Wednesday, July 27, 2011

Netflix, Hulu Viewers' Device, Programming Choices; Apple's TV Strategy

A recent Nielsen survey of Netflix and Hulu customers revealed some interesting consumer choices. The AP story, picked up by the San Jose Mercury News, found that "more Netflix users are watching video on the TVs rather than their computers," often using game box consoles as their connection.

Hulu clients skew heavily toward computer use. They also tend to watch TV programs. That contrasts with the Netflix crowd, which tends to prefer viewing movies. (The image shows Hulu's icon for its desktop application.)

Now, if Apple acquires Hulu, that act would imply a major Apple push into the television distribution market. A computer-driven audience would play into the Apple plan. TV also happens to play better on mobile devices, such as tablets and smartphones, including the iPhone. Apple's bete noire in this hypothetical strategy would be the cost of bandwidth, which would be controlled by the phone duopoly and cable providers such as Comcast (which happens to own NBC).

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