Chris+McClaning

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Strategy report
TO: Proximity Video Team FROM: Chris McClaning DATE: September 26, 2009 SUBJECT: Xbox 360 Strategy Analysis

This is my Xbox 360 analysis. The Xbox 360 does not rule the gaming or DVD market; however, it is in a strong position to take a dominate place in the emerging video on-demand market. Whether Gen Y is to adopt Xbox as their main source for on-demand video, Xbox must be able to convert existing consumers into gold members and bring in new consumers with its bundle of benefits. ** Profile ** Microsoft was founded in 1975 and quickly rose to a dominant position in the personal computer market by the mid 80’s. It continued to grow branching into other industries. Microsoft released the Xbox 360 in November of 2005 as a gaming consol and Digital Video Device (DVD) player. In 2006 Xbox introduced a video on-demand feature with a limited catalog of videos. In November 2008, Xbox teamed up with Net Flix to increase its library of videos. Since the merger Xbox’s on-demand has been adopted by over 1 million of its users and shows no sign of slowing down. Xbox’s revenue comes from 3 main sources: · The sale of new games · The sale of add-ons and arcade games · Gold membership subscriptions Xbox has sold over 28 million units with 17 million consumers holding gold subscriptions. This customer base generated over 1 billion in revenue for Microsoft last year. Financial experts expect stock prices to continue to increase now that it is introducing an on-demand system for both video and games. ** Competitive Landscape ** The primary force driving competition in the video on-demand market is the consumer’s power. Xbox has a number of advantages its competitor’s lack. Its reputation, large customer base and large reservoir of cash give Xbox an early and significant hold in this emerging market. Xbox faces strong competition from other companies entering this market such as TiVo, Apple, Hulu and Armstrong. This market is still young and volatile with no clear leader. As the technology is refined and molded by consumer demands the leader will be the one to satisfy these wants the best. Xbox has a number of strengths that it can use as a boost towards becoming an industry leader. · With a well established consumer base (most of which are Gen Y) of gold member subscribers Xbox has a strong starting point in the industry. · With so many consumers already using the Xbox they will be less likely to use another product for on-demand services. This application may also help to sway non gold members to sign up. · The on demand feature works out to $14 a month for unlimited videos and all the other online features provided by Xbox. The convenience and low cost of this application are both attractive attributes for Gen Y. ·  The Xbox has a number of features the make it superior to competitor boxes like TiVo. Its ability to play DVD’s, games and provide a social networking tool are all enticing to the Generation Y culture. With the addition of on-demand video the Xbox would become an all in one device capable of attracting new consumers better than competitors.
 * Xbox’s Strategy **

** Gen Y Implications ** Xbox has made a deal with Net Flix where subscribers of both organizations have unlimited access to Net Flix’s library on their Xbox. The convenience of having everything in one box is an appealing prospect for Gen Y. References Game Industry Biz (2006.) Xbox launches on-demand service for xbox 360. Retrieved September 27 2009, from [] Reuters, Microsoft inc. (2009.) Retrieved September 27 2009, from [] Xbox (2009.) Xbox & Net Flix. Retrieved September 27 2009, from []

Blog proposal
TO: Proximity Video Team FROM: Chris McClaning SUBJECT: Blog Proposal DATE: Oct 25th I recommend that we do our Proximity blog proposal on the video On-Demand features popping up on Gaming consoles. This can be used to attract new clients and inform old ones of content available on their consoles. On-demand video is becoming a popular feature with the gaming community. It is available on the Xbox 360 and will soon be available on the Playstation3 and Wii. This feature can be used by Consuls in three key ways 1) generate revenue through subscription fees 2) attract new consumers 3) advertise specific videos or products. These benefits are attractive to the gaming industry. I recommend that we organize the post around __Crunch Gear__ a blog dedicated to technical news with a sizable user base. [] []
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Report proposal
Netflix is the dominate force in video rental, with its vast library and streamlined mailing system, is positioning itself to be a dominate force in the video on-demand market. I propose to write a report on how Netflix is accomplishing their goal and its affect on the future of the video media market. The ability to control what one watches is quickly becoming a cultural norm. · Advertisers are mining data from Netflix’s customer records based on what videos are demanded. · Competitors such as blockbuster, and TiVo that are using streaming video to sell content on TV and computers via the internet and want to know what the competition is doing. · Gamers can view videos through their internet connected game consoles. With the emerging market of On-Demand video a number of companies are fighting to gain a dominate foothold. Netflix has the largest video library and customer base in America. It has also forged deals with Microsoft and Sony, with plans to include Nintendo, for the use of their gaming platforms as a hub for watching videos. With this synergetic link the allied companies have a better position for advancing in this market with their combined influences over gen y. Clients that want to target Gen Y need this report to understand the impact of Netflix’s service on the video On-Demand market. The proposed topic “Netflix the library of on demand video” will cover the following topics · The future of on-demand video · Netflix’s plan for on-demand · Expand through partnerships · The future of advertising The report will also include attachments of Netflix’s patents on their box. · __Netflix__. 2009. 25 November 2009 [] Netflix homepage contains links to public documents detailing future strategies, company history, and stock information for potential investors. · “Video on demand Services – Blockbuster vs. Netflix.” __Derrich.com__. Derrich January 5 2009. November 24 2009. [] A consumer report comparing the on-demand services of Blockbuster and Netflix. In the end declaring Netflix the winner based on a better service and more customer friendly layout. · Gonzalez, Annette. “Will Netflix go multiplatform” __Game Informer__. September 23, 2009 November 22, 2009. [] · Gonzalez, Annette. “Microsoft responds to Netflix on PS3” __Game Informer__. October 26, 2009 November 22, 2009. [] · Gonzalez, Annette. “Netflix coming next month to PS3.” __Game Informer__. October 25, 2009 November 22, 2009. [] A magazine dedicated to gaming and related news. This section includes 3 articles, all written by the same person, chronicling the Netflix talks, partnership with Microsoft and Sony and payment plans. · Roth, Daniel. “Netflix Everywhere: Sorry Cable, You’re History.” __Wired__. September 21, 2009. November 19, 2009. [] Netflix’s history and plans to stream video over the internet through its own box.
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Team conference presentation proposal
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Sales letter and report prospectus


Dr. James Moriarty, Director of Marketing The NetFlix Corporation 2113 E. Langdon Street Los Gatos, CA 21286
 * December 3, 2009

Dear James, I enjoyed talking with you last week at Proximity’s Next generation Media seminar regarding Netflix’s need to promote its product to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the new Personal TV service being developed by broadcast networks and cable companies. As you noted last week, Netflix must establish an identity with Gen Y now in order to sell its products to consumers in the early stages of adulthood such as college. I believe Proximity can work with you to devise a comprehensive campaign to achieve that goal. We can provide you with customized survey and focus group results to help shape Netflix’s image. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Netflix’s on-demand service on social networks such as Facebook. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y than conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Netflix’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Chris McClaning Associate Media Analyst

enclosure


 * About Proximity **

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns. || || **  PROXIMITY Reports  ** Connecting with Gen-Y Using On-Demand Video ** On-Demand Video: The Future of Television  ** Chris McClaning Netflix’s strategy to gain a niche portion of the on-demand market As video technology advances, Generation Y is adopting On-demand video via Mobile devices and Computers. Now with an uncertain future of this market Netflix must establish itself in the market as a serious competitor. Proximity focus group results demonstrate that users still enjoy watching television but would more inclined to watch programming on their television rather than their computer monitor. Using a box or medium to stream video to the consumer’s television would be welcomed by most consumers. This report will detail how Netflix can strongly enter the market by partnering with existing companies that have boxes, such as video game consoles, in consumer homes. This would serve as a dual benefit for both the gaming industry by enhancing their bundle of benefits and giving Netflix access to their customer base. From this stable position Netflix can fund advance into other niche markets and gather vital data about its customers that advertising agencies can use to better understand and market to their targeted clients. || || ||
 * The Problem **
 * Proximity’s On-Demand solution **