MUBI
Research
Report
Fatih DÜZYOL
Ziya Gökhan ÇUKURTAŞ
Pınar EKMEN
Hakan CEYLAN
Akın Ozan ONUK
IP EUTA
CONTENTS
Introduction………………………………………………………………………………………………………2
Desk Research……………………………………………………………………………………………………3
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Online Movie Market………………………………………………………………………………..3
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Target Audience of Movie Market………………………………………………………….…..4
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Brand Description……………………………………………………………………………….……5
Competitors
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Netflix……………………………………………………………………………………………………5
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Indieflix……………………………………………………………………………………………….…6
o
Lovefilms by Amazon……………………………………………………………….………………6
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Advertising by Competitors…………………………………………………………………….....7
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Advertising by MUBI…………………………………………………………………………..….….8
Field Research…………………………………………………………………………………………………...9
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o
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o
Focus Group
Analysis………………………………………..………………………………………………….……9
Survey
About Survey…………………………………………………………………………………………11
o
General ……………………………………………………………………………………………..…11
o
Combination of Answers 1………………………………………………………………………14
o
Combination of Answers 2…………………………………………………………………..…15
Bibliography………………………………………………………………………………………………..……16
1
Introduction
MUBI is the world’s first online cinema. Instead of
a large a la carte library, MUBI instead shows a
continually rotating lineup of 30 hand-picked films
at once. A new film is added every day, and every
film running for 30 days. Each country, a different
movie selection is available with original language
and English subtitles. The main point with MUBI is
it’s not a website for just watching movies also, a
social network with concept
Our desktop research includes the analysis of
online movie market, competitors, their advertising strategies and MUBI's previous
communication strategies. 150 people from all around Europe participated the online
survey. In the online survey we focussed on watching movie habits, online watching options
awareness/usage, awareness of the MUBI and the competitors.
Furthermore, we worked with two focus groups. We tried to learn about, “How does the
social media affect consumers’ decisions when they try to choose a movie to watch, or
sharing/discussing/advising about a movie?”
2
Desk Research
Online Movie Market
Our lifes are changing with the technology. Also our movie watching habits are changing. Online
movies represent one of the hottest segments of the online paid content industry. Movie ticket sales
are down. Hollywood was at the center of a battle earlier this year against online pirates stealing
films. The industry is trying to learn ways to use the Internet, rather than working against it, in order
to stay afloat.
GIA1 announces the release of a comprehensive global report on Online Movies markets. World
Online Movies market is forecast to reach US$4.4 billion by the year 2017. Prime growth factors
instrumental in driving demand for online movies include skyrocketing popularity of movies, rising
Internet penetration, increased prevalence of TV and DVD players, and higher digital downloads.
Additionally, surging movie ticket prices, increasing credit card usage, ability to play mobile trailers
and videos on point-of-access devices, such as, PDAs, cellular handsets, and iPods, and rising cost
sensitivity of consumers are also playing an instrumental role in popularizing the concept of online
movies.
Growth in the upcoming years will be driven by continued consumer demand for digital content
consumption, and launch of new hardware integrated with next-generation features. The trend for
online movie rental has gained momentum of late, especially amongst the younger generation, who
are more likely to value online movie rental over traditional store rentals for increased comfort and
convenience. Video streaming has become a new trend of the online movie rental industry.
Streaming is a relatively recent phenomenon, as the Internet broadband connection has to be really
fast to show the data in real time.
The download-to-own at the digital retail level represents the majority of annual online movie
revenues, with demand showing no major signs of fading in the near future. However, the market is
expected to be increasingly commoditized and in the post-recession scenario, the market for
download-to-own (digital retail) is likely to recover at a slow pace and will remain challenging for
vendors.
Driven by higher degree of Internet penetration, consumer awareness and large uptake of online
movies, the developed markets of Europe and United States command a leading position, capturing
the largest chunk of the worldwide market for online movies, as stated by the new market research
report on Online Movies. In the US, broadband connectivity, assessed at a low 20% only a few years
back, has grown at a tremendous pace over the years to reach an impressive rate of over 78% in
2011. Asia-Pacific, on the other hand, buoyed by growing dominance of markets such as China, India
and Australia in terms of Internet connectivity, broadband penetration, and huge population base, is
poised to gain rapid mileage at a strong double-digit growth rate of about 36% through 2017.
1
Global Industry Analysts
3
“To stoke interest among its target audience of under-30 moviegoers, the studio’s efforts included a
channel on Google’s YouTube, a blog on Tumblr dedicated to the movie’s futuristic fashion, and a
contest in which fans collected pieces to the film’s poster on several sites,” according to Reuters.
A studio survey found that 55 percent of the audience who saw the movie got most of their
information about it on the internet.
Television networks are following suit, as more people, especially younger people, tune into shows
online. With ever expanding YouTube channels and the growing popularity of online videos,
personalizing and choosing content are crucial for people.
By putting the pilot episodes online, they can gauge whether their investment is worthwhile.
Networks can tell whether a show is doing well based on the unique visitors to the video and the
activity that the comments page is attracting. And producers of these shows can gauge whether a
show is fully promising or needs some adjustment based on YouTube comments.
Target Audience of Online Movie Market
University students and young workers who live in Europe
are mostly integrated with internet in their lifes. %92 of
Students in Europe are using Internet everyday. 70% of
young workers going online everyday as well. (European
Commission, 2012) They use the power of internet in
academic/business life and also for their daily life.
Furthermore lifestyles have been changed with the social
networks. This audience, have social network accounts and
they use them frequently such as sharing fellings on
twitter, posting what they like on Facebook and sharing
what they see on Instagram.According to the research, 72% of universitystudents and 40% of
young workers using social media everyday. At the same time 64% of young workers use
their social networks at least one a week. [EUC, 2012]
This audience allocate money for hobbies such as
watching movie but this cyberspace also changed
watching movie habits. People are still like
watching movies at theatres. Besides of that there
are lots of reasons pushing them watching online
like time issue, watch movies with comfort of
home and etc. After online movie opitons entered
our lifes, people can watch whatever they want at
the time they preferred. Also online movie market gives a chance you to time-travel. You can
watch old movies from ‘40s and also newest movie on the theatres. Even though, some
movies appear on online market before theatres.
4
Brand Description
MUBI is a global film website that integrates social networking, a database, an online magazine and a
subscription video-on-demand service. It has been described as an "online cinematheque."
Originally called The Auteurs, MUBI was founded in 2007 by Turkish-born entrepreneur Efe Cakarel
as a social network for cinephiles, with an interface specifically geared towards aesthetic design and
simplicity.
In May 2010, under the new name MUBI, the company announced that their subscription service
would be available on PlayStation 3 in Europe. MUBI launched their app on the PSN store in
November 2010, followed by a channel on Sony’s line of Bravia internet devices in 2011.
Starting in 2012, MUBI began launching a new, highly curated VOD model in select territories.
Instead of a large a la carte library, MUBI instead shows a continually rotating lineup of 30 films at
once. A new film is added every day, and every film running for 30 days.
In August 2013, MUBI released an iPad app in English, French, Norwegian, German, Italian and
Turkish. The app allows users to stream the selection of 30 films on their iPad or send it to Apple TV
using AirPlay.
As of 2014, MUBI has over 6 million members and offices in Palo Alto, London, and Istanbul.
Competitors
1.Netflix
Netflix was founded in 1997, is an American provider of on-demand
Internet streaming media available to viewers in North and South
America, the Caribbean, and parts of Europe (Denmark, Finland, Ireland,
the Netherlands, Norway, Sweden, and the United Kingdom). Netflix
announced that they will expand and launch in France and Germany as
well.
Services which Netflix provides are online/mailing DVD Rental, TV Shows and Movies.
The library; Netflix doesn’t specify the number of movies and shows available in their library beyond
just saying that it numbers in the thousands, which is vague, but nonetheless accurate. Netflix has
arguably the most robust content library of any streaming service out there. Their selection leans
more toward feature-length movies, but their collection of TV shows is constantly growing and
improving. Netflix even offers its own highly successful productions, including Orange Is the New
Black, and House of Cards, with more to come in 2014.
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With the last report their global streaming subscribers at 40.4 million (31.2 million in U.S.)
According to a survey by Nielsen in July 2011, 42% of all Netflix users make use of a stand-alone
computer to connect to Netflix, 25% do so by using the Wii, 14% by connecting their computers to a
TV, 13% make use of a PlayStation 3 and 12% use an Xbox 360.
2.Indieflix
Founded by independent filmmakers. They offer from worldwide
film festivals to make sure indies have an audience. Scilla
Andreen, Chief Executive Officer co-founded IndieFlix in 2004, where she served as Manager until
being appointed CEO in March of 2007.
Kristie Lanum, Chief Content Officer was Chief Dealflow Officer at ZINO Society, a Seattle angel
investment group that has helped facilitate $16 million in funding.
Services which Indieflix provides are Watch Independent Films & Foreign Films Online. They also
allow you submit your own film.
It's always available with unlimited users. Many films can be shown on your TV, from Roku or Xbox
streaming devices.
3. Lovefilms By Amazon
Lovefilms.com is a UK based provider of DVD by mail and
streaming video on demand. It is founded in 2002 and
acquired by Amazon in 2011.
Company’s service was rental DVD until 23 February 2009. Instead of rental dvd, company started
“watch online” service. Any user can reach over 4.700 movies when using of watch online service.
According to 2009 data yearly revenue 150 million USD.
The company serves in United Kingdom and Germany. Services which Lovefilms provides are
online/mailing DVD Rental, TV Shows and Movies. Also users can reach services except online
services. These platforms that users can reach are;
PlayStation 3 - November 2010
Xbox 360 - December 2011
iPad - September 2011
Wii U - November 2012
iPhone - November 2013
Xbox One - Q4 2013
PlayStation 4 - Q4 2013
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Advertising by Competitors
1.Netflix
Netflix mostly uses the sense of humor on their TV
ads as appeal. Mainly messages of the Netflix ads
are “you can watch whatever you want, wherever
you want and when you want.”
You can reach the latest campaigns of the Netflix
with following links;
Pep Talk Netflix Canada;
http://www.youtube.com/watch?v=94vLzyliMF4
Watch Responsibly;
http://www.youtube.com/watch?v=P6B2tKMg3B8
Also Netflix stand on message that “Netflix bring people together.”
Holiday Three;
http://www.youtube.com/watch?v=3j-Bmr89JWg
2.Indieflix
Indieflix try to reach people who feel passion about
films, who are recording stories and life. And the say
“stories in our DNA and all of us are filmmakers.”
You can reach the latest campaign of the Indieflix
with following link;
http://www.youtube.com/watch?v=93NsAc49lxw
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3. Lovefilms By Amazon
Lovefilms.com emphasizes that “Except online, users also
can reach by using other platforms such as Play Station 4,
Xbox 1, Wii U etc.” in their ads. While emphasizing this,
lovefilms.com uses a logical approach. Also, lovefilms.com
emphasizes their price: £4.99
You can reach the latest campaigns of the Lovefilms.com
with following links;
-http://corporate.blog.lovefilm.com/press-centre/mediacentre/tv-advertising
- https://www.youtube.com/watch?v=K3o-Oq_25jA&index=8&list=PL789A8EB30F5F0FC7
Advertising by MUBI
There is not a heavy communication campaign have done
by MUBI before. There are PlayStation3 ad and informative
ad which released on internet. MUBI mostly emphasize
that they serve “a collection of hand-picked films”. They
also underline that “anytime, anywhere online cinema”
with that quote this quite looks same with Netflix motto.
To separate MUBI ad messages from competitors “every
day a new movie” will be stand out. Also MUBI gives
message that their services with low price instead of competitors.
You can find ads of MUBI with following links; https://www.dropbox.com/sh/66bnj5uptwse57n/9DPlwZq_ll/Digital%20Assets/Video%20Assets#lh:
null-MUBI_UK_1920x1080.mp4
http://www.viddler.com/v/1ea48d1f
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Field Research
Focus Group
Introduction
Understanding consumers is the most important thing for a brand. For this, we made a focus group
work on two different groups. First focus group, which is group A, consists of 5 university students.
Second focus group, which is group B, consists of 5 young workers.
1. Sharing an opinion about a movie has been watched
Both of our focus groups really care about their friends. When we examine research results, we see
that, when they want to share an opinion they usually prefer their friends. They look for a friend to
say something about a movie. Secondly they prefer social media networks. They mainly prefer
Facebook and twitter for sharing opinion about a movie.
2. Social media as a sharing platform about interests
We have different results on this topic. Group A, which is younger, says that “We share our interest
on social media networks.” Group B, which is older, they do not usually prefer social media as a
sharing platform.
3. Advantages and Disadvantages of watching online movie
The main advantage for group A is that easy to reach. Nowadays, being reachable is important for
people. So, they prefer watching a movie online instead of cinema. But, the main disadvantage for
group A, visual quality. They want to watch movies in high quality. For group B, time is the main
advantage. Because of working, time is a real challenge for them. So, watching online movie provides
them to arrange time. Disadvantage for group B is illegal websites. When they have to watch in an
illegal way, it would be a trouble for them.
4. Serving of festival movies
Both of group A and B are positive for this service. But they have prejudgments for “festival films are
boring”.
5. Effect of social media on their decision about a movie or tracking news about cinema
They feel positive about social media’s effect on movie decision. When they want to watch a movie,
they search on social media networks. They examine lots of information and opinion. As a result of
that, they can choose easily. So, effect that they mean, “ Social media makes easier to choose.”
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6. Expectation when pay a movie to watch online
For group A, price is priority. They want to pay minimum price. For group B, archiving movies is the
most important expectations, money does not matter as long as they get good movies.
7.
Feelings about advising a movie
Our focus groups are curious about “Do they like the movie that I advised?” They want to make their
friends to like their movie advice. Also, when they advise a movie, they want to share same feelings
with their friends.
8. A social media network which you can watch movies and share opinions about it
Group A says it is a “good idea!” Also, they are really excited about sharing opinions or comments on
a director or a movie. Also group B are really happy about this opinion.
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Survey
About Questionaire
The online survey was conducted among 150 respondents from our target group includes different
European countries. These questions are about target group’s frequency of watching movies, media
channels that they choose while watching online and the relation between watching cinema and
socializing.
Results of the Questionaire
General
1- Education Status
59.60% of people who participated in our survey are
undergraduate. 27.27% of them are postgraduate
while the rest of them are high school students.
2- How Many Movies Do They Watch In A Month
according to the results those ones who said “4-6
movies” are predominance by the percentage of 23%.
Although there’s not a big difference with the ones who
watch 2-4 movies in a month. They are 22% of our
participants. So considering the ones who watch more
movies, 83% of them watch at least 2 movies in a month.
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3- The Channel They Prefer Watching The Movies
We got the answer “online” from most of the
participants. The graphic shows how often they
prefer watching online, in a movie theatre, dvd
and TV. 68% of the participants usually watch
movies online which is a good thing for Mubi.
4-The Way Of Watching Online
Since Mubi is a legal web-site that you pay for
watching the movies we wanted to know how
many people out there using illegal ways to
watch the movies. According to the result of this
question 90.9% people watch movies illegal
ways.
5- Feeling Guilty About Watching On Illegal Ways
People who are uncomfortable watching illegal movies have a
small percentage. Only 27.27% of them feel guilty watching
illegal movies. Although, it’s still a good idea to stress that
MUBI is a cheap way to watch movies legal way.
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6- Being Aware About Legal Online Movie Platforms
In this graphic we get the information of how many people are
aware that they have an option to watch movies in legal ways.
73% of them know about that while the other 27% of them have
no clue that they can watch movies online legal ways. People who
are aware of that, probably do not want to pay for watching
movies so they prefer illegal ways.
7- How People Choose Their Movie
In this question participants were allowed
to tick more than 1 option since there could
be more than 1 ways to pick the movies.
According to the results 80% of them trust
their friends’ judgment. Apparently IMDB is
also reliable to our participants. 65% of
them have clicked IMDB option. Other
options were not chosen by that many
people. 47% of participants would check
social network choosing the movies. 31% of
them go on blogs to read about movies.
20% of them clicked the option Boxoffice/award. 18% of them find TV and
magazine reliable about that.
8- Sharing and Dicussing About Films
Some people might want to share their feelings about a movie
with someone who has receantly watched the same movie. So
when we asked about that we did not get a shocking result.
82% of our participants said “yes, I would like to discuss about
it after watching a movie. It’s a good thing that Mubi has a
social side that allows you to talk about the movies you
watch.
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9- Awareness
When we asked “have you ever heard about MUBI” We have got
result; only 27% of participants know what Mubi is. The
awareness of MUBI is qıite low. That result again show us that
awareness of MUBI has to increase end the of communication
campaigns.
Combination of Answers - 1
These two following graphics only contains the people who agree with: “After watching a movie, I
want to discuss about it with someone.”
1- Education Status
Most of the participants who would like to
discuss about the movies they recently
watched are postgraduate students by the
percentage of 60.49. About young workers
%25,93 say they would like to share and
discuss about movie after watching. We
assume that rest of them can’t do it because
of time issues.
2- How Do People Choose Their Movie
Since those people who care about sociability,
answer to this question was not a surprise.
81.71% of them would get a suggestion from
a friend before watching a movie and 69.51%
check IMDB before watching a movie. 45.12%
check it on social networks. 32.93% of them
would also read the articles on blogs. Other
options were chosen by a few people. So as
you can see, it’s an important social activity to
watch a movie for those people.
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Combination of Answers – 2
These four following graphics only contains “the people who choose online way to watch a movie.”
1- Awareness About Legal Acess To Online
Movie
29.41% of participants who prefer watching
movies online do not have a clue that they
are able to watch movies legal ways. Althogh,
70.59% of them know about that.
2- Awareness Of MUBI Among The People
Who Choose Online Way To Watch Movie
70.59% of participant who prefer watching
the movies online haven’t even heard of
MUBI. Only 29.41% of them have heard
about MUBI. Small awareness of MUBI by the
people who watches their movies online tells
us that there’s a big issue about that. So it
shall be considered to make awareness of
existence of MUBI
3- Legal and Illegal Usage
Unfortunately only 7.35% of people who
watch online movies chose their way to
watch movie by legal ways while others
hesitate paying for it.
4- Feelings About Using Illegal Ways
- Only 22.39% feel guilty watching the movies
illegal ways. So it may be a good idea to inform
people that watching movies illegal ways is like
stealing, and we may concider encouraging them
to support art.
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Bibliography
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http://www.nytimes.com/2013/10/22/business/media/netflix-hits-subscriber-milestone-as-sharessoar.html?_r=0
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"What Netflix and Hulu Users are Watching… and How" NielsenWire. July 27, 2011. Retrieved
July 27, 201
http://www.digitaltrends.com/home-theater/best-media-streaming-services/#ixzz2uLsFAbZK
http://contently.com/strategist/2012/09/25/how-the-movie-and-tv-industries-are-adaptingonline/
http://www.prweb.com/releases/online_movies/video_on_demand/prweb9363755.htm
MEDIA USE IN THE EUROPEAN UNION REPORT , European Commission, 2012
http://ec.europa.eu/public_opinion/archives/eb/eb78/eb78_media_en.pdf
https://mubi.com/about
http://indieflix.com/pages/faq/
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