Companies are now pressured to use digital channels in order to capture their target audiences. It’s not a “nice to have” anymore, but rather, an important part of a full marketing strategy.
Even organizations like The Met Opera over the last several years have adopted live simulcasts for key opera productions to revive the opera experience and make it relevant in this age to today’s arts-loving audience, as a presented in an HBS case study and the Anita Elberse’s book, “Blockbusters.”
Hulu was considered an innovator at the time of its launch. Back then, premium content was rare. Youtube videos featured amateur clips created by anyone with a video recorder. Hulu was at the forefront, distributing high-quality, online videos of people’s favorite shows, and created this new niche. Startups like Veoh and a series of video ad networks joined the game. Old competitors like Youtube were forced to innovate with a host of features on its video player, such as HD features, skippable ads, etc. Now that the niche is developed, Hulu has taken a backseat. It’s experiencing the innovator’s dilemma: How does it continue being an innovator in the online video spaces it was instrumental in creating? It clearly needs a new strategy. It’s not enough that it has exclusive programming of traditional television content from its parent networks, especially if those programs don’t necessarily draw passion out of people. The strategy it needs is one that will allow it to compete with the likes of Netflix that has created original, online-only content. Netflix is certainly starting to cater to audiences that consume media primarily online and don’t watch television anymore.