• The Journal of the Korea Contents Association
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• v.14 no.5
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• pp.30-43
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• 2014

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.