Analysis of Netflix and Hulu for Online Video Content Distributors' Business Model Comparison in N-Screen Era

N스크린 시대 온라인 비디오 콘텐츠 유통 비즈니스 모델 비교를 위한 넷플릭스(Netflix)와 훌루(Hulu) 연구

  • 정윤경 (순천향대학교 신문방송학과)
  • Received : 2014.02.11
  • Accepted : 2014.04.25
  • Published : 2014.05.28


The number of online video content distributors are rapidly increasing in N-screen environment. The purpose of this study is to analyze the business model of these distributors, especially Netflix and Hulu. Basis on STOF model, environmental domain, service domain, organization domain and financial domain of each company are analyzed and compared. This study finds that each company's business model had distinct characters in earlier stage. Netflix offered online and offline service in low cost, while Hulu offered up-to-date TV contents without fees. However, two companies' business models are getting similar. The result of this study shows that highly competitive environment and increasing content budget affect two companies to adopt similar business model to survive.


Online Video Distribution;Business Model;N-screen;STOF Model;Video Windowing


  1. R. Lawler, "Deloitte: 9% Have Cut Cable, Another 11% Are Considering It", GigaOm, Jan. 4, 2012.
  2. A. Van Wagner, "Seeking a clearerpicture: assessing the appropriate regulartory framework forbroadband video distribution," Fordham Law Review, Vol.79, pp2909-2966, 2012.
  3. B. Sisario, "Golden Age;New Layer of Content Amid Chaos on YouTube," New York Times, Mar. 11, 2012.
  4. Nielsen, "An era of growth-The cross platform report," March, 2014.
  5. R. Holly, "Netflix vs. Hulu Plus: Who best fits your video streaming needs," Geek, Sep. 26,, access at 2013. Nov, 24, 2012.
  6. B. Spencer, "Business Model Design and Learning: A Strategin Guide," Business Expert, 2013.
  7. J. Hayward, "Internet streaming of TV shows shakes cable TV," Satellite Industries, July 30, p.12, 2012.
  8. Wall Street Journal, "Hulu's Fork in the road," Dec. 20, 2012.
  9. J. Flint and B. Fritz, "Netflix Deal Makes CW Pay Off for CBS and Warner Bros," L. A. Times, Oct. 13, 2011.
  10. 김유정, 김관형, "온라인 방송콘텐츠 유통 중개업자의 핵심 역량과 유통구조 개선효과에 관한 사례- 방송콘텐츠 다운로드 시장을 중심으로", 한국콘텐츠학회논문지, 제11권, 제9호, pp.254-266, 2011.
  11. A. Jezierski, Television Everywhere-How Hollywood Can Take Back the Internet and Turn Digital Dimes Into Dollars, iUniverse, Inc: New York, 2010.
  12. W. Currie, "Valuecreation from the application service provider e-business model: the experience of four firms," The Journal of Enterprise Information Management, Vol.17, No.2, pp.117-130, 2004.
  13. FCC, "Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming," Fourteenth Report, 2012.
  14. S. Berman, B. Battino, and K. Feldman, "New business models for emerging media and entertainment revenue opportunities," trategy & Leadership, Vol.39, No.3, pp.44-53, 2011.
  15. 이문행, "국내 지상파 방송 콘텐츠의 창구화 메커니즘 분석", 한국콘텐츠학회논문지, Vol.9, No.8, pp.190-197, 2009.
  16. C. Zott, R. Amit, and L. Massa, "The business model: recent developments and future research," Journal of Managemen, Vol.37, No.4, pp.1019-1042, 2011.
  17. S. Lamber and R. Davidson," Applications of the business modelin studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010," European Management Journal, 2012.
  18. S. Chan-Olmsted and L. Ha, "Internet business models for broadcasters: How television stations perceive and integrate the internet," Journal of Broadcasting & Electronic Media, Vol.47. No.4, pp.597-617, 2003.
  19. C. Zott and R. Amit, "Business model design: An activity system perspective," Long Range Planning, Vol.43, pp.216-226, 2010.
  20. D. Teece, "Business models, business strategy and innovation," Long Range Planning, Vol.43, pp.172-194, 2009.
  21. R. Casadesus-Masanell and J. E. Ricart, "From strategy to business models and to tactics," Long Range Planning, Vol.43, pp.195-215, 2010.
  22. L. Ha and R. Ganahl, "Webcasting business models of clicks-and-bricks and pure-play media: A comparative study of leading webcasters in South Korea and the United States," The International Journal on Media Management, Vol.6, No.1-2, pp.74-87, 2004.
  23. H. Bouwman, M. Zhengjia, P. Vander Duin, and S. Limonard, "A business model for IPTV service: a dynamic framework," info, Vol.10, No.3, pp.22-38, 2008.
  24. E. Faber, P. Ballon, H. Bouwman, T. Haaker, O. Rietkerk, and M. Steen," Designing business models for mobile ICTservices, paper presented to Workshop on Concepts, Metrics and Visualization," 16th Bled Electronic Commerce Conference eTransformation, Bled, Slovenia, June 9-11,2003.
  25. H. Bouwman, I. MacInnes, and M. de Reuver, "Dynamic business model framework: a comparative case study analysis," in Lu,T. , Liang, X. and Yan, X. (Eds), 16th Biennial Conference of the International Telecommunications Society: Opportunities and Challenges for Telecommunications, Beijing, 12-16, p.15, June,2006.
  26. S. McPhillips and O. Merlo, "Media convergence and the evolving media business model: an overview and strategic opportunities," The Marketing Review, Vol.8, No.3, pp.237-253, 2008.
  27. Bain & Company, "Telecommunications, media & technology: delighting the digital consumer," 2012.
  28. SNL Kagan, "Multichannel video segment suffers customer losses in Q2, 2011," 2011.
  29. K. Moore, "71% of Online Adults Now Use Video Sharing Sites," Pew Internet, Vol.26, July, 2011.
  30. D. Waterman and S. Han, "Broadcastersvs. MVPDs: economic effects of digital transition on television program supply," Info, Vol.12, No.4, pp.12-24, 2010.
  31. A. Jezierski, "Television Everywhere-How Hollywood Can Take Back the Internet and Turn Digital Dimes Into Dollars," iUniverse, Inc, 2010.
  32. P. Swatman, C. Krueger, and K. Beek,"The changing digital content landscape: An evaluation of e-business model development in European online news and music," Internet Research, Vol.16, No.1, pp.53-80, 2007.
  33. R. Nelson, C. Reid, and O. Gilmore,"An analysis of theout-of-market gap for DVDs in the U. S. ," Review of Industrial Organization, Vol.30, pp.303-323, 2007.
  34. Broadcast & Cablesat," Telco TV and internet TV capture share from cable TV in mature market," trends, July, 21, 2011.
  35. R. Oppenheim, "The video stream rises," Searcher, Oct 2012, Vol.20, Issue 8, pp.16-19, 2012.
  36. 이종근, "스마트기기 대중화 시대, N스크린 개념이 현실화되고 있다", LG경제연구원, 5:24, 2011.
  37. Nielsen, 2010 & 2011 Television Audience Report, 2011.
  38. TVB," Trends: TV Cost & CPM Trends," (visited Jan. 16, 2012).
  39. R. Brown, "New holistic mass media business model," Journal of Broadcasting & Electronic Media, Vol.13, No.5, pp.415-430, 2011.