TeamKapMurSheShaTwi

REVOLUTIONIZESTV INDUSTRY

DISH Network and Netflix

Agenda

• Who is more successful?

• WHY? Customer and Competitor Analysis Industry Analysis SWOT Analysis Technology Analysis Advertising, Distribution, Sales force, Promotions Analysis Product/Service Analysis

• Addressing customer needs

Primary ResearchCustomer & Competitors

Secondary research External Media

• 55 Online Surveys• 15 Face-to-Face Interviews

• Articles• Newspapers• Periodicals

Our Research

Subscriber Growth (In MMs) Revenue (In $ MMs)

2008 2009 2010 2011 2012 20130

5

10

15

20

25

30

35

40

45

50

DishNetflix

2008 2009 2010 2011 2012 20130

2

4

6

8

10

12

14

16

DishNetflix

Netflix: 179% DISH: 0% Netflix: 162% DISH: 19%

Financial Performance

Jun 05, 2009 – May 29, 2014

NFLX +953.26% vs. DISH +263.11%

P/E NFLX – 156DISH – 33.70

Stock Performance

http://www.consumeraffairs.com http://www.consumeraffairs.com/

http://dish-network.pissedconsumer.com/ http://netflix.pissedconsumer.com/

Customer Satisfaction

Customer Analysis

• Segmentation– Income and age have no significant effect on TV

viewing habits– The more people watch TV the more likely they

are to be DISH Network customers– Slight preference for Netflix among customers

with kids

What customers liked

• DISH Network– Service reliability– Live sports– Variety of choices

• Netflix– Movies– Ability to watch anytime and anywhere– Multiple devices– Flexible terms

What customers disliked

• DISH Network– Customer service– Unneeded channels– Price– Inability to select when to watch

• Netflix– Poor selection of content– Unavailability of live sports

How customers rate service?

DISH Customers Netflix Customers

6.75

4.75

DISH service quality in the eyes of

Netflix customers Dish Customers

7.7

5.3

Netflix service quality in the eyes of

Really?

Unlikely39%Some

what Likely14%

Very

Likely48%

How likely are you to change service providers or cancel the service in the next year or after the

contract expires?

Competitor Analysis

Poor se-lec-tion of

conten

t17%

Get all the programing from ca-ble and/or satel-lite28%

Don't have a good idea about the

service17%

Use another streaming service

17%

In-ternet connection is too slow22%

Don't have Netflix service because

Don't

need it.

Barely

watch TV34%

Low value for the money

34%

Would get it, if can

choose

channels to

pay for

31%

Don't subscribe to DISH Network service because

Threats of new Entrants

Threats of Substitutes

Significantly reduced barriers

of entry

Slightly reduced threat

Traditional TV (cable, broadcast satellite)

Internet TV

 

Ability to reach wider audience base

New services options. Access to wider selection

Power of BuyersPower of Suppliers

Industry Analysis

Strengths• Simple• No contract

Weaknesses• No Live Sports• Lacks Current Content

Opportunity• More Content• OITNB

Threats• Content Providers• Net Neutrality

Netflix Customer SWOT

Strengths• Live Sports• Current Content

Weaknesses• Long Term Contracts• Inflexible Packages

Opportunity• Internet Streaming• À la carte Channels

Threats• Streaming Services• Churn Rates

DISH Customer SWOT

T I A B I A M K T B S T S W I D S

Technology

ELSE

Streaming what you want when you want

$8.99 – Up to two devices$11.99 – Up to four devices

Objective Product Analysis

Mission Leave customers with a great experience

Provide quality TV at an affordable rate

MessagePeople love TV shows & movies. We love being the best possible

place to enjoy them.

The best product, at the right price

Media Web, Twitter, Facebook Print, Web, Radio, TV

Money $438M $487M

Measurement Company is growing No growth

Advertising Analysis

Advertisement Style

Promotions

 

23.8M views in top 5 searches

5.6M 912k “Followers”6,751 “Tweets”

33,499 following

4.8M viewsin top 5 searches

4.6M 79k “Followers”54k “Tweets” 833 following

DifferenceNetflix wins by 19M

Netflix wins by 800k

Netflix winsby 833k

Netflix wins by 32,666

Who is listening?

Meeting in Colorado

PositioningPrice

Live TVLarge selection of channels

Movies and TV episodeson customer’s schedule

Unmet Need!!!!!

Market Place

Shades of Gray

Missing

$10 $150

?

=

…and they listened to us

Someone else also listened.

“AT&T-Direct TV deal reflects customer demand“

What’s Next?

Questions?