Hulu: An Evil plot to Destroy the World Essay

All quotations and references refer to Hulu An Evil plot to Destroy the World unless other(a)wise noted. 1) Hulu succeeded succession everyone predicted its failure due to the following reasons* Hulu harnessed existing technologies namely online video and broadcast media to create a new program that was focused on back up users find and enjoy the worlds premium, professionally produced content when where and how they want it. The plan brought together professional content owners/providers, advertisers and content consumers/users in a platform mediated network. * Rather than choose to be a destination site or syndicate content, Hulu chose to be both by being an aggregator of online video. there were web sites that did this for user generated content but Hulu was a leader in this space for professionally generated content.* The business model for Hulus platform is 100% advertizement supported. * Hulus platform model consists of 3 nodes content providers, advertisers and users * The subsidy brass in this network is the users who use the platform for free while the money side is the advertisers who pay Hulu for running their advertisements. Hulu on the other hand pays content providers for showing their content on the platform. The more the number of users on Hulu the more advertisers value the platform and atomic number 18 attracted to advertise on it. Also, the more the content available on Hulu the more users are attracted to the platform and subsequently, the more the revenue that can be generated from advertising.* Hulu leveraged the wipe side network effect between content providers and users by partnering strategically with over 170 content providers including the most popular broadcast and cable networks in the United States. The content providers participated in the value created through the distribution of their content, providing the incentive for them to continue their support of the Hulu platform. * Hulu partnered with 30 affiliated websit es including those whose users represented 96% of the periodic unique US-based web users to bring content to its audience and to leverage the cross side network effect between users and advertisers to increase revenues. * Hulu also focused on users and offered its service free to them thereby maximising the cross-side network effects between users and advertisers on its platform resulting in increased revenues generated from advertisers.2) Hulus business strategy is to be focused on helping users find and enjoy the worlds premium professionally produced content when, where and how they want it. Hulu does this by using Internet engineering science to bring free content to its users anywhere at any time. Hulu is a first mover in this space and is currently enjoying the first mover advantage. hitherto with the ubiquity of internet technology accompanied by lower costs and the commoditization of the technology, the barrier to entry will be reduced and more players will be attracted t o the profitable online video business, eating into Hulus profitability and success. Also, the increase in IT investments in the internet age causes a Winner-take-all dynamic and high turbulence, as from each one group of dominant innovators is holy terrorened by succeeding waves of innovation (McAfee and Brynjolfsson, 2008) in Schumpeterian competition. This makes Hulus success vulnerable.The case mentions that there is already an emergence of competitive threat from TV Everywhere and even though CEO, Jason Kilar discounts the effect on Hulu, the new entrant is gaining some clout and Broadcasting & Cable has warned that TV Everywhere was showtime to look like a real competitor to Hulu.Sustained success for Hulu in what is bound to be an increasingly competitive market will account on Hulus Management and their ability to continue to maintain frugality, drive innovation, operational efficiencies and differentiate their products and services to gain competitive advantage and con tinue to look across the market.3) Input data Basic Name, Gender, Age, marital statusContact address (state, city, zip code), phone numberOther- favourite genre, previous shows watched, sites visited previously, evaluates of previous shows watched.a) BI techniquesi) exploitation Market basket AnalysisRule if Gender = female then watches real kingdom shows Action Show Ad Selector for real estate companies and related products when a female useris on Hulu ii) Using Market basket AnalysisRule if Married and Age50 and lives in California then has watched 2 judgeship shows in the past and previously visited a tax filing website Action Approach tax filing website to place their advertisement on Hulu when court shows are playing. iii) Using user based Collaborative filteringRule Find users similar to current user by choosing those with the highest similarity coefficient between them and this user on the ratings of other shows. Use a combination of their similarity coefficients to pr edict current users rating for a crime show. Action if users predicted rating for the crime show is high, then advertise any new crime show when user is on Hulu or other affiliate websites. b) MonetizationThese techniques grant Hulu to increase the click through rates as well as transaction transition rates for its advertisements because they are targeted at users most likely to respond. Since advertisers are interested in traffic, Hulu can increase revenues by demonstrating to advertisers the number of users that can be targeted using these techniques and the subsequent increase in click through and conversion rates.4) IT Security Plan for Hulua) People* Management should make security a high priority and include it in Hulus business strategy * adopt Hulu employees on the importance of security- persisting passwords confidential and not sharing passwords * Train employees on privacy policiesb) Processes* Create security policies and procedures establishing mandatory minimum secur ity standards * Standards should include alimentation on customer privacy * Ensure all affiliate websites adhere to mandatory minimum security standards * Set procedures for security incidents* Review security policies per year to address new security threats to the online video industryc) Technology* Encrypt all customer data* Install antivirus software on all servers and computers and keep installations up to date* Have multi-site backup of data* Install monitoring software for servers and network* Incorporate systems logging to track access to Hulus IT stand* Ensure firewalls are installed, enabled and have sufficient filters to protect from outside intrusion* Engage Ethical Hacking vendors to audit systems annually in order to identify areas of vulnerability.ReferencesAndrew McAfee &Erik Brynjolfsson (July-August 2008). What Makes a competitive difference. Harvard Business Review, pg 100.