Hulu: An Evil Plot to Destroy the World?

Anita  Elberse; Sunil  Gupta

Case | HBS Case Collection | October 2009 (Revised June 2010)

Hulu: An Evil Plot to Destroy the World?

Abstract

In July 2009, Jason Kilar, the chief executive officer of Hulu, is debating whether the online video aggregator should move away from a purely advertising-supported model, and whether it should participate in an industry-wide initiative to develop and test "authentication" technology that can facilitate a subscription or pay-per-view model. The case traces the early years of Hulu, a joint venture between News Corp. and NBC Universal, that was initially met with strong skepticism but quickly became on the most celebrated and popular online video business. Provides in-depth information on how the company serves content owners, users, and advertisers. Describes the online video space in considerable detail, also covering economic and viewership statistics that enable a rich discussion of viable business models.

Keywords: Advertising; Business Model; Television Entertainment; Distribution Channels; Service Operations; Internet; Online Technology; Media and Broadcasting Industry; Motion Pictures and Video Industry;

Format: Print

29 pages

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Citation:

Elberse, Anita, and Sunil Gupta. "Hulu: An Evil Plot to Destroy the World?" Harvard Business School Case 510-005, October 2009. (Revised June 2010.)

“We’re in business together, and whether we lose a few million dollars or make a few million dollars, let’s do this. If you think you can pull it off, I’m behind you.” Michael Rapino, chief executive officer of Live Nation, the world’s leading live entertainment company, expresses his support to Pharrell Williams, one of the music industry’s biggest stars, and his long-time manager Ron Laffitte. It is December 2018, and Williams just pitched Rapino an idea for a music festival in Virginia Beach, Something In The Water. Williams is engaged in many endeavors – he is not only a chart-topping musician, but also a fashion designer, film and television producer, brand builder, and business consultant – that are brought together in his company, I Am Other, which is in a joint venture with Live Nation. Although Live Nation generally does not shy away from making big bets on its artists, Williams’ festival idea is risky and has an unusually aggressive time table. Is Rapino right to lend his support to Williams’ proposed festival? Are partnerships like the one it had formed with Williams’ company I Am Other the way forward for Live Nation? And how can the company that dominates the live music space best continue to create value for artists and their managers?

By October 2017, Procter & Gamble’s skincare brand Olay has been struggling with declining sales for several years. The team has tried many remedies, but none has returned the brand to growth. As pressure grows from Olay’s competitors, including hundreds of new direct-to-consumer brands catering to millennial women, North American Skin Care General Manager Chris Heiert must identify a winning marketing strategy that will appeal to women of all ages.

Case | HBS Case Collection | September 2020

Chip and Joanna Gaines' Magnolia Network

Anita Elberse and Julia McNicholas

Chip and Joanna Gaines, who have shot to fame as stars of the hit television show Fixer Upper, are preparing to launch their own television network. It is April 2019, a year since the home-renovation show Fixer Upper’s fifth season on cable channel HGTV ended, and more than one-and-a-half years since the husband-and-wife duo announced that season would be their last. At the time, entertainment company Discovery Inc. was in the process of acquiring, in a $12-billion deal, Scripps Networks Interactive, HGTV’s parent company. Now, hoping to find a way to bring the duo back, Discovery’s chief executive officer David Zaslav has proposed setting up a joint venture between Discovery and the Gaineses. Under the deal, the latter will receive an ownership stake as well as certain guaranteed payments, be given creative control over the ‘DIY Network’ which they plan to rebrand as ‘Magnolia Network,’ and have a sizable programming budget at their disposal. Meanwhile, the two entrepreneurs are also running a thriving set of other businesses under their ‘Magnolia’ brand, that covers retail and hospitality—including their ‘Magnolia Market at the Silos’ complex and ‘Magnolia Table’ restaurant in Waco, Texas—as well as brand partnerships, books, and a magazine. Is launching Magnolia Network the right move for Chip and Joanna Gaines—and for Discovery? And what can both parties do to ensure the new network will be a success?

Keywords: entertainment; television; superstars; innovation; Creative Industries; Talent; general management; celebrities; Television Entertainment; Entrepreneurship; Joint Ventures; Innovation and Invention; Marketing; Strategy; Entertainment and Recreation Industry; Media and Broadcasting Industry;

Citation:

Elberse, Anita, and Julia McNicholas. "Chip and Joanna Gaines' Magnolia Network." Harvard Business School Case 521-044, September 2020. View Details

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Hulu: An Evil Plot to Destroy the World?

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