Are Online Streaming Services outgrowing traditional TV broadcasters?

2016

Lewis Hoskins

1.0 Declaration

I declare that all of the work I will have submitted for this investigation will be my own and does not involve any plagiarism or help from any others except for those who are authorised to do so. All sections that use quotes or describe an argument developed by another author have been referenced, including all secondary literature used, to show that this material had been adopted to support my investigation.

I understand that this declaration covers all work submitted for assessment for Semesters 1 and 2, 2015 and 2016, in this subject and any others which are related.

Signed: Lewis Hoskins

Date: 01/04/2016

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2.0 Summary of Findings

This investigation provides an analysis and evaluation into whether online streaming services are outgrowing traditional TV broadcasters. The research has been collected from various different secondary sources, and two separate primary sources. The first primary source was a questionnaire which totalled ten questions and helped to establish what preference consumers had in terms of platforms and their thoughts into this. The second type of primary information gathered was an interview through Julian Aquilina (Enders Analysis) who provided a wealth of information helping shape the third section of the investigation. This allowed for a better understanding into the differences in streaming with older and younger generations, and the implications of job security to employees in the different companies.

Some of the research collected allowed attention to be drawn to the idea that Netflix and Amazon were both beginning to outgrow the BBC in terms of content due to the number of premium content shows they are showing but on top of that the number of exclusives that have been secured over the BBC and other major networks. This points to the idea that both Netflix’s and Amazon’s are bringing in more consumers daily due to the availability of access to everyone and anyone at any time, which is why their streaming services are becoming so appealing over their TV counterparts.

Further investigations revealed that there is a correlation between the generations with streaming and who watches it. Netflix and Amazon’s more difficult to attract consumers are the middle aged to older generations, many of whom don’t understand how streaming works. However younger generations are flourishing with streaming content and continue to grow as they watch less traditional TV. Job security is also an important factor which is being affected by the growth of streaming services. Research has indicated that although TV is not dying out just yet, there has been a shift in the number of employees who are moving towards online streaming companies as they provide a more stable position due to the security of being allowed a whole season on a programme compared to the broadcasters who only contract employees for a pilot episode then if they reach their targeted audience numbers, they then renew the employees contracts for the rest of the season.

Diversifying is becoming an important factor in both services due to the level of creativity that employees can bring with it, and the content they can create from their own background and experiences. All of this adds up to providing the consumer with a next level product which will entice consumers to use their services (either TV or streaming in this case). Carrying out an enquiry into the CEO and how their decision making skills and planning can affect the whole company and not just themselves shows that the different methods CEO’s employ can affect how their company grows, and what differentiates themselves from their competitors.

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3.0 Acknowledgements

I would like to thank my course leader and group tutor Lynn Bissett of the Business Department at Dundee and Angus College. The door was always open whenever I ran into any trouble or had a question about my research or writing. She always made sure that this paper was my own work, but ensured I was going in the right direction when she thought it was needed. In fact all of the lecturers that helped and guided me throughout the year, and provided me with the correct knowledge to complete this investigation.

I would also like to thank all of the participants who were involved in my research, completing my questionnaire and interviews which allowed me to gain a better understanding of what I was investigating, and give me a different view point which was helpful in completing my investigation.

Finally I would like to thank the support I have had from my parents, and my girlfriend who encouraged me throughout the months of study, and the course of researching and writing my paper. This would not have been possible without them.

Thank You.

Lewis Hoskins

4.0

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Contents1.0 Declaration.......................................................................................................1

2.0 Summary of Findings......................................................................................2

3.0 Acknowledgements.........................................................................................3

4.0 How the issue affects the BBC, Netflix and Amazon Prime........................6

4.0.1 Introduction.....................................................................................................6

4.0.2 Background on Netflix....................................................................................6

4.0.3 Background on Amazon Prime.......................................................................6

4.0.4 The affect the issue has had on Netflix and Amazon Prime...........................7

4.0.5 Affect the Issue has had on the BBC..............................................................7

4.0.6 How the issue has impacted their presence to grow online............................8

4.1 Analysis of Primary and Secondary Research collected............................8

4.1.1 Outgrowing the BBC...................................................................................8

4.1.2 Online streaming struggles with live sports and news broadcasts..................9

4.1.3 How online streaming has revolutionised how companies do business.........9

4.1.4 Profit and Satisficing Maximisation.................................................................9

4.1.5 Influence of shipping costs on Amazon Prime’s Profit Maximisation............10

4.2 An Assessment of these Implications.........................................................10

4.2.1 Difference in Younger and Older generations with streaming..................10

4.2.2 Implications of job security for employees....................................................11

4.2.3 Implications of creativity with employees and effect it has on the companies...............................................................................................................................11

4.2.4 Diversifying can help with creativity levels....................................................11

4.2.5 Implications to CEO with decision making and strategy planning.................12

4.3 Conclusions taken from the Investigation & Recommendations based upon these findings................................................................................................13

4.3.1 Online Streaming has outgrown TV Companies...........................................13

4.2.2 Difference in generations with streaming & how this is changing viewing habits of consumers and effecting the job security of employees..........................13

4.3.3 Innovation and freedom to be creative it crucial in effectiveness of online streaming companies............................................................................................14

5.0 References.........................................................................................................15

6.0 Bibliography......................................................................................................17

7.0 Appendices........................................................................................................19

Appendix 1.............................................................................................................19

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Appendix 2.............................................................................................................20

...............................................................................................................................20

Appendix 3.............................................................................................................21

Appendix 4.............................................................................................................23

Appendix 5.............................................................................................................24

Appendix 6.............................................................................................................25

Appendix 7.............................................................................................................26

Appendix 8.............................................................................................................27

8.0 Activity Log........................................................................................................28

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4.0 How the issue affects the BBC, Netflix and Amazon Prime

4.0.1 IntroductionThe issue to be investigated is whether online streaming (OS) services are outgrowing traditional TV broadcasters, in this instance the BBC as they are the largest organisation in the world in terms of number of employees. The overall aim of the investigation centres on whether online streaming services (OSS) such as Netflix (NX) and Amazon Prime (AP) are putting an end to TV broadcasters mainly the BBC, and the implications this could have on all of these companies.

The first objective identifies whether OSS are growing, and more specifically if this correlates to their recent dominance over the exclusive TV show rights they have been attributing to their sites. “House of Cards” being an excellent example of an exclusive TV show on Netflix which has won numerous awards, and is the first online-only TV show to do so. Focusing on F84T 34 Managing People and Organisations and F7BX 34 Marketing: An Introduction can help to identify how these companies are gaining new consumers daily.

Objective two is assessing how OSS are changing people’s viewing habits, and how NX and AP offer whole seasons of a TV show compared to the linear viewing of TV broadcasters. Marketing offers an in-depth view of how these companies are changing consumer’s perceptions on what makes viewing great.

Objective three is evaluating how OS allows NX and AP to become more efficient. F7J6 35 Economics 1: Micro Macro Theory and Application can help to understand the methods both NX and AP have been implementing to increase their efficiency in the market, over each other and their competitors. F7J7 35 Business Culture & Strategy can provide a greater understanding of how the aim of the investigation is affecting both internal and external customers.

4.0.2 Background on NetflixNetflix was founded in 1997 by Marc Randolph in California, and started up where people could order movies they wanted to watch, and have it sent by post. They set up their website in 1998 with 30 employees at that time. They became the biggest source of internet traffic in North America in 2010 and in 2011 they announced they would restructure to a multi-national OS company.

4.0.3 Background on Amazon PrimeAmazon Prime was launched by Amazon in 2005, it essentially offers the same services as Netflix but due to Amazon being an internet retailer there was added benefits. To differentiate from Netflix they incorporated benefits such as free same day delivery, unlimited cloud storage for photos and other discounts when paying a yearly fee of £79.

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4.0.4 The affect the issue has had on Netflix and Amazon PrimeBoth OSS innovations have impacted how they have grown into the multi-national companies they are today. More screenwriters and producers are moving towards the likes of NX, due to the attractiveness of contracts where they are guaranteed to an entire season or two, compared to the BBC where they may only be contracted for the pilot episodes depending on the success of that show. “Netflix also uses this data to determine what type of original content the company should create. This has led to Netflix having a higher success rate in manufacturing hits” (Investopedia,2015). The success they have had in allowing showrunners to pursue their own vision has meant TV companies being forced into paying more for talent and giving them more freedom.

4.0.5 Affect the Issue has had on the BBCThe BBC is the public service broadcaster for the UK and is the oldest national broadcasting establishment. It was founded on the 18 th October 1922 by John Reith. As a result OSS is beginning to affect how they show their content. The competition from NX and AP ensured that to keep up with the demands from consumers, the BBC launched iPlayer which is a catch-up service for people in the UK. This is just one of the ways OS has affected their company, since it pushed them into the new business model of OS. This has affected the whole organisation, as they have had to create more of an online presence to keep in line with consumer needs. NX and AP are growing in popularity, and changing how people think in terms of where, when and how they watch their content. Between 2011 and 2015, streamed on demand TV series & programs increased by 121% in that 4 year period (Anders Erlandsson,2015), showing how much OS is affecting the way we, as consumers view our content.

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4.0.6 How the issue has impacted their presence to grow onlineThe BBC having had to increase their presence online, shows not only where our civilisation is headed, but that their need to head down this route is an effect of how popular OS companies are. Their need to become a cross-platform brand, where people can access their content from anything from a gaming console, to a smartphone shows the efforts they have made to ensure their content is alongside NX and AP. The BBC started to use social media as a method of promoting their brand (Philip Kotler, 2013). This is the fastest way of communicating with the customers and getting feedback from them. NX and AP are utilising the cost effective method of social media to push their marketing across to the masses allowing it to grow. OSS have affected how the BBC promote their brand, and anticipate consumer’s trends in viewing habits. Before they would have relied on TV adverts to get across their new content, but now as a result of OS, they have had to utilise new methods to compete. OSS such as NX and AP, have affected the BBC in that they have had to cut over 1,000 jobs as they look to reduce spending by £1.5 billion a year (Dearden, 2015). This is due to a fall in revenue from license fees as consumers move away from live TV, and shift to catch-up services like iPlayer. OSS have put pressure on the BBC to improve on their digital services.

4.1 Analysis of Primary and Secondary Research collected

4.1.1 Outgrowing the BBCBecoming more efficient in business is crucial for NX and AP to continue the growth they have been seeing over the past 10-15 years. Netflix has taken OS global and has been instrumental in helping them outgrow TV broadcasters, such as the BBC. Outgrowing the BBC is not just about beating the figures, it is about becoming more efficient in the process. One of the ways, especially in 2015, has been the number of premium content shows which Netflix have launched. This has been a major turning point in the battle for ratings. OS allows NX and AP to show whole seasons of a TV show, meaning people can watch it whenever they wish, even watching entire seasons at once (Appendix 1 & 3), adding to the efficiency of their USP. Last year has proven that Netflix can compete with the likes of American broadcasters such as the Discovery channel, who are now trying to launch their own subscription streaming services due to the level of success NX has had (Lizzie Plaugic, 2015). Comparing this to the BBC who still run a linear network on top of their on-demand service have seen the link between younger people and OS. As they moved their BBC Three channel to online only less young people are watching linear TV (Sillito,2016).

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4.1.2 Online streaming struggles with live sports and news broadcastsAlthough NX and AP have been successful recently, this has not meant that being online will mean they become more efficient. In most cases they have definitely changed people’s perceptions but they have not taken over yet. If given the choice, out of the 44 respondents 50% (Appendix 2) would pick TV over any online service. This suggests they are missing out on certain services, keeping TV broadcasters from being pushed out of the market. The problem for NX and AP is that they can’t replace the news, or live sport. Until they find a way to overcome this, they won’t completely replace TV broadcasters in the near future (Appendix 3 & 4).

4.1.3 How online streaming has revolutionised how companies do business OS has revolutionised how companies in this industry do business. Netflix held a quarterly earnings interview in January 2016, in which Reed Hastings (CEO of Netflix Inc.) was quoted as saying “We’ve got over 50 countries in Q4, so we’ve had a lot of experience, Ben, at predicting these markets, and then we launched in Japan in early September and Spain, Portugal, and Italy in mid-October”. In Q1 of 2016 alone Netflix released more content to their site than a lot of networks would in a whole year, which says something about the efficiency that Netflix are managing to continue to grow. This hints that Netflix is still in its growth stage, meaning that sales are climbing quickly, and contributes to the growth Netflix have had over the past 5 years (Philip Kotler, 2013).

AP costs £79/99$ a year, giving consumers access to free same day shipping on millions of items, subscription to thousands of TV shows, movies, music, books and unlimited cloud storage for photos. This is attracting more consumers into using this subscription service. Not only have they added on a streaming service, but they have offered something which both Netflix or the BBC cannot do (Philip Kotler, 2013), and that is maximising their consumer base through extra services, which itself is differentiating from others in offering something of superior customer value (Appendix 3).

4.1.4 Profit and Satisficing MaximisationProfit Maximisation (Appendix 5) has been a key implementation in AP’s efforts to earn more than the £79 a year subscription fee from consumers. They are looking to maximise the difference between total revenue and total cost so it is at its greatest, meaning they will make the most profit (Anderton, 2006). Not only have they looked to increase their profits but AP have stated that they have expectations to save in the long-term rather than capitalise on short-term profits (making smart savings that over time will produce a greater return). Being optimistic will see their rate of return on investments such as this rise (Anderton, 2006). This is some of the objectives they have set in place lining up with H. Simon’s (1959) theory that firms can seek objectives other than profit maximisation.

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4.1.5 Influence of shipping costs on Amazon Prime’s Profit MaximisationAmazon have managed to entice consumers who are signed up to AP, “to spend nearly twice as much on Amazon as non-prime members do”. They are maximising their profits from offering these extras, tempting more consumers into spending more. The effect of shipping fees on order occurrence has shown to be influential, AP attracts more consumers as they aren’t deterred by shipping fees. It has been proven that consumers back out of the transaction due to the shipping fees, “Market Research has showed that from 52% (refer to Direct Marketing Associations Report 2004) to 60% (refer to Jupiter Communications report 2001) of online visitors abandons their online shopping carts when presented with shipping and handling fees” (Mingming Leng, 2009), AP have integrated their business so that OS allows them to become more efficient. They have managed to increase their membership by 53% in 2014 (D'Onfro, 2015).

4.2 An Assessment of these Implications

4.2.1 Difference in Younger and Older generations with streamingThe area in which NX and AP are having trouble is with the older generation. This segment of the market is not shifting (Appendix 3). They are an online only company so inadvertently or not, are targeting younger audiences who are technologically advanced (Philip Kotler, 2013). Younger generations spend on average 15 hours and 30 minutes a week watching TV during Q3 of 2015 (18 -24 year olds). This indicates an 11.8% drop year-over-year in Q3 of each year between 2011 and 2015. Overall this has fallen by 35% in these 4 years. (Appendix 6). Adults aged 65 or older spend an average of 47 hours and 33 minutes watching TV in a week. This has risen by 20 minutes a week from the previous year (Charts, 2015). The data hints that OS is growing among the younger generations, but not so much among the older generations, especially 65 years old and above. The implications to an older generation is missing out on exclusive content as more of the younger generations move towards OS. Younger generations are having a bigger influence on the future, they are becoming the driving force for a more technologically driven atmosphere, where linear TV as we see it, is dying out.

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4.2.2 Implications of job security for employeesLinear TV dying out does not mean the end for TV itself, as the week of the 15 th

February 2016 46 million 351 thousand people (BARB, 2016) tuned in to watch a programme on BBC 1 (for a minimum of three minutes). The BBC has to shift its focus on how they get their content across to viewers. This can be because the BBC still controls a considerable amount of exclusive content, meaning viewers will have to tune in weekly to watch a programme. The BBC differentiates from this allowing them to continue to compete with NX and AP. The implications of exclusive content for both OS companies and the BBC’s employees, allows for a degree of security in their positions, as they know that with this content, they will be able to continue to bring in viewers. The insecurity for the employees in the broadcasting sector is that as OSS continue to grow (Appendix 3) eventually the exclusives will not be enough to keep customers loyal. The problem that linear TV has is that consumers have to wait each week to watch their TV programme, which nowadays people just don’t have the patience to do. This is why NX and AP have become so popular in being able to watch it at your own pace.

4.2.3 Implications of creativity with employees and effect it has on the companiesThe biggest difference in terms of employee’s implications at the BBC and both of the online streamers (NX and AP) is the level of creativity at the companies. Netflix is growing a name for itself in terms of creativity and innovation, as employees at Netflix have been allowed to flourish more compared to the BBC. The BBC has a more traditional hierarchical structure to it. Netflix have established a more flexible, matrix-based organisational structure meaning that managers can build project-based teams faster. It allows for a more rapid deployment of employees, and introduces a more productive use of resources which will increase creativity, new ideas and innovations (Bilton, 2007). The implications of growth in Netflix have had major advantages having grown and structured to allow for more creativity with employees.

4.2.4 Diversifying can help with creativity levelsDiversifying is important to bring cultures together helping to increase creativity. The downside of this to the BBC is that they have a more outdated structure meaning employees don’t see the benefits of creativity as teams can’t be assembled as fast, and their talents become underutilised, meaning they’re ideas may be not taken advantage of, leaving employees at the BBC feeling dissatisfied. The BBC is failing to attract minority workers to their organisations, with only 12.2% of their staff being of a minority, failing to meet their own targets of 14.2% by 2017 (Martinson, 2016). It is affecting the level of creativity its employees have. This has implications outside of the organisation and could see consumers viewing habits changing further. Employing more diverse personnel can bring a new culture with them, and in turn new ideas, which will change what kind of content consumers are watching.

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4.2.5 Implications to CEO with decision making and strategy planningOS has had a big effect on the BBC’s CEO (The Lord Hall of Birkenhead) having had to carry out a SWOT analysis to assess what his company’s strengths and weaknesses allowing him to formulate strategies which they can implement to compete with the growth of OS (Griffin, 1999). Currently the CEO of the BBC does not understand the customer’s needs, as they begin to fall behind in the race for overall control of viewing figures. NX and AP CEO’s understand the needs of their customers, by taking the feedback on board. This been a major influence in their strategic planning (Appendix 7). The owners of NX and AP have understood Porter’s generic strategies (Griffin, 1999) and evaluated what strategy is best suited to their organisation and how this affects their decision making and planning. In both cases they would be linked to a differentiation strategy as Netflix was the first major streaming service which created a whole new market with streaming, and AP have differentiated themselves by the benefits they allow with their subscription. By linking their SWOT and Porter’s generic strategies, it has allowed both companies to build better foundations for their creativity, innovation and diversity with employees. Netflix’s CEO has led the way in this area, having implemented unlimited vacation, no expense approvals and no yearly reviews, treating their employees like “fully formed adults”, giving them great amounts of freedom so they can take risks and become innovators without being clogged with red tape (Stenovec, 2015). This may be one of the reasons for their creativity increasing which links back to changing viewing habits, as the CEO invests more time into his employees; they feel more integrated and can improve productivity. This boosts their revenue as they bring out new content for consumers which have been a major factor in changing viewing habits over the past 10-15 years. It also reflects on the culture of the organisation and how external customers see them from the outside.

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4.3 Conclusions taken from the Investigation & Recommendations based upon these findings

4.3.1 Online Streaming has outgrown TV CompaniesNetflix and Amazon Prime have outgrown TV companies in terms of the content they are producing. This can be correlated to the number of TV shows such as “House of Cards” and the number of nominations it has won. This success shows that OSS have grown, and are continuing to do so. The problem that the BBC have had is the linear way in which consumers are forced to watch their content, in this modern day and age, consumers don’t have the time or particularly want to wait to view their TV shows. Having to tune in weekly is not suitable for the modern individual. Including the lower cost of OS in the decision making process for an individual makes it appealing and is why it is continuing on this growth cycle. It has outgrown linear TV which would have died out if it had not been for live sports or news broadcasts which NX or AP doesn’t yet provide. My recommendation to OSS would be to fill this gap, and utilise some of their resources to start their own news and sports channels to compete with the TV companies meeting the needs of the customers who still use TV to watch the news and sport.

4.2.2 Difference in generations with streaming & how this is changing viewing habits of consumers and effecting the job security of employees The difference in generations in terms of who uses a streaming service is a crucial factor in how effective OSS are in changing consumer viewing habits. Intentionally or not, OSS is targeting younger generations who are technologically advanced. The older demographic population simply aren’t plugged in or the content available is not what they would watch. The BBC still control a number of exclusive TV show’s rights which have allowed them to continually compete with both streaming services and looking forward to the future could be a vital factor in their survival. This can relate to the job security of employees in both sectors, as the different demographics keep both companies in business through different reasons such as exclusivity rights or loyalty. However it is shifting in favour of OSS as the new generation of consumers grow up and look to replace the older generations. For personnel who are employed by the BBC it is becoming increasingly less secure (at a relatively slow pace currently) as OS continues to grow, and consumers begin to lose their patience over the linear service which they rely on currently. There are factors which keep consumers coming back such as news and live sports, but if OSS were to invest more resources into producing a service such as this, it could jeopardise what keeps consumers coming back to them currently. A recommendation to the BBC would be to focus on producing more exclusive shows which can bring consumers back. To invest more time in understanding what is appealing to the younger demographics in terms of OS and how they can utilise this information to adapt their company for the future. Utilising the change curve diagram (Appendix 8) can help to reduce the negative impacts seen on the company from the employees who may be resistant to the changes at first.

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4.3.3 Innovation and freedom to be creative it crucial in effectiveness of online streaming companiesInnovation has been the key in both OS companies success; they employ screenwriters and producers for whole seasons at a time, adding to the value of their organisation. This makes it more appealing to potential employees who may be interested in this area of the market. Netflix is using the data they gather from their site to create more successful shows, and are more appealing as they allow more freedom. This has forced the BBC to pay more for their talent. It is another indicator that OS has not only grown, but is outgrowing TV companies. They are dictating how other competitors do their business and how their effectiveness has meant that the BBC has had to adapt to compete. If they don’t allow producers and writers more freedom to be creative then there would a surge in the number of employees moving to a major streaming service since they allow for more freedom to use their talents. The CEO’s of all of these companies are a big factor in how effective their employees are and how diverse their companies are. Diversifying can help to boost creativity levels and provide an increase in productivity helping with the CEO’s decision making process, as they see the benefits more clearly through their employees work. Keeping up with NX and AP is essential for the BBC’s survival in the future and a recommendation would be to invest more time into their current streaming service as linear TV isn’t where the needs of their consumers are currently at. The free service on offer currently can be used by anyone with an internet connection in the UK meaning they are not utilising the profit margins available to them showing potential for a new stream of revenue.

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5.0 ReferencesAnders Erlandsson, Z. A., 2015. TV & Media 2015. [Online] Available at: :http://sixtysix.wirelab.ericsson.net/res/docs/2015/consumerlab/ericsson-consumerlab-tv-media-2015-presentation.pdf[Accessed 11 January 2016].

Anderton, A., 2006. Economics. 4th ed. Edinburgh : Pearson Education.

BARB, 2016. Viewing Summary. [Online] Available at: http://www.barb.co.uk/whats-new/weekly-viewing-summary [Accessed 1 March 2016].

Bilton, C., 2007. Management and Creativity. Hong Kong: Blackwell Publishing.

Charts, M., 2015. Are young people watching less TV?. [Online] Available at: http://www.marketingcharts.com/television/are-young-people-watching-less-tv-24817/[Accessed 09 February 2016].

Dearden, L., 2015. BBC to axe more than 1,000 jobs in drive to cut spending by £1.5 billion a year. [Online] Available at: : http://www.independent.co.uk/news/media/tv-radio/bbc-to-axe-more-than-1000-jobs-in-drive-to-cut-spending-by-15-billion-a-year-live-10360579.html[Accessed 15 February 2016].

D'Onfro, J., 2015. Half of US Households will use Amazon Prime by 2020. [Online] Available at: http://uk.businessinsider.com/analyst-amazon-prime-growth-2015-2?r=US&IR=T [Accessed 25 February 2016].

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Martinson, J., 2016. BBC Struggles to hit targets for staff diversity. [Online] Available at: : http://www.theguardian.com/media/2016/mar/03/bbc-staff-diversity-trevor-phillips [Accessed 3 March 2016].

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Mingming Leng, R. B.-A., 2009. Joint Pricing and Contingent Free-Shipping Decisions in B2C Transactions. Production and Operations Management, 19(4), p. 390.

Philip Kotler, G. A. L. C. H. N. P., 2013. Principles of Marketing. 6th ed. Harlow : Pearson Education.

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Roettgers, J., 2015. Inside Netflix's plan to boost streaming quality and unclog the internet (Exclusive). [Online] Available at: http://variety.com/2015/digital/news/netflix-better-streaming-quality-1201661116/([Accessed 23 February 2016].

Scanlon, J., 2014. Netlfix Partners with 3 Cable Providers to bring content to TV. [Online] Available at: http://www.cheatsheet.com/entertainment/netflix-partners-with-3-cable-providers-to-bring-content-to-tv.html/?a=viewall[Accessed 1 February 2016].

Troutman, K., 2015. Top 3 reasons why the internet will kill TV. [Online] Available at: http://www.cheatsheet.com/business/3-reasons-the-internet-will-kill-television.html/?a=viewall[Accessed 4 February 2016].

Williams, C., 2015. Principles of Management, Mason : Cengage Learning.

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7.0 Appendices

Appendix 1

Question 1. What is your age?

25 to 34

Question 2. Do you have any subscriptions to online streaming services?

Yes – Netflix and Amazon Prime

Question 3. How often would you say in a day you spend watching TV?

2 to 4 Hours

Question 4. How often in a day would you spend using an online streaming service or multiple services?

2 to 4 Hours

Question 5. Do you prefer to watch TV our use online streaming services?

Online Streaming Services

Question 6. If you picked TV or online streaming serivces, can you explain why you prefer to use this choice?

No ad breaks, can generally watch an entire season -don't have to wait for weekly instalments and I can choose when I watch them

Question 7. If you could only use TV or one of the following streaming services, which one would you use?

Netflix, Progs up to date and frequently updated (why did you make this choice?)

Question 8. If you use both services compared to TV, is online streaming services quality and content better, worse or about the same?

Better

Question 9. If you do not use any online streaming services, what would they need to do in order to make you more likely to use their services? N/A if not applicable

N/A

Question 10. Has your viewing habits changed as a result of online streaming services becoming more popular?

Yes, binge watching is now commonplace! (Can you explain why you made this choice?)

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Source: Sample questionnaire from Survey Monkey

Appendix 2

Source: Survey Monkey Data from questionnaire

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TV

Netflix

Amazon Prime

Other (if so specify which service below included in your answer)

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00%

If you could use TV or one of the following streaming services, which one would you use?

Percentage of people who picked this service (%)

Serv

ices

Appendix 3

Interview Questions - Julian Aquilina (Enders Analysis)

Question 1. What would you say is the biggest benefit NX and AP have added to TV?

I would have to say that it would be in terms of consumers the level of content they have added to the internet (along with being a cheaper alternative to TV). I mean content alone there is a lot of choice, not only that but you can watch it when you want to, which has been a major benefit to NX and AP which is attracting more and more consumers daily to their sites.

Question 2. Do you think that people will move from TV to online streaming anytime soon?

How would I feel if a TV wasn’t in my house, well now-a-days my laptop does everything my TV can, and more but there is still a need for TV’s at present, and for the near future, I think that linear TV is dying out and is being replaced as we speak, but TV itself won’t go away anytime soon. If you were to look at your parents, or their parents they all watch the news, and yes you can do online, but for the older generations, using the TV is convenient and what they are used to, so shifting this market will be nearly impossible meaning that for the near future in my opinion people will move yes, but not completely as of yet. I think there is still a need for TV’s.

Question 3. Do you think that online streaming as a market is growing?

I think the simple answer to this is yes, yes it is. In fact I think it’s outgrowing their TV rivals, as more and more people are adapting to the idea that they can watch what they want when they want and for a cheaper price. Netflix especially have had so much success in growing that they are enticing more and more employees away from networks, and broadcasters to their company with the benefits that working for a streaming company can bring, for one they have added job security knowing that unlike the BBC where they go on whether the pilot is successful or not, Netflix go on a season, sometimes even two. So they know they’ll be employed for more than an episode. Focusing more on Amazon Prime, they are really growing fast considering they started the streaming service only 11 years ago. Although they do not have the content as of yet which Netflix has, they are catching up, along with the added things like the free shipping, and other discounts they are offering more for your money than a traditional streaming service does.

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Question 4. Where do you think NX and AP will have most difficultly in (in terms of customers, externally)?

I think that as I have mentioned before, attracting consumers who are of an older generation, even above the age of 30, you will have trouble getting them to move online the further up the age brackets we go, as older people do not have the type of technology we do now in their day, and people stick to what they know best, so shifting these consumers into online streaming alone will be a task which I think would be unsuccessful, so leaves linear TV somewhat on its last legs, down but now out yet. I will have to say that the younger generations are pushing this with a lot of steam, and we will see a shift majorly in the future, I can’t be certain when but it will be inevitable.

Question 5. What about inside of these companies, what do see you the effects being there?

Well I think that in terms of the BBC, it is a valued place to work with a big credit to your name, but that is slowly changing, as people just have so much choice, making it even harder for them to stand out. I think that for their employees they will see a lot of them making a shift into other online streaming companies as they continue to grow, it looks more lucrative and exciting. I think that for the shareholders, you could see a shift into more online streaming services, and this is because of the growth in the market, and the continuation of it, so far. The BBC are shutting down, and closing departments, whereas Netflix are opening new ones, and expanding, the difference is clear.

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Appendix 4

Question 9 of Questionnaire (three responses from three different individuals)

Question 9: If you do not use any online streaming services, what would they need to do in order to make you more likely to use their services?Respondent 1 TV still has content which you can’t get online yet such as soaps, or

older TV shows from the 70s and 80s etc.Respondent 2 I can’t watch the news on Netflix or Amazon Prime, which is what I

would do every morning, but I also can’t watch any live sport which would be an important factor in me being able to switch to online only.

Respondent 3 Although I can binge watch a TV series whenever I choose to, there still isn’t enough quality there yet for me to completely switch over, and some of the TV shows I enjoy watching you can’t get online. Which if anything would be a reason for me still watching the telly.

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Appendix 5

Source: Economics Help

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Appendix 6

Source: MarketingCharts.com analysis of Nielsen data

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Appendix 7

Source: BBC Higher Bitesize

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Appendix 8

Source: www.mindtools.com

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8.0 Activity Log

Date Activities Undertaken Resources Used Time Allocated

Experiences & Personal Development

10/01/2016 Research Investigation topic – objective 1

Time, laptop, pen, paper, internet

1000-1800 (8 hours)

Better understanding of online streaming’s growth

12/01/2016 Research Investigation topic – objective 2

Time, laptop, pen, paper, internet

1100 – 1900 (8 hours)

Allowed me to better grasp what has changed with

viewer habits14/01/2016 Research Investigation topic –

objective 3Time, laptop, paper, pen, internet

0900 – 1500 (6 hours)

Got to grips with effectiveness online

streaming services have had with being online

16/01/2016 Creating Blank Investigation for layout

Time, laptop 1200 – 1600 (4 hours)

Understood the layout and where everything went

17/01/2016 Creating a questionnaire Time, Laptop, Survey Monkey, internet

1600 – 1800 (2 hours)

Allowed me to think about what questions to ask

19/01/2016 Continuing with questionnaire Time, Laptop, Survey Monkey, internet

1200 – 1700 (5 hours)

Took more time to complete which allowed me to better

focus on right questions22/01/2016 Completing and distributing

questionnaireTime, Laptop, Survey

Monkey and Email, internet

1700 – 2000 (3 hours)

Appreciated how hard it was to get responses & effort

needed23/01/2016 Continuing with research on

objectivesTime, laptop, internet 1200 – 1700

(5 hours)Realised how much they related to my overall aim

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24/01/2016 Carrying out interview for investigation

Time, Pen, Paper, Internet, Word

1100 – 1300 (2 hours)

Gained a deeper understanding of the

complexities of carrying out an interview, but also a

better experience into the topic I am investigating

25/01/2016 Collecting and Typing up interview questions and answers

Time, Word, Internet, Paper notes, laptop

1500 – 1900 (4 hours)

Learned how much effort and time it takes to type up and analyse the answers

which were given to me, and then put them into a format which is easily readable and thoughtful to help further the

investigation26/01/2016 Working on collecting and

analyzing some of the results from questionnaire

Time, laptop, internet, word

1900 – 2200 (3 hours)

Understood how to analyse the results to help with

report28/01/2016 Investigating results from

questionnaire and if they help the report

Time, laptop, word, internet, survey

monkey

1300 – 1900 (6 hours)

Understood that some of the questions better helped me

than others05/02/2016 Start with creating bibliography Time, internet, word,

laptop1200 – 1400

(2 hours)Got to see how what

information actually went in this section

07/02/2016 Filling out declaration of own work

Time, word, laptop 1000 – 1100 ( 1 hour)

Helped me to realise how important it is to be my own

work10/02/2016 Create a page for summary of Time, word, laptop 1100 – 1200 Allowed to gain a better

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findings (1 hour) understanding of what this section is

15/02/2016 Start off section 1 of the report Time, word, internet, laptop

1100 – 1600 (5 hours)

Experienced how hard it is to start off, a lot of mind blocks

to start with16/02/2016 Section 1 of Report, How the

issue has affected all three organisations

Time, word, internet, graded unit

worksheets, laptop

1200 – 1500 (3 hours)

This gave me a better grasp on the issue at hand

22/02/2016 Research for Starting section 2 Time, word, internet, laptop

1500 -1700 (2 hours)

Allowed to gain the correct information to help answer

my objectives in this section23/02/2016 Section 2 – collating research and

looking to answer objective 3Time, Word, Internet,

Graded Unit Worksheets, laptop

1000 – 1200 (2 hours)

Realised how important section 3 is to this report

24/02/2016 Section 2 – Research for more Secondary information

Time, Internet, pen, paper, laptop

1700 – 2000 (3 hours)

Found out what types of information can help with my

report25/02/2016 Section 2 – Continuing with report

on objective 3 & how it relates to the efficiency of online streaming

Time, Internet, Word, Worksheets, laptop

1500 – 1800 (3 hours)

Understood that online streaming has advantages in that their costs are lower in

areas01/03/2016 Section 3 of the report Time, Internet, Word,

Graded Unit Worksheets, laptop

0900 – 1230 (3 hours 30

mins)

Gained a better understanding of the amount of time and effort needed to

complete this section03/03/2016 Continuing research for

investigation, and adding Time, Internet, Word,

Textbooks, laptop1500 – 1900

(4 hours)Able to understand how

adding appendices work and

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appendices what I should put there07/03/2016 Completing Section 3 of the

Report & Moving onto Section 4 of the investigation

Time, Internet, Word, Graded unit

worksheets, laptop

1300 – 1700 (4 hours)

Fitting all of my thoughts into the word count is more difficult than first thought

08/03/2016 Section 4 of Investigation, basing recommendations on conclusions

found

Time, Internet, Word, Graded unit

worksheets, laptop

0900 – 1300 (4 hours)

Found out how difficult it is to get the conclusion to

follow from investigation within word count

10/03/2016 Completing Section 4 and Tidying up Report for a first draft

Time, Internet, Word, laptop

1500 – 1800 (3 hours)

Learnt how to properly lay out my references section, and what my investigation

actually concludes with so I understood what I have been looking to answer and finally able to answer my objectives

and aim14/03/2016 Tidying up report and making it

look presentableTime, word, reference

book, laptop1200 – 1600

(4 hours)Able to see how an

investigation should be presented, gave me an

understanding of what it should look like

28/03/2016 Proof Reading Report Time, Word, laptop 1400 – 1700 (3 hours)

Understood how important it is to proof read my report as to correct any mistakes not seen before whilst typing it

up.30/03/2016 Filling out the Checklist Time, word, laptop Got to grips with what

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section was where in the investigation and how it has

all formed together01/04/2016 Submission Time, Internet, laptop 1500 – 1510

(10 minutes)

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Developing Section of Graded Unit 2: Project

SectionIncluded in word count Included in

report

Paragraph reference in

report1 Title Page Yes Page 12 Declaration of own work Yes 1.03 Summary of findings Yes 2.04 Acknowledgments Yes 3.05 Contents page Yes Contents Page

(Pages 4 and 5)

6

Section 1Detailed explanation of how the issue affects the organisation or organisations chosen. The explanation should be justified by explicit reference to the data collected and to concepts covered as in the mandatory Units of the Group Award. The explanation should be consistent with objectives at the Planning stage.

Yes Yes

4.0

7

Section 2Analysis of the primary and secondary sources of information and data collected. Yes Yes

4.1

8

Section 3Assessment of the implications of these effects for the chosen organisation or organisations should be analysed in relation to the organisation(s), the business environment and the impact upon customers and should make reference to concepts and topics studied within the mandatory section of the Group Award.

Yes Yes

4.2

9

Section 4Statement of the conclusions drawn from the investigation and any appropriate recommendations to be made to the organisation(s). These should be explicitly related to the issues being investigated and the needs of customers.

Yes Yes

4.3

10 References Yes 5.011 Bibliography Yes 6.012 Appendices Yes 7.0

13The report should consist of 2500–3500 words, and must be presented in a format suitable for a business report.

Yes

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14

Produce a log of activities carried out by the learner. The log must include activities undertaken, resources used and time allocated.

Yes 8.0

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