BRAND WARS STREAMING SHOWDOWN: Amazon Prime, Hulu, & Netflix - 20|20 Research
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BRAND WARS STREAMING SHOWDOWN: Amazon Prime, Hulu, & Netflix
2015 has been a crazy year for television, streaming services, and everything in
between. You’ve heard about the cord cutters, the Netflix bingers, and the 4.4
million Americans that dished out a collective $440 million to watch the
BRAND WARS Pacquiao vs. Mayweather fight.1 It’s a turbulent and evolving space, so we
pitted three industry leaders—Amazon Prime, Hulu and Netflix—against each
other and collected consumer intel to understand perceptions, uses and visions
of each brand.
Are streaming services slated to change the face of entertainment in 2015? If
so, who will lead and who will follow? We reached out to 2,500 consumers to
ask their opinions, and monitored Twitter to listen to their commentary.
Read on to find out what they said.
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3
Let’s cut to the chase: Netflix is king. It doesn’t matter who you are – young,
old, male, female – Netflix offers clear, tangible benefits. This is no surprise—
NETFLIX IS THE the brand’s 60 million subscribers watch a collective 10 billion hours each
quarter.2 Of those, 40 million users are in the US3 and their streaming accounts
FAN FAVORITE for 37% of peak US web traffic.4
But what makes Netflix such a leader? What do consumers love about it, and
where do they see things heading? Where do Hulu and Amazon Prime fall
short, and what will it take for them to gain a seat at the table (or should we
say, on the couch)?
4
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THE RED CARPET
When asked about the brand’s personality, consumers describe Netflix using
CLASSIC strong descriptors chocked full of emotion and personification. Netflix’s
personality is one that consumers know and love, and they’re not afraid to
share that with you.
Netflix’s exciting and entertaining side takes a backseat to its laid-back, cool
nature. That said, Netflix is there for you – generous, helpful, and resourceful –
but be careful, as its engaging nature can be cruelly addicting. Consumers’
experiences, whether shared or alone, with Netflix are memorable, meaningful,
and aplenty.
6
Broadminded, intelligent, exciting,
mysterious, and always there when you
need them most.
– Female, 55+
A reliable and resourceful friend who understands my
unique interests. Highly experienced in entertainment and
Fun, entertaining person that is always diversity and she always keeps a wide audience in mind.
there for you when you have nothing to – Female, 18-34
do, or have some down time.
– Female, 18-34
7
Netflix is the master of variety, from well-loved shows and movies to newer
original series. It’s where friends go for instant access to entire seasons of TV
NETFLIX > THE shows (surely these binges are what the company’s tagline, “Because great
CONTENT things start with Netflix” is referring to). Consumers see it as a win-win: they
can watch what they want, when they want, without a hefty price tag.
The Netflix brand identity is straightforward and classic, just like the service.
The name hints at what the service offers, which helps recognition to a degree,
though the brand’s ubiquity and dominance are really what drives this.
Tellingly, when consumers talk about the service, they describe “watching
Netflix” rather than “watching show/movie” on Netflix. This is unique to
Netflix, that consumers often decide to embark upon a Netflix binge and then
choose a show. The platform leads and the content follows.
8
9
Consumers see Netflix as a force to be reckoned with, and express their
sentiment through strong language, explaining that the streaming service has
NETFLIX: the power to “supplant cable and satellite TV,” “unseat networks,” and hold all
WHAT’S NEXT? providers to a higher standard of offering and price. 20% of consumers are
confident that Netflix will replace other options altogether. They see “content
providers” as the way of the future and love the “freedom” provided by this new
way of consuming content.
To remain relevant, cable providers will need to step up and match Netflix’s
“anything, anywhere” game. And it’s not just networks that are on the chopping
block – consumers refer to Netflix as a service that will “replace movie theaters,”
The Future of demonstrating the entertainment industry will need to evolve in order to keep
Entertainment up with streaming. That said, there’s one thing the service is currently testing
that could throw a significant hitch in Netflix’s domination: commercials.5
10Netflix will be the standard for entertainment in the
future. Consumers want all of their video on-demand,
and Netflix is the leader in on-demand services. They
also have high quality original programming to fall
back on if they need to due to any hurdles in licensing
content from other providers.
– Male, 18-34
Netflix could leverage its current position to become a
true powerhouse in online broadcasting of both original
and existing content. I would like them and other
services like them to unseat the big networks when it
comes to entertainment.
– Male, 35-44
I see many TV-watchers transitioning over to Netflix,
and with the variety they are adding to the selection
that fits all ages and interests. And the cheap cost and
no commercials are very appealing.
– Female, 18-34
11THE SUPPORTING If Netflix is the star of the show, Hulu is its somewhat-trusty sidekick –
ACTOR entertaining, a little quirky, but not as cool. Consumers speak very operationally
about the service’s personality, and not always positively. While Hulu is fun to
have around, it has some major downsides, most notably the commercials.
Subscribers are shocked and feel a little betrayed that they have to pay for a
service and still watch ads. Consumers are very vocal about their disdain for
commercials, and often reach out to @Hulu_support on Twitter to share their
sentiments.
That said, Hulu serves its purpose and is definitely seen as a big personality
with plenty of stories to share. Those who don’t know Hulu are eager to meet
the service, begging friends for their passwords (10% of those using the service
are doing so on a borrowed account).6 This is often the result of wanting access
to a particular show; consumers flock to Hulu for specific content rather than
12 seeking out content once they’ve arrived.Hulu is a friendly acquaintance who is somewhat
enjoyable to hang out with, but isn’t always the
first friend you’d call because they tend to be
slightly irritating.
– Female, 18-34
I would imagine Hulu to be a funny guy that knows
quite a bit. He would be quite popular and a lot of
people seem to talk about him, even without being
asked. He can always liven up boring situations.
– Male, 18-34
Hulu is that friend that always has time to hang
out and can be fun but they have too much
baggage (the commercials). So you don’t really
think its worth it in the end so you tend to chill
with your Homie Netflix instead.
– Female, 18-34
13Overall, consumers are less familiar with the brand, some tying the name to
Hawaii or even hula hoops. Consumers who are familiar with the service focus
HULU – TV, on the TV offerings as opposed to Netflix’s equal focus on TV and movies. They
BUT DIFFERENT appreciate the ability to catch a favorite show the day after it airs, or anytime
for that matter, if they miss it in real-time.
Hulu is a new way to watch TV – not revolutionary, but certainly more
convenient. Younger consumers in particular appreciate the convenience and
variety. Hulu’s well curated portfolio of programming stands out – in particular
its recent reported $180 million investment in the entire Seinfeld catalog7 and its
acquisition of Fox’s recently-canceled The Mindy Project.8
14I think it will be a viable alternative to TV
for cord cutters.
– Female, 18-34
I think the commercials are dragging down the entire
industry. Unpaid Hulu with commercials is fine, but
once you start paying for Hulu, there really shouldn't
be commercials.
– Male, 18-34
Hulu allows you to keep up with your favorite
shows without the need for cable. It's cheap per
month, and practically every prime time show is
available for viewing. I personally use it and have
"cut the cable," saving myself $150 a month.
– Female, 35-44
If Hulu can find a way to deliver a commercial free
product, it can compete with Netflix. Otherwise, Hulu
will have a minor future as other ad free and ad light
15 products enter the market.
– Female, 18-34Consumers talk about Hulu alongside Netflix as a service that could replace TV.
But their language on this topic is less assertive than when speaking about
HULU: Netflix alone, and they never mention Hulu as a game-changer itself. For many,
WHAT’S NEXT? the benefits of the service just aren’t clear – 14% of consumers were unable to
even name a benefit when directly asked.
That said, the brand has two clear opportunities to position itself as a more
competitive ringer in the space: cut commercials and add original content,
similar to what Netflix has done with Orange is the New Black or Amazon Prime’s
addition of Transparent.
Cut the Crap
(Commercials)
1617
THE UNDERSTATED
B-LISTER Amazon’s streaming service is non-descript for most consumers. They explain
it like you’d talk about a distant friend of a friend – they’re vaguely positive
but can’t really think of any defining characteristics or value. Even when
asked directly about Amazon Prime’s video streaming service, consumers
speak to the efficiency and speed of the failsafe two-day shipping. Those that
know of the streaming service more intimately think of it as a slow, annoying,
and somewhat useless – Netflix’s less cool younger brother.
18Trying to be like the cool kids but
not exactly getting there.
– Male, 18-34
They are very generous, organized,
always carry what they may need with
them, and are extremely fast and
efficient at what they do!
– Female, 18-34
Diverse, expansive, interesting, and
well-intentioned, but sometimes there
are gaps in follow-through.
– Female, 55+
It’s like a car salesman that only has
three different cars and two of them
are lemons.
– Male, 18-34
19Amazon Prime’s streaming service is not much more than a value-add on top
of the free shipping consumers get with their subscription. In fact, when asked
AMAZON PRIME = directly about the benefits of the streaming service, nearly one quarter (23%)
SHIPPING of consumers responded by outlining the benefits of Amazon’s shipping. In
their minds, the streaming is essentially free, which is good, but beyond that
they are hard pressed to think of any benefits it offers. And if they had to
actually pay for the streaming content available through Amazon Prime the
value would evaporate.
Older consumers are the group that knows the least about the streaming
service. Even those who have the service aren’t sure of how it works and how
to access it. Those who were more familiar and had tried the service briefly
mention the music and modern movies available. All in all, consumers either
aren’t aware or don’t really care about Amazon’s streaming.
20Quick and effective and efficient.
– Female, 35-54
They are very generous, organized,
always carry what they may need with
them, and are extremely fast and
efficient at what they do!
– Female, 18-34
21AMAZON:
Amazon has a long way to go to differentiate itself in the crowded streaming
WHAT’S NEXT? space, but there are clear avenues to pursue. Its ease of streaming on multiple
devices stands out and could win consumers over if the brand expanded its
library of network shows, improved its original content (just a handful
mentioned Bosch and Transparent), and made its pricing more competitive.
Because it’s such a powerhouse in other arenas, consumers note that if Amazon
“gets it right” with streaming it has the muscle to compete with Netflix.
Amazon Is Still
A Threat
22As long as the service continues to have stellar exclusive
and boundary pushing content like Transparent, I think
Prime Video will become one of the biggest players in the
television space. While I don't personally use the music
streaming much, I think it adds a huge amount of value
to Prime overall. As long as the services continue to work
well, Amazon will be a force to be reckoned with.
– Male, 18-34
Unless they step up their game I don't think they will
continue to compete very well. We subscribe and it's
very difficult to find worthwhile content on their
streaming service. I think their service will need an
overhaul in order to stay relevant.
– Male, 35-54
Amazon prime is in the future of entertainment as
long as it can produce original programming and
shows like Bosch and alpha dogs. The quality of
content is what will make or break Amazon. They must
catch up with Netflix though, who has more
programming than they currently do.
23 – Male, 18-34It’s Netflix’s world and we’re all just streaming in it.
• Netflix will continue to dominate on the power of variety, lack of commercials,
and high global adoption.
• The brand identity is creating a new breed of entertainment and its own
vocabulary, with people “watching Netflix” and going on “Netflix binges.”
• Consumers see Netflix as reshaping the industry, forcing networks to adapt to
the anything, anywhere low-cost model or risk becoming obsolete.
THE LAST HURRAH
Hulu gets the job done.
• Hulu does one thing and it does it well – delivering the latest episodes of
current TV shows.
• Hulu is well positioned to ride Netflix’s coattails in redefining how people
• consume content.
• But commercials could be the service’s Achilles heel, with consumers growing
increasingly impatient (and increasingly vocal on social media).
Amazon has yet to put a stake in streaming.
• Amazon Prime is only a threat to cable due to its status as a streaming service.
• Streaming is an add-on to the brand’s beloved two-day shipping, but doesn’t
provide value on its own – many consumers are unaware that it even exists.
• Amazon will need to ramp up existing and original content offerings should
they want to compete in this space – a feasible goal for a dominant force
24 should they decide to pursue it.25
We believe that with forethought and careful execution, you only need a
OUR few questions to glean a lot of insight. Using ThoughtPath, our proprietary
METHODOLOGY cognitive framework, we crafted three questions about each streaming
service and asked them of 2,500 consumers. Feedback in hand, we used our
text analytics approach to cull through the data, tease apart the nuance,
and gain a deeper understanding of how consumers view and discuss each
brand.
To top it off, we monitored the Twitter mentions of each brand, allowing us
to pinpoint what was discussed, and when, as well as scroll through
thousands tweets as they filtered in.
26WHAT’S ALL THE FUSS ABOUT?
Based on what you know about [Amazon Prime
streaming service/Hulu/Netflix] what is the biggest
benefit that it provides?
THE QUESTIONS
WHO ARE THESE PEOPLE ANYWAY?
Imagine that [Amazon Prime streaming
service/Hulu/Netflix] is a person. How would you
describe them?
WHAT’S COMING NEXT?
How do you see [Amazon Prime streaming
service/Hulu/Netflix] fitting into the future of
entertainment?
27In order to pick our winner, we focused on the language consumers used,
including the context in which they discussed the three services and the
PUT TO THE TEST intensity and conviction with which they spoke. We assessed brands on a
spectrum of two key factors: brand identity and impact on the
entertainment industry. Netflix won by a landslide in both categories – it’s
well known, well understood, and positioned to shake up entertainment at
many levels. Hulu is a respectable second, although consumers aren’t as
clear on the service’s offering and value, and don’t see it as a major force to
be reckoned with. Amazon’s primary challenge is recognition – many don’t
realize the e-commerce giant offers a streaming service at all.
28STRONG
BRAND
IDENTITY
LOW IMPACT HIGH IMPACT
ON INDUSTRY ON INDUSTRY
WEAK BRAND
IDENTITY
291. http://ftw.usatoday.com/2015/05/mayweather-pacquiao-gate-how-many-pay-per-view-buys-
SOURCES 500-million-400-half-billion
2. http://files.shareholder.com/downloads/NFLX/47469957x0x821407/DB785B50-90FE-44DA-
9F5B-37DBF0DCD0E1/Q1_15_Earnings_Letter_final_tables.pdf
3. http://files.shareholder.com/downloads/NFLX/47469957x0x821407/DB785B50-90FE-44DA-
9F5B-37DBF0DCD0E1/Q1_15_Earnings_Letter_final_tables.pdf
4. http://qz.com/414271/netflix-now-accounts-for-nearly-37-of-peak-web-traffic-in-north-
america/
5. http://time.com/3903995/netflix-testing-commercials/
6. http://www.businessinsider.com/netflix-and-hulu-sharing-password-numbers-2015-5
7. http://techcrunch.com/2015/04/29/hulu-scores-streaming-rights-to-seinfeld-signs-amc-deal/
8. http://artsbeat.blogs.nytimes.com/2015/05/15/hulu-picks-up-the-mindy-project/?_r=0
30Research, Uncomplicated.
31
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