and HBO Now might have started off as two fundamentally different business models in terms of quality and pricing model. However, the products would eventually converge. Moreover, HBO’s high revenue and profit margin would allow them to invest in more original content just like Netflix. HBO has also come up with non-traditional ways to engage viewers on social media. In addition to posting on existing social media platforms, it explores new areas of social media. The recaps on their Facebook page completely are composed of Emojis. The definitions of the emojis are further translated into words into their comments sections.

With people spending more and more time online, it is harder to reach potential subscribers through the traditional means. Social media is the key to reaching a broad range of customers.