Group 5 David Neis Taylor Thomas David Le Anh Vu Elizabeth Kensinger

Research Questions
Do advertisements and commercials deter consumers from using their service? Is the price too high for the amount of content available? Did Netflix beat Hulu Plus to the market as top end service? Are consumers more willing to pay for streaming with no commercials or use free services with commercials?

Survey Development
Establish what to test Make a sample survey Pre-testing Revision Develop final survey electronically on qualtrics Distribute survey and collect data Process data Analysis Recommendations

Survey Execution
35 initial paper surveys collected and coded between October 10th-24th Online survey was created and executed using convenience sampling through Skype and Facebook A total of 107 valid surveys were collected between October 24th and November 20th

Questionnaire Design
Survey was planned to understand the preferences of streaming users and their awareness of different streaming services. Multiple choice questions were provided to make survey easy for pollsters and provide a restriction to our areas of interest. Open-ended questions were allowed for unknown variables and distinct answers to better understand current and potential users.

Questionnaire Design
The final survey was closed after a 30-60 person pre-testing and development group discussion, ranking questions were added, demographics were increased, and non-stream user questions were extended. Final survey was comprised of 28 questions, including 19 multi-response, 5 ranking and 4 open-ended.

Survey Flow

Split Question
From the total sample, 93.5% of people use some source of video streaming. 101 Respondents do use streaming services and only 88 of the 101 had valid responses 5 Respondents do not use streaming services and only 4 of the 5 had valid responses.

Awareness and Usage of Hulu Plus

74 of 88 respondents were aware of Hulu Plus 27 of 88 respondents have used Hulu Plus of respondents aware of Hulu Plus use the service All respondents aware of Netflix have used the service.

Streaming Services Preference

Top 2 Choices from the sample were Netflix and Hulu Plus. Of the 25 respondents who currently use Hulu Plus only 2 preferred the service over the competitor Netflix. Of the 22 respondents who currently use Hulu Plus and Hulu the majority prefer the paid service content to the free service content.

Hulu Plus Users

Hulu Plus Non User

Top 3 Problems: Brand Loyalty, Expense, Advertisement for paid services

Perception of Price
26 of 61 respondents answered that Hulu Plus is too expensive. 23 of the 26 are currently using Netflix.

Advertising Preferences
How do you feel about advertising breaks during a video stream? vs Would you rather have paid without commercials or free with commercials? Paid, but no Free, but Total Ads contains Ads Strongly dislike Dislike Neutral Like Strongly Like Total 29 9 3 0 0 41 13 14 12 1 0 40 42 23 15 1 0 81

 Respondents in the higher income brackets ($50,000 or more) were 28% more likely to use streaming services daily than those in the lower income brackets ($49,999 or less). Respondents who use Hulu Plus were equal in both the High and Low income brackets, but on the lowest and highest individual categories Hulu Plus was 2.5x more likely to be used by High income individuals. Dislike of advertising was equal among all income levels.

Annual Household Income

$0-$39,000 Netflix Hulu Hulu Plus Xfinity Amazon Instant Video YouTube YouTube (Paid Content) On Demand Services Aereo Redbox Instant Free TV/Movie Website Other 20 18 6 1 6 21 0 6 0 1 15 3 $40,000-$74,999 19 15 6 2 7 19 0 9 0 1 13 1 $75,000 and Up 25 17 6 0 4 25 0 8 0 3 14 5 Prefer not to answer 13 9 4 1 2 13 1 3 0 4 9 3

 48 Male, 32 Female, 8 Preferred not to respond. Females are 1-2% more likely to use paid content than males. Male attitude toward advertisements are 10% more favorable than female. 18 of 32 Females would rather pay for streaming services if no advertisements are involved. 26 of 48 Males would rather watch advertisements than pay for streaming services.

 Asian respondents had the highest percentage of daily users and Black respondents had the lowest percentage of daily users. At least of all races use Hulu Plus Negative correlation for advertisement preferences in all races Majority of races were split between Paid with no advertisements or Free with advertisements, but 69% of Asian respondents preferenced free with ads.

Challenges
Of the 107 surveys responses collected, 19 were incomplete. Neglected to include a survey question covering consumer age Convenience sampling likely resulted in a high percentage of UTD students, who are likely representative of the target demographic.

Recommendations
Netflix and Hulu Plus are the same price, yet people said Hulu Plus was too expensive Netflix was the most popular alternative to Hulu Plus Problem with perception because of advertisements People view watching advertisement as payment for service

Recommendations
Eliminate advertisements for paid stream, or make advertisements less intrusive, i.e. allow users to watch all advertisements at beginning of stream, or Rebrand to position Hulu Plus as superior to Netflix, with exclusive content Right now, Hulu Plus and Netflix are viewed as the same, except Hulu Plus has advertisements and Netflix does not