A Viable Contender to Surpass Netflix?

http://www.adweek.com/news/technology/skype-co-founder-launching-vdio-netflix-competitor-135882

With Netflix’s bad publicity debacle over the past few months, it was only a matter of time before competitors would begin coming out of the wood works with the hopes of snatching those dissatisfied Netflix users. While several will most likely fail, there has recently been some positive publicity about Vdio, a new video streaming service. Reports are saying it’s coming out in the U.K. market first. Early talks from this article and other online sources are saying that there is a good indication that Vdio will be very successful. Here is an outline of some of the positive buzz out there about this new service:

-It’s being developed by Janus Friius, co-founder of Skype, which gives the service major credibility.

-From the “Splash Page,” there seems to be a great amount of current and popular content. Vdio has already reported signing deals with Sony, AMC, Warner Bros., Fox, and Showtime.  Follow the link below to see the “Splash Page.”

http://www.vdio.com/registration

-There are talks of some free content.

-There will be a login through Facebook, which ties in the social networking aspect that not only the consumers want, but will most likely create more awareness for Vdio because of how many users are on Facebook.

Some questions I pose to you:

-The price point has yet to be released or set for the monthly subscription fee. Thoughts on where this service should be priced?

-A lot of companies are trying to integrate their system into Facebook. This seems like an advantage for Vdio to capture a lot of new users. Do you think this integration is a necessary/beneficial component? If so, what other ways can Vdio take advantage of other forms of social media? Skype integration perhaps?

-What do you think overall? If all the speculation/hype is true, would you purchase Vdio?

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4 thoughts on “A Viable Contender to Surpass Netflix?

  1. Although I don’t see myself personally accessing it in this way, I do think it is smart for Vdio to integrate their system into Facebook. As we discussed in class, consuming content nowadays is very much a social experience. And nothing is more social than Facebook. Skype could work as well, but I think Facebook is their best bet at this time.

  2. I was wondering when something like this was going to come along! It seems only natural, that with the negative publicity Netflix has been getting, that something new would come out of it… and something that has serious legs, being that a Skype co-founder is leading the charge.

    I think a relationship with facebook would be great to get this thing off the ground, but I wouldn’t say it’s the end-all-be-all. Just by tapping into Skype alone, would most likely get Vdio off the ground.

    If they are going to go directly for the Netflix market, then they have to be at the same price point, if not lower. And the fact that they have already signed deals with Sony, AMC, Warner Bros., Fox, and Showtime is very promising. I’m curious if they will offer “newer content” as a lot of Netflix’s content is older due to licensing issues. If Vdio could accomplish this or something else that would make their service stand superior, then given the current state Netflix is in, it could quite possibly be the leader in this category.

  3. There has been endless buzz around Netflix and video streaming sites since Netflix’s original price increase over the summer. It seems natural that with all the uncertainty surrounding the industry’s leader and the future of the industry overall, that there was potential opportunities for current and new competitors. It will be interesting to look back on all the sudden changes in the streaming entertainment industry a year or more from now.

    I do not know much about Vdio and how their service will be a “difference-maker” to earn Netflix lost market share. However, I do believe, as your post states, that there is added credibility to Vdio’s potential offerings when you consider Skype’s co-founder is a developer. I also think any connection to Facebook is a great way to generate a user and trial base of customers. I am not sure any competitor has found the right price-point for streaming video content, but if we have already seen the industry leader, Netflix, struggle with this issue, then I assume this will be a challenge for Vdio as well. I can’t imagine Vdio pricing their service higher than Netflix unless they plan to offer significantly more and higher quality content. I am also not sure what type of consumer Vdio will target, a movie aficionado, avid TV series streamer, etc. With that said, it is tough to say if I would be interested in Vdio’s service at this point.

  4. I have never been a member of Netflix, but I wanted to join before all of the controversy occurred. When I looked into it and discovered the price hike, I decided against it and came across Blockbuster’s service. For $10 a month, I have access to streaming and dvd’s, a much more appealing offer. I am not sure how big of a following Blockbuster has, but it is a great option for people who are fed up with Netflix. This new service, Vdio, sounds like it could be successful depending on the price point that they decide on and the Facebook route will definitely help it to gain followers. I am interested to see what they charge in comparison to Blockbuster as their business model seems to be working.

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