Digital Marketing News #96 - iPhone 5 launch, Hulu vs Vudu

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Uploaded by on Jul 29, 2011

The wait is over: Apple stores are hiring and training new employees in preparation for record sales

In the wake of many consumer complaints about Apple's previous distribution methods, Apple has set the technology world on fire yet again with news of a highly anticipated iPhone 5 launch. In preparation for the mid-September un-veiling, Apple stores across the country are hiring and training employees to handle the influx of customers that typically accompanies most of Apple's new-product releases.

According to a recent survey, 35 percent of consumers plan to purchase the latest iPhone upon its release. While the new features are still in a state of speculation, many are hoping to see an improved battery life, larger screen and a higher-quality camera. Regardless of what the new features are, Apple is taking the necessary steps to handle the biggest iPhone launch thus far. Previous iPhone launches have received criticism from customers complaining of high prices, unavailability and long lines. This serves as a reminder that no matter how large a company grows or how popular the brand, it is vital they take the time to listen to consumers and take the necessary steps to remedy complaints.




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Competition grows in the online video-streaming realm as Wal-Mart announces a platform likely to compete with Netflix and Hulu.

Firms like RedBox, which distributes DVDs through vending machines, and Netflix, which offers online streaming subscriptions, are taking note as Wal-Mart announces the launch of their online video-streaming software, Vudu. Purchased one-year ago, Vudu offers 20,000 titles for online rentals or purchase. The platform operates similar to iTunes, with a pay-per-download structure rather than a monthly subscription fee, which differentiates it from competitors like Netflix or Amazon Prime.

However, that could be a good thing for Wal-Mart as Netflix saw drops in their stock prices immediately after announcing a 60 percent fee increase. Many Netflix customers felt duped by the little-known price increase and that is enough to fracture any brand loyalty. Wal-Mart has ideally positioned itself, with an existing 5 million-a-day customer base, and is the world's largest retailer of DVDs. Additionally, movies will be available for streaming on the same day they are released on DVD for only $3.99.

General Manager of Wal-mart, Edward Lichty said "By incorporating digital movie content into the Walmart.com entertainment shopping experience, we're enabling customers to easily choose how they want to enjoy their entertainment content - whether that be through a physical DVD, digital streaming or both."
Wal-Mart is successfully tapping into the pervasive trend of consumers choosing what they want and how they want to receive it. Companies embracing online-streaming video services appreciate and understand the value of being where your customers are and offering the service at an industry-competitive price.

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