Netflix Plans Book by Aaron Martin

Creative Media

Research Social Media 4

Kristyn Greco Renata Baptista Mara Ciarcia Melanie Ferras Kate Festa Erica Sheftel Youqi Wen Can Zarb Adriana Saltz Marcello Darmas Sara Fefferman Ana Peralta Lindsey Reiff Pilar Echeverria Ana Alba Aaron Martin Maria Simon Marisol Montealegre Adam Frater Haley Gruber Natalia Leal Maeva Lesparre Scott Furland Alicia Dry

Director, Creative Services/Copywriter Plans Book Layout Artist/Copywriter Art Director Copywriter Art Director Graphic Designer/Copywriter Graphic Designer Art Director Media Media Media Media Media

Director Strategist Strategist Strategist Strategist

Director of Research Plans Book Writer Group Coordinator Assistant to Director Manager of Insights Group Coordinator Social Media Manager Promotions Manager PR Manager Asst Social Media Manager Asst Social Media Manager

Our Philosophy

Like a ripple in the water, it takes only one drop to grow into something bigger. Our philosophy is to make the largest ripple, leave the highest water-mark, do our best today, and do even better tomorrow.

Our Goal

At Ripple, greatness begins with you. As â&#x20AC;&#x153;uniqueâ&#x20AC;? is your own drop in the market, Ripple strives to combine client-based inspiration and pure emotion to craft advertisements and promotional masterpieces that will resonate with your audience. We have a multicultural mĂŠlange, which gives us elasticity to react and to adapt, while our youth gives us the liberty to generate ideas outside of the traditional realm of advertising. We will take simple ideas and expand them, as Ripple makes that first drop and lets it grow. 5

Table of Contents i. Executive Summary ........................................................................

ii. Situation Analysis ......................................................................... 11 iii. Primary Research ......................................................................... A. Focus Group Analysis ......................................................... B. Survey Analysis .................................................................. C. Creative Questionnaire Analysis ...........................................

29 29 33 36

iv. Target Market Profile ..................................................................... 39 v. SWOT Analysis ............................................................................. 41 vi. Creative Brief ............................................................................... 43 vii. Objectives .................................................................................. 45 viii. Strategies and Executions ............................................................ A. Creative Strategy and Rationale ........................................... B. Media Strategy ................................................................... C. Social Media and Promotions Strategy ..................................

47 47 66 76

ix. Budget Allocation ......................................................................... 89 x. Campaign Evaluation .................................................................... 91 xi. Works Cited ................................................................................ 93 xv. Appendices ................................................................................. 96 A. Focus Group Moderator Guide ............................................. 96 B. Focus Group Participant Information ...................................... 97 C. Focus Group Transcripts ...................................................... 98 D. Survey Questionnaire ..........................................................150 E. Reach and Frequency Flowcharts .......................................... 153 6

Table of Figures

Table 2.1 Total Revenue Per Entertainment Company in Millions of USD 13 Figure 2.1 Netflix Compatible Streaming Devices 15-16 Figure 2.2 Netflix Envelope Prototype 17 Figure 2.3 Netflix Mailer 17 Figure 2.4 Netflix Website Interface 18 Table 2.2 Netflix Price Breakdown 19 Figure 2.4 DVD Rental Market Share Distribution 2011 22 Table 2.3 Competition Comparison 23 Figure 2.5 Current Netflix Subscribers24 Figure 2.5 Current DVD Users by Age Range24 Figure 2.6 Financial Ties Per age Group 25 Figure 3.1 Time Spent Watching TV and Movies Per Week 34 Figure 3.2 Time Spent Watching TV and Movies Per Week 34 Figure 3.3 How Do You Prefer to Watch TV and Movies 34 Figure 3.4 Devices Owned 35 Figure 3.5 Device Preference for TV Episodes 35 Figure 3.6 Device Preference for Movies 35 Figure 3.7 Brands Used in Last 6 Months 36 Figure 7.1 “Live the Stream” Campaign Logo 45 Figure 8.1 Netflix Homepage 49 Figure 8.2 Facebook Login 50 Figure 8.3 Movie Selection 51 Figure 8.4 Connection Infographic 52-53 Figure 8.5 Stream Home 54 Figure 8.6 Stream Home 55 Figure 8.7 Train Station Waiting Area 56 Figure 8.8 Subway Welcome Mats 57 Figure 8.9 Live the Stream iPhone Application 58-59 Figure 8.10 Live the Stream Rich Media Banners 60-61 Figure 8.11 Live the Stream Rich Billboard Rotations 62-63 Figure 8.12 Live the Stream DVD Packaging Redesign Front 64 Figure 8.13 Live the Stream DVD Packaging Redesign Back 65 Table 8.1. Campaign Phase Development 66 Table 8.2 Television Vehicle List 69

Table 8.3 Out-of-Home Vehicle List 69 Table 8.4 Digital Vehicle List 69 Table 8.5 Guerrilla Vehicle List 69 Table 8.6 Media Calendar January to December 70-72 Table 8.7 Television Detailed Media Breakdown 73 Table 8.8 Digital Detailed Media Breakdown73 Table 8.9 Outdoor Detailed Media Breakdown 74 Table 8.10 Guerilla Detailed Media Breakdown 75 Figure 8.14 Detailed Media Budget Breakdown $463.5 Mil 75 Figure 8.15 Netflix Facebook Interface 79 Figure 8.16 Netflix Foursquare Interface 80 Figure 8.17 Netflix Foursquare Interface 81 Figure 8.18 ”Live the Stream: Live” Event 82 Figure 8.19 Xstreaming Week 83 Figure 8.20 ”Live the Stream: Live” Press Release 84 Figure 8.21 ”Live the Stream: Live” Promotional Towel 85 Figure 8.22 ”Live the Stream: Live” Promotional Snuggie 86 Figure 8.23 ”Live the Stream: Live” Press Teddy Bear 86 Figure 8.24 ”Live the Stream: Live” Promotional XBOX 360 87 Figure 8.25 ”Live the Stream: Live” Promotional Sunglasses 87 Figure 9.1 Total Cost Breakdown Based on $500 Mil Budget 89

Executive Summary 8

i.Executive

Summary

Netflix was founded in 1997 and is a provider of ondemand Internet streaming media and DVD-by-mail rental in the United States. In July 2011, Netflix announced prices would increase by 60% and streaming/DVD services would be separate services available through a new company called Qwickster. Shortly after making these statements, 800,000 subscribers unregistered from Netflix. Netflix has been able to salvage their reputation since the announcements were made and more subscribers than expected have registered. Following the effects of the Qwickster fallout the agency found that while people were upset with Netflix’s decision, it motivated many of their DVD only users to switch over to the streaming side. One of the main challenges Netflix faces today is the shrinking of the DVD rental market. The brand must be positioned as the best transition for those still using DVDs. However, many DVD users feel comfortable using the disks and do not see a reason to use streaming. To solve this problem, the agency recommends a primary target market: 18 to 34-year-old DVD users who are at the early stages of their career who account for approximately 43.4% of the DVD rental market. As a secondary target market, the agency recommends 35 to 44-year-old parents who only use DVDs. This sector of the market accounts for approximately 25.5% of the DVD rental market.

TV or via a computer. Interviews showed that people are willing to change their current methods if they are presented with an option they consider better or if streaming was made simpler. Our creative strategy will focus on the benefits of streaming, emphasizing easy access, comfort, and convenience. Analysis of Netflix and its competitors’ past advertising has shown that almost every brand focuses their messages on two premises: having the newest or most content. However, consumers have a hard time deciding which brand offers the best content since there are so many options available for streaming. Netflix has allotted a $500 million budget to create an integrated campaign. The “Live the Stream” campaign was developed to motivate audiences to use streaming in a fun way. The creative, social media, and promotions executions enable audiences to interact directly with Netflix and have them experience first-hand why streaming is a better alternative to DVDs.

Extensive secondary and primary research provided many insights regarding consumers’ awareness, attitudes, and behaviors toward streaming. The data analysis showed that both targets do not have more than 1-20 hours per week to watch TV shows or movies. It has also shown that they prefer to watch most of their content either directly on their 9

Situation Analysis 10

ii.Situation

Analysis

A. Industry History People have always been fascinated with moving images, but the ways in which we’ve consumed this form of entertainment has evolved substantially over time. It began with coin-operated devices and later with single-screen theaters. Then evolved color images in theaters with multiple screens. Soon after these out-of-home medias were established, the television era gave way for the development of devices such as VCRs, DVDs, and eventually Blu-ray technology. Today millions of people watch videos through streaming. Movie watching has come a long way from a peep box novelty to a Netflix subscription. B. Movie Watching Over the Years 1909 Movie Palaces & Theater Chains  The first movie palace was New York City’s City Theater followed by The Regent in Harlem, The Strand in Times Square, and The Capitol Theatre on Broadway. Eventually, movie palaces were built in all big American cities. These movie palaces led to the implementation of independent promoters and movie studios. 1927 End of Silent Era Because of the great success of Warner Bros’ The Jazz Singer, theaters installed sound equipment. Soon after, movie attendance nearly doubled to 110 million per year. 1963 The Multiplex  Stanley Durwood opened the first theater with more than one screen (now AMC Theatres) in a shopping center in Kansas City.

1970 IMAX  The IMAX wide-screen opened in Osaka, Japan with Tiger Child, lasting 17 minutes. 1970s VCRs The videocassette recorder became a market mass consumer item. The primary formats distributed were VHS and Sony’s Betamax. 1985 Blockbuster David Cook opened the first Blockbuster store in Dallas, Texas. The company’s success came primarily from its ability to customize a store to its neighborhood, with films geared specifically to demographic profiles and offering popular new releases. 1997 DVDs  Digital Versatile Discs used the more cost effective optical disc storage technology instead of recording tape. As DVDs were available to consumers, this became a preferred format to rent movies. Over 250 million DVD players were in use worldwide by 2003. 1997 Netflix Netflix, a revolutionary online DVD rental service, launches. 2002→ Redbox Redbox rents DVDs, Blu-ray discs, and video games through kiosks located in grocery stores. It was initially funded by McDonald’s Corporation in 2002, and was bought by Coinstar in 2005. 2005 → Amazon Prime Amazon Prime was launched in the United States in 2005, providing a service similar to Netflix. The service is 11

included with the annual cost of Amazon Prime, a membersonly plan with free or discounted shipping. 2006→Blu-ray The official release of Blu-ray was in June 2006. The system uses a blue laser used to read the disc and enables data to be stored at a greater density than the red laser used for DVDs. 2006 →YouTube  By 2006 (its first full year of service), over 100 million videos were viewed daily on YouTube, many of them short clips from copyrighted movies despite their being officially banned by the site’s terms of service. 2007 → Netflix Adopts Streaming After YouTube showed you could stream videos instantly, Netflix opted for a streaming service. 2008 → Hulu Website is launched to the public and offers an on-demand, ad-supported streaming service of videos, TV series, and movies from many networks including NBC, Fox, CBS, and ABC. 2010 → Hulu Plus This monthly subscription service is an extension of Hulu that offers less commercial interruptions. Subscribers also have access to an expanded content library with full seasons and more episodes.

C. The Streaming Era U.S. consumers spent $28.4 billion a year on all movie transactions, which include movie theatre attendance, DVD and Blu-ray rentals and purchases, video on demand (VOD) rentals, and online rentals and purchases. DVD and Blu-ray rentals totaled $8.15 billion, and online movie purchases reaped US$250 million, a 72.8 percent increase over 2008. Online rentals grew by 60.1% to US$111 million. In 2010, VOD services had made their mark on North America with estimated revenues of $1.98 billion. Consumers spent $16.4 billion to purchase and rent DVDs, $1.5 billion to purchase and rent Blu-ray discs, and another $2.1 billion on electronic sell-through and VOD. With VOD becoming more popular, companies are seeing the sector as a new route. Several companies developed different ways in which movies could be viewed within the streaming and DVD rental sectors. Investment in fiber-optic technology and digital compression allowed cable providers to expand channel capacity, offer interactive services, and carry voice, data, and video signals simultaneously on a single line. Both technologies, however, required an enormous investment for cable companies. Installation of fiber-optic cable and the introduction of digital boxes in cable homes was a gradual process. The Digital Entertainment Group (DEG) reported subscription-based revenue surged by 45.7% to $1.56 billion during the first half of 2011 from $1.07 billion during the same time in 2010, with Netflix responsible for the majority of the gain.

Table 2.1 Total Revenue Per Entertainment Company in Millions of USD Total Revenue 2011 Netflix INC. 3204.577 DISH 12640.744 Amazon INC. 48077.0 Comcast 37937.0 Company

Q1 Revenue 2012 46.92779 12.31161 34.62311 51.11181

Source: Compiled via companies’ 10-K reports D. Industry Strengths and Weaknesses The streaming and VOD sectors are continuously growing and being reinvented. There are many possibilities that exist within the digital world to expand beyond movie watching and create social media platforms for people to interact with each other. With new algorithms being invented and new ways to stream videos are introduced, it is only a matter of time before something newer and better is introduced to the public. However, because of illegal downloads and pirating, the streaming sector has been scrutinized and tighter policies have been executed in order to control this. For this reason, it is not that simple to incorporate the latest episodes if you are not in a partnership or owned by a network. The VOD sector also requires a significant level of technology and capital. Potential entrants face the large sunk costs of acquiring licenses for the movies they want to provide. Netflix, for example, invested over $40 million to launch its “Watch Now” streaming video service, back

in 2007. Furthermore, a firm without the technological advantage of a website with movie-recommendation algorithms like Netflix’s CineMatch program is at a huge disadvantage. After entering the market, companies must provide content variety and availability of several devices that can stream videos. Streaming and VOD providers must also offer quality that is very close to DVDs in order to ensure that discerning customers continue to use their service. Overall, the streaming sector has shown to have several barriers to entry and even established companies who already have experience in this sector are facing large challenges. The VOD sector and “watch now” platforms are becoming saturated. Big names like Hulu, Comcast, and HBO are stepping in and the downloading and pirating of media are still substantial. E. Netflix History After being charged late fees for returning a rented movie after the due date, Reed Hastings was inspired to provide movie-watchers with a fresh alternative. The Netflix website was launched in the United States in April 1998. The service offered a traditional pay-per-rental model at $4 per rental, which could be subject to postage and late fees. A monthly subscription concept was introduced in September 1999. Since then, the company has built its reputation on a business model that emphasizes flat-fee, unlimited rentals without due dates, late fees, shipping or handling fees, or per title rental fees. 13

F. Netfllix Over the Years

G. Company’s Growth and Current Status

1997 – Reed Hastings and Marc Randolph co-found Netflix, an online movie rental company

Netflix is currently the world’s leading subscription service for streaming movies and TV series online with more than 23 million streaming members in the United States, Canada, Latin America, the United Kingdom and Ireland. Although the company is holding the lead in the streaming sector, losses in customers were reported due to price increases and changes in services.

1998 – Netflix.com is launched 1999 – Subscription service offered with unlimited rentals for one low monthly subscription 2002 – Total Netflix members: 600,000 2007 – “Watch now” - online video streaming is introduced 2008 – Netflix partners with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players, TV set-top boxes and Apple Macintosh computer 2009 – Netflix partners with consumer electronics companies to stream on the PS3, internet connected TVs, and other Internet connected devices 2010 – Available on the Apple iPad, iPhone and iPod Touch, and Nintendo Wii 2010 – Netflix launches in Canada 2011 – Netflix launches throughout Latin America and the Caribbean 2011 – Pricing packages are separated between streaming only, DVD only, and streaming/DVD 2012 – Netflix launches in the United Kingdom and Ireland

In 2011 the company saw its greatest loss of subscribers in seven years after losing 800,000 US subscribers in the third quarter. Domestic subscribers also fell to 23.8 million, which turned out to be a bigger decline than the company forecasted. Some of Netflix’s growth strategies included providing compelling value for subscribers, utilizing technology to enhance subscriber experience and operate efficiently, and building mutually beneficial relationships with entertainment providers. They planned to improve value by providing subscribers with 90,000 DVD titles with no due dates, late fees, or shipping charges for a fixed monthly fee. They also invested substantial resources in establishing strong ties with various entertainment providers. H. Reputation By being at the forefront of technological developments, Netflix has delighted users in knowing what they wanted before they knew it themselves. This positive reputation came to a halt, however, with the introduction of Qwickster, a service that would entirely divide DVD rental from streaming. By making its clients choose between delivery

systems, consumers’ options were restricted.

shows titles in the order in which they will be delivered.

After much criticism in blogs, newspapers, and comments from users themselves, Qwickster was deemed a mistake and the service was not put into effect. On October 10th, 2011 the company stated that it was cancelling plans to launch Qwickster. In general, Netflix’s stock price has improved, but not by much. Although the error was rapidly amended, their status for consumer service and technological competence is still in the process of being restored.

In addition, Netflix members have unlimited access to select titles that can be streamed over more than 700 devices. Figure 2.1 Netflix Compatible Streaming Devices Game consoles

I. Product and Services Netflix was part of the pioneering companies that launched products that adapted to the changing trends of movie watching. It has provided customers with innovative products and services within the DVD rental and streaming sectors, which remains nearly unmatched by other companies.

Phones and Tablets

J. Description Netflix is a monthly subscription service that offers members the option of streaming or renting different movie and television series titles. After entering the site, each user can browse through titles arranged by genre, date of release, or suggestions provided by the site.

HD TVS

Once a movie is chosen, it is added to the user’s “queue.” The queue is a list of titles that have been selected, which can be arranged by the customer in ascending order and is divided between streaming and DVDs. The DVD-only queue 15

Blu-ray Players

Home Theater Systems

Other Players

Source: Netflix Frequently Asked Questions; https:// signup.netflix.com/Watch?lnkce=nrd-o&lnkctr=nmf_ nfrd&trkid=1256502

K. Quality

Figure 2.2 Netflix Envelope Prototype

For Netflix, the option to offer high definition (HD) streaming was difficult but necessary to obtain. The overall quality of video streaming through Netflix today is considered to be excellent. Users streaming content through Netflix.com now have the option of choosing HD video. The video, however, will stream as fast as each usersâ&#x20AC;&#x2122; Internet connection allows (usually a few seconds/minutes). Once content is being streamed, the video will not randomly buffer. There are also no commercial interruptions as opposed to those services provided by companies like Hulu. Users also have the option of pausing, rewinding, and forwarding as many times as theyâ&#x20AC;&#x2122;d like. Additional options such as closed captioning and subtitling are also available.

Source: http://designrjc.com/wp-content/ uploads/2010/03/netflix-envelope.jpeg

L. Packaging

Figure 2.3 Netflix Mailer

The evolution of the Netflix envelope started in 1999 with a cardboard mailer. Plastic envelopes were later developed, but were not recyclable. After seven years of trial and error, Netflix finally introduced the low-cost mailers used today (Zachary 2006). The Netflix red envelope is simple and cost efficient. Each DVD is mailed in a pre-paid, paper envelope that can also be used to mail the DVD back.

Source: http://www.carseywolf.ucsb.edu/files/Netflix_ Mailer_0.jpg 17

M. Design Netflix.com was designed as a simple and easy to navigate website, using its classic red, white, and black color scheme. Itâ&#x20AC;&#x2122;s easy to note which movie or TV series can be watched instantly as opposed to DVDs that are available through shipping only. Users also have the ability to rate movies and TV series so the software can recommend what type of content each user will enjoy most. Recommendations are thus based on individual ratings as well as content watched in the past. Figure 2.4 Netflix Website Interface

Source: Netflix homepage; www.Netflix.com

N. Price Structure Netflix offers the option of signing up for a 1-month free trial. After the free trial is over, users can choose from several different pricing options based on a monthly subscription. O. Key Features of Netflix Services • Unlimited streaming of content with no commercials or other interruptions • Streaming through multiple devices at the same time • Vast DVD collection that is continuously praised by users • One-day-shipping promise – DVDs are sent no more than 24 hours from the moment the customer requests them P. Disadvantages Within the Market With new companies and similar services entering the market, Netflix’s competitive advantage has diminished, especially after the attempt of launching Qwikster. The Netflix stock price decreased by 42% from July to September of 2011 when the new pricing plan was first announced. Stocks also showed a 50% decrease from an all-time high reached on July 13, 2011. In addition to this recent weak point, Netflix’s services lack options that are available through other companies. For instance, the content available does not include current television series. Users can only stream or rent past seasons, which could eventually drive them to go elsewhere for up-todate content despite commercials.

Table 2.2 Netflix Price Breakdown Price per Services Included month $7.99 Unlimited Streaming $7.99 1 DVD out at-a-time $11.99 2 DVDs out at a time $15.88 Unlimited Streaming + 1 DVD out at a time $19.98 Unlimited Streaming + 2 DVDs out at a time $23.98 Unlimited Streaming + 3 DVDs out at a time $29.98 Unlimited Streaming +4 DVDs out at a time Source: Netflix homepage; www.Netflix.com Outside contracts have also proven to be an area of concern. Some television networks will not give Netflix permission to stream current content because it would steal too much market share, giving Netflix too much control. Furthermore, Netflix recently lost its contract with Starz, making several titles unavailable, including some significant ones from Disney. The high cost to renew contracts and pick up new ones with production studios can hinder the level of growth Netflix can achieve. Q. Product Research and Technological Breakthroughs The technology to offer HD downloads was initially a barrier to entry for this company; however, this barrier is smaller today due to the availability of such technology for licensing from third parties.

The speed at which Netflix loads depends mostly on users’ Internet connection speed. A minimum speed of 500 kilobytes/0.5 megabytes is recommended. Netflix’s streaming technology allows users to choose from three different video quality settings. These settings include: “Good” at 0.3 gigabytes/hour, “Better” at 0.7 gigabytes/ hour, and “Best” at 1.0 gigabyte/hour or 2.3 gigabytes when streaming HD movies or TV series. R. Future Endeavors and Contracts • New contract with DreamWorks Entertainment will provide customers with a larger content of movies starting in 2013 • Currently existing contract with ABC Entertainment will also expand, allowing customers to view a larger list of TV series • Licensing agreement with Weinstein Company will allow users to view additional titles • Contract with Twentieth Century Fox Television will provide new episodes from the Emmy Award winning TV series, Arrested Development • Release of Netflix’s first original mini-series called Lilyhammer, and the production of a second series called Orange is the New Black will introduce original content • New parental-control feature being developed, which will allow for children’s accounts to be separate from parents’ account S. Distribution Strategy Aside from the availability of playback on several devices, product distribution through the mail plays a big role in the 20

success of the company’s DVD rental portion. In order to diminish the time spent on each shipment, there are several Netflix distribution centers spread out around the United States. The United States Postal Services delivers 1.5 million DVDs every day. By tactically situating these distribution centers, 90% of Netflix subscribers receive their DVD the day after it was shipped. Once the DVD is sent back, the return trip takes the same amount of time. Employees at each distribution center are responsible for opening the red envelopes and scanning the UPC barcode on the sleeve of each DVD. Then the Netflix inventory system instantly sends an e-mail message to confirm the arrival of the product, which is then updated to the subscriber’s queue. After checking for damaged DVDs, the product is returned to the shipping inventory. Although this distribution process is very effective, some issues can affect the state in which each product arrives. Some costumers have received broken, scratched, and damaged DVDs due to shipping problems and flaws such as unpadded envelopes. Netflix has been a member of the Better Business Bureau since 2001 and presently holds an A+ rating; however, critics have stated that the company uses incompetent packaging, which leads to defective discs. T. Relationship with Distribution Channels One of the primary factors of the company’s stability is the streaming feature that is available through many devices. According to Netflix’s 2007 Annual Report, their growth strategies included the expansion of distribution channels.

Furthermore, Netflix has already announced a partnership with electronics manufacturer, LG, to produce set-top boxes that will stream Netflix films to home TVs. The company also plans to future partnerships with other hardware-makers to establish new ways to deliver Netflix products to consumers (Keane 2008). U. Primary Competitors Although Netflix has been an innovative leader in the online streaming and DVD rental sectors, it has been faced with several different kinds of competitors hoping to take advantage of the Qwickster blunder that occurred in 2011 with separation of DVD rentals, as well as higher prices. Blockbuster Once the unrivaled giant of movie rentals, Blockbuster has been forced to shift its focus from a bricks-and-mortar model to an online program much like Netflix. After filing bankruptcy in 2010, the company was auctioned off to Dish Network for $320 million and is being restructured to compete in the evolving rental sector by closing down all but 1700 stores (Kary). Now offering more flexibility for customers, Blockbuster offers a DVD subscription-based service that ranges from $9.99-14.99 per month, single transaction kiosks that offer $1.99/day rentals, as well as $1.99 VOD rentals on their website. Although its business model is not very different from Netflix’s, Blockbuster has the advantage of exclusive content rights as well as being able to offer products for the gaming enthusiasts. Game rentals are included in the DVD subscription service, which enables Blockbuster to offer

more for nearly the same price as Netflix. Hulu This streaming website that has claimed to “melt brains” through its quirky advertising campaigns has grown tremendously over the last five years. Backed by companies such as NBCUniversal, Newscorp, Disney and other investors, Hulu is a fun, convenient, easy and affordable way to view one’s favorite shows whenever and wherever. Hulu is a two-tiered service offering, at its lowest level, free streaming of the most recent content to be viewed only via computers. With the choice of upgrading to Hulu Plus for $7.99 a month users have access to more content on several devices. Hulu leads the pack as being the most up-to-date source of both network and cable shows in the streaming segment. However, its current movie content leaves plenty of room for competitors to fight back. Amazon Prime Amazon is a brand often associated with retail; however, this company has entered the online video streaming sector through its existing Prime membership program offering free shipping on purchases as well as the ability to stream content instantly. With the launch of Amazon-enabled devices such as smart phones, tablets, and other devices, there has been exponential growth in the distribution of content as well as the availability of devices that can stream video on demand (VOD.) For $79 per year, customers have the freedom to stream and download both TV and movie content available on the site. Its business model lets users choose between a subscription-based or individual rental program. 21

Redbox

W. Market Share

A subsidiary company of Coinstar, Redbox specializes in DVD, Blu-ray, and video game rentals via kiosks throughout stores across the country. There are currently over 28,000 kiosks across the 50 states. Redbox offers users the convenience of renting a movie or game at the nearest grocery store for a low price. However, with the rising costs of operating expenses Redbox has had to raise its former $1 rentals to $1.20.

In 2011, according to an article in The Ledger, research shows that Redbox lead the Rental Market Share with 37%. Closely behind stood Netflix with 30% share, and far behind Blockbuster with 17%. Redbox had only 7% more rentals than Netflix and 20% more than Blockbuster.

Negotiations between Verizon and Redbox are currently in the works, which may propel both companies into the streaming sector (Moritz). “The service will have a Netflix look and feel, which means it will likely offer more generic library content, and not the latest shows and movies, in terms of digital rights,” (Moritz).

In 2011 Netflix lead the streaming market by a large amount. Netflix was responsible for 55% of streaming. After Netflix came On-demand with 31%. These two had a great advantage over all other companies that combined made up for only 14% of the streaming market. Figure 2.4 DVD Rental Market Share Distribution 2011

V. Secondary competitors While many of its primary competitors feature business models similar to Netflix, another threat comes from companies still developing strategies to compete in the streaming sector. One potential player is YouTube, which currently offers movie rentals through its youtube.com/ movies extension. Although the content currently available is still limited, the YouTube has already begun trying to attain more content partners. Cable and satellite TV providers such as Comcast and Direct TV have also shown to be a potential threat to Netflix by already offering VOD content as part of both companies’ subscriptions. Source: NPD Group 22

Table 2.3 Competition Comparison Company

Distribution

Netflix

• Streaming TV shows & movies • DVDs by mail

Amazon Prime

Blockbuster

Hulu

Redbox

Price • Streaming Subscription: $7.99 per month • 1 DVD at a time: $7.99 per month • Streaming + 1 DVD: $15.88 per month

Streaming movies Rental downloading

• Regular Subscription: $79 per year • Student Subscription: $39 per year

Streaming movies DVDs by mail Self-service kiosks Stores

• On-Demand Download: $1.99 per stream • Individual DVD Rental: $1.99 per day • 1 DVD at a time: $9.99 per month • 2 DVDs at time: $14.99 per month • 3 DVDs at a time: $19.99 per month

Streaming TV shows & movies

• Hulu: Free • Hulu Plus: $7.99 per month

Self-service kiosks

• DVD Rental: $1.20 per night

• • • • • • • • • •

Key Features Movies & TV shows Unlimited streaming Ad-free Fast shipping Wide range of devices Rentals with out subscription Free shipping from Amazon Newer movies Ad-free Wide range of devices

• • • • •

In-store exchnges Diverse selection Movies available offline Includes game rentals Wide range of devices

• • • • • •

Current TV episodes Ad-supported Wide range of devices Convenient locations No subscription required Includes game rentals

Source: Company websites

X. Target Market The Netflix Consumer Netflixâ&#x20AC;&#x2122;s current primary subscribers are men and women ages 25-44. 35% of subscribers have children between the ages of 6 and 17. Since 2010, there has been a steady decline in DVD subscribers and a sharp increase in streaming subscribers.

The DVD User Since the release of this technology, DVDs have become the preferred way to watch movies. The majority of current DVD users fall within the age range of 25 to 44, accounting for 53% of the total market. Figure 2.5 Current DVD Users by Age Range

Figure 2.5 Current Netflix Subscribers

Source: Netflix Financial Reports

Source: MRI Plus

Primary Target

Figure 2.6 Financial Ties Per age Group

Aiming to encourage an increase in Netflix streaming subscribers, the primary segment chosen consists of DVD users between the ages of 18-34 who are currently living in a household of three or more people. These potential consumers are starting their careers and do not have much discretionary income to spend on entertainment. Ages 18-34 Still Living at Home Since early 2008, the number multi-generational households has increased in the United States. A study by the U.S. Census showed that the number of 25 to 34-year-olds living with their parents has risen from 14% to 19% for men and from 8% to 10% for women. Financial Ties

Source: MRI Plus

A recent nationwide study conducted by Pew Research Center showed financial ties to be one of the primary reasons young adults choose to stay at home or return after college. Young adults are more likely than middleaged adults to see a connection between their financial situation and their parentsâ&#x20AC;&#x2122;. Figure 2.7 shows that the younger age groups are more likely to consider their financial situation to be tied to their parentsâ&#x20AC;&#x2122; finances.

Secondary Target

The study showed that 60% of 18 to 24-year-olds say their financial situation is linked to their parentsâ&#x20AC;&#x2122;. The statistics resulting from this study by Pew Research Center substantiate the hypothesis that young adults living at home have a significant influence on buying decisions per household.

This target market consists of DVD users who are parents between the ages of 35 and 44 that have toddlers or elementary school children. This segment includes individuals who have little time to waste but must find a way to entertain their children. Preference for DVD Use Parents who fall within the age group of 35 to 44 prefer DVDs to any other entertainment service because they feel it is a product they can trust. They also associate it with family activities. The following are reasons why this segment prefers to use DVDs rather than a streaming service: 25

• Comfort – a Seen as a family activity e.g. “movie night” • Multiple Uses – Can play repeatedly and have easy access to the product • Content – More content available compared to streaming providers: “Until Netflix has a way to get newer movies to their streaming service, disk rentals are not really going anywhere” (CNET) • Price Stability – streaming prices are always changing: “At least owning the DVD means that transaction is completed and there will be no increases for that copy” (CNET) • Technology Needed – No need for Internet access or knowledge of technology • Special Features – Outtakes, deleted scenes, director commentary, and other extras Y. Advertising Research Past Netflix Campaigns Netflix has traditionally used the signature red and white lettering for the company logo and promotional products. The brand does not have a fixed concept line but rather makes changes for what is being advertised. Over the past 16 years, Netflix has communicated its message to audiences through print, television, radio, web, and, most recently, social media. Each campaign is created to fit changes in services available as well as prices. Throughout its advertising history, Netflix has launched a compilation of campaigns mixed with separate ad pieces. In addition to advertisements produced in-house, Goodby Silverstein and Partners has been Netflix’ 26

agency of record throughout its corporate history. The most memorable campaigns by Goodby Silverstein and Partners include: There is a Movie Waiting for You at Home Halfway through 2005, Netflix launched the campaign “There is a Movie Waiting for You at Home.” These ads included people coming home to find movie characters in their homes, awaiting the arrival of the person who ordered the movie. The Wrightnows In 2009, Netflix released “The Wrightnows” campaign, which featured a white family that would get everything “right now”. The campaign had a great response and was a creative way to promote instant streaming services. Wii Campaign In 2010, Netflix released four commercials that focused on streaming through the Wii console. This campaign parodied movie genres and is one of Netflix’s most successful and well-received campaign. Additional Netflix also had a successful radio campaign in which people in a Jeopardy-like game show would answer profound and absurd questions.

Focus on Streaming

Talking Beaver

For the past six years, Netflix has geared all commercial advertising towards its streaming service and rather than its movie rental and delivery service. Since streaming technology is fairly new, Netflix has been trying to shift business to online streaming.

The featured animal describes how Netflix works and how much it costs. A fish pops out of a hat at the end of the commercial, offering a 30-day free Netflix trial.

Current Campaigns Currently, Netflix uses many different media platforms to advertise. $4.1 million dollars were allotted for advertising on Facebook in 2011. Netflix also buys pop-up ads on popular websites such as Foodnetwork. com. Spots are also “aired” on online streaming radio websites including Pandora. Netflix also partners with other companies such as T-Mobile and is featured in commercials for mobile phones with streaming capabilities. During the 2012 Super Bowl, Time Warner Cable promoted Netflix. The cable company’s commercial focused on how subscribers who buy its subscription TV and high-speed Internet service can access content on multiple platforms and devices, making Netflix more powerful. Netflix recently launched several new television commercials. The commercials feature talking animals that appeal to a large audience and present Netflix’s services in an easy-to-understand manner.

Talking Hamsters A family of talking hamsters describes how easy it is to access Netflix through different consoles. By appealing to a large audience and showing Netflix’s services in a simple manner, these ads would appeal to new members. Have these campaigns been successful? Though revenue has increased, backlash from the promotion of the Qwikster campaign of 2011 hurt the company’s image and sales figures. There has been mass ridicule of the move to divide. As a result, Netflix was parodied on Saturday Night Live, talk shows, etc.; however, Netflix’s post-price hikes cross-platform advertising campaign was successful because it brought in many new customers after Netflix had lost many subscribers. Netflix announced in the period to the end of the year, the company added 610,000 U.S. subscribers, bringing their domestic membership to 24.4 million. Before Netflix raised its prices in the second quarter, it had 24.59 million subscribers. The company was able to bounce back in a short time. 27

Primary Research 28

iii.Primary

Research

A. Focus Group Analysis Methodology The purpose of conducting qualitative research for this study was to attain a better understanding of consumer behavior in the streaming and DVD rental sectors. The research focused primarily on the 18 to 24-year-old demographic. Students from the University of Miami volunteered to meet with a member of the research team to share their attitudes and behaviors. The focus groups were implemented to enable the team to develop hypotheses regarding brand awareness, perception, and competitive comparisons. The following information breaks down the responses obtained from the four focus groups conducted and provides valuable information in terms of awareness, attitudes, and behaviors regarding streaming video entertainment. Overall Brand Awareness The participants were aware of the different options available to them including streaming, cable, and DVD rental services. During each of the exercises, they were faced with the task of brand recognition. The companies least recognized were Amazon Prime, Hulu, and Redbox. However, once one participant pointed out he or she had never heard of a company, the other participants were eager to share their knowledge of it, which emphasizes that users base much of their knowledge of the category on what they hear from peers or family.

Brand Perception Exercise The first exercise conducted involved showing participants five company logos and asking them to state the first words or thoughts that came to mind. By using word association, the moderators were able to point out the most frequent responses for insights. Hulu During the word association exercise, the most commonly repeated terms and phrases for this company were

“advertisements”,“not full TV shows”, and “interruptions”. Most of the participants familiar with Hulu identified it as a medium to watch the latest TV shows. Many complained, however, that full episodes weren’t available for some shows and if they were, they would only be available for a short time. The most evident concern with this brand was commercial interruptions, which incited dissonance with their watching preferences:

“The Internet is TV without commercials. If I want commercials, I’ll watch TV.” “Advertisings are the worst part of the industry.”

Netflix

Blockbuster

Many of the terms associated with Netflix had something to do with money:

Several words related to Blockbuster suggested a negative connotation:

“high prices”, “expensive”, and “overpriced.” Participants were concerned that Netflix’s prices weren’t fair relative to their content. This led to other participants mentioning using

“others’ accounts.” Many participants admitted they use Netflix accounts of family members or friends who are subscribed in order to avoid paying for a subscription. When the Netflix brand was referenced, the words

“awesome”

and

“movies”

also came up several times during discussion. Overall, participants had a positive attitude toward Netflix. They associated it not only with movie watching, but movie watching with availability:

“Netflix is something you can take with you anywhere.”

“old”,“bankrupt”,“prehistoric”, “done”, and “dead.” Participants were aware of Blockbuster’s recent downfall, which created a negative perception of the brand. They considered it as having come to an end and even though many participants had seen or heard about Blockbuster’s comeback against Netflix, they didn’t think there was much hope for the brand. They also saw the brand as something from the past or from their childhood. The type of service provided by Blockbuster is outdated and its in-store movie rental service has been replaced by services available via the Internet. Amazon Prime The phrases and terms most commonly associated with this brand were

“never heard of it,” “student,” “free shipping.”

and

Participants who were familiar with this service used their student account, which is free.

Redbox

They thought of Netflix as a man who is between mid-20s to early 40s, as most of the movies on Netflix were relatively old compared to competitors.

Participants described that this brand was

“never heard of ”,“unsafe”, “unreliable.”

and

They expressed concern toward not returning movies on time and with the payment method, which could imply risking their credit card information. Others suggested it was

“easy to use” and associated it with grocery stores and drug stores. Brand Personality Exercise The second exercise conducted involved having the participants describe four brands as if they were people. The types of questions included: gender, taste in clothes and cars, relationship and parental status. The questions were designed to gauge their views of each brand’s personality and whether the responses matched the brand messaging. Netflix A majority in each group described this brand as masculine. Participants expressed that Netflix was

“straight forward, not fluffy” or “what you see is what you get.”

When asked what clothes Netflix would wear if the brand were a person and what car Netflix would drive, responses varied: about half would describe the brand in suits, while others would see Netflix in the same clothes participants themselves were wearing in the session.

“I think of a guy in his early 30s who is doing pretty well for himself, pretty successful, drives a Ferrari, single and loving it. He’s not perfect, he has some holes, but he’s doing pretty well.” Many participants also noted the brand was single and did not have children. This was stated several times with comments such as,

“It doesn’t appeal to anyone under 16.”

Comcast Xfinity

The majority of each group labeled Xfinity an older man. Many participants were ready to make comments about poor customer service as well as the hassle of trying to contact their customer service 31

representatives. The most frequent phrases stated that the product was

“unreliable,” “disorganized,” and “flakey.”

“I think of those old men at a country club who thinks he’s so cool and has no tolerance for younger people or for anything that disturbs him. So, if anyone has complaints or anyone is being too loud, he’ll just ignore them and sit on his high horse.” “So, when I think of Comcast Xfinity, I think of some big wig, sitting in a suit behind his desk, just bathing in the money he’s making off suckers. That’s what I think of.” Blockbuster Many of the participants characterized Blockbuster as a much older man in his late 30s to 80s who became out of date by not taking his competition seriously.

“I think of an old businessman 32

who drives a s--- car now and is not a cool cat anymore because he was not paying attention.” When asked about taste in clothes and cars, many said that they were reminded of 90s fashion when the brand was in its prime. They also began to reminisce about when they were children and loved the brand.

“I think of myself as a kid, because I used to beg my mom to drive me to Blockbuster and then it would take, like, an hour to pick out a movie. I would always end up picking the same one and I’d always make her buy me candy on the way to the check out.” Hulu Nearly all the participants agreed this brand was more feminine than any other competitor. If the brand had an age, participants said it would be in its teen years to mid-20s.

“I think she’s more fun and edgy, not romantic like more fun and outgoing.”

The participants often mentioned that the girl was focused on staying up to date and never missing the latest episodes.

“I think of someone in their mid-20’s on a time restraint. Someone who’s really busy, sort of really active, so they go to Hulu when they get a chance to catch up on stuff. They work late, come home, and catch up on a little TV. Maybe they can watch it on their lunch break. Someone who’s put together but wants to stay up to date on their TV shows.” Index Card Exercise The final exercise involved handing out index cards with eight different brands, one written on each card, and asking participants to rank the cards in the order of which they felt offered the best features and value. The moderator left the room for 5-10 minutes, giving the group freedom to discuss their opinions openly among each other. This exercise was meant to reveal participant behavior and get them to advocate for their favorite brands.

the groups ranked Netflix highly because of the variety and convenience the company offered.

“I think Netflix is the best, I know the movies are old but every now and then they have new releases, so if you buy the whole package you can have movies sent to you.” B. Survey Analysis To gather more insights, the agency surveyed a total of 1170 respondents between the age ranges of 18 to 45 throughout the United States. In the span of 48 hours, the data was collected and analyzed to understand the differences that exist in regards to awareness, attitude, behavior, and media usage within segmented groups. Before distributing the survey, the agency hypothesized there would be many common attitudes within segments: that the younger segments used more devices to stream content and that they would spend the most time watching videos. The initial expectation was that segments would differ drastically in how they consumed media, their attitudes towards different brands, and their service of choice. However, the data has illustrated many unexpected facts that differed from the initial hypotheses.

In all of the groups, Netflix fell within the top three brands selected for offering the greatest value. Many of 33

Time Spent Watching

Figure 3.2 Time Spent Watching TV and Movies Per Week

One of the first questions designed to understand behavior, illustrated in Figure 3.1, revealed that 62% of all respondents watched TV/movies only between 1-8 hours per week. 27% responded that they watched between 9-20 hours per week. Figure 3.1 Time Spent Watching TV and Movies Per Week

Preferred Devices It was expected that streaming via the Internet would be highly preferred among the 18 to 24-year-old segment. However, Figure 3.3 shows each segment had an overwhelming preference for watching on a television set. Figure 3.3 How Do You Prefer to Watch TV and Movies

The agency initially expected to find higher percentages in the 21-35 hours per week category for younger segments due to the many available devices that stream content, which provide users with more flexibility. A cross tabulation of the respondents revealed that all segments shared similar patterns in behavior. 34

Of the total sample, approximately 93% own a television, 97% own a computer, 77% own a smartphone, 35% own a tablet, and between 1824% own a game console. These statistics provide an understanding of the previous finding. As shown in Figure 3.5, 69% of respondents preferred watching TV episodes via their televisions and about 26% prefer to watch via a computer. Only 5% of the respondents prefer to watch episodes on a different device. The findings are also similar in Figure 3.6 with 85% of respondents preferring to watch movies on a television and another 11% on a computer. This is a concerning fact for Netflix since much of their message strategy has previously focused on the 700+ devices that can stream content from the Netflix servers. If most of the users are using only TVs or laptops, it has been concluded the existing message strategy has not been as effective as hoped.

Figure 3.5 Device Preference for TV Episodes

Figure 3.6 Device Preference for Movies

Figure 3.4 Devices Owned

Preferred Brands Figure 3.7 highlights the brands respondents used in the last 6 months. Netflix was used by 39% of the sample. The primary competitors for DVD rentals, Redbox and Blockbuster, had been used 18% and 13% respectively which were higher rates than that if our streaming only competitors like Hulu. This finding is significant because there is still a sizeable market for people using DVDs that Netflix can convert to streaming andstealing competitive market share. Figure 3.7 Brands Used in Last 6 Months

C. Creative Questionnaire Analysis Methodology The agency’s creative research consisted of agency members handing out questionnaires in different stores that attract customers of varying demographics and psychographics. The purpose of the questionnaires was to provide insights on the target market’s attitudes and behaviors when watching movies and TV shows. Questionnaires were handed out in Winn Dixie, Whole Foods, Brands Mart, Best Buy and Blockbuster. A total of 79 people were asked both open-ended and closeended questions regarding their habits and preferences when watching video entertainment. Preferred Watching Behaviors Responses to the questionnaires revealed that people’s behavior and opinions were consistent throughout the different age groups. There were no significant differences between the preferred movie/TV watching methods among 18 to 24-year-olds when compared to to 35 to 44-year-olds. Streaming video and cable were the two most common ways participants prefer to watch movies and TV shows. Out of the 79 respondents, 24 stream through Netflix and 22 watch movies through cable. The majority of respondents prefer to watch movies and television shows on TVs or on their computers. Insights on Streaming The most common explanation participants gave when

asked why they did not using a streaming service was that they did not know how to use it, while the second most common answer was that streaming was expensive. Participants who do not stream also believed that streaming was too complicated. Out of those who stream, the majority indicated they prefer streaming video because it provides the flexibility of watching content anywhere they want. Among respondents who reported currently using streaming, Netflix was the most common service used. Respondents also expressed that the reason for using Netflix was that it was convenient and offered a lot of variety. Summary of Results It is important to note most of the respondents were not frequent movie watchers, as they donâ&#x20AC;&#x2122;t have much free time. It is also worth noting that this research phase compliments the quantitative phase and is not statistically significant. When asked how many hours per week they spent watching TV or movies, the most common answers were once a week or on weekends. More than half of respondents also expressed that they would be willing to change the way they watch movies and television from DVD/cable/over-the-air to streaming via the Internet if the option had a better price and offered more variety.

on the idea that streaming enables users to watch movies anywhere and that the process involves picking the movie immediately instead of going to a physical store or waiting for a day to receive it. It is also worth noting people are willing to change their current habits if they are presented with an option they consider better. There was no trend indicating loyalty to one specific video entertainment provider. Moreover, Netflix was the most common brand used by those who stream their video entertainment. Netflix is already the preferred streaming service among the small qualitative sample, the goal should be to encourage cable users and people who use other DVD services to sample streaming and to do so by subscribing to Netflix.

During the early stages of this project the agency hypothesized that the target market would consist of â&#x20AC;&#x153;movie aficionados.â&#x20AC;? Respondents, however, revealed the opposite. Although respondents might enjoy watching TV shows and movies, they do not have the time to do so. Since part of the advertising objective is to convince DVD users to adopt streaming, we can focus 37

Target Market 38

iv.Target

Market Profile Meet Ashley Ashley is 22 years old and currently lives with her 50-year-old mother, and her 27-year-old sister. She uses Netflix only at her boyfriend’s house because she can use his his Xbox. However, when she can’t find the movie she wants, she’d rather take a trip to the nearest Redbox or Blockbuster kiosk. She also prefers to go to a Blockbuster store to pick up the next DVD for Dexter, her favorite TV show. The three women in her household don’t always watch movies together, but Ashley’s mom and sister usually watch the movies she brings home. Meet Colin Colin is a 26-year-old medical student who lives at home with his 53-year-old father, 48-year-old mother, and 13-year-old brother. His family pays for half of his tuition and he works part-time at his university to help pay for the rest. In between studying and working, he likes to unwind by catching up on the latest episodes of How I Met Your Mother on the CBS website. He commutes an hour each day to school and work using public transportation. During his commute, he uses his laptop to play DVDs he rented the night before. At home he uses his PS3 to play DVDs on his TV and he taught his parents how to do so too. He likes renting DVDs from the Redbox kiosk across the street from his house because they almost always have the latest movies like Iron Man 2 and Thor. He knows about streaming but he doesn’t see that there is any reason to stop using DVDs. Meet Sarah Sarah is 35 years old and lives with her 40-year-old husband and her 10-year-old son. She has heard of Netflix, but never considered using it even though her son has both a Wii and Xbox. Instead, she’d rather use pay-per-view on Direct TV or Redbox because it is easier to use and less expensive in her perspective. When it comes to watching movies as a family, they have a “movie night” every Sunday to relax. They also go to the movie theater once or twice a month. 39

SwotAnalysis 40

v.SWOT

Analysis Strengths • Unlimited streaming to multiple devices • Vast DVD collection library • One day shipping promise • DVD only option returned

Opportunities • New deal with DreamWorks Entertainment • New original Mini-series. • New contract with Weinstein Co. • DVD only option for people who don’t like streaming. • Parental-control like new option.

Weaknesses • • • •

Lack of current content Lack of streaming content Lost contract with Starz Poor judgment with management decisions (Ex. Qwickster)

Threats • Verizon partnering with Redbox • Amazon got the same contract that Netflix got with Disney • Competitors being available in more devices

Creative Brief 42

vi.Creative

Brief

What is the Brand Positioning? For the audience with no time or money to waste, Netflix understands the hassle of using DVDs and offers streaming as an alternative to show how uncomplicated life should be.

Who is our competition? Our primary competition comes from four major players in both the streaming and DVD rental markets: Amazon Prime, Hulu, Blockbuster, and Redbox.

Why are we advertising? 1) Escalate adoption of streaming 2) Steal market share from competitors

Each competitor focuses their messaging on one of two key features: 1) Newest content 2) Expansive content collection.

Who are we talking to? Our primary segment consists of DVD users between the ages of 18-34 who have recently graduated, are in the early stages of their careers, and live with family or close friends. These consumers have only about 1-20 hours during the week to watch TV and movies so they prefer not having to wait. They prefer to watch on their TVs or computers as it feels more at home. They are frustrated by having to travel to a store or storing fragile discs just to watch their favorite shows/movies. They want a different way to watch but their individual purchasing power is stretched tight. However, they live with and influence the others who have the income to convert DVD households to streaming. The secondary market consists of family DVD users age 35-44, with small children. This segment is similar to the primary in that they have little time to waste but also have to attend to their children along with their daily routines. They prefer using DVDs because they can keep children occupied as many times as needed. They do have the discretionary income needed for streaming but they are unwilling to switch as they believe it is too complicated to use.

While each competitor offers a variation of streaming or DVD rentals, none have successfully been able to offer both as conveniently as Netflix. What is the key consumer benefit? Streaming through Netflix delivers instant, optimized, commercial-free video entertainment. What single sentence expresses the main idea of the advertising? Streaming through Netflix provides a convenient alternative to the hassle of DVDs. What is the brandâ&#x20AC;&#x2122;s tone and personality? Always ahead of the pack, Netflix sets the trends that its competitors flock behind. The brand personality is similar to a mature older brother that all of his younger siblings look up to and want follow.

Objectives 44

vii.Objectives

The agency’s primary objective for the “Live the Stream” campaign is to convert DVD users to Netflix streaming by changing the target’s perceptions of streaming. As the DVD market is shrinking each year, Netflix has a prime opportunity to capitalize by positioning themselves as the best alternative to DVDs. Sales • Increase total of unique streaming subscribers by 3035% • Increase yearly revenue growth by 20-25%

Social Media and Promotions • Engage in conversation with target market • Build meaningful relationships with current and potential subscribers • Give audiences a reason to interact with Netflix by offering promotions • Manage Netflix’s reputation by hearing what people are saying about the brand and showing them that they are being heard Figure 7.1 “Live the Stream” Campaign Logo

Creative • Modernize Netflix’s brand image to resonate with the target market • Position Netflix as the streaming media outlet that is easiest to use • Encourage DVD subscribers to convert to streaming • Retain current Netflix streaming subscribers through intensive promotional campaigns Media • Reach 93% of 18-44 year olds in the United States between January and December 2013 • Use both traditional and non-traditional mediums that will best fit the lifestyles and habits of the target market • Maintain a frequency of at least 104 advertisements per week throughout the entire media mix during the campaign

Strategies and Executions 46

viii.Strategies

and Executions

A. Creative Strategy and Rationale Statement of Intent The purpose of advertising for the Netflix “Live the Stream” campaign is to create a transition for DVD users to adopt Netflix streaming video entertainment. The campaign will be communicated via a variety of media, including print, television, out-of-home, digital, guerrilla marketing, and promotional giveaways to encourage users to change their movie/TV show watching behaviors from using traditional DVDs to Netflix streaming. The campaign will communicate streaming is convenient, accessible, and comfortable. This is because by “living the stream,” users will have the flexibility to stream anywhere, at any time. They will find they have the ability to stream on a variety of devices in the comfort of their home, or on-the-go. Methodology Television Similarly to the print insertions, TV spots will also provide a preview of the “Live the Stream” campaign with a teaser commercial. The teaser spot will run for ten seconds and will touch the idea of getting comfort by “living the stream.” The information provided will lead to the Netflix website with icons for Foursquare, Twitter, and Facebook. Other than these directional clues, the ad will say little about the actual campaign.

The next portion of the campaign will launch with a thirty-second “anthem” spot. This commercial will be inspiring and comforting, which will intrigue the audience and encourage them to further explore “Live the Stream” by visiting Facebook, Twitter, Foursquare, and the free trial via the newly designed Netflix website. This anthem spot will establish the mood for the remainder of the “Live the Stream” campaign. Finally, there will be a third TV spot designed to continue to prompt audiences to adopt streaming by showing that it is a comfortable and easy activity anyone can do. This spot will draw the secondary target to use streaming. Out-of-Home This portion of the campaign will take advantage of many situations the target audiences experience in every day. Considering the demographic of the primary market, it is likely they will use public transportation to get to work and school. The campaign will include take-over wraps of trains, subway cars, and buses. These wrapped vehicles will have interactive monitors inside to encourage users to interact with Netflix. Users will have the opportunity to select from a variety of television shows and programs to stream without providing any personal information whatsoever; however, between streaming sessions there will be a screen promoting a one-week hasslefree streaming through OpenID. 47

There will also be “Live the Stream” area takeovers. These “Stream Homes” will be themed sitting areas with interactive screens available for use in public spaces like train stations, bus stops, malls, and other places the target audience will frequent. Lastly, billboards will be used to further communicate the “Live the Stream” campaign. These billboards will be similar to the rich media digital banners, where a signature “Live the Stream” couch will be presented with a changing background to communicate the idea that users can get comfortable while streaming wherever, whenever. Digital The digital component of the campaign will involve a mobile application that will integrate portals for Twitter, Foursquare, Facebook, and maps showing where people are streaming and where the installations can be found. The Netflix website will also be redesigned. The new website will have an OpenID portal to use streaming hassle-free for one week. The site will also include a gallery for non-Netflix subscribers to browse current content. There will be links to Facebook and Twitter to promote other giveaways and contests, as well as an interactive application powered through Facebook. This interactive Facebook application will use a function similar to the iPhone Siri app, where users can input answers into a prompt that will return personalized results.

Guerrilla Marketing The guerrilla marketing campaign will include the use of Netflix-themed Stream Homes that will travel throughout the six targeted cities (see Media Strategy). The installations will include a couch and an entertainment system and will give users the opportunity to interact with Netflix streaming. This will expose audiences to Netflix’s “Live the Stream” campaign, and encourage them to associate streaming with the comfort of being at home. These Stream Homes will also create a buzz among those who experience them, as well as passersby. It will interact with the social media campaign by linking the installations with Foursquare check-ins, as well as the #LiveTheStream Twitter campaign with mentions and hashtags. Packaging Redesign Netflix DVD mailing envelopes will be redesigned to promote “Live the Stream” by showing different devices with streaming capabilities.

Creative Executions Figure 8.1 Netflix Homepage: Promotional Shot on Redesigned Website

Figure 8.2 Facebook Login: OpenID works through Facebook, linking new users to their one-week hassle and commitment-free trial.

Figure 8.3 Movie Selection: The website redesign allows non-subscribers to browse through Netflixâ&#x20AC;&#x2122;s streaming selection

Figure 8.4 Connection Infographic: The educational infographic provides step-by-step instructions that are easy and simple to follow.

By following the three-step infographics, anyone can get comfortable and start Living the Stream.

Figure 8.5 Stream Home: The Stream Homes will takeover unsuspecting places, such as bus stops and sidewalks.

Figure 8.6 Stream Home: Stream Homes are meant to sync the comfort of home with the convenience of streaming

Figure 8.7 Train Station Waiting Area: Transit users can enjoy Living the Stream while waiting for their daily commute.

Figure 8.8 Subway Welcome Mats: Live the Stream transit takeovers include bus wraps and train wraps.

Figure 8.9 Live the Stream iPhone Application: The Live the Stream application tracks where dream home installations and Live the Stream transit takeovers can be found. Users can login through OpenID to access the hassle free one-week promotion.

Facebook Login

Show Streamers

Show Stream Homes

Connect Live the Stream with Facebook to get 1 week free trial on Netflix and start the new experience from here.

Email: Password: Keep me logged in By prceeding, you are agreeing to the Facebook platform User Terms of Service.

Cancel Connect

Stream

Check in

Connect

Users can view the various devices capable of streaming as well as view educational infographics on how to stream through said devices. The application enables users to use the week-free promotion directly from their device and then hare Live the Stream through Facebook, Twitter, and Foursquare.

STREAM

CONNECT

SHARE Facebook

PS3 Wii XBOX 360

Twitter Foursquare

Stream

Check in

Connect

Stream

Check in

Connect

Figure 8.10 Live the Stream Rich Media Banners: for use in online and Internet ads.

Figure 8.11 Live the Stream Rich Billboard Rotations

Figure 8.12 Live the Stream DVD Packaging Redesign Front

Figure 8.13 Live the Stream DVD Packaging Redesign Back

B. Media Strategy

market and will encourage them to seek more information about streaming video entertainment.

Statement of Intent Campaigns will be executed in both traditional and nontraditional media vehicles to reach the target market. A $500 million budget has been allocated for television, guerrilla, outdoor, digital, promotional, and social media. The campaign will run for one year and will be implemented in three different phases. Table 8.1. Campaign Phase Development Month J Phase 1 Phase 2

F M A M

O N

Phase 3 Phase I: Increase Awareness Beginning in January, this phase will be introduced via television and digital advertising. The primary objective of Phase I is to encourage trial usage during the oneweek, commitment-free period, which will enable users to become familiar with streaming. Television Television commercials will be scheduled for the entire year. They will be scheduled during weekend movie time periods on AMC, TBS, TNT, ABC Family, and FX, between the hours of 8 PM and 12 AM. TV spots will reach the older segments of the target 66

TV commercials during the Golden Globe Awards and the Oscars will also be scheduled to expose a mass audience to Netflix’s “Live the Stream” campaign. Commercials will promote one-week of free streaming with no credit card necessary. Hashtags and a Facebook “Like” icon will be included in all creative units. Digital Digital advertisements will run year-round. They will be placed on the following websites: Amazon.com, CareerBuilder.com, CNN.com, Gmail.com, IMDb. com, LinkedIn.com, Ticketmaster.com, Weather.com, and Youtube.com. Phase II: Social Media Beginning in May, social media and promotions will be used to promote the “Live the Stream Campaign.” Social Media Facebook, Twitter, and Foursquare will all be major components during this phase of the campaign. They will be launched in May, one month before the launch of out-of-home advertisements. This will help increase awareness and promote upcoming events.

Live the Stream: Live

Guerrilla

Film festivals will run from June to August and will include giveaways of promotional items.

From July to December, five Netflix-themed stream homes will travel through six highly populated cities in the United States. These area takeovers will travel to the following cities and venues:

Xstreaming Week “Xstreaming Week” will run during the second week of July. Phase III: Guerrilla Marketing This phase will begin in June and will include out-ofhome and guerrilla advertising. Out-of-Home The agency will place advertisements on billboards, subways, and buses in New York, Chicago, Boston, Austin, Los Angeles, and Miami. These will be implemented four weeks prior to the arrival of the stream homes in each city, and will run for eight weeks. The scheduled billboards, subways, and buses will be in the following cities: • • • • • •

June-July: New York, NY July-August: Chicago, IL August-September: Boston, MA September-October: Austin, TX October-November: Los Angeles, CA November-December: Miami, FL

• July: New York, NY John F. Kennedy International Airport Grand Central Station The High Line (window) Madame Tussaud’s Wax Museum- near prominent actor or actress (window) Bus stop at Madison Square Garden • August: Chicago, IL O’Hare International Airport Navy Pier (window) Line at Six Flags: Great America Millennium Park (window) Bus stop at Willis Tower • September: Boston, MA Logan International Airport Quincy Market (window) Boston University Outside Fenway Park - (window) Bus stop at Harvard University • October: Austin, TX Austin-Bergstrom Airport Texas Capitol Building (window) UT Austin Franklin Barbeque (window) Bus stop on South Congress Avenue 67

â&#x20AC;˘ November: Los Angeles, CA Los Angeles International Airport Santa Monica Pier Near/view of Hollywood Sign (window) Outside Staples Center- stream game and past NBA games (window) Bus stop in Westwood â&#x20AC;˘ December: Miami, FL Miami International Airport On South Beach (window) CocoWalk Mary Brickell Village (window) Bus stop at Aventura Mall Media Executions

Approximately 36.6% of US adults between the ages of 18-44 will be exposed to three or more of the five cities guerilla advertisements in the schedule. The 87.8% of US adults reached by any of the five cities guerilla advertisements in the plan are exposed to an average of 2.4 of them. Outdoor It is estimated that 98.4% of US adults between the ages of 18 to 44 will be exposed to one or more of the three types of outdoor advertisements.

Internet

Approximately 98.3% of US adults between the ages of 18-44 will be exposed to three or more of the three types of outdoor advertisements in the schedule.

It is estimated that 66.7% of US adults between the ages of 18 to 44 will be exposed to one or more of the eight Internet advertisements in the schedule.

The 98.4% of US adults reached by any of the three types of outdoor advertisements in the plan are exposed to an average of 19.3 of them

Approximately 32.4% of US adults between the ages of 18-44 will be exposed to three or more of the eight Internet advertisements in the schedule.

TV It is estimated that 74.2% of US adults between the ages of 18 to 44 will be exposed to one or more of the six TV networks advertisements in the schedule.

The 66.7% of US adults reached by any of the eight Internet advertisements in the plan are exposed to an average of 5 of them. Guerilla It is estimated that 87.8% of US adults between the ages of 18 to 44 will be exposed to one or more of 68

the five cities guerilla advertisements in the schedule.

Approximately 68.1% of US adults between the ages of 18-44 will be exposed to three or more of the six TV networks advertisements in the schedule. The 74.2% of US adults reached by any of the six TV networks advertisements in the plan are exposed to an average of 165.9 of them.

Table 8.2 Television Vehicle List Vehicle ABC Family AMC FX TBS TNT Academy Awards

Cost $101,000 per spot $99,500 per spot $98,500 per spot $103,000 per spot $98,000 per spot $2 million per spot

Table 8.4 Digital Vehicle List Rating 5.3 4.9 5 6.1 5 11.7

Source: Medialab.com The agency will schedule TV spots during weekend movie times to reach the secondary target market. Commercials will also be scheduled during the Oscars to reach large audiences. Table 8.3 Out-of-Home Vehicle List Vehicle Billboards Buses Subways

Cost $12,000 per billboard $40,000 per bus $44,000 per subway

Vehicle Amazon.com CareerBuilder.com CNN.com Gmail.com IMDB.com Linkedln.com TicketMaster.com

CPM $35 $35 $35 $35 $35 $35 $35

Rating 7.72 .97 .97 3.30 2.25 4.22 .56

Source: Charles Grimm Interactive web banners will be placed on web pages frequented the primary target market. Table 8.5 Guerrilla Vehicle List

Rating 13 10.5 11

Source:Bluelinemedia.com Outdoor advertisements will be placed in highly trafficked areas in each city that the Stream Homes will travel to.

Vehicle Austin,TX Boston, MA Chicago, IL Los Angeles, CA Miami, FL New York, NY

Cost (including production) $1.44 million per Stream Home $1.52 million per Stream Home $1.56 million per Stream Home $1.62 million per Stream home $1.82 million per Stream Home $2.04 million per Stream Home

Rating 10 10.1 13 17 9 15

Source:Mark Armen, BBSG Guerrilla advertisements will reach both the primary and secondary targets. This portion of the campaign will seek to attract attention in a unique and innovative way. 69

Table 8.6 Media Calendar January to December

January February March April Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1

1 1

1 1 1 1 1

Vehicle Television ABC Family: Saturday at 8 p.m. AMC: Friday at 8 a.m. FOX: Saturday at 10 p.m. TBS: Saturday at 10 p.m. TNT: Friday at 9 p.m. Digital amazon.com careerbuilder.com cnn.com gmail.com linkedin.com ticketmaster.com imdb.com Social Media Facebook FourSquare Twitter Promotions Live The Stream: Live Xstreaming Week Out-of-Home New York City, NY Chicago, IL Boston, MA Guerrilla New York City, NY Chicago, IL

May June July August Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 1 1 1 1

1 1 1 1 1

1 1 1 1 1 1 1

1 1 1

1 1

Vehicle Television ABC Family: Saturday at 8 p.m. AMC: Friday at 8 a.m. FOX: Saturday at 10 p.m. TBS: Saturday at 10 p.m. TNT: Friday at 9 p.m. Digital amazon.com careerbuilder.com cnn.com gmail.com linkedin.com ticketmaster.com imdb.com Social Media Facebook FourSquare Twitter Out-of-Home Boston, MA Austin, TX Los Angeles, CA Miami, FL Guerrilla Boston, MA Austin, TX Los Angeles, CA Miami, FL 72

September October November December Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 1 1 1 1

1 1 1 1 1

1 1 1 1 1 1 1

1 1 1

1 1

Table 8.7 Television Detailed Media Breakdown

Television Vehicles ABC Family AMC FX TBS TNT Production

Cost Per Spot

TV Spots Per Total of Week Months

Table 8.8 Digital Detailed Media Breakdown

Total

$101,000

$72,720,000

$99,500 $98,500 $103,000 $98,000 Cost Per Commercial $500,000 Cost Per Sport

15 12 15 12 15 12 15 12 Number of Commercials 2 Number Of Spots

$71,640,000 $70,920,000 $74,160,000 $70,560,000

$6,0,00,000

Award Shows Accademy $2,000,000 Awards

Total $1,000,000

Digital Digital Vehicles CPM Reach (in 000s) Amazon.com $35 100,000 CareerBuilder.com $35 100,000 CNN.com $35 100,000 Gmail.com $35 100,000 IMDb.com $35 100,000 LinkedIn.com $35 100,000 Ticketmaster.com $35 100,000 Total Digital $24,500,000

Total $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000

Total Source: Charles Grimm

Total TV $367,000,000 Source: Medialab.com

Table 8.9 Outdoor Detailed Media Breakdown Source: Bluelinemedia.com Outdoor Subway

Cost Per Subway

Number of Subways

Number of Months

Total

Austin, TX

$44,000

$1,056,000

Boston, MA

$44,000

$1,056,000

Chicago, IL

$44,000

$1,056,000

Los Angeles, CA

$44,000

$1,056,000

Miami, FL

$44,000

$1,056,000

New York City, NY

$44,000

$1,056,000

$9,223

Production

$664,000

Total Subway $7,000,000 Buses

Cost Per Bus

Number of Buses

Number of Months

Total

Austin, TX

$40,000

$1,600,000

Boston, MA

$40,000

$1,600,000

Chicago, IL

$40,000

$1,600,000

Los Angeles, CA

$40,000

$1,600,000

Miami, FL

$40,000

$1,600,000

New York City, NY

$40,000

$1,600,000

3,334

120

Production

$400,000

Total Buses $10,000,000 Billboards

Cost Per Billboard

Number of Billboards

Total

Austin, TX

$12,000

$720,000

Boston, MA

$12,000

$720,000

Chicago, IL

$12,000

$720,000

Los Angeles, CA

$12,000

$720,000

Miami, FL

$12,000

$720,000

New York City, NY

$12,000

$720,000

$1,000

180

Production

TOTAL OUTDOOR 74

Numbers of Months

$21,500,000

$180,000

Table 8.10 Guerilla Detailed Media Breakdown Guerilla

Austin, TX Boston, MA Chicago, IL Lost Angeles, CA Miami, FL New York City, NY

Cost Per Stream Number of Home (Including Stream Homes Production) $1,440,000 5 $1,520,000 5 $1,560,000 5 $1,620,000 5 $1,820,000 5 $2,040,000 5 Total Guerrilla $50,000,000

Total

$7,200,000 $7,600,000 $7,800,000 $8,100,000 $9,100,000 $10,200,000

Source: Mark Armen, BBSG Figure 8.14 Detailed Media Budget Breakdown $463.5 Million

C. Social Media and Promotions Strategy Netflix’s “Live the Stream” outreach will be carried out through social media, giveaways, and sponsored events. These events will establish the ease of streaming and help audiences get comfortable with the service. Users can also interact with the campaign and learn more about Netflix streaming via their Facebook, Twitter and Foursquare accounts. Methodology Xstreaming Week “Xstreaming Week” will run through the second week of July. This promotional event will encourage target audiences to interact with Netflix in an entertaining way. Users will be able to take pictures of themselves as they stream from wherever they choose. A grand prize of meeting a famous actor or actress will be awarded to whoever posts or tweets the most creative picture Netflix’s Facebook or twitter page. This may include anything from skydiving, planking, or even bungee jumping. At the end of the week, the picture with the most “likes” on Facebook or the most “re-tweets” on Twitter will be chosen as the winner of Xstreaming Week and will win the grand prize. Xstreaming Week will highlight the “Live the Stream” campaign and will show that users can stream anywhere and any time with no limits. Facebook and Twitter Facebook and Twitter will be the main vehicles in the social media campaign. These networks are powerful 76

platforms that are free and interactive. Netflix will only be responsible for the minimal expense in providing compensation for social media interns. These networks will enable interaction between Netflix and its target market. It will also help the agency identify the most engaged consumers, which will help identify potential future target markets. To keep the Twitter and Facebook pages up-to-date, there will be a minimum of five daily updates. These will include links to generate user interest and start conversations. Using these networks will also help create an understanding of what customers think about Netflix, which will help the company make future improvements. During Xstreaming Week, #LiveTheStream will be sponsored via the Twitter home page. This hashtag will be frequently used throughout the campaign in the company’s tweets. Hashtags will encourage users to keep the conversation going and will lead #LiveTheStream to become a trending topic. Foursquare The use of Foursquare will add to the interactive nature of the campaign. Using free subscriptions as an incentive, users will be encouraged to check-in to places whenever they are streaming outside of home. The Netflix website will integrate Foursquare so that users will automatically check in when they are streaming. This automatic check-in will provide details about the date, time, location, and movie streamed. The Netflix website will also include a

“locations page” that will contain a map that shows where famous scenes from movies were shot. Whenever a user checks-in while streaming, he or she will receive one bonus point. 50 bonus points will be awarded to users who check-in to places marked on the “locations page,” and 70 bonus points will be given to users who check into this page when they stream the movie shot in that location. After reaching 100 points, the user will earn one free week of Netflix streaming. After the first 1,000 points, the user will win two free movie tickets to a special early viewing of an upcoming film. After earning 5,000 bonus points, the user will earn a free year of Netflix streaming. The Grand Prize would be awarded to any customer who could earn one million points; a goal that could inspire some unreasonable customers to check in, but is lofty and virtually impossible to achieve. That would be a lifelong membership to Netflix Streaming and DVD programs. This portion of the campaign will promote interaction and it will create buzz and establish a brand presence within heavily populated. For instance, the areas where movie scenes were shot (Times Square, Golden Gate Bridge, etc.) Foursquare users will also show the ease and flexibility of streaming through Netflix. Live the Stream: Live This portion of the campaign will involve a Netflix film festival that will be hosted in the same six cities as an interactive experience. The event will be

targeted to families with younger parents who are unfamiliar with Netflix streaming and will encourage them to seek more information about this service. The festivals will run from June to August and will take place in: 1. New York: July 14th 2. Chicago: August 11th 3. Boston: September 8th 4. Austin: October 13th 5. Los Angeles: November 10th 6. Miami: December 15th Prior to the event, the agency will contact local reporters and news outlets to promote the event and encourage reporters to write articles or air news segments about the upcoming festival. This will generate publicity and raise awareness. Food trucks will also be part of the event and each food truck company will mention the festival on their social media sites a week prior to the event. Social media users will be encouraged to attend the festivals by giving them the option to choose which film will be streamed at the event. They will be able to vote for one of two films via Twitter mentions, Facebook mentions, and text messages (which will ensure the participation of potential attendees who do not own smartphones.) During the event, a tally of the votes will be shown on a screen playing in real time, so that guests can see how they’re favorite movie is doing. During the festivals, tents will be set up where attendees will be able to talk to Netflix brand 77

ambassadors that will show them how easy it can be to set up Netflix on a TV, smartphone, or other devices. The brand ambassadors will be knowledgeable about Netflix and will be able to answer questions for any potential customers. The movie being featured at the festival will also be available for streaming to subscribers of Netflix to stream on their devices. Those who are not subscribed can enjoy a free trial and be able to stream the featured film during the time the festival is occurring by logging in through Facebook and Gmail account on the Netflix home page. Movie of the Week The primary focus of the social media campaign will be the “Movie of the Week” contest. The purpose of this contest will be to encourage users to interact with Netflix and encourage them to use streaming. Facebook users and Twitter followers will be able to vote for movies that are not available through Netflix streaming. To vote through Facebook, users will cast their votes on the official Netflix timeline. Netflix’s Twitter followers can vote by tweeting, re-tweeting, or replying to Netflix. This contest will take into account votes on Facebook and Twitter and choose the most popular movie to stream. Promotional Giveaways Netflix-branded items will be handed out at promotional events and will include objects that 78

provide a feeling comfort that users will be able to associate with streaming and Netflix’s “Live the Stream” campaign. These items include teddy bears, tumblers, beach towels, Snuggies, and a variety of other items.

Social Media and Promotions Executions Figure 8.15 Netflix Facebook Interface Source: facebook.com

Figure 8.16 Netflix Foursquare Interface Source: foursquare.com

Figure 8.17 Netflix Foursquare Interface Source: twitter.com

Figure 8.18 ”Live the Stream: Live” Event Source: about.com

Figure 8.19 Xstreaming Week

For Immediate Release December 15, 2012 Contact: Alicia Dry T: 305-544-7621 E: alicia.dry@rippleadvertising.com

Partnership will kick off ‘A Hunger-Free Holiday Campaign.’

Miami, FL (Dec. 15, 2012) – Netflix is proud to announce that Live the Stream: Live film festival will screen at Bayfront Park, an event that will mark the finale of their promotional campaign for live streaming. Netflix’s global campaign, “Live the Stream” launched earlier this year highlights the ease, convenience, and comfort of live streaming media in today’s hectic, modern, lifestyle. Live the Stream: Live will be an interactive experience run by Ripple Advertising, an innovative ad agency based in Miami. The festival will feature movies that audience members vote upon at the event through Facebook mention, Tweets, and text messages. The film festival is open to all, and will accessible online for users that would like enjoy the live streaming event from home via laptop, smartphone, or tablet. Live the Stream: Live will include local food trucks and promotional giveaways. Brand Ambassadors will be present to show attendees unfamiliar with live media streaming how easy it is to use and how to set up a Netflix account. Current Netflix subscribers are encouraged to come to the fun-filled day. For additional information about Live the Stream: Live event, please contact Ripple Advertising’s account coordinator Alicia Dry at alicia.dry@rippleadvertising.com. 84

Figure 8.20 ”Live the Stream: Live” Press Release

Figure 8.21”Live the Stream: Live” Promotional Towel

Figure 8.22 ”Live the Stream: Live” Promotional Snuggie

Figure 8.23 ”Live the Stream: Live” Press Teddy Bear

Figure 8.24 ”Live the Stream: Live” Promotional XBOX 360

Figure 8.25 ”Live the Stream: Live” Promotional Sunglasses

Budget Allocation 88

ix.Budget

Allocation

Breakdown of Overall Spending The $500 million Netflix budget has been allocated across all areas of the Live the Stream campaign. 92.7% of the budget was allocated to media usage and distributed between guerilla, digital, television, and out-of-home advertising. The remaining percentage of the budget was for promotional events, promotional giveaways, and social media. Labor, production, technology, and additional fees have been factored in to the overall number. Lastly, the agency allocated a contingency of $26.5 million to be used as needed.

Figure 9.1 Total Cost Breakdown Based on $500 Million Budget

Campaign Evaluation 90

x.Campaign

Evaluation

Before launching the campaign, the agency will conduct focus groups to pre-test campaign executions in select markets. Participants will be shown outdoor, print, online, and television advertisements for each phase of the campaign. Through this pilot test, it will be established whether the intended message is effectively conveyed so the agency can make adjustments before the initial launch. In addition, every three months during the campaign consumer opinions and awareness about campaign promotions will be measured.

conducting interviews during film festivals and at the outdoor installations. Social media growth will be tracked based on measurable factors such as Facebook likes and Twitter tweets. Moreover, in order to measure the success of the one-week promotions, the agency will keep track of how many people try the promotion, as well as how many users have converted to Netflix streaming after using it.

Sales Evaluation Three months after the end of the campaign, the agency anticipates Netflix’s streaming video subscribership to increase between 30-35% and the client’s expected revenue growth to be between 20-25%. These milestones will be measured via Netflix’s quarterly income reports. Tracking Studies The agency will also develop a tracking survey to evaluate changes in consumers’ awareness, attitudes, and behaviors. This survey will be distributed online throughout the United States and in person by handing out questionnaires throughout the six states where installations and promotional events will take place. Based on responses to the questionnaires, we will track new subscriptions quarterly. Throughout the campaign, Ripple Advertising will be tracking the progress every three months to measure consumers’ awareness of the advertisements, their attitudes towards Netflix, and whether they’ve converted to streaming. The agency will also have people 91

Works Cited 92

xi.Works

Cited

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Glen, Craig. “Our Switch To Netflix: A Review.” Free From Broke. Web. 24 Mar. 2012. <http://freefrombroke.com/netflix-review/>. Graser, Marc. “Redbox Increases Rental Price to $1.20.” Variety.com. Reed Elsevier Inc., 27 Oct. 2011. Web. 04 Feb. 2012. <http://www.variety.com/article/VR1118045179>. Kary, Tiffany. “Blockbuster to Build Subscribers After Dish Deal, Keyes Says.” Businessweek. Bloomberg L.P., 07 Apr. 2011. Web. 06 Feb. 2012. <http://www.businessweek.com/news/2011-04-07/blockbuster-to-build-subscribers-after-dishdeal-keyes-says.html>. Levine, D.M. “Hulu Sees Audience Growth.” Adweek.com. Adweek, 16 Dec. 2011. Web. 02 Feb. 2012. <http://www.adweek.com/news/technology/hulu-sees-audience-growth-137177>. Louis, Michael D. “Bus Advertising and Bus Stop Advertising - Bus Ads in 200 Markets.” Advertising Company in 300 Cities. 4 Jan. 2012. Web. 22 Apr. 2012. <http://www.bluelinemedia.com/bus-advertising>. “More Netflix Subscribers Still Use DVDs Than Streaming.” Videonuze. Web. 3 Mar. 2012. <http://videonuze.com/ blogs/?2011-09-29/Exclusive-More-Netflix-Subscribers-Still-Use-DVDs-Than-Streaming-for-TV-Viewing-/>. Moritz, Scott. “Verizon Combines With Redbox to Challenge Netflix in Video.” Businessweek. Bloomberg L.P, 06 Feb. 2012. Web. 06 Feb. 2012. <http://www.businessweek.com/news/2012-02-06/verizon-combines-with-redboxto- challenge-netflix-in-video.html>. “Netflix Advertising Archive.” <Http://miami.adforum.com/creative-work/ad/playlist/8134/37964>. Netflix Inc. Investor Relations. “Netflix Q4 11 Letter to Shareholders.” Netflix, 25 Jan. 2012. Web. 2 Feb. 2012. <http://files.shareholder.com/downloads/NFLX/1677950309x0x536469/7d1a24b7-c8cc-4f19-a1dd-225a335dabc4/Investor%20Letter%20Q4%202011.pdf>. “Netflix Performance.” Y CHARTS. Zacks Investment Research, 23 Feb. 2012. Web. 21 Feb. 2012. <http://ycharts.com/companies/NFLX/performance>. “Netflix Statistics: Half of Netflix Users Connect via Gaming Console.” StatSpotting! Web. 8 Feb. 2012. <http://statspotting.com/2011/07/netflix-statistics-half-of-netflix-users-connect-via-gaming-console/>.

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xii.Appendices

A. Focus Group Moderator Guide 1. Introduction: -Focus group purpose • To gain insight on target groups perception of both Netflix’s and competitor brands • Analyze, awareness and recall through exposure to ads, both un-aided and aided. • Understand current attitudes towards Netflix and the competitor and subsequently potential behavior • Understand how 18-24 year olds feel about Netflix what they like, what they don’t like, to understand the perception that non-subscribers have of Netflix, whether positive or negative and why. -Process overview -Warm-up questions • What kinds of TV/Movies do you like to watch? • What TV/movies do you watch? • Do you prefer watching movies alone or with groups? Why? • How do you like watching movies? (Devices, in theaters, or etc.) 2. Brand perception slideshow (Hulu, Netflix, Blockbuster, Amazon, Redbox): -PowerPoint Word association exercise • Ask the group to look at each logo and say whatever words come to mind when they think of each company • Encourage the most frequent responses – as well as the most unusual

3. Brand personality game (Netflix, Hulu, Blockbuster, Xfinity): -Describe each brand as if it were a person • If this brand were a person, would that person be a man or woman? Why? • What brand of clothes would this person wear? What color? Why? • What kind of car would they drive? What color? Why? • Is the person married or single? Why? • Does the person have kids? 4. Index card exercise: -Tell the group that you are going to leave the room for five minutes and give them 8 index cards with brands on each -Ask group to get together and decide which company offers the best features 5. Closing and Debrefing: -Resolution of any remaining issues -Distribute food outside in courtyard

B. Focus Group Participant Information Group Three

Group One Name

Age

Gender

Name

Age

Gender

Tara

Female

Amanda

Female

Anais

Female

Lindsay G.

Female

Nicole

Female

Lindsay R.

Female

Leslie

Female

Marcus

Male

Daniela

Female

Maxi

Male

Francis

Male

Lauressa

Female

Bianca

Female

Vivi

Female

Kyle

Male

David

Male

Name

Age

Gender

Ryan

Male

Conrad

Male

Martina Mandaray Carla Maria Allen Fortu Silar Rasha

Female

Male

Female

Male

Female

Group Two Name

Age

Gender

Deniz

Male

Shelly

Female

Adam

Male

Heather

Female

Lindsey

Female

Elizabeth

Female

Danny

Male

Kristen

Female

Maribel

Female

Romi

Male

Jordan

Male

Group Four

C. Focus Group Transcripts

Tara: Tara, psychology.

Focus Group One Moderator: Aaron Martin Date: 2/09/12

Vivi: Vivi, public relations.

Moderator: Okay, guys. We’re going to start now. I think everyone’s stepped inside. My name’s Aaron Martin. I’m going to be your moderator for today. I know most of you this is your first time in a focus group. It’s my first time as well, so it should be fun for all of us. I mentioned earlier to the ones who were here. This is for our CAD434 class, advertising campaigns. Our client is a video streaming company I cannot name for obvious purposes. I’ll be asking you guys a bunch of questions today…

David: David, economics and international studies.

Tara: Can we know the name of your company? Moderator: I might be able to reveal it at the end after we finish everything else, but I can’t reveal it through it. Do you guys have any other questions before we get started? So if we can just go around the table and say everyone’s names, maybe your major. Let’s start with you. Anais: Anais and my major is public relations. Nicole: Nicole, economics. Leslie: Leslie, advertising and graphic design. Daniela: Daniela, fashion merchandising.

Kyle: Kyle, international studies and political science.

Ryan: Ryan, motion pictures and political science. Moderator: Okay, so we’re going to start. We should be about an hour, an hour fifteen probably the longest. We’ll try to make this as smooth as possible so we can get out of here on time and get all of you guys fed with pizza. Nicole: Yay! Moderator: Great. Let’s start with a couple warm-up questions. We can go around the table again and each person says… What kinds of TV shows and movies do you like to watch? Anais: Comedies. Nicole: Series. Leslie: Series. Daniela: Series. Francis: TV series and documentaries.

Francis: Francis, economics and international relations.

Bianca: Same. Tara: Series and romance.

Bianca: Bianca, marine science and biology.

Vivi: Comedies and TV series.

Kyle: I don’t know… just dark movies, comedies, and sports. David: Animated comedy and documentaries. Ryan: I guess documentary, horror, indie… Moderator: We have a good mix. What’s your favorite TV shows or favorite movies?

Moderator: Okay. Do you prefer watching movies alone, with friends, family, any group? Kyle: Friends. Vivi: Friends. Francis: Sometimes alone.

Anais: Desperate housewives.

Daniela: Yeah.

Nicole: Mad Men, Friends…

[Laughter]

Leslie: Mad Men…

David: Never alone. Always with friends.

Daniela: Sex and the City.

Nicole: If it’s in the movie theater, you go with friends. If it’s already out and you have to… I see it alone.

Francis: V for Vendetta. Bianca: I like top chef. Tara: The Bachelor. [Laughter] Vivi: The Big Bang Theory and Modern Family.

Ryan: If it’s a comedy, I’ll watch it with friends. Otherwise, I kind of prefer watching alone. Moderator: Okay, so let’s say it’s not movies in theaters. Movies that have already been released. Kyle: Alone.

Kyle: Tron, Forrest Gump, and V for Vendetta, probably.

Vivi: Alone. Francis: Oh, yeah.

David: V for Vendetta’s my favorite.

Kyle: Friends.

Ryan: I’m not a big TV person. I guess, Eternal Sunshine of the Spotless Mind kind of stuff.

[Laughter] Kyle: I drag people into it with me. 99

Vivi: Well, if it’s something you look up online, I’ll probably watch it by myself before I go to bed or something. David: I won’t drag friends into watching documentaries with me. If I’m watching another movie, then I’ll grab a friend. Moderator: Okay. How do you guys like watching movies? Do you watch on devices? Smart phones, tablets, computer? Do you prefer watching in theaters? Any others? Anais: I like to watch it on my Apple TV. Nicole: Computer. David: Theaters or TV. I don’t like it on the computer. Moderator: Okay. Vivi: TV. Daniela: Either theater, or probably streaming. Tara: Theater or TV. Vivi: Theater or my computer. Kyle: I usually download stuff illegally and then put it on my PS3. [Laughter] Moderator: No, no. It’s our time to be honest. David: Computer. 100

Ryan: Maybe on my laptop. Moderator: Okay, so we’re going to start the first game. I’m just going to show you a slideshow of five various companies and we’re going to play word association. Each time I show a logo just say whatever words come to mind when you think about the brand. The first one should be…Hulu. [Hulu image comes up on slide show] David: Interruptions. Kyle: Premium. Ryan: Advertisements. Vivi: Comedy. Tara: Links. Bianca: Never heard of it. Kyle: Family Guy. Daniela: Never heard of it. Leslie: I’ve never heard of it. Anais: Don’t you have to pay for it? Kyle: For the good stuff. Moderator: You can watch it for free but you have to pay for it to watch on other devices

Nicole: Hulu’s free? Kyle: They have a premium where they put a lot of the good stuff at. Daniela: They have Hulu Plus. That is where they have the newest episodes of everything. Nicole: Is that free? Kyle: No, but there’s the Hulu normal. Vivi: They only use it for television, I think. Ryan: I think of current TV when I think of Hulu. Kyle: Mostly old stuff. Ryan: I think of like stuff on NBC. I could get SNL on there if I wanted. Vivi: I watch my Family Guy on there.

Vivi: And sometimes they don’t have the full length of episodes. They only have clips of certain episodes. Kyle: Super annoying. Ryan: I hate that they expire after a few weeks. That drives me insane. Moderator: Haven’t heard from you guys in the back. Kyle: I don’t know. They have a lot of commercials. I don’t know. I just watch it for Family Guy. [Laughter] Moderator: All right. Let’s move on to the next one, which is Netflix. [Netflix image comes up on slide show] Moderator: Let’s start over here. Any words that come to mind when you think of Netflix.

Moderator: For those of you who said you are familiar with it, what are some of your experiences with Hulu?

Anais: Movies?

Anais: I get commercials.

Leslie: Serious.

Anais: Yeah, too many commercials.

Vivi: Documentaries.

David: They have really long breaks.

Bianca: You have to pay.

Nicole: Yeah.

[Laughter]

Nicole: Movies.

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Tara: Yeah, I don’t like Netflix. Vivi: I think of old movies. Kyle: Their streaming to Blu-ray… bad movies. David: I think it’s easy. Ryan: I think if Hulu’s the stuff that’s recent, then Netflix is stuff that’s kind of really old. Nicole: It happened to me. I had Netflix and to get recent episodes that just came out… I can’t. So I don’t know why I bought it.

David: I know me and a few of my friends dropped it out of principle after they had their whole management debacle. I think it shows extremely poor management. I didn’t like the fact that they were trying to break things up without taking into account any of the consumers’ thoughts. So very poor management. Kyle: Also, they don’t have games. That sucks.

Kyle: Sometimes, the good movies are not to stream.

Moderator: Which part of it do you guys use more, the streaming, DVDs?

Kyle: Only by mail.

Together: Streaming.

Vivi: Yeah.

Moderator: Okay.

Anais: And you’re not going to mail movies, so…

Nicole: They mail the movies?

Moderator: You mentioned earlier you don’t like it.

Together: Yeah.

Tara: Yeah, I just don’t like the movies online.

Vivi: That’s how they started. They started with mailing. You could keep it for as long as you wanted.

Moderator: Any other experiences you guys want to talk about with them?

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and you want to watch a movie, an old movie, you think about it… and you only have it on VHS… They have it on Netflix, typically. At least most VHS movies, they have them on Netflix.

Kyle: They have a lot of dumb movies also.

Ryan: I like that they have the pricing now that you can just do streaming. I think that you can just pay for streaming. Although, it’s the same price that it used to be for both.

Anais: Their prices are too high now.

Leslie: Yeah, but now it’s the same price for a month.

Vivi: I like it. I like it because if you’re bored of something

Ryan: For DVDs it’s extra.

Vivi: And it’s good ‘cause if your friends are nice and they pay for it… [Laughter] I don’t pay for it. I use someone else’s, someone in my family that gave it to me. Moderator: This is good. Let’s move on to the next one. Amazon Prime. [two voices] I’ve never heard of it. Kyle: Too Expensive Ryan: I actually have it. Because of my student price. I use it because they mail you stuff for free overnight or in two days. And the movie thing exists but I’ve never used it. It’s an added bonus. I have it because of shipping. Kyle: After you lose the student it’s like seventeen bucks… Anais: Is it free? Ryan: It’s free for the first year and then I paid thirty five dollars for the second year. I use amazon enough Kyle: And you get free shipping. Ryan: But I’ve never touched the movie part of it but I know it exists Moderator: Ok Blockbuster

Vivi: It’s bankrupt Moderator: Ok let’s do one at a time Anais: It’s bankrupt Nicole:Broke Leslie: I used it once Daniela: Years ago Francis:I have never used blockbuster but I hear they have a comeback against Netflix. Pretty much the same structure. Bianca: For me it’s like prehistoric. I used to rent movies there when I was like eight. And then I don’t know what happened Tara: Yeah same I used to use it a lot like but now they are going out of business. Vivi: I used to use it a lot now but I have used recently at Publix they have the little kiosk where you can check it out Kyle: My problem is they don’t link the kiosk with the Blockbuster online accounts, that’s a big problem for my family. So they don’t stream stuff in stores which was the way to go David: Yeah I used to use the stores all the time, not the streaming services and they tried to sell it to me when they were going out of business and I just said no. I liked the store model; I liked going into the stores and picking them. Kyle: I liked getting mailers and then getting free movie 103

passes

Vivi: It’s prehistoric.

David: Yeah it’s fun

Moderator: One more, Redbox, let’s start with you.

Ryan: I think it’s all the past for me I used to use it all the time

Ryan: I loved Redbox when it first came out. My friend introduced it to me and I was like ok it’s a dollar, and it’s right there at the grocery store, it was perfect. I just stopped using it, but I liked it when it first came out.

Aaron: I only heard from a few people though mentioning the streaming services, I believe you guys did. I don’t know if you guys were aware but they do have an on-demand service where you can rent or download movies for $1.99 a day same with in the store Vivi: [nodding] Ryan: Blockbuster? David: They don’t exist. I have no idea what they are. Kyle: I only know of the blockbuster online, like the streaming package Nicole: I feel like back in the day it was like an event, it was like more of an event to watch a movie so we would go to blockbuster and gather everyone and pay for the movie. I can just sit on my couch and pull whatever I want up. It’s so easy that it is not that big of an event anymore. David: Also with the availability of free stuff on the Internet, honestly it’s a problem that can’t be handled when you have companies trying to sell you stuff streaming online; it’s a dying business model, in my opinion, because you can get everything for free. 104

David: Exactly that, especially for a college student. I don’t go out to get Redbox and then come back. But if I am at home, going to get groceries then it makes sense but if I am living it the dorms then no. Kyle: It sucks if you forget to bring it back right away. Vivi: Same what he said. It happened to me, and I got charged like crazy Tara: I’ve never used it. Bianca: I’ve never used it. Francis: I’ve never used it but I see it all the time in pharmacies and grocery stores Daniela: Me too, I’ve never used it Leslie: The same thing, if you to return it you pay more but its good, I like it. Nicole: I’ve never even seen it Anais: I’ve never used it

Francis: I think it looks kind of dangerous. If you are buying with a credit card. I don’t like to just buy it from a box. Ryan: I think I didn’t initially feel safe putting my credit card in but when I used it and hey send you an email confirming Nicole: I would be afraid; I think it is because I am Dominican. Back at home they have these things that read your credit card. They are super smart; they read it and recreate your credit card

Kyle: Yeah, the no membership aspect is kind of nice Ryan: So this is kind of like no membership hassle, so if I want one movie that month, then fine I will just pay a dollar or two dollars for two nights, when I couldn’t do something like that with Netflix or that type of subscription.

Ryan: They do that here too, yeah, it’s on ATMs.

Aaron: You brought up an interesting point. This is another question that I have here. What would you guys prefer? The one-time transactions, subscribing for a month, or even subscribing for a year. Do you guys have any opinions about that?

Nicole: Good to know

Anais: I prefer to subscribe for a year

Moderator: Anyone else have an experience with Redbox they want to bring up?

Nicole: A month while I test it out

Kyle: It’s like paying to not take it back. Because you rent it and watch it that night, and you could go tomorrow, but I am not going anywhere near Redbox, then next day two dollars, three dollars, I am already at four might as well get to five. Francis: That is like worse than blockbuster. Having to return to a person you feel embarrassed when it’s like three days late already. Two bucks, it’s like okay, I have to pay three dollars now, but nobody knows [Laughter] Ryan: I like that you pay by each movie, so like if I had Netflix or something and didn’t watch movies that month it’s a waste.

Leslie: For a year Daniela: For a year Francis: One time selection Bianca: I’d never subscribe because there is free stuff everywhere so its not worth it Tara: Same, one time usually Vivi: I don’t subscribe Kyle: Probably subscription if its good David: If I really like the product I would do it for a year Ryan: Yeah, I’d do the same. Especially if it was going to 105

be cheaper and I knew I would use it.

Nicole: I have no idea.

Moderator: We are going to go on to the next game. This one should be interesting. I am going to present another four brands, you might see some repeat ones, and you might see another one here. What we are going to do is I am going to ask you guys to describe the brand as if it was a person. [Laughter] Sounds fun guys? First up we have Netflix. If this brand were a person, would this person be a man or a woman?

Aaron: There are no wrong answers here

[All agree man]

Nicole: He would probably wear a hat. David: I think obnoxiously red velvet. Even the hat with a feather on the side

Ryan: Definitely man Francis: Why? Ryan: I don’t know, it is just a male Moderator: It’s a good point; I guess a lot of you guys see it as male. What makes it more masculine? Nicole: It’s like bold and rough Vivi:The logo. I think of the voice. The advertising voice for Netflix is a man’s voice. Moderator: Next question. What brand of clothes would this person wear? Kyle: Suit? Aaron: Let’s go in order. Anais: Armani 106

Leslie: Abercrombie and Fitch Kyle: Express Daniela: I would say a suit from Goodwill because it’s all old clothes

Ryan: I feel like Netflix shops at the gap. I don’t know why. Aaron: Did we get everyone to say what clothes? Nicole: Maybe a black suit/black tux Kyle: I say express, it’s the vintage look but you are paying for it Aaron: A lot of you said classy suits; do you want to go into why you felt that way? Francis: Because it can trick you, and tell you that it is good when it can actually not be [Laughter] Ryan: I said the gap because it is not like old navy. Its good quality but it’s not like Banana Republic, its somewhere in between. It’s trying to look good.

Vivi: It can be good

Francis: Gray

Nicole: It classic, come one. I see your point (at Vivi)

Bianca: I feel like either white, black, or red

Vivi: Like Goodwill, like it makes sense

Tara: Red

Ryan: Why Goodwill?

Vivi: Black and white

Vivi: Well because have you ever gone to the Goodwill? You can find some good stuff if you actually look. But it is old stuff, used stuff. It goes back to how I said like VHS, it has movies on it that I only have the VHS for, and that just makes me think of old stuff that you buy at Goodwill.

Kyle: Red

Moderator: Ok, someone mentioned Armani

Ryan: Red and Gray

Anais: That was me

Moderator: What kind of car would they drive?

Moderator:Do you want to go into why? It seems more like classy expensive suits

Anais: A classic

Anais: Yeah, they have raised their prices Moderator: Ok, because they have raised their prices. Ok, what color would the clothes be? Anais: Red Nicole: Red Leslie: Black Daniela: Black

David: Red velvet [Laughter]

Nicole: Mercedes/BMW Ryan: Mustang Kyle: Hyundai Villoster David: Definitely Cadillac Moderator: What color would the car be? Kyle: Black David: Red velvet [Laughter] with obnoxious red stripes Ryan: Black 107

Moderator: You guys over here

Vivi: That makes sense

Girls: black

Tara: Divorced

Vivi: Red

Ryan: But it is the divorcee. It didn’t choose the divorce

Francis: I think white

Vivi: Someone split them up

Nicole: Or silver

Moderator: One more for Netflix, do they have kids?

Moderator: Why do you guys feel those colors? I know this is kind of similar to the clothes that you picked

Together: No

Anais: They are the company colors Francis: They are super common colors I guess Kyle: Company colors Vivi: Yes company colors Moderator: Is this person single or married? David: Single Ryan: Divorced [Laughter] Kyle: Actually I see divorced. It had it going when it was the innovator Ryan: And for some reason it just kind of dropped the ball and everyone was like never mind 108

Moderator: Any reason why? Vivi: That’s why they have old movies they are out of date Kyle: They have no game Ryan: It doesn’t appeal to anyone under the age of 16 Francis: It’s too complicated for them I guess Vivi: I feel like it’s the dad that’s trying to be cool. Like every now and then they take them to cool movies but typically not Tara: Netflix is not going to like us [Laughter] Moderator: This is the time to get it out. Next Comcast Xfinity. If they were a person would they be a man or a woman? Anais: Man

Nicole: Man

Anais: Something boring

Leslie: Man

Kyle: Yeah, I can see that. They could even pick their own color scheme, Redbox and Netflix

Daniela: Man Francis: Woman Bianca: Man

Tara: Banana Republic Vivi: Pajamas

Tara: I’ve never used it.

Moderator: Anyone else have any opinion on what they would be wearing?

Vivi: An old man. My grandparents have it, that’s why.

[Heads shake]

Kyle: No Comcast where I am at so I have no idea

Moderator: Alright, what kind of car would they drive?

David: I would go with gender ambiguity here, I have no idea

Anais: An old Toyota

Ryan: I don’t really know much about the company Moderator: OK I believe we have mostly men and one woman, do you guys want to say why you picked them?

Vivi: [pointing] yeah! Ryan: An old Volkswagen Kyle: I could see a Volkswagen

Anais: The font. It’s not very girly

Vivi: I am going with Toyota, definitely

Francis: I see it as a nagging woman

Leslie: Volkswagen

[Laughter]

Francis: A white business van

Vivi: I said old man because my grandparents have Comcast, so it’s what I think about

[Laughter]

Moderator: OK, what brand of clothes would they wear?

Moderator: So we have a man earlier in pajamas, now we have a Volkswagen 109

Vivi: And Toyota!

Bianca: Old, married, and retired

Moderator: Do you guys see them as older?

[Laughter]

Together: Yes

Aaron: And, do they have kids?

Moderator: Anyone have any experience with them?

Nicole: Grandchildren

David: They are unreliable

Vivi: Grandchildren, yes

Vivi: They are many options, they are so disorganized and I don’t like using it

David: I see kids

Nicole: It’s confusing, I don’t know half the things it did until half way through the year and I was paying for it. Bianca: You can’t record. It’s really weird their times are really weird. You have to go in the middle of the night for a good movie there is nothing at six. It sucks Ryan: I think of them using slow internet. Moderator: Are they married or single? Together: Married Moderator: Ok so a lot of head nods Vivi: Married for a long time Kyle: Married, yeah Ryan: Yeah Married David: Still don’t know who they are 110

Moderator: Ok you mentioned grandparents and kids, could you say why? Vivi: I mean, my grandparents just have Comcast and I hate it because when I go over to their house I don’t like watching TV on it Kyle: I see it because it is not just a TV service Bianca: It’s just boring and annoying Vivi: When I click guide for DirecTV its very clean cut and you know what you are looking at. Theirs is scattered. I don’t like it. Nicole: It’s slow too David: You can’t search Moderator: Let’s go on to the next one, Blockbuster. Are they a man or a woman? Anais: Man

Nicole: Dude

Moderator: What color would the clothes be?

Kyle: male

Vivi: Jeans

David: Girl

Bianca: Very neutral like jeans and a shirt

Moderator: One girl, why do you see them as a girl?

Vivi: 90s style

David: I don’t know, I feel like for some reason the brand is female

David: White jeans, band t-shirt,

Moderator: Ok for the ones who said male, why do you see it as masculine?

Ryan: Faded denim Moderator: What kind of car would they drive?

Nicole: I think it’s the colors

Nicole: Their mom’s car

Vivi: Sporty, I don’t know

Leslie: An old car, I don’t know

Kyle: The font

Daniela: Maybe a mustang, I don’t know, red

Ryan: There’s something about the word blockbuster being an action film. It’s a hard sounding thing. The consonants are hard, so it makes me think masculine

Francis: I don’t know, a jeep

Nicole: What brand of clothes would they wear? Kyle: Baggy T shirts and jeans with a hat on David: Absolutely Vivi: Pac-Sun David: I would go with that even for the girl Ryan: I’d agree with the Pac Sun

Bianca: I see it looking more like a college student, I don’t know, anything a college student would drive. A normal car, nothing very specific or nice Vivi: Maybe a jeep Kyle: I see a limo actually, someone who goes to the movies a lot, I don’t know David: An old Beetle Ryan: An old cop car, a car you could see and mistake for being a cop car. A crown Victoria 111

[Laughter]

Moderator: Hulu will be our last one

Moderator: Okay, so I think we have heard a lot of Jeep and even older cars. Do you guys want to expand on that a little bit?

Anais: woman

Ryan: My grandma drives a crown Victoria, that’s why

Leslie: Woman

Moderator: Ok so it reminds you of your grandma

Daniela: Woman, I guess

Ryan: Yeah, just old

Francis: Guy

Moderator: Are they married or single

Bianca: I guess a girl

Group of girls: Single with head nods from rest of group

Tara: Girl

Aaron: So we have a lot of old, old clothes

Vivi: I’d go with a guy

Vivi: 90’s style

Kyle: Man

David: Converse

David: Female

Vivi: Yes!

Ryan: female

Bianca: Ashton Kutcher

Moderator: Ok, we got a lot of female. What about Hulu makes you guys think female?

Vivi: Like Dude, where’s my car? Type of guy Moderator: Do they have kids? Group: No

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Nicole: Guy

Anais: The green and the curves Bianca: The font, its smoother. All the other ones are lines.

Moderator: No kids at all

Ryan: I always think of the music. Their advertising is kind of enticing. There’s something about it.

Group: No

Moderator: We are going to do another exercise and then

we will almost be done. I’m going to step outside for a few minutes but I have index cards here with a bunch of companies and I am going to ask that you get together and talk for five minutes to decide which company has the best overall features for its value. I’ll leave them here and let you discuss, I’ll be back in about five Index cards are distributed Vivi: I’ll go with AT&T Leslie: Yeah. AT&T for sure Vivi: Aren’t we supposed to talk about all of them? Ryan: I thought we were supposed to split up. Kyle: I think he said pick the best one Tara: I think its Netflix Vivi: Wait what’s Uverse

Kyle: I’m just saying if you are by a store. I am no longer by one so it sucks. Bianca: But I am by one and I would never actually take the time to walk to a store if I could just do it on my computer or TV David: Well, right but you can do it on your computer too Kyle: And I think their selection is just as good as Netflix’s Nicole: Can you just sit on your couch, go on blockbuster. com and watch it? Kyle: Yeah, and if you have Dish network it links up with that and its really sweet Nicole: I didn’t know that Vivi: I think Netflix is the best because Netflix is now paired up with X-Box, Wii, and stuff like that. Anybody can get Netflix now

Kyle: I like blockbuster if there is a store. If there’s a store you can stream, take it in, get a new one right away. If you get it mailed to you can take it to a store, and get a new one right then and there, you don’t have to

David: But you can also get any movie anywhere online for free

Together: There are no stores anymore

[Laughter]

Kyle: They have some, if you are by a store it’s a win Francis: There’s one next to the Publix in Brickell

David: The fact that you can do videogames with Blockbuster makes it better in my opinion, because any TV show you can find online.

Vivi: All of the stores by my house are closed

Nicole: How about Hulu? Who has Hulu?

Kyle: So is this the illegal download card?

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Vivi: I hate Hulu

Nicole: What is this again?

Francis: Ok I watch Parks and Recreation there. They let you watch it for a couple of days and then they take it out and they put in Hulu plus so you have to know the days to watch it or you have to pay, exactly.

Kyle: Redbox

Vivi: It used to be when it was free and they had all the episodes of a season I would watch it and I would catch up on the Office and stuff like that. But now they only have like three episodes and then clips of the old episodes. David: Ok, let’s take out Hulu, yeah. And we could get rid of whatever the hell this is.

Nicole: You have to choose between the two to have in your house. This gets rid of. Kyle: You don’t like Redbox at all? Ryan: It’s good if you are doing it once in a while Vivi: Blockbuster is just the same thing as Redbox

Kyle: Uverse, it’s cool.

Leslie: Blockbuster is more expensive

Vivi: It’s a better DirecTV. Nicole: You can record stuff

Ryan: Redbox is anywhere, Blockbuster is nowhere and they have games on Redbox too now

Bianca: You can record stuff, you can search like three weeks into the future, and look at whatever movies are going on and receive it. It’s really fast and there is also a bunch of movies you can pick from

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Vivi: Amazon prime, does anybody care about it?

Vivi: So get rid of Blockbuster then? Francis: Yeah

Kyle: It uses fiber optic cables

Kyle: We’re not talking about the box Blockbuster?

Vivi: Can we get rid of HBO Pak?

Vivi: No

David: I don’t know what that is

Francis: Forget about Redbox, I don’t like it

Francis: You can watch all the episodes of HBO series

[Laughter]

Vivi: I don’t really watch HBO

Nicole: Ok, ok out.

Vivi: Ok so Redbox is done Kyle: Take away Uverse, Nicole: I’m the only one that knows about it

Nicole: And you connected it to the TV? But what about games and stuff like that? Bianca: Alright, so take Uverse out

Vivi: Its good but nobody knows about it yet

David: I haven’t had cable since I was seven years old, I just don’t even use it

Kyle: It is expensive?

Nicole: I feel like that is just a basic

Bianca: What I feel is good about it is that if you are going to pay for cable anyways and you are in your house so you get cable and all the movies and TV series that come with it so it’s like two services in one. It’s not big yet but they have all the initial series of like Entourage, all the big series, until the last one, obviously the new ones they don’t have but you can record them

David: We have a TV but it just gets too much volume and static, I don’t even know how to describe it. If I want to watch something specific, I’ll go online

Nicole: You can store seasons and seasons of series and keep them there, you can go back to them whenever you want, and they don’t expire Bianca: And you can pick to automatically restore and it will record for the rest of whatever and it deletes the old ones and brings in the new ones. It’s just easy Ryan: If I want to do that I would just get a TiVo or TV guide no? Bianca: The thing is just for cable service, I feel like it’s really good Ryan: I never had cable in my apartment last year, we just used our computers

Nicole: Where do you watch sports games? David: I’ll watch sports games, for example, on TV Nicole: On cable? David: Yeah, I’ll go out to a bar or something like that Francis: What about the news David: I’ll watch it online Vivi: I watch TV everyday David: The internet is like TV without the advertisements. I don’t need to watch TV. I don’t need to sit there Bianca: But if you are recording you can fast forward through that David: You can skip ahead in streaming 115

Vivi: But then it buffers, it’s horrible Bianca: See, with AT&T you don’t buffer, it’s all there Vivi: I’ve tried watching shows like Bravo online on their Bravo website and it never works the same. I’d rather record it and fast forward than go online and catch it if I missed it.

Ryan: They have some recent stuff Nicole: Yeah, can’t you request

Bianca: But price wise Uverse I probably more expensive than the other two

Vivi: Yeah, you request new movies and they get mailed to you.

Vivi: Let’s knock Uverse out because I don’t think a lot of people know about it yet.

Kyle: They are all on the same systems these days

Bianca: Exactly Nicole:

Do any of you guys have an iPad?

Vivi: No but you can watch Netflix on it, and on your iPhone

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Vivi: I think Netflix is the best, I know the movies are old but if you buy it, and every now and then they have new releases, but if you buy the whole package you can have movies sent to you

Moderator walks back in Vivi: So everyone agrees on Netflix? Nicole: Hulu, really? Ryan: I like Hulu

David: Is it free to do that?

Kyle: Hulu is out, forget that plus

Vivi: Yeah, it’s free; it’s a free app on your iPhone

David: Where’s the blank card for internet downloads?

Kyle: And you can do Blockbuster

[Laughter]

Nicole: My computer is bad, it doesn’t work, so I got Netflix literally because I couldn’t watch any shows or movies or anything so I got the subscription because I couldn’t stream on the iPad or on the iPhone or anything so it works

Nicole: That should be Cuaybana, do you guys know Cuaybana?

Francis: I have Netflix

Leslie: No its back

Bianca: It’s out

Bianca: Its back? Since when? My life is back Nicole: Cuaybana, well it’s in Spanish Bianca: They have subtitles in Spanish but you can get like every single movie you can think of Ryan: Is it legal? Bianca: It’s free Nicole: They all had the problem with Megaupload. Leslie: They closed it but its back on Moderator: Ok guys, are you ready? Your final decision was Netflix? Do you want to say any of the reasons why? Bianca: Don’t you have it recorded

Vivi: I like it because it’s so organized, everything is by genres, and then it says maybe you would be interested in watching this. If you don’t like the options they have you can request to have movies mailed to you and send it back whenever you want, like you can keep it. Francis: I like documentaries in Netflix, they have good ones Vivi: They do have good ones Ryan: They have the best non mainstream stuff as well Moderator: Ok, so more niche stuff. Do you guys have any recommendations for them or for the industry for all these companies? Francis:

Make it like three dollars per month

[Laughter]

Kyle: Advertising based streaming is the future for sure. Personalized ads on the sides

Aaron: I was checking on the pizza so I haven’t seen anything yet

Nicole: If you are paying for it, I don’t see why they have to put ads

Bianca: Well they are the cheapest, most reliable option I guess

Kyle: Well Hulu plus doesn’t put ads on the sides, that’s the example of one model, the other example is like Megaupload, where they made millions of dollars, illegally, off of advertisements

Vivi: I would go with that Francis: Its really available to anyone, like college students, TV’s anywhere, X-box, Kyle: And you can share

Nicole: Because it was so useful and practical Kyle: If Netflix said that they were going to get rid of their subscriptions but they had ads on the sides and you had to watch a 30 second ad the beginning they would still make 117

money

Bianca: No advertisements, I hate it

Bianca: So the truth of the matter is that if you can’t get something free without advertisements, then the best way for them to make money is to make it as similar as possible to the illegal option while still making a profit so they don’t go bankrupt

Nicole: if I pay, I don’t want to see ads

Vivi: Netflix is something you can take with you anywhere. She was saying she has it on her iPad, I have it on my iPhone; I watch it in my car if I am going to Orlando or something. It may not have the most up-to-date things so that might be something they need to improve on. To find a way to stream more up-to-date things for people and not just have it mailed to them Ryan: If you could marry Hulu and Netflix it would be perfect. Ryan: Because Hulu has the recent, Netflix has the volume and the subscription, and that would mean no ads, which would be the perfect marriage Moderator: Ok one more question and then we should be about done, anything about the industry that you don’t like? No matter what the service is you just do not like that feature at all Vivi: Advertising Kyle: Advertising David: I don’t know, I don’t like paying for it Kyle: Yeah, I am cool with the ads if I don’t have to pay 118

Vivi: Exactly Francis: Or they should have a link where you can skip the advertisements like YouTube Ryan: Oh I love that where you can six seconds in skip it Francis: I am just waiting for that second Ryan: It’s a countdown, 5-4-3-2-1-GO [Laughter] David: Or on Hulu they had for a while that you could watch a five minute advertisement or two or three series of one minute advertisements punctuated throughout the show Bianca: Or there is one in the beginning when its loading, that’s fine, but don’t stop in between Ryan: Then don’t interrupt me David: They used to do that then they switched, I don’t know why they don’t do that anymore, they should definitely do that Ryan: Just like a five minute period, that’s fine, I’ll go get some popcorn Bianca: Exactly, then it’s like why aren’t I just watching TV, why am I doing it on my computer?

Moderator: Thank you guys for coming out. All of what you said should help us out greatly, once were done with this we can go outside, pizza should be ready for you guys, we have soda for you two. Any other questions?

guess my favorite actor is, like, Johnny Depp. (Laughter)

Ryan: Yeah, do we get paid

Kristen: I’m Kristen, I’m a PR and Sociology student, and my favorite actor is Ryan Gosling.

[Laughter]

(Ooooh) (Yeah) (I forgot about him) (Laughter)

Moderator: Make sure you sign the sheets, and again thank you guys, this was an awesome day

Maribel: My name is Maribel, um, I have a degree in Business, and I have a store, a franchise, Mango, in the Dominican Republic. One of my favorite actors is (inaudible) also, and lady actress, let me think. No, I don’t know I’m going to pass that one.

Focus Group Two Moderator: Adriana Saltz Date: 2/14/2012 Adam: I’m Adam Berger, I’m a Journalism student and International Studies major, and my favorite actor is Michael J. Fox. He hasn’t acted in awhile but I love Back to the Future. Heather: My name’s Heather Stevens, I’m an English and Psychology double major. Um, my favorite actress is Emmy Rossum. Lindsey: I’m Lindsey Palmer, I’m an Ecosystem Science and Policy major, and my favorite actress is Kate Winslet. Elizabeth: Hi, I’m Elizabeth, I’m an International Studies and Political Science major, and I don’t have any favorite actor or actress. Danny: I’m Danny, I’m a Computer Science major, and I

Romi: I’m Romi, I’m a Bio major, and mine is also Charlize Theron. Jordan: My name’s Jordan Caruso, I’m an Advertising and Photography major, and my favorite actor would be Will Ferrell. (Oh yeah, me too, I forgot) (I hate him) (Oh I love him) Adriana: My name is Adriana, and I study Advertising, and my favorite actor is George Clooney. I’m here on behalf of the Advertising Campaigns class and we just want to ask you a few questions to help us with our campaign this semester. So I want to go one by one because if a lot of people talk at the same time we can’t understand it, so just one by one if you guys could tell me what kind of TV of movies you like to watch. I guess we’ll go this way. Deniz: Ok, I like comedy and drama. I hate horror, like, I always close my eyes and ears. What was your second 119

question?

die-hard Law and Order SVU fan.

Adriana: TV, like TV shows.

(Me too)

Deniz: Yeah, I love Modern Family.

Adam: I like 30 Rock, Breaking Bad is the best show that’s ever been put on television. So I’m all over the place as far as what I like on TV. As far as movies go, I’m the same way. Give me a good sci-fi flick any time of the day, horror, absolutely, comedy, of course. So, I like what I like, you know?

(Me too) Adriana: That’s one of my favorites. So you like comedy? Deniz: Yeah, I like comedy. Adriana: Do you like more the shows that last an hour or more half an hour? Deniz: No, I have like a shorter attention span so like 20 minutes at a time. Shelly: Ok, I love Gossip Girl, but I’m not caught up right now so I’m currently watching, like, entire seasons at a time. And then, I also watch Modern Family because it’s so funny. I used to watch Grey’s Anatomy, but it got really depressing. (Laughter) Shelly: Um, Mad Men also turned into be depressing, but I like comedies if I’m going to watch a show, like, I sit down and just take an hour and watch it. It’s like something to do instead of, like, ok now I have to go do something else, I don’t really like that. So, and then you asked movies? Um, I like romantic comedies, they’re funny. I like chick flicks and comedies, definitely. And I like horror movies if they’re good, like not if they’re like sci-fi or that kind of stuff. Adam: I’m extremely eclectic, I like South Park, and I’m a 120

Adriana: So the time span of TV shows doesn’t bother you, you would watch half an hour shows or anything? Adam: If I like it, I’ll watch it, you know? Exactly. Heather: Um, my favorite show is Glee, and I also like to watch House and I like this other show that was on awhile ago it was called Lie To Me, I kind of like shows where you have to figure out what’s going on. I like shows that have extended kind of plots that go over the whole season that would, in a way, like more resemble a movie or a book. And, so I like shows that are a little longer because to me 30 minutes isn’t enough to do a full plot. And then, in terms of movies I like dramas and I like comedies to an extent, and then I like a lot of mystery and sci-fi and stuff like that. I really like Harry Potter and stuff like that. Lindsey: Um, for TV I like comedies like How I Met Your Mother and 30 Rock, but I also like some of the drama shows like True Blood and Weeds with the Showtime-y feel to them is really good. (I love Weeds it’s a great show) Lindsey: For movies, I like sci-fi a lot. Lord of the Rings and

Star Trek, what else, I watch like every basically. Horror, comedies, rom-com, everything. Elizabeth: Um, I don’t really watch TV, I don’t have one. I watch Modern Family at my friend’s house, I like documentaries. That’s about it, I don’t know, whatever. (Laughter) Adriana: Do you watch TV on your computer or shows on your computer since you don’t have a TV? Elizabeth: No, no really. I’m afraid of viruses. (Laughter) Elizabeth: I just don’t. Danny: Ok um, I don’t really watch TV either. But my roommate is a girl so she watches like Gossip Girl and The Bachelor, so I’ve been watching that. (Laughter) Danny: My favorite show is probably Dragon Ball Z. And movies, I like sort of epic movies that have meaning like Inception was really cool, stuff that makes you think. And also comedies, Stepbrothers is probably the best movie ever. Kristen: Um, TV wise my house and I, we’re like obsessed with reality TV so we watch like every Bachelor, every Bachelorette, Bachelor Pad, we watch Big Brother, we watch all of them. So we love that, and then I’m a big fan of, like, Criminal Minds and Dexter and those kinds of shows I really like too. Um, movies, more like a wide variety. I don’t see a lot of movies in theaters, I don’t like to spend the money on

it but when it comes to just watching something at home, it could be anywhere from romantic comedy, to thriller, to horror, if it’s at home I’ll watch anything, I don’t really see any movies in theaters though because I don’t want to spend the money. Maribel: I like everything, I like comedy, horror, drama, everything. And TV I like Six Feet Under and I like Dexter, also. But I like Friends, The Nanny I love The Nanny. And I used to watch Wings, which you never see it anymore. It’s like a five or ten year old series, I don’t know. And I like European movies a lot, I like foreign films. And my son is into film, now he’s going to film with NBC, a reality show. He is starting this week, tomorrow. He is going to be here a month, what’s the new reality show on NBC? Well, he’s doing that. Romi: For TV I like singing shows like The Voice and American Idol. I also love Modern Family, Grey’s Anatomy, Homeland, which is a Showtime show, it’s incredible. And for movies I like more chick flicks but I am willing to watch other things, but chick flicks is my main thing and as Danny said movies that make you think, like Inception, are great movies to watch. Jordan: I watch one or two shows and it’s American Horror story, which is amazing, it’s my favorite show, and then, proudly, all the Real Housewives shows, they’re the best, they’re so good. (Laughter and nods) Jordan: So I watch those and then when it comes to movies I usually like comedy, I’ll watch anything really, but mainly like comedy. I love Zoolander, best movie out there. 121

Adriana: Do you guys prefer watching movies alone or with groups, do you go to someone’s house to watch TV or movies? Deniz: I go to the movies, rather than watching in my house, but I go with people. For TV shows I definitely like to watch, like, Modern Family or South Park with someone, so it’s more fun that way. Shelly: I don’t really watch TV that much so, like, when I am watching usually someone’s over, or my roommate’s in the room watching it, getting in on it, like Gossip Girl, but that’s pretty much all I dedicate time to. If it’s a good movie I’ll go see it in the movie theater, otherwise I’ll just wait until it’s on On Demand, and I’ll usually watch that with people. Like if I go to the movies I’ll go with people, but Gossip Girl, alone because it takes a long time, some dedication. Adam: Yeah, I’ve never seen a movie alone in theaters, that sounds really depressing. I’m kidding, but it depends on the TV show. South Park, I demand silence while the show is on. Need to hear and absorb everything, so no outsiders allowed on Wednesday nights in my house. But people know that. But Law and Order, love watching with people because at the beginning we play the game “guess where the body is going to be found,” and that’s more fun, you know, we get a lot of guesses and stuff like that. I don’t mind watching with people, sometimes it’s fun, but it depends on the show, if I’m really serious about it then you got to be quiet. So, it depends. Heather: I watch more TV shows by myself, like I said my favorite TV show is Glee and I really like to sing along with the songs, so I do that by myself. 122

(Laughter) Heather: But when I watch movies I like to watch with other people, unless I’m watching for the second or third time or something like that, that’s when I would normally watch it by myself because I maybe want to fall asleep or something so maybe I’ll put on a movie. For the most part, it’s different. Lindsey: TV shows I usually watch by myself because I get obsessive about it and I’ll watch, like, five whole seasons of a show all at once in the span of a week and I don’t feel like working around someone else’s schedule to do that so I do it all by myself but with movies I prefer to watch them with someone, especially if it’s a thought-provoking movie, because then we can discuss it afterwards. Elizabeth: O watch TV with other people because I don’t have one and movies, the same. I’ll go to movie theaters if it’s cheap, but not usually. Danny: I don’t like watching anything alone. Just need company. Kristen: That’s me too, our TV is in the living room so we’re kind of always together, my roommates and I will like discuss at the commercials. Maribel: I like to watch movies before I go to bed, or whatever, I like to change channel before I go to bed. I used to like to go the movies a lot and I could see two or three movies in a row, but not anymore because at home I can’t find the time to sit and watch a movie, but now I have a group of friends where we get together on rainy weekends and we watch the 24 hours. We have breakfast, lunch, and dinner together And it’s lots of fun. A long series. And that’s about

it. Romi: With TV shows that I’m really into, I like to watch them alone, but if we’re just eating dinner and watching TV at home, I like to watch it with other people. For movies, it depends on the movie, like if I don’t care about it then most of the time it’s with other people. I rarely watch movies by myself. Jordan: I tend to like watching movies with other people, with an exception if someone talks the entire time, but movies I like seeing with other people.

watch TV on cable, shows I like I make sure I watch them on my computer if I miss them. Lindsey: When I’m home I go to the movies all the time, but here I have so much to do so I don’t really make it over too much. So I mostly just watch movies on my laptop. I have a Netflix account, and I have HULU Plus, too. Elizabeth: My friend has Netflix, so usually we jut do that. Danny: I watch if it’s on TV, like a movie if I see it. But I don’t really go to the movies, only like 3D movies.

Adriana: Do you guys like watching movies on your TV, or in the theater, or your computer, like, do you stream them or a gaming console?

Kristen: I rarely go to movie theaters, but we’ll watch On Demand if we can find it on TV, and if not sometimes we’ll stream TV or movies.

Deniz: I usually watch movies in the movie theater. I never watch movies streaming on the computer, but I always watch my TV shows that I like on the computer because I never catch them at the time.

Maribel: Not long ago I started watching this very good Spanish, from Spain, series. It’s so good, one of the best series I’ve ever seen, so that I cannot see on TV, so I watch it on my computer on YouTube. They have the full series. They’re not making it any longer, but they have the whole complete series of all the years, so I haven’t finished yet.

Shelly: I watch a lot of Gossip Girl on my computer at school and then, like, at home I watch Netflix and movies on Netflix, or I go to the movies. Adam: My DVR is my best friend. I have recordings set so I can watch it when I want to watch it, and then if I don’t have it on my DVR I illegally watch it on my computer or use my friend’s Netflix account when he’s not using it, so I try to be cheap. Heather: I like to go to the movies and see movies, I kind of like the atmosphere of going to the movie theater and I also have an Apple TV, and so I watch Netflix on that. I also

Romi: For TV< I usually watch it on DVR on my TV, and then for movies, also On Demand, DVR, and I used to do the streaming on my computer until it gave me a virus, so I don’t do that anymore. Jordan: Usually it’s like I turn on the TV and I check the one or two channels I watch, and then I turn off the TV. But something like American Horror Story I’ll always record on my DVR just in case I miss it. With movies I usually rent on iTunes and watch it on my computer. 123

Adriana: I’m going to show you a PowerPoint with some companies and I want you to look at each logo and tell me whatever word comes to mind first. So HULU: Deniz: Video. Shelly: Green, because it’s just the first thing that comes to mind, I guess. What I think about the company? TV shows, that’s where I watch Modern Family. Adam: TV shows. Heather: TV shows. Lindsey: I think current, because you can watch the episode that was on last night, or something.

Adam: I think awesome. (South Park is on there) (Laughter) Adam: That’s just because I’ve been able to watch a bunch of shows on there, but I don’t use it too often to get disappointed but again, I use my friend’s account , but I think it’s pretty cool.

Elizabeth: Same. Danny: TV shows.

Heather: I think new because I use it on my Apple TV a lot to find movies I didn’t get to see or, like, shows from a long time ago that I never watched and things like that. Lindsey: I also thought awesome because they have a ton of movies that are pretty good.

Kristen: Video clips, like you can watch sections of Saturday Night Live separately on HULU, too. I sometimes do that.

Elizabeth: Awesome, because I don’t have to pay for it and everyone else has it so I can use theirs.

Maribel: Nothing to me.

Danny: Movies, I don’t know.

Romi: TV shows, like catching up on them.

Kristen: I don’t have an account, but I’ve heard it’s convenient.

Jordan: Disappointment, I can never find what I want on HULU. (Laughter) Adriana: Ok, the next one is Netflix. Deniz: Very limited, like, there’s nothing on it. 124

Shelly: Yeah, I would say the same thing. Like you have to go onto your computer, add it to your instant queue, and then go and watch it if you want something. So I think of kind of, like, a hassle, I guess. Most of the time.

Maribel: Never use it. OF course I’ve heard of it, but I live in Santo Domingo, Dominican Republic, and sadly you don’t have to pay for movies there. You can see everything free because, you know, they take it. The signal. So you don’t have to pay for movies. So, I just bought an Apple TV and I’m going to take it to Santo Domingo and I don’t know what they do there, but I don’t have to pay for the movies

there, either. Romi: I think Netflix is useful, because if you need to catch up on a TV show, you can and you can do a list of all the movies you want to watch, so it’s kind of like you have a goal to complete and watch all the movies you want to watch.

Romi: I really like it, but I don’t like that only certain products are eligible to be Amazon Prime. Shelly: Yeah, like, you save money on shipping, but your book is, like, 300 dollars more expensive. That’s not smart. Jordan: I have no idea what it is.

Jordan: I sort of think useful, because my roommates, that’s the only reason why we check our mail because it’s always from Netflix. We get them on DVD.

Maribel: Tell us what it is, Amazon Prime.

Adriana: Amazon Prime.

Romi: On certain products, not on all of them.

Deniz: I’ve never heard of Amazon Prime.

Maribel: So I’m going to get it because I buy from Amazon.

Shelly: I think of students, I think students use it the most, from what I’ve noticed. But for me it’s inconvenient because the used books aren’t on time. Like, things that I need, so I don’t really use it that much.

Adriana: Blockbuster.

Adam: No idea, I’ve never heard of it.

Shelly: Who goes there anymore?

Heather: I’ve never heard of this either.

Adam: Behind the times and innovative.

Lindsey: I think useful for the free two-day shipping or even one-day shipping for really cheap.

Heather: I think of VHS’s, for some odd reason.

Elizabeth: Yeah, I think I declined it (inaudible). Danny: Yeah, I don’t know what it is. Kristen: Never heard of it. Maribel: Me either, so they have to make better advertisements.

21:47- 22:10 Scratched

Deniz: I know that there company, like, bankrupt. Like, they were so 20 years ago.

Lindsey: Yeah, I think dated because every time I see one I’m always shocked that they’re still around. Elizabeth: Yeah, a dead company. (Laughter) Danny: It’s in my childhood. 125

Kristen: Definitely old, because everything’s online now. But at the time it was, like, a great resource.

Elizabeth: I think of really weird movies, then you forget it in your card and it’s like, “oh 15 dollars yay!”

Maribel: Yes, I think it was an innovative company, so they had their time. But I think they’re in the end.

Danny: Walgreens.

Romi: Original, but done. Jordan: I thought it was out of business. Growing up, I never had Blockbuster near me. I always went to a locally owned movie store where you had every movie, whether it’s old or new, on stock, so whatever you needed you could find. I just remember when I used to go visit my family from New York when we went to Blockbuster we could never find really good movies. Adam: Worst business model ever. Adriana: And Redbox. Deniz: Never heard of it. Shelly: I think of, like, CVS, and standing outside in the cold and getting a movie. And it not being fun. Adam: No idea. Heather: I think of Publix because that’s where I’ve seen it before, but I just don’t like the idea that you have to bring back the movie. I feel like it’s kind of like Blockbuster, but at the grocery store. Lindsey: Yeah, I think of the grocery store and also a strange selection of movies. 126

Kristen: Like, kind of inconvenient. That’s the last outlet I’d ever use or go to to find a movie. Maribel: I’ve seen the ad, but I’ve never used it and didn’t know what it was about. But it’s a good ad. Romi: I think it’s useful for, like, Winter Break if you have one close to your home. But otherwise I wouldn’t do it, because that’s the only time I tend to watch movies. Jordan: I’m obsessed with Redbox. I have the app on my phone and I always think it’s really convenient just because they always have the movie that I want to see, and they always have the Blu-Ray version of it. I think it’s so simple, the island I live on there’s two different Red boxes on the island so I can just drop it off really quick. I like to watch the current movies and the movie store by me is going out of business. As good as it used to be, it’s really terrible now, so Redbox always has the newer ones and they’re never out of stock, which I really like. Adriana: So now I’m going to show us another slideshow and you’re going to describe this brand as a person. So if it was a boy or a girl, or what clothes would it wear, what car would it drive? Is the person married or single? Ok, Netflix. Deniz: It’s a teenager. It’s male. It’s a senior in high school and it’s wearing, like, a cap with a football shirt or something. Single. He would drive a terrible car.

(Laughter) Deniz: I don’t want to offend anyone by saying a type. I think the movies are kind of old. I don’t know I kind of associate it with that. Shelly: I don’t even know what to say. I guess using its limitedness, it’s not current, and I guess maybe it’s a 30 cougar trying to get with a guy. You know what I’m saying, like, they just don’t have it all. And, if I want to watch Gossip Girl that came on last night, I should be able to watch it. It just doesn’t give you everything that you want. That will be my, kind of, interpretation. Your turn. (Laughter) Adam: I think of a dude that is really into fashion, and that maybe thinks he’s a little cooler than he should be. That’s mostly based on the lettering, I don’t know the lettering seems, the font seems kind of, new age-ish, and I don’t know. That’s the person I think of. Heather: I think of a woman in her late 20’s, who is like a business woman so she’s really busy and is at work all day. She doesn’t have a lot of spare time and her only spare time is on the weekends. And I don’t feel like she would own a car, I feel like she maybe would take the subway, or maybe take the Metro or the bus or something like that. She would probably be single because to me, Netflix is about watching movies at home and doing things like that at home. You don’t necessarily go to places that are overpopulated. I know you can have friends over and things like that, but I feel like it’s something you might do by yourself or with a couple of your girlfriends, or something like that.

Lindsey: I think of a guy in his early 30’s who is doing pretty well for himself, pretty successful, drives a Ferrari, single and loving it. He’s not perfect, he has some holes, but he’s doing pretty well. (Laughter) Elizabeth: Like a college student in their dorm room that stole their parents’ Netflix account, or something. I don’t know what think of, like a younger person. Danny: He kind of looks like me right now, what I’m wearing. So, I guess like that, he looks pretty cool. He gives people movies, I don’t know. Kristen: I kind of feel like a college stoner kid who just wants to chill out with his friends and see what weird thing is up next on his instant queue and chill out for the next few hours and jut watch. He’d watch Weeds all day. Like stay in on a rainy day and watch a bunch of movies. Maribel: You want the first thing that came to my mind, ok that’s Felix the Cat. Like kind of mean, going around in his small car, doing nothing. That’s it. Romi: I picture a guy in his upper 20’s in a business suit. He thinks he has swag, but he doesn’t. He drives around in a little Honda. Jordan: Probably a male in his early 20’s. So what Kristen was saying, very sloth-like, just prefers to stay in all day watching Netflix movies I his bed, as opposed to, like, actually going outside. Adriana: Comcast Xfinity. 127

Deniz: I use this. I think of the guy who installs my Comcast, with the uniform with the van and everything. That’s what comes to mind. Shelly: I just think of major lack of customer service. I want to rip all of their faces off. Each and every one of them. I’ve been calling them for weeks to fix my TV, and they have not come. The only person who’s contacted me is the guy who copied my phone number down and has been talking to me alone having his own conversation. They can’t do anything, I just can’t. I can’t even talk about it. IT would be the worst person in the world. Adam: I think of waiting in line at Liberty City for hours and hours. Well, first going to the Coral Gables office and finding out it was closed. Telling them that I want a DVR box with the HDM1 cord. They sent one without it and said “oh, you got to go down to the office,” so stingy, just bureaucratic, red tape nonsense. That’s what I think of Comcast and Xfinity. I think of the big, corporate honcho looking at profits, profits, and profits. So, he says to himself, “let’s ship out all these non-technology events, old technology boxes to people and the suckers will not ask for the new, more expensive technology. We’ll save money for that.” So, when I think of Comcast Xfinity, I think of some big wig, sitting in a suit behind his desk, just bathing in the money he’s making off suckers. That’s what I think of. Heather: I think of the little kids I babysit, jumping up and down, asking me to put on the program their parents recorded for them since they’re not allowed to watch TV when their parents aren’t actually home. Like, the little kid who wants to do something when their parent isn’t home and break the rules and wants to do bad things. That’s what I think of. 128

Lindsey: I think of a middle-aged couple that just wants basic cable on their TV, and the whole thought of an Internet TV or going onto Netflix and instantly streaming something is too complicated. They just want somebody to come I and set it up for them so it will be simple. I just think of my parents. Business suits, but older people business suits. Elizabeth: I think of the enemy, because my dad works for Verizon. Like a dark, scary person. They wouldn’t drive a car they’d just, like, appear. They would just always be there. Danny: I see the guys in the uniform, like you said, he’s just wearing a polo and khakis, and he comes to my apartment with a wrench, for some reason. He’s like fixing stuff. He’s just an average guy, drives a van, nothing special. He probably uses Comcast. He probably dabbles in it. Kristen: Kind of along the lines of what Adam is saying. A guy in a suit, has a lot of money but he’s, like, super flakey. You think you’re getting all this out of him and it ends up not being that great. It’s not really what you wanted in the first place and you can’t believe you spent all that money on it. You’re never really satisfied. I’ve used Comcast, I’m not satisfied. Not at all. Maribel: On the contrary, I’m happy with Comcast. Everything at home is Comcast. I get everything, I get the Internet, and they give you a telephone and everything. I’m ok with Comcast. I think he’s nice. Adriana: Where does he work, what does he do? Maribel: Making money. He drives a nice car, but makes me happy. Makes things convenient, I’d say.

Romi: I think of those old men at a country club who thinks he’s so cool and has no tolerance for younger people or for anything that disturbs himself. So, if anyone has complaints or anyone is being too loud, he’ll just ignore them and sit on his high horse. I have Comcast at home and, I mean, it’s fine, but sometimes it will just go out. Like, the DVR will just stop working and the On Demand will stop working for no reason. (Mhmm) (That’s true) Romi: You have to reset the box, like, three times and then it starts working again. Jordan: I think of an overweight used car salesman who is sort of in your face trying to convince you. He sort of pushes you and pushes you. He is very in your face, very unattractive, and when he sells you a car he is sort of done with you. Just very unattractive and clunky, in a sense. I used to be a TiVo user, and back home I’m a Comcast Xfinity user, and just the interface is, like, really, really terrible. The fastforwarding is very slow, controls are confusing, nothing’s simple, nothing’s point-blank. You have to do three million things to do one thing that you can normally do and, frankly, I think their service is terrible. (Nods) Adriana: Blockbuster. Deniz: I don’t know, someone who enjoys movies. Definitely male again, but this time in their 30’s or 40’s with a family, like, kids. He goes to Blockbuster and buys movies for the kids and himself, like, ten movies at a time or something, like, goes over himself. I used to go to Blockbuster my fresh-

man year and I used to get, like, fifteen movies at a time. And I never used to watch them, either. Shelly: I think of, like, an old businessman who drives a shitty car now, and is not a cool cat anymore because he was not paying attention. Like, he’s not keeping up with the competition. Everyone else was advancing and doing all these things, and instead of implementing any of those strategies he’s just remained the same. Adam: I think of a beeper salesman, but during today’s times. Just a guy that is holding onto an old platform, onto an old business model. Out of ignorance he didn’t take the competition seriously and the reasons are obvious. Blockbuster had a business plan where you would go there and there would be a limited selection of something people wanted to watch. If you couldn’t get it, sorry for you, come back tomorrow, maybe someone by chance would return it. So, yeah I think of a beeper salesman. Heather: I think of this character who’s actually in Men In Black II who owns this video rental store. He lives with his mom and has all these, like, really random movies and ones that people wouldn’t really want to see. I don’t know, that’s just what I think of. Lindsey: I think of myself as a kid, because I used to beg my mom to drive me to Blockbuster and then it would take, like, an hour to pick out a movie. I would always end up picking the same one and I’d always make her buy me candy on the way to the check out. Elizabeth: I think of some guy in a Volvo, he’s like 45, overweight, listening to an 8-track player, picking up a movie at Blockbuster. I don’t know, I just feel like people nowadays, 129

they look down on it. It’s like Internet use and there are so many different outlets now.

imagine him shot gunning a beer in the middle of Tavern when he’s like 40 years old.

Danny: IT reminds me of Will Smith in The Fresh Prince of Bel Air, because it’s kind of, like, retro. I don’t know, I just see him wearing stuff he would wear, those really colorful jackets and stuff because it reminds me of my childhood and the 90’s and stuff. That’s what makes me think of it.

(Laughter)

Kristen: I think of a little bit of an older guy, kind of old-fashioned, maybe doesn’t let his kids watch a lot of TV or movies. Wants one randomly, so he drives to go to Blockbuster in his beat up car to get one. Maribel: I see more a man in his 80’s. Maybe he was a successful man, but now maybe he’s tired and he doesn’t want to innovate the job and doesn’t. And he just, sort of, dies peacefully. Or maybe he is already rich so he decided not to do anything, or maybe he doesn’t have any family to continue the business. Or maybe, there’s a Spanish saying, he’s at the end of his time. Romi: I think of a mom in her upper 30’s and she likes to show her kids a good time. But she got too busy with her kids and she couldn’t work anymore and she had to choose family over her company. Blockbuster was a fun family kind of thing, or something to do with your friends, and now it’s just obsolete. I feel like not enough attention was paid to it for a reason. Jordan: I think of that one guy in your fraternity who, twenty years down the line, is still trying to frat really hard and he’s overweight and this balding jock who used to get laid all the time back in college. Once he graduated he just sort of packed on the pounds and never really got a real job. I just 130

Jordan: I think mainly because they were sort of on top. They had this really great run and it was a quick downfall. But they’re still trying. They have the boxes at Publix in the Gables that are sort of like Redbox but not really, and they tried what Netflix did. They kept on trying, they tried losing weight, Rogaine, but it never quite worked. Just drinking too much. Adriana: You like Redbox so much. Do you think there’s a difference between those boxes, the Blockbuster and Redbox? Jordan: Yeah, I’ve seen at the Publix across from campus there’s a Blockbuster box I believe it is, and for some odd reason I have no desire whatsoever to use it. I feel it’s clunky and out of date. I don’t feel like I’m ever going to be happy with what I get. I’ve never even checked it. Adriana: HULU. Shelly: I think, what’s that girl in the Disney movie, the space girl? Zenon. I’m just so bored at this point I don’t even know what to say about people. I guess I would just say the younger girl, someone who’s innovative, creative, keeping up. HULU you can keep up on your show, you can watch last night’s show, or you only have to wait two days until Modern Family comes on. It’s up to date, unlike Netflix where you only have, like, next season. Something like that. Adam: I think of a vegetarian, mostly because the letters are

green. That’s really the only reason vegetarian came to my mind. Nothing to do with anything they offer, just because it has green letters and I love veggies. That’s really all I can say. (Laughter) Heather: I think of a fifteen-year-old girl in high school, the one who’s really excited and wants to know everyone’s business all the time. Always on her phone, never puts it down and gets yelled at in class all the time and doesn’t do any of her homework. She’s just, like, in her own little world of “I’m amazing and I love my friends.” That’s what I think of because I feel like HULU is one of those things that stays up to date and stuff like that. I feel like, in a way, you can’t be up to date unless you’re all about one certain thing. Lindsey: Yeah, mine’s kind of similar. I thought of a girl in high school who couldn’t watch last night’s episode of Gossip Girl because her parents made her go to some dumb family function, or something, and she’s freaking out and she’s like “I’m just going to go to HULU.” Elizabeth: I think of a little kid who wants to be cool but his parents won’t let him watch TV so he, like, goes to Google. Danny: I think of a woman in, like, a lab coat and she’s in this really sleek laboratory with robots where they think of new ways to watch TV. The logo looks so sleek and the website’s all white. I don’t use it. Kristen: I think of someone in their mid 20’s on a time restraint. Someone who’s really busy, sort of really active, so they go to HULU when they get a chance to catch up on stuff. They work late, come home, catch up on a little TV,

maybe they can watch it on their lunch break. Someone who’s put together but wants to stay up to date on their TV shows. Maribel: Since I’ve never used HULU, the word makes me think of a New Zealand native. Sort of a big fat thing that says “HULU! HULU!” Romi: I think of that fat guy from Lost with the curly hair and the beard, I forgot his name. but I feel like he would just make something really cool and then relax and enjoy himself. I think of him because I got addicted to Lost on HULU once, and I think he’s just fitting for enjoying it. Jordan: As bad as it sounds, it would be a girl who all night is sort of all over you, and you finally bring her back and she’s like “No, I don’t do that sort of thing.” (Laughter) Jordan: It’s sort of a cock tease, there’s such a build up, they portray all these shows and you finally get on there and you can’t really find a show that you want or it’s, like, a 30-second clip. Adriana: So, I’m going to leave the room. I have eight index cards and I’m going to give you guys five minutes to put them in order of which company has the best features. So I’m going to leave for five minutes and then be back. Here are the index cards, work together. Maribel: Are you recording everything? How are you going to remember? Adriana: Yeah, we are recording. 131

Adam: Not to make the executive decision, what’s Da Bomb?

Jordan: I think YouTube at the top.

Romi: I think Blockbuster is way under.

Romi: Yeah.

Kristen: What’s Dish?

Adam: YouTube’s king. I’ll let that happen.

Romi: Does anyone know what Da Bomb is? If no one knows what it is, I think it should be the lowest.

Jordan: I don’t like where Redbox is.

Shelly: Dish is definitely outdated. Put that underneath Blockbuster. Adam: Well, hey, it has certain things. Romi: Minus the fact that it goes out when it rains. Adam: I think a little bit above Blockbuster because some people like it. Elizabeth: Some people have to have Dish because they live in the middle of nowhere and they can’t have cable.

Kristen: We don’t live on Marco Island. Adam: How about the top and the bottom, do we agree that YouTube is at the top, and we don’t know what Da Bomb is so it goes at the bottom. Danny: Let’s put it at the top for fun. Jordan: I feel like Da Bomb is the made up company. Adam: Xfinity, when it works, is pretty good.

Adam: Exactly.

Romi: I think this is perfect. We’re good.

Shelly: I think I would put Netflix above Xfinity. Jordan: I’d put Redbox above Xfinity, too.

Adriana: Ok, so can someone please tell me the order you chose?

Adam: Amazon Prime, what is it?

Shelly: From the best or from the worst? Adriana: From the best.

Shelly: It’s not a big deal.

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Adam: We know your objection to Redbox.

Romi: It’s pretty good.

Kristen: Alright. YouTube, HULU, Netflix, Xfinity, Amazon Prime, Redbox, Dish, Blockbuster, Da Bomb.

Danny: Put it below Xfinity, but above Redbox.

Adriana: Ok, why is YouTube number one?

Adam: Because it’s awesome. It just works, does what it’s supposed to do. It’s the search engine for videos, more often than not and you can find what you’re looking for there. Adriana: And HULU? Like why that order? Kristen: HULU’s kind of like YouTube, you can find a lot of what you’re looking for there. You just type in what you want to find and it pops up. Adriana: How about Netflix or Xfinity or after HULU? Adam: I mean, Netflix was kind of this new innovator, giving you this alternative to Blockbuster and, despite what we discussed as its limitations, it’s a service that if your TV show is there, it might not have the most recent season, but basically above Xfinity because Netflix has an On Demand-type thing that’s instant, it’s convenient, and if you have it it’s pretty satisfying. Adriana: And after, why Xfinity? Keep going in order, if you guys can. Kristen: Xfinity, even though a lot of people have issues with it, when it does work, it’s pretty good. You can find a lot of stuff there, but it doesn’t always work.

(Laughter) Jordan: I mean, it’s convenient for some, inconvenient for others. It’s not available to all, so it’s not Internet-based, so that’s another big thing. And it isn’t based on your TV, so. Adam: Dish we put towards the bottom, above Blockbuster, because it has inherent problems with it- if it gets too cloudy the signal can go out, its On Demand is limited, cable has much better options, so it has its inherent disadvantages to the rest of these platforms. Kristen: And Blockbuster’s, like, on the way out, so we kept that towards the bottom. And none of us knew what Da Bomb was, so we put it above that. Adam: Give Blockbuster a little pat on the back, you know? It’s better than Da Bomb. Kristen: Yeah, because we figured if we hadn’t heard of it, it couldn’t be that good. Adriana: Ok, so thank you guys very much, I’m sorry if it got boring at any moment. You guys really helped, and there’s free pizza outside, so thank you.

Romi: Amazon Prime is, like, middle of the road, it’s great when you need something and it has the free shipping and that’s the product you want. Then, it’s not good, as you said before, how the older products and the used products aren’t eligible for Amazon Prime free shipping. Jordan: I love Redbox. 133

Focus Group Three Moderator: Aaron Martin Date: 02/14/2012 Moderator: Okay, guys. So this is a small group so definitely will be here for an hour for sure. I will try to make it at fun as possible, essentially what we are going to do for our campaigns class is research about TV and movie rental companies and see what you think about them, so we are going to play 3 games. I am going to ask you some questions before we start. Tell me your name, your major and one odd fact about you. Lauressia: I’m Lauressia, my major is broadcasting and journalism criminology, an odd fact … I hate tomatoes Lindsay G: My major is marine affairs and I like to scuba dive Lindsay R: I’m weensy also, my major is international studies and I used to be tong tied Marcus: I’m Marcus, I’m advertising and psychology and I have four disks on m neck Maxi: I’m Maxi white I’m advertising and psych major and fun fact I’m on the Judie duty Amanda: I’ m Amanda my major is nursing and my fun fact is that I speak 4 languages

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ogy and that’s it Lindsay G: I like drama like shameless, desperate housewives, Lindsay R: I like all kids of shows and drama. I like Dexter I think Marcus: Dexter is good I like actions Maxi: Lost is my all-time favorite TV show and comedies like 30 rock, how I met your mother, stuff like that and old shows like friends Amanda: My favorite show is Californication and I like The OC , and I don’t really watch TV when it’s on TV I watched it on my own time so.. I don’t really watch that much TV... I watch sex and the city, best show ever. Moderator: Ok what are you guy’s favorite movies? Lindsay G: Shaw Shank Redemption and I really like Across the Universe, its one of my favorite movies Lindsay R: Dirty dancing Marcus: I like 3:38 Maxi: Pulp fiction Amanda: Fight club

Moderator: Ok, so I think I will bring up the first question, what kinds of TV shows or movies do you like to watch?

Moderator: Do you guys like to watch movies alone or with friends? Family?

Lauressia: All types of crime shows like Dexter, CSI, criminol-

Lauressia: Alone

Lindsay G: She always kicks me out when she is going to watch a movie…I like watching it with friends

movie on a smart phone or IPad, I just would never maybe computer like on an airplane

Lindsay R: Friends Marcus: Friends for movies but TV shows alone

Amanda: I use my computer, I don’t like it to watch it on a huge screen I just like my computer … what’s wrong with me haha.

Maxi: I like to watch both with friends and TV shows alone or with friends, but I don’t really watch movies alone

Moderator: Can you explain us why don’t you watch it on smart phones or IPads?

Amanda: I am exact like you movies with people and TV shows alone Moderator: You guys have similar answers

Maxi: Maybe I will watch a TV show in my computer if I missed it but I will never watch on a phone because it’s so small I would rather wait until I can watch on a TV or something

Lauressia: Well if I’m with friends I could watch it with them but I prefer alone

Moderator: Does anyone in the group feel the same; have different opinions what it on the phones or tablets?

Lindsay G: I like watching movies with friends because I have a really bad attention span and if I start watching a movie alone I will stop, but TV shows alone because they’re shorter

Lindsay G: I watch it on my phone, yeah I don’t like the computer, it’s more convenient on the phone

Moderator: How do you guys like to watch movies? Do you like to go watching on theaters? On the TV? Smartphones, tablets? Any other devices?

Marcus: I like the IPad … 6:28

Lindsay G: IPad

Lindsay R: I like the computer

Amanda: I like computer I don’t know why but I dint have TV in high school so I think I get used to it

Marcus: IPad

Moderator: Ok, will start with the first game , I’m going to show you guys a slide show, just the logos of different brands , I have 5 here…the first thing it comes to your mind when you see the company … so first one would be Hulu

Maxi: I will watch every movie in the theater if I could but I mostly watch movies on the TV and I will never watch a

HULU Lindsay G: Cream

Lindsay R: TV

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Moderator: It doesn’t have to be about the logo it could be about the company Marcus: Advertisements Lindsay G: TV Amanda: For some reason I feel like its low Maxi: I can never find like full TV shows on it, I can only find clips or the making off… Lindsay R: 7:40 Maxi: Before I used to watch all my shows in Hulu and now I can’t find full seasons or full episodes so I gave up on it and I don’t use it anymore .. I thought it got more complicated, I think I need to sign up now or I don’t know... Can’t figure it out Marcus: They show you add so you need to pay for it and they still show you ads after you pay for it Moderator: Do you guys have any other experiences, good, bad, anything you want to say now…this is the time. Lindsay R: Does it have a lot of commercials? Moderator: Yes like 3 commercials in each episode even if you pay NETFLIX Moderator: NETFLIX 136

Lindsay G: Good!!! Lauressia: Cost money Lindsay G: But not a lot and you can watch the movies you want, Netflix is amazing and you can use others accounts Lindsay R: You have everything you need there Amanda: They took out a lot of stuff, they took out Dexter Maxi: I found a lot of the stuff that I used to watch on watch instantly; you have to get it mailed now. Marcus: Do they mail you Dexter? Maxi: Because I know that before they for sure Dexter was in watch instantly and they change it, and I like a lot of the watch instantly stuff too but I wish there was more Amanda: I feel that I never use it and I still pay for it Maxi: I will pay more money for it if I could watch every thing Amanda: Yes, me too Moderator: You guys mention a good point, would you rather just watch streaming more often, DVDs or? Maxi: Can you just stream it on your TV too right? All: Yes you can

Amanda: Yes it’s funny because if you want to watch a movie you want it that time not two days after Lindsay G: And when you need to mailed back is pain Amanda: yes it’s too complicated Maxi: I always end up getting the 2 movies or whatever and never getting my next ones because I hold on for them like forever and forget to send them back

Lauressia: I just found it yesterday Lindsay G: I have to cancel my subscription because you get 6 months free …. The student Lindsay R: You do? Lindsay G: Sign up and you will get 6 months free and after that you cancel it

Marcus: I feel guilty

Marcus: I think they turned it up

Moderator: Why you feel guilty?

Maxi: I have no prime account anyway, I have just for Amazon like shipping just a prime account anyway so that means that you can trim movies right? Marcus: Not the student one … not the free one

Marcus: I mean, I actually read something like a year ago that you have a movie that you want a watch and sits around on a disk like if you are on a 2 or 3 disk plan the movie was sitting there forever like you want to watch it but you just never really watch it...just sitting there .. Moderator: GOOD POINT. Any other things you want to mention about Netflix? Maxi: I like their logo, it’s appealing Lauressia: It’s very movie theatrics AMAZON PRIME

Lauressia: well I have the free one and it says it expires in November, which doesn’t make any sense Moderator: well, amazon prime on its own regular shipping thing, they give you free shipping if you’re a student but they also have included a video service, which I think you, cannot actually use without paying for it … like you need to upgrade for a certain price for a year and you’ll get all the movies of amazon … have you guys ever tried using that?

Moderator: Amazon prime

Marcus: It’s like Netflix because they licensed the Netflix also

Lindsay G: (telling L) we love amazon prime, it’s the best.

BLOCKBUSTER 137

Moderator: Ok, moving to the next one, Blockbuster Lindsay G: I used it when I was a child Maxi: They close all of them, I just went to two blockbusters I know used to be there and I have to go to red box because there wasn’t anymore Lindsay G: Blockbuster is so fun to go and look for everything Lindsay R: I used to use the only thing before Netflix and it was great but Maxi: But if you’re in the mood to watch a particular movie you can just go to blockbuster and rented anymore, Netflix you have to wait a couple of days or rent Jurassic park or something … Amanda: I don’t like how they have the stores decorative Lindsay R: It’s not really decorative it’s just... Lindsay G: I think is happy Moderator: Have you ever guys use the blockbuster kiosks Lindsay R: All my friends go there all the time Lindsay G: They’re all in Walgreens Maxi: I have never seen one Lindsay R: You can rent like for a dollar or something but your need to return it next day... It’s hard 138

Moderator: Any other comments before I move on? One more, Redbox Lindsay R: is it that the movie thing? Maxi: I like Redbox I was really surprised how many new movies they had the last time I went to go check, cause I wanted to rent 50/50 and I was sure they were not going to have it because they have semi new releases but after they release it... but they have tons of movies I wouldn’t expected they have and its cheap it’s like a $1.20 and a $1 extra every day...I like it Lindsay G: You’re so knowledgeable on the movies Moderator: Have you ever guys use Redbox before? Lauressia: Never hear of it Marcus: I have, its ok…before I used Netflix was this site that gives you like free access codes and then you could just type it in and pay Redbox as long as you bring the movies back is free Moderator: Well do you like your experience? Marcus: I will just drive to a store and get a movie Lindsay R: I think you can have everything downloaded at home and it’s so much easier Maxi: I just like use it as a supplement to Netflix just when I don’t want a wait for two days Marcus: I think is pretty chip

Maxi: Yes

Moderator: What color would their clothes be?

Moderator: We are going to move to the next one, I’m going to … four companies this time and some you know some you may don’t know…essentially you will need to describe that brand as if it were a person .. First though, Netflix...if it was a person would it be a man or a woman?

Lauressia: Red, black

Lindsay G: Men

Moderator: What kind of car would they drive?

All: Men

Amanda: My car

Lindsay G: Definitely a man, a strong man

Moderator: What’s your car?

Marcus: I think it is like straight forward and not fluffy and that just organized and easy

Amanda: My car is read and black BMW with black interiors, just like Netflix

Lindsay G: What you see is what you can

Moderator: Ok, do you think so?

Maxi: It just doesn’t seem girly not that it seems manly is just that it doesn’t seem girly at all

Lindsay G: Corvette

Moderator: ok, interesting… what kind of clothes does this person wear Amanda: Really Netflix I think would dress like a little alternative Moderator: What type of clothes do you think this person wearing? Amanda: T-shirts, skinny jeans and tennis like vans Lindsay G: Kind of a skateboard

Maxi: I think like neutral colors Amanda: Dark green

Marcus: I think like a Prius maybe, it’s like efficient Lindsay G: Actually I think a truck Maxi: I really don’t know I think I’ll have to say a sports car Moderator: Would it be married or single? Lauressia: Married All: Single Lauressia: Well I think that he has like a trillion movies and all of them are his kids 139

Maxi: I don’t know like a lot of times you seat in your computer and watch like the watch instantly by yourself...it seems like a single to me Amanda: He’s not ready to settle down he is still improving himself, adding more things

Maxi: My stepbrothers and dad use a lot of the watch instantly pay per views way more than my mom Moderator: What kind of clothes do they wear?

Lindsay G: He is young

Lauressia: Office clothes

Moderator: Do they have kids?

Lindsay G: I think he uses like a dirty white t-shirt that goes to the bar after their job is done

Lindsay G: No kids Lauressia: I think that his movies are his kids Amanda: I will say no I guess Marcus: Childless Moderator: Next one, Comcast infinity, if it were a person would it be a man or women? Lindsay G: Men Lauressia: Men Amanda: I hate Comcast it is so slow; in my house in Naples we don’t have Comcast

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Marcus: Men

Marcus: I have no idea he is a really abstract guy Lindsay R: He wears jeans Marcus: I will said office attire too Amanda: I think that Comcast is really like those girls who tries to hard Moderator: Ok, what kind of car would they drive? Lindsay G: Prius or mini van Lindsay G: A jeep Lindsay R: A convertible

Lindsay R: Is it a man?

Marcus: Very old car

Amanda: No it’s a female

Moderator: Married or single

Maxi: I think is a man I guess

Lindsay R: Married

Maxi: Single

would they drive?

All: Married

Amanda: A really old car

Amanda: Married but has a really bad relationship

Maxi: Like a jeep maybe Lauressia: Small blue car

Lindsay G: I think he is a good husband Moderator: What do you guys think about kids?

Maxi: I think blue car too

Maxi: No kids

Lindsay G: A sports car

Moderator: Ok, blockbuster...men or women?

Lindsay R: SUV

Lauressia: Definitely a man

Moderator: Are there married or single

Lindsay G: Women

Lindsay G: Who know? Undecided

Marcus: Men

Marcus: I will said married just because I imagine like families going to the store

Moderator: Men mostly, any reason why? Lauressia: Blue letter mostly Maxi: Yes I think it is the logo Amanda: I always see nerdy guys working in blockbuster Lauressia: Yes I do Maxi: It is usually like that Lauressia: The blockbuster by my house is where all the nerdy guys and lesbians work there Moderator: I will skip the clothes one, but what kind of car

Lindsay G: I always went with my parents to blockbuster as a kid Marcus: Because when you go to blockbuster I think is because you go with your family Lindsay R: Single Moderator: we have one more, Huluâ&#x20AC;Śmen or women? Lindsay G: Men Lauressia: Women Maxi: I guess yes 141

Lauressia: I think it looks like an old women Maxi: I think male; I think that brands that are neutral are male Amanda: In France, they actually give them gender Moderator: So female for Hulu? Lindsay G: Yes because the name is like Hulu Lauressia: Is green and white and Lindsay R: Itâ&#x20AC;&#x2122;s kind of loopy Lauressia: Its feminine, feminine looking Maxi: I agree Moderator: What car of car would they drive? Amanda: A buggy Lauressia: Thanks for saying that I agree Lindsay G: With stickers on it Maxi: Or a hybrid or like a mini cooper Moderator: Are they married or single? Lindsay G: Single Amanda: Single romantic Lauressia: Yeah, looking for her 142

Lindsay G: I think she is young too young to make love Moderator: Did it have kids? All: NOO Lindsay G: She wants eventually Amanda: She is the most romantic, she is like way romantic Lindsay G: Mr. Hulu would come Maxi: I think she is more fun and edgy, not romantic like more fun and outgoing, edgy Moderator: Ok guys, I have one more game, I would step outside for about 5 min I have a bunch of index cards with different brands on them. I want you guys to take out the top three brands out of this and choose the ones that have the best features over all Lauressia: As a group? Just top three? Moderator: Whatever you feel about the companies Lauressia: Split them out 28 min CHOOSING CARDS Moderator: Is this Netflix 1st, YouTube 2nd and â&#x20AC;Ś third? All: Yes Moderator: What were your reasons for taking these three

and not the others? Maxi: I love Netflix Lauressia: I love Netflix and YouTube, who doesn’t love YouTube? Focus Group Four Moderator: Pilar Echeverria Date: 2/15/2012 Moderator: Let’s go around the table and introduce ourselves.

What’s the genre you prefer? What movies/TV shows do you prefer? Silar: I prefer TV shows, movies are too long Moderator: Anyone else? Maria: I like both Moderator: what’s your favorite thing to watch? Comedy? Horror? Mandaray: I like Comedy

Conrad: I’m Conrad I’m 21 and my major is economics

Carla: Comedy

Martina: I’m Martina, I’m 19 and my major is Psychology.

Silar: Horror

Mandaray : I’m Mandaray I’m 20 and I’m an international studies major

Moderator: Drama?

Carla: I’m Carla I’m 21 and I’m a PR major Maria: I’m Maria I’m 20 and my major is Industrial engineering Allen: I’m Allen, I’m 21 and I’m also industrial engineering Fortu: I’m Fortu I’m 20 and I’m math major Silar: I’m Silar I’m 21 and I’m Psychology major Rasha: I’m Rasha I’m 18 and I’m a business major Moderator: What kind of TV/movies do you like to watch?

Silar: Sometimes Conrad: Action Moderator: Do you like watching TV shows alone or in the company of someone else? Conrad: I guess it depends what it is Moderator: I guess when you go home and you can’t sleep at night maybe put a TV show on would you like to do that by yourself or with someone else Silar: yeah, by myself especially because I go at my own pace 143

Moderator: What about movie theatres alone?

Conrad: instant

Consensus: no, definitely not

Maria: streaming

Moderator: How do you prefer to watch TV shows or movies as far as device?

Allen: free

Conrad: TV Allen: TV Mandaray: TV Maria: I like using a computer because I can get what I want but I would rather watch it on TV Allen: If I could pick what I want on the computer, than TV for sure Carla: Yeah. Silar: it depends where you are, if you are in the bedroom or kitchen, computer, but if you are on in the TV room/ living room, TV is better Moderator: have you ever used your television as an outsource for another device? Consensus: no Moderator: We’re going to do a brand reception game. I will show you a Power Point and it’s a word association exercise so be expressive to the logos coming on Moderator: shows X 144

Carla: I saw lost on it Mandaray: too many commercials Moderator: shows X Allen: movies Silar: the best Conrad: the best, overcharges subscribers Rasha: expensive money Moderator: too many options? Rasha: always hard to pic something Rasha: it’s cheap but if you want to get all the good movies it’s expensive Maria: Old random movies too Conrad: I think the best selection Carla: It has better TV shows than movies Moderator: shows X

Consensus: never heard of it

scribe these companies as if they were a person

Fortu: the best, free shipping

Moderator: If this brand were a person, would this person be a man or a woman?

Moderator: shows X Consensus: dead Conrad: it’s a good example of a company that failed to adapt Moderator: so Netflix is directed more towards your generation Conrad: I feel like blockbuster got outcompeted by Netflix Moderator: shows Redbox Martina: never heard of it Conrad: Redbox? Never? Silar: I don’t feel like they have enough locations here in Florida Conrad: go to your local grocery store, they have everything that’s 2 weeks from theatres, a month Moderator: how many have used Redbox (Everyone except Martina and Allen raise their hands)

Consensus: A man Moderator: why? Consensus: power Moderator: does it have to do with the design? Consensus: yes Moderator: what brand of clothing would he wear? Silar: he is wearing sports clothes Conrad: like a really expensive track suit, like he’s rich but he’s an asshole Moderator: like Nike? Conrad: like Adidas? Consensus: yes Moderator: like chill?

Mandaray: It’s cool it’s easy and it’s really cheap if you had it back in time

Conrad: no, like you’ve made it and there’s something missing, but you’re not professional enough Moderator: what car does he drive?

Moderator: now we are going to play another game, de-

Silar: like, a sports car 145

Moderator: why?

Silar: because he’s someone that wears a track suit

Silar: Because she serves you in your own house.

Allen: I would say like a Corvette

Moderator: What kind of clothes does she wear?

Conrad: like a mid life crisis car

Martina: A dress

Rasha: I see more of it as a family car, because when you go on Netflix you see a family gathering around a room and watching TV

Moderator: what brands does she wear?

Moderator: So like, a mom van?

Rasha: Ralph Lauren

Rasha: not so much a mom van, maybe like an SUV

Martina: Banana Republic?

Moderator: Is he married or single?

Conrad: So much more high end, what do you think of JCrew?

Consensus: single Rasha: I think married Moderator: why? Rasha: I think it targets family people Conrad: My guess is a man in a track suite and a red corvette is single, or divorced Consensus: yes, divorced Moderator: we’re playing a different one, is Comcast Xfinity a man or woman Consensus: woman 146

Fortu: I see Marshalls

Martina: The gap? Conrad: ya, something family, middle income… Moderator: What kind of car does she drive? Silar: Carola Consensus: Yes Moderator: What kind of color? Rasha: A lime green Carola Silar: I’ll say gray Martina: Silver

Moderator: like silver/grey like dull?

Consensus: Not a cheap suit

Conrad: Not necessarily dull but humbling, very conservative and moderate parked in a town home

Conrad: like someone who would spend way too much money on a suit

Moderator: Single/ Married? Consensus: Married Mandaray: Married with 3 kids Maria: 4 boys Mod: Female or male? Consensus: Male Rasha: In rehab, for sure Conrad: Charlie Sheen Martina: Because he is certain on his ways and thinks he is right even when itâ&#x20AC;&#x2122;s not Moderator: What is he wearing?

Moderator: What kind of car does he drive? Fortu: He doesnâ&#x20AC;&#x2122;t even have a car Martina: He sold it Fortu: An old Maserati Consensus: yes Moderator: what color? Consensus: black Moderator: why Maserati? Conrad: they are awesomely ostentatious Moderator: why is this ostentatious?

Consensus: Suit

Conrad: If the moderated their expenses more I feel like they would have the money they needed in terms of capital to reinvent themselves

Rasha: A suit from back in the day

Moderator: married or single?

Silar: Like a 90â&#x20AC;&#x2122;s suit

Consensus: divorced

Mandaray: Like a cheap suit

Moderator: children? 147

Consensus: no

Carla: I was thinking Prius?

Silar: the mother took them all in the divorce

Conrad: like a hybrid Toyota

Moderator: man or woman?

Ratika: I feel like commercials are environmentally friendly

Consensus: woman

Moderator: single or married?

Silar: I think Hawaiian sexy guy

Consensus: single

Consensus: sexy

Moderator: And does she have kids? Obviously not

Moderator: what types of clothes does she wear?

Consensus: she is younger

Conrad: grass skirt (joke)

Moderator: As our final exercise, how would you place each of these companies if you had to make an order?

Silar: Nikkini Mandaray: nothing too expensive Silar: she’s simple but good. There are some people that have money and you don’t notice until they pull up in their Ferrari or something Moderator: and why? Silar: because it gives you good quality Conrad: she’s like the chill girl you meet on the beach, she wants to give you something but isn’t just trying to manipulate you to something out of it

148

Fortu: amazon prime number one Allen: amazon or Netflix for sure Conrad: a lot of us don’t know what amazon prime is, so it would be either Netflix or Hulu, Hulu is a great service but they have very little in amounts of movies Conrad: I’ll put Comcast up there too because on demand kicks ass Moderator: and the worst? Consensus: Blockbuster

Moderator: What kind of car?

Maria: it almost doesn’t even exist anymore

Consensus: Jeep wrangler

Moderator: and last question, what will you personally use

when you are looking to watch TV/movies?

have any questions? Okay, thank you all for coming!

Consensus: Hulu/Netflix Conrad: Comcast Moderator: do you pay for it? Maria: a lot of people just use someone else’s account like a friend or something Martina: I use my aunts Moderator: Do any use Netflix for sending DVDs? Maria: I used to but then they split up and I didn’t want to pay more Allen: Mailing DVDs is such a hassle though Moderator: Currently who has an account with Hulu or Netflix? Fortu: I have Netflix and amazon prime accounts Moderator: the girls haven’t even heard of amazon prime Allen: another great website for streaming movies is yoko. I don’t know why it’s not big. If you have an HBO subscription it’s free, every single episode. It’s amazing Conrad: I just spend 130 dollars on iTunes buying every single episode of Entourage Moderator: So we’re basically done here, do any of you 149

D. Survey Questionnaire 1. Please indicate your age: 13-18 18-24 25-34 35-45 45+ 2. What is your gender? Male Female Prefer not to respond 3. Do you live in the United States? Yes No 5. How many people, including yourself, live in your household? 0 1 2 3 4+ 6. How many people under the age of 17 are in your household? 0 1 2 3 4+ â&#x20AC;&#x153;STREAMINGâ&#x20AC;? refers to any content that can be watched either via the Internet or on-demand to a television. 7. What is the first brand name that comes to mind when you think of renting DVDs? ____________________________________________________ 8. What is the first brand name that comes to mind when you think of streaming TV episodes/movies? ____________________________________________________ 9. Which of these brands have you used in the last 6 months? (Check all that apply) Blockbuster Hulu Plus Amazon Prime Redbox Netflix Other (Please Specify) ___________________ 150

10. Which of the following brands do you recall seeing advertisements for in the past 6 months? (Check all that apply) TV

Magazines/ Newspaper

Select

Internet Billboard/ Direct Transit/Etc Mail Select

Select

Blockbuster Hulu Plus Netflix Redbox Amazon Prime

11. What is your preferred source for streaming movies/TV series? Blockbuster Hulu Plus Amazon Prime Redbox Netflix Other (Please Specify)_______ N/A 12. What is your preferred source to rent DVDs? Blockbuster Hulu Plus Amazon Prime Redbox Netflix Other (Please Specify)__________ N/A 13. How much would you be willing to pay monthly for unlimited online streaming? 0 3 6 9 12 15 18 21 24 27 30 14a. How would you prefer to pay for streaming content/ renting DVDs? Pay per view Monthly Subscription Yearly Subscription

14b. On which of the following do you prefer to watch TV episodes? Computer Television Smartphone Tablet (Ex: IPad) Other (Please Specify) ___________ 15. On which of the following do you prefer to watch movies? Computer Television Smartphone Tablet (Ex: IPad) Other (Please Specify) ___________ 16. How do you prefer to watch TV/movies? By streaming from Internet By renting a DVD By watching on TV Other (Please Specify) _________ 17. Please rank the following in the order of importance from 1-5 when choosing an entertainment provider. (1 being the most important, 5 being the least)

Price ______ Quality ______ Ease o f use ______ Number of episodes/movies available ______ Newly released episodes/movies ______

18. How would you rate streaming services with commercials? (Strongly Dislike =1; Strongly Like = 5) 1 2 3 4 5 19. Which would you prefer? Older content with no commercials ______ Newer content with commercials ______ No preference ______

20. How would you rate streaming services with a large collection of content and no advertising? (Strongly Dislike =1; Strongly Like = 5) 1 2 3 4 5 21. Rate the following reasons for why you would watch TV or movies: Strongly Disagree

Disagree

Neither Agree/ Disagree

Agree

Strongly Agree

Relaxation Knowledge Family Activity Group Occasions Inspiration

Boredom Curiosity

Excitement

22. How much do you approximately spend on cable TV each month? $1-25 $26-49 $50-69 $70-99 $100+ I do not have cable 23. How often do you watch TV episodes/movies on a smartphone? Never Less than Once a Month Once a Month 2-3 Times a Month Once a Week 2-3 Times/ Week Daily

151

24. How often do you watch TV episodes/movies on a tablet device? (Ex: IPad) Never Less than Once a Month Once a Month 2-3 Times a Month Once a Week 2-3 Times/Week Daily 25. How many hours do you devote to watching TV episodes/movies per week? Never 1-8 hours 9-20 hours 21-35 hours 36+ hours 27. Which of the following do you own? (Check all that apply) TV Computer DVD Playe Blu-ray Player Tablet Xbox360 Nintendo Wi Playstation 3 Smartphone Other (Please Specify) _______ 28. Do you subscribe to any of the services listed below? Check all that apply. Blockbuster Hulu Plus Amazon Prime Redbox Netflix Other (Please specify) _____ 29. What would you recommend to any of the DVD rental or streaming brands mentioned in this survey? ____________________________________________________ 30. Who did you receive this survey from? Name: __________________

152

E. Reach and Frequency Flowcharts

ADplus ME TM

RESULTS: NETWORK TV A: 18-44 Population Base Source:

228,112,000 Ripple Advertising Netflix- TV JAN-DEC 2013

Summary

Schedule

Message

Reach 1+ (%) Reach 1+ (000)

69.8% 159,190.5

60.1% 137,167.1

Reach 3+ (%) Reach 3+ (000)

61.0% 139,079.0

47.9% 109,188.4

Gross rating points (GRPs) Gross impressions (000s) Average frequency (f)

1,589.7 3,626,296.0 22.8

1,033.3 2,357,093.0 17.2

Total schedule cost Cost-per-thousand impressions (CPM) Cost-per-rating point (CPP) Cost-per-net reach point (CPRP) Cost-per-response (CPR)

33,000,000 9.10 20,759 472,873 0.21

33,000,000 14.00 31,936 548,798 0.24

Details Vehicle List (6) ABC Family AMC TNT TBS FX Academy Awards

Rating 5.30 4.90 5.00 6.10 5.00 11.70 Totals:

GRPs

Ad Cost

CPM-MSG

318.0 90,000 294.0 90,000 300.0 90,000 366.0 90,000 300.0 90,000 11.7 6,000,000

11.45 12.39 12.14 9.95 12.14 345.86 14.00

1589.7

Ads

Total Cost

Mix%

60 60 60 60 60 1

5,400,000 5,400,000 5,400,000 5,400,000 5,400,000 6,000,000

16.4 16.4 16.4 16.4 16.4 18.2

301

33,000,000

100.0 153

Frequency Distributions Schedule f 0 1 2 3 4 5 6 7 8 9 10+ 20+

f (%) 30.2 5.1 3.7 3.1 2.7 2.4 2.2 2.0 1.9 1.8 44.4 30.6

f+ (%) 100.0 69.8 64.7 61.0 57.9 55.2 52.7 50.5 48.5 46.6 44.4 30.6

Quintile Distributions Schedule Quintiles Heaviest Next Next Next Lightest

20% 20% 20% 20% 20%

Total Message Quintiles Heaviest Next Next Next Lightest

Total 154

20% 20% 20% 20% 20%

Reach (%)

f (000) 68,921.5 11,573.6 8,537.9 7,083.5 6,175.8 5,535.5 5,050.2 4,664.6 4,347.7 4,080.6 101,356.6 69,796.8

Message f (%)

f+ (000) 228,112.0 159,190.5 147,616.9 139,079.0 131,995.6 125,819.7 120,284.2 115,234.0 110,569.4 106,221.6 101,356.6 69,796.8

39.9 7.6 4.6 3.5 2.9 2.5 2.2 2.0 1.8 1.6 31.3 19.8

Frequency (#)

Index

f+ (%)

GRPs (#)

(%)

14.0 14.0 14.0 14.0 14.0

57.6 30.3 16.4 7.5 2.2

253 133 72 33 9

804.2 422.7 228.8 104.0 30.0

50.6 26.6 14.4 6.5 1.9

69.8

22.8

100

1,589.7

100.0

12.0 12.0 12.0 12.0 12.0

47.4 22.1 10.6 4.4 1.4

276 129 62 26 8

570.2 265.9 127.7 53.1 16.4

55.2 25.7 12.4 5.1 1.6

60.1

17.2

100

1,033.3

100.0

100.0 60.1 52.5 47.9 44.3 41.5 39.0 36.8 34.8 33.1 31.3 19.8

f (000)

f+ (000)

90,944.9 17,422.1 10,556.7 8,026.5 6,596.8 5,652.9 4,973.2 4,455.3 4,044.5 3,708.9 71,512.4 45,150.1

228,112.0 137,167.1 119,745.0 109,188.4 101,161.8 94,565.1 88,912.1 83,938.9 79,483.6 75,439.0 71,512.4 45,150.1

ADplus ME TM

FLOWCHART: NETFLIX- TV, JAN-DEC 2013 - JAN-DEC 2013 Target audience: 228,112,000 A: 18-44 Prepared by: Ripple Advertising MEDIA

Total

Vehicles NETWORK TV

Ads

Cost(000)

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

3612

396,000.0

301

---

--------

---

ABC Family

720

64,800.0

AMC

720

64,800.0

TNT

720

64,800.0

TBS

720

64,800.0

720

64,800.0

Academy Awards

72,000.0

COVERAGE

Gross

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

12-Month

Vehicle Reach 1+ Reach 3+ GRPs Frequency Message Reach 1+ Reach 3+ GRPs Frequency MONTHLY COST (000)

Mean

837.4 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8 69.8 731.6 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 19076.4 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 1589.7 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 22.8 721.6 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 574.4 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 12399.7 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 1033.3 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0 33000.0

155

ADplus ME TM

RESULTS: WEB A: 18-44 Population Base Source:

228,112,000 Ripple Advertising Netflix- INTERNET JAN-DEC 2013

Summary

Schedule

Message

Reach 1+ (%) Reach 1+ (000)

90.8% 207,031.0

66.7% 152,090.4

Reach 3+ (%) Reach 3+ (000)

66.2% 150,926.5

32.4% 73,884.6

739.3 1,686,335.0 8.1

332.7 758,850.6 5.0

2,020,200 1.20 2,733 22,259 0.01

2,020,200 2.66 6,073 30,300 0.01

Gross rating points (GRPs) Gross impressions (000s) Average frequency (f) Total schedule cost Cost-per-thousand impressions (CPM) Cost-per-rating point (CPP) Cost-per-net reach point (CPRP) Cost-per-response (CPR)

Details Vehicle List (7) linkedin.com imdb.com amazon.com ticketmaster.com careerbuilder.com cnn.com gmail.com

156

Rating

GRPs

Ad Cost

CPM-MSG

4.22 2.25 7.72 0.56 0.97 0.97 3.30

156.1 83.2 285.5 20.7 35.9 35.9 122.1

7,800 7,800 7,800 7,800 7,800 7,800 7,800

1.80 3.38 0.98 13.61 7.83 7.84 2.30

Totals:

739.3

2.66

Days

Total Cost

Reach

37 37 37 37 37 37 37

288,600 288,600 288,600 288,600 288,600 288,600 288,600

27.05 14.45 49.16 3.60 6.25 6.24 68.96

259

2,020,200

90.76

Frequency Distributions Schedule f 0 1 2 3 4 5 6 7 8 9 10+ 20+

f (%) 9.2 12.6 12.0 9.6 7.4 5.9 4.9 4.1 3.6 3.2 27.6 9.2

f+ (%) 100.0 90.8 78.2 66.2 56.6 49.2 43.3 38.4 34.3 30.7 27.6 9.2

Quintile Distributions Schedule Quintiles Heaviest Next Next Next Lightest

20% 20% 20% 20% 20%

Total Message Quintiles Heaviest Next Next Next Lightest

Total

20% 20% 20% 20% 20%

Reach (%)

Message

f (000)

f+ (000)

21,081.0 28,702.1 27,402.4 21,877.6 16,895.1 13,413.2 11,071.9 9,423.7 8,186.6 7,207.6 62,850.9 21,020.0

228,112.0 207,031.0 178,328.9 150,926.5 129,049.0 112,153.9 98,740.7 87,668.8 78,245.1 70,058.5 62,850.9 21,020.0

f (%) 33.3 22.6 11.7 6.5 4.3 3.2 2.5 2.1 1.8 1.5 10.6 2.8

Frequency (#)

Index

f+ (%) 100.0 66.7 44.1 32.4 25.9 21.6 18.4 15.9 13.8 12.1 10.6 2.8

f (000)

f+ (000)

76,021.6 51,451.8 26,754.1 14,857.6 9,735.6 7,232.2 5,752.8 4,745.6 4,000.4 3,421.5 24,138.8 6,423.3

228,112.0 152,090.4 100,638.7 73,884.6 59,027.0 49,291.4 42,059.2 36,306.3 31,560.8 27,560.3 24,138.8 6,423.3

GRPs (#)

(%)

18.2 18.2 18.2 18.2 18.2

21.7 9.8 5.2 2.8 1.3

266 120 64 34 16

393.1 177.7 94.6 50.1 23.7

53.2 24.0 12.8 6.8 3.2

90.8

8.1

100

739.3

100.0

13.3 13.3 13.3 13.3 13.3

15.0 5.2 2.4 1.3 1.0

301 104 49 26 20

200.5 69.0 32.4 17.4 13.3

60.3 20.7 9.7 5.2 4.0

66.7

5.0

100

332.7

100.0 157

ADplus ME TM

FLOWCHART: NETFLIX- INTERNET, JAN-DEC 2013 - JAN-DEC 2013 Target audience: 228,112,000 A: 18-44 Prepared by: Ripple Advertising MEDIA

Total

Vehicles WEB

Ads

Cost(000)

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

3108

24,242.4

259

---

--------

---

linkedin.com

444

3,463.2

imdb.com

444

3,463.2

amazon.com

444

3,463.2

ticketmaster.com

444

3,463.2

careerbuilder.com

444

3,463.2

cnn.com

444

3,463.2

gmail.com

444

3,463.2

12-Month COVERAGE Vehicle Reach 1+ Reach 3+ GRPs Frequency Message Reach 1+ Reach 3+ GRPs Frequency MONTHLY COST (000)

158

Gross

Mean

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

1089.1 794.0 8871.1 8.1

90.8 66.2 739.3 8.1

800.1 388.7 3992.0 5.0

66.7 32.4 332.7 5.0

2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2 2020.2

ADplus ME TM

RESULTS: CUSTOM MEDIUM A: 18-44 Population Base Source:

228,112,000 Ripple Advertising Netflix- OUTDOOR JUNE-DEC 2013

Summary

Schedule

Message

Reach 1+ (%) Reach 1+ (000)

100.0% 228,112.0

98.4% 224,456.6

Reach 3+ (%) Reach 3+ (000)

100.0% 228,112.0

98.3% 224,152.9

7,590.0 17,313,700.0 75.9

1,897.5 4,328,426.0 19.3

3,593,330 0.21 473 35,933 0.02

3,593,330 0.83 1,894 36,519 0.02

Details Vehicle List (3)

Rating

GRPs

Ad Cost

CPM-MSG

Total Cost

Mix%

11.00 10.50 13.00

2420.0 2310.0 2860.0

7,333 6,667 2,333

1.17 1.11 0.31

220 220 220

1,613,333 1,466,665 513,333

44.9 40.8 14.3

Totals:

7590.0

0.83

660

3,593,330

100.0

SUBWAY BUSES BILLBOARD

Frequency Distributions Schedule f 0 1 2 3 4 5 6 7 8 9 10+ 20+

f (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 92.9 92.9

f+ (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 92.9 92.9

f (000) 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.3 211,939.0 211,930.8

Ads

Message f+ (000) 228,112.0 228,112.0 228,112.0 228,112.0 228,112.0 228,112.0 228,111.9 228,111.8 228,111.7 228,111.5 211,939.0 211,930.8

f (%) 1.6 0.0 0.1 0.3 0.5 0.9 1.3 1.8 2.3 2.9 88.3 43.2

f+ (%) 100.0 98.4 98.4 98.3 98.0 97.5 96.6 95.3 93.5 91.2 88.3 43.2

f (000)

f+ (000)

3,655.4 65.8 238.0 591.1 1,163.9 1,961.5 2,957.2 4,100.0 5,324.0 6,558.5 201,496.8 98,522.6

228,112.0 224,456.6 224,390.9 224,152.9 223,561.7 222,397.8 220,436.4 217,479.2 213,379.2 208,055.3 201,496.8 98,522.6

159 ADplus ME ÂŠ 2011 Telmar Information Services Corp., v 5.0.13; TCDLL v 2.0.4.5

4/29/2012

Page 1 of 2

Cost-per-net reach point (CPRP) Cost-per-response (CPR)

36,519 0.02

35,933 0.02

Details Vehicle List (3)

Rating

GRPs

Ad Cost

CPM-MSG

Total Cost

Mix%

11.00 10.50 13.00

2420.0 2310.0 2860.0

7,333 6,667 2,333

1.17 1.11 0.31

220 220 220

1,613,333 1,466,665 513,333

44.9 40.8 14.3

Totals:

7590.0

0.83

660

3,593,330

100.0

SUBWAY BUSES BILLBOARD

Frequency Distributions Schedule f 0 1 2 3 4 5 6 7 8 9 10+ 20+

f (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 92.9 92.9

f+ (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 92.9 92.9

f (000) 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.3 211,939.0 211,930.8

Message f+ (000)

f (%)

228,112.0 228,112.0 228,112.0 228,112.0 228,112.0 228,112.0 228,111.9 228,111.8 228,111.7 228,111.5 211,939.0 211,930.8

f+ (%)

1.6 0.0 0.1 0.3 0.5 0.9 1.3 1.8 2.3 2.9 88.3 43.2

100.0 98.4 98.4 98.3 98.0 97.5 96.6 95.3 93.5 91.2 88.3 43.2

Quintile Distributions

Frequency ADplus ME ÂŠ 2011 Telmar Information Services Corp., v 5.0.13; TCDLL v 2.0.4.5 Schedule Quintiles Heaviest Next Next Next Lightest

20% 20% 20% 20% 20%

Total Message Quintiles Heaviest Next Next Next Lightest

Total

160

20% 20% 20% 20% 20%

Reach (%)

Ads

(#)

Index

f (000) 3,655.4 65.8 238.0 591.1 1,163.9 1,961.5 2,957.2 4,100.0 5,324.0 6,558.5 201,496.8 98,522.6

GRPs (#)

f+ (000) 228,112.0 224,456.6 224,390.9 224,152.9 223,561.7 222,397.8 220,436.4 217,479.2 213,379.2 208,055.3 201,496.8 98,522.6

4/29/2012

(%)

20.0 20.0 20.0 20.0 20.0

99.5 83.9 75.0 66.7 54.4

131 110 99 88 72

1,990.1 1,677.0 1,500.8 1,334.6 1,087.5

26.2 22.1 19.8 17.6 14.3

100.0

75.9

100

7,590.0

100.0

19.7 19.7 19.7 19.7 19.7

32.1 22.9 18.2 14.2 9.0

166 119 95 74 47

631.5 451.1 358.7 279.1 177.0

33.3 23.8 18.9 14.7 9.3

98.4

19.3

100

1,897.5

100.0

Page 1 of 2

ADplus ME TM

FLOWCHART: NETFLIX- OUTDOOR, JUNE-DEC 2013 - JUNE-DEC 2013 Target audience: 228,112,000 A: 18-44 Prepared by: Ripple Advertising MEDIA

Total

Vehicles

Ads

Cost(000)

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

CUSTOM MEDIUM

4620

25,152.8

660

---

--------

---

SUBWAY

1540

11,292.8

220

BUSES

1540

10,267.2

220

BILLBOARD

1540

3,592.8

220

Mean

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

700.0 100.0 700.0 100.0 53130.0 7590.0 75.9 75.9

0.0 0.0 0.0 0.0

0.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 7590.0 7590.0 7590.0 7590.0 7590.0 7590.0 7590.0 0.0 75.9 75.9 75.9 75.9 75.9 75.9 75.9

688.8 98.4 687.9 98.3 13282.5 1897.5 19.3 19.3

0.0 0.0 0.0 0.0

0.0 98.4 98.4 98.4 98.4 98.4 98.4 98.4 0.0 98.3 98.3 98.3 98.3 98.3 98.3 98.3 0.0 1897.5 1897.5 1897.5 1897.5 1897.5 1897.5 1897.5 0.0 19.3 19.3 19.3 19.3 19.3 19.3 19.3

3593.3

0.0

0.0 3593.3 3593.3 3593.3 3593.3 3593.3 3593.3 3593.3

7-Month COVERAGE Vehicle Reach 1+ Reach 3+ GRPs Frequency Message Reach 1+ Reach 3+ GRPs Frequency MONTHLY COST (000)

Gross

161

ADplus ME TM

RESULTS: CUSTOM MEDIUM A: 18-44 Population Base Source:

228,112,000 Ripple Advertising Netflix- GUERILLA JULY-DEC 2013

Summary

Schedule

Message

Reach 1+ (%) Reach 1+ (000)

93.7% 213,690.5

87.8% 200,361.0

Reach 3+ (%) Reach 3+ (000)

55.4% 126,394.9

36.6% 83,517.0

Gross rating points (GRPs) Gross impressions (000s) Average frequency (f)

285.5 651,259.8 3.0

214.1 488,444.8 2.4

Total schedule cost Cost-per-thousand impressions (CPM) Cost-per-rating point (CPP) Cost-per-net reach point (CPRP) Cost-per-response (CPR)

8,750,000 13.44 30,648 93,405 0.04

8,750,000 17.91 40,864 99,619 0.04

Details

162

Vehicle List (5)

Rating

GRPs

Ad Cost

CPM-MSG

NEW YORK, NY CHICAGO, IL BOSTON, MA AUSTIN, TX MIAMI. FL

15.00 13.00 10.10 10.00 9.00

75.0 65.0 50.5 50.0 45.0

350,000 350,000 350,000 350,000 350,000

13.64 15.74 20.26 20.46 22.73

Totals:

285.5

17.91

Ads

Total Cost

Mix%

5 5 5 5 5

1,750,000 1,750,000 1,750,000 1,750,000 1,750,000

20.0 20.0 20.0 20.0 20.0

8,750,000

100.0

Frequency Distributions Schedule f 0 1 2 3 4 5 6 7 8 9 10+ 20+

f (%) 6.3 15.1 23.1 23.0 16.6 9.3 4.2 1.6 0.5 0.1 0.0 0.0

f+ (%) 100.0 93.7 78.5 55.4 32.4 15.8 6.5 2.3 0.7 0.2 0.0 0.0

Quintile Distributions Schedule Quintiles Heaviest Next Next Next Lightest

20% 20% 20% 20% 20%

Total Message Quintiles Heaviest Next Next Next Lightest

Total

20% 20% 20% 20% 20%

Reach (%)

Message

f (000)

f+ (000)

14,421.5 34,510.1 52,785.5 52,406.2 37,923.7 21,291.3 9,637.0 3,607.4 1,136.7 305.3 87.4 0.0

228,112.0 213,690.5 179,180.4 126,394.9 73,988.7 36,065.0 14,773.7 5,136.7 1,529.3 392.7 87.4 0.0

f (%) 12.2 24.2 27.0 19.7 10.5 4.4 1.5 0.4 0.1 0.0 0.0 0.0

Frequency (#)

Index

f+ (%) 100.0 87.8 63.6 36.6 16.9 6.4 2.0 0.5 0.1 0.0 0.0 0.0

f (000)

f+ (000)

27,751.0 55,241.3 61,602.7 44,893.8 23,996.9 10,009.5 3,384.2 951.1 226.1 46.0 9.5 0.0

228,112.0 200,361.0 145,119.7 83,517.0 38,623.2 14,626.3 4,616.8 1,232.6 281.5 55.5 9.5 0.0

GRPs (#)

(%)

18.7 18.7 18.7 18.7 18.7

5.4 3.7 3.0 2.0 1.2

176 122 97 66 39

100.4 69.9 55.4 37.5 22.3

35.2 24.5 19.4 13.1 7.8

93.7

3.0

100

285.5

100.0

17.6 17.6 17.6 17.6 17.6

4.5 3.0 2.1 1.6 1.0

184 123 85 67 41

78.8 52.7 36.6 28.5 17.6

36.8 24.6 17.1 13.3 8.2

87.8

2.4

100

214.1

100.0 163

166