So the fight for subscription video on demand (SVOD) market share is really kicking off with Apple TV announcing their advanced intensions…
We wrote an artcile about it a couple of months ago (read it here) & never figured Apple would enter the market in such a dramatic way.
Apple is expected to spend $2 billion this year on original content that it hopes can compete with shows from Netflix, Hulu, Amazon, and others. But it’s got some catching up to do as Netflix already spend $8 billion a year.
We know that subscription video on demand (SVOD) is the next big thing. As 2 out of 3 Amercians are already signed up with at least 1 service. And the number of UK subscribers to an SVOD service with Netflix, Prime or Now TV finally took over the amount paying for traditional TV services in 2018.
But are some of the largest global organisations trying to get involved in too many things. And in danger of loosing their identity with joe public?
Take traditional tech company Apple. Who still do traditional tech. But are also aiming to be a market leader in music streaming, driverless cars & now subscription video on demand.
You’ve then got online retailer Amazon. Still doing online retail. But also involved with grocery stores, tech products, subscription video on demand, music streaming & driverless cars.
Facebook & Google are already dipping their toes into driverless car technology. And is it only a matter of time before they also announce SVOD plans too?
For me. I’m starting to get a bit lost what these massive organisations are about. I certainty don’t have any loyalty towards them. They’ve grown that big & have that much surplus cash. When the next big thing comes along they just buy their way in & throw huge resources at it.
I remember the supermarkets going down this road too (particular Tesco). Trying to be all things to all people. But they had to reign it back in & concentrate on their core business. Grocery. Or these massive global organisations in danger of heading down the same well trodden path?
I’ve got to take my hat off to Netflix though. They entered the video subscription market place with a vision far beyond where others could think (Blockbusters). Starting with a monthly subscription postal service. In the background planning a subscription video on demand service when the technology would allow.
Back in the day. Blockbusters could have bought Netflix for $50 million. Netflix current net worth is $157 billion. Thats 1 huge mistake.
Netflix strategy is to build on their core business & make it better. So it appeals to more people continually increasing their subscribers & profits. 2/3 of profits are re-invested back into making more & better original content. And the cycle continues. Netflix have a clear identity & strategy.
Rather than the scatter gun approach to business. We much prefer the core business approach that Netflix have adopted. It’s extremely important that your existing & potential customers understand your specialism & buy into your story. Your the specialist in your field. Not the generalist.
We’ve taken the same approach to print management solutions. It’s not as sexy as SVOD. But still has an important role to play in helping small organisations grow. We’ve made ourselves specialists in a somewhat complicated market place. The go to people when you want simple honest service with no surprises.
But what about your organisation. Could you position yourself as a specialist in your choosen field. To become the go to business. Like Netflix is for SVOD & we are for printing technology solutions?