Study: Why does Netflix continue to dominate among streaming services?
iModerate, a consumer insights firm, recently released a qualitative study looking at the top three video streaming brands: Netflix, Hulu, and Amazon Prime.
Among the three services, only Netflix was singled out as the service that could potentially replace traditional cable and satellite TV services, and more, 20 percent of the 2,500 respondents thought that Netflix has the opportunity to replace all other video entertainment options. Netflix resonates more than other brands mainly because of its “variety” and also because of its original series.
Study participants were only a bit familiar with Hulu, and saw it only as a way to stream TV shows – not movies. Brand perception was Hulu’s biggest barrier – 14 percent of respondents couldn’t name one benefit of the service.
Amazon also faced brand perception issues. When asked about a benefit of Prime Instant Video, 23 percent of respondents referred to free shipping – a Prime benefit, not an Instant Video one.
“While Netflix is the strongest contender to replace or supplement traditional TV, Hulu and Amazon could threaten its dominance by making a few tweaks, such as communicating a stronger benefits message, offering more original programming and building friendlier interfaces," said iModerate partner Adam Rossow. . “There’s no doubt that cable and satellite companies are planning their counter-moves, so the battle isn’t decided yet.”
Below, additional study highlights:
· 20 percent are confident Netflix can replace other entertainment platforms
· Users talk about “watching Netflix,” rather than watching shows on Netflix, indicating a strong platform brand identity
· Hulu is synonymous with TV, whereas Netflix is known equally for its TV and movie selection
· Hulu lacks brand awareness and is failing to communicate a strong benefits message
· Consumers tend to choose Hulu because they’re interested in certain shows, rather than the platform as a whole
· The Amazon Prime Instant Video brand is oddly entangled with Amazon’s Prime shipping service, and could become even more muddled with the company’s push around Fire TV
· Those with Amazon’s video streaming service don’t know how they have it or how to use it