Competitive Edge - Sports & Entertainment Marketing News

The High Cost of Chasing Netflix for NBCU and WarnerMedia


After two months of fielding criticism from some of Hollywood’s top filmmakers, WarnerMedia executives finally had something to crow about when AT&T CEO John Stankey revealed Jan. 27 that the much-maligned plan to release its films in theaters and on HBO Max had helped to double the streamer’s audience to 17.2 million active users. But the good news came with a caveat: $520 million in losses due to the ongoing shutdown of many theaters and subsequent hybrid release plan for the 2021 Warner Bros. film slate.

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Discussion Questions:

  1. What is competition?
  2. How might this news story help to illustrate the concept of competition?
  3. Given the high costs associated with streaming, why would NBCU and WarnerMedia want to enter the marketplace?
  4. What is competitive advantage?
  5. What competitive advantage might Netflix currently have?
  6. Do you think WarnerMedia or NBCU might have any competitive advantages? Why or why not?
  7. What is a marketing plan?
  8. What is a SWOT analysis?
  9. How might WarnerMedia and NBCU evaluate their market position using a SWOT analysis?
  10. Based on information from this story, what might a newcomer to the streaming market want to consider when developing a marketing plan? Be prepared to discuss your answers.
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.


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