The they should make it suitable for the market.

The Value proposition is a vital element of one product or one service. Value proposition involves creating some unique product offering or service enhancement that greatly improves the customerC?NZ.1 . The value proposition are specifies what is offered (the product or service) and at what price (the pricing model). In the business model innovation, its common for the value proposition are changing. This happens because when the company are creating a new or develop their business model, a company should make a sustainable condition for the firm and also, they should make it suitable for the market. This is the reason why value proposition of one company can change from time to time.

There are four points which makes a good value proposition for a product.

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YouTube Value Proposition


YouTube has successfully created their company value as free video sharing website. With that value, YouTube are being the first one as the destination for content creator to put their creativity on creating video and people who looking free to watch video on the internet. Content creator who put video on YouTube even can generated income from their video inside YouTube. For YouTube viewer, YouTube is a good platform for them to find video for all purpose for example education, entertainment, marketing, advertisement, and others. YouTube viewer also can easily share their favorite video into their own website or on their social media.

As the company growing and expanding YouTube value has developed into the one destination of digital video streaming. This proved by YouTube with the expansion of their video streaming services by launched subscription based video streaming service. With their subscription services YouTube trying to deliver another whole experience for their customers. On their YouTube Red, YouTube providing their customers with the original content that they produced exclusively for this service. YouTube also allowing their customers to get unlimited access on google play music. With this feature, it gives YouTube another plus point on creating their value as all in one digital streaming service.




Netflix Value Proposition


         Netflix has succeeded creating value for their company by creating unique experiences for their customer on enjoying media. Netflix created traditional way and non-traditional way on bringing media viewing experiences to their customers. By creating online DVD rental and expanding it into streaming services in 2007. At their earlier time, Online DVD rental that provided by Netflix are a new innovation for the market at that time. DVD rental by Netflix have advantages compare to another DVD rental company. The first advantage of Netflix DVD rental service is make the customer do not need to leave from their house to borrow or rent DVD. Netflix let their customer to choose their preferable DVD through internet. After the customer choose their preferable DVD and order to rent it, Netflix will send the customer preferred DVD into their mailboxes. With this advantage Netflix has step-up their value by created the concept of bringing unique experience for their customers. Another advantage that Netflix has is a stable revenue from their DVD rental services. This advantage is created by making rental plan for their services. This rental plan also a good feature for the customers where they do not need to pay late fees for their DVD rentals. At that time, other DVD rental company were putting charges on their customers if they were unable to return the rental on time. And late fee that were charged to the customers sometimes are more expensive than the original price itself. By Netflix creating a rental plan to their customers, its instantly become another plus point for Netflix from the customer to enjoy service from Netflix. Once again Netflix has stepped up their value on the concept of bringing unique experience for their customers.

Not finish with the success on traditional way Netflix stepped up their game by creating nontraditional way which is creating streaming service. On streaming service Netflix also creating value on bringing unique experiences for their customers on enjoying media. First of all, Netflix creating a streaming plan which ready on 3 plans. With the plans that have price range from the $7.99 – $13.99 Netflix are targeting all of market segments. With the three plans that Netflix offered, the customer can enjoy unlimited streaming of movie and television shows, download it, and watch from all available devices with affordable prices. It means all Netflix customer can access the service from anytime and anywhere, they don’t need to wait until the prime time to get see their favorite shows. Also, the customer will not get interrupted by advertisement during enjoying their movie and TV shows, because Netflix service is 100% free from advertisement. All the services that Netflix offers, do not need commitment from their customer which means that the customer can cancelled their plan anytime without any problems. Secondly, Netflix as a streaming service trying to bringing fresh content as much as they can for their customers. Beside licensing Hollywood blockbuster content, Netflix are trying to comes up with their own original movie and television shows. Netflix original such as: orange is the new black, house of cards, BlackMirror, Stranger things, and others Netflix original are gaining popularity in the international community. Some of the original content that Netflix had produce, are winning the most prestigious awards such as Oscar/ academy awards, Emmy awards, Grammy awards, golden globe awards, and others awards. From the recognition of international community and attention that their customer gives to the Netflix original content, it can be said that Netflix are providing their customers not only video streaming that only feast for the eyes, but they also giving their customers the top-notch program that cannot be seen on the other streaming services.

With all the features that Netflix gave to their customers, the experience of enjoying media from Netflix will be different from other streaming services. From all the points that already being mention above, it can be said that Netflix long – term prospects are remain positive. The director of Netflix, Reed Hastings said that Netflix purpose is not to provide DVDs via the mail, but rather to allow for the best home video viewing for its customersC?NZ.2 .





The competition inside video streaming business are really competitive right now. With every platform that are offering their uniqueness program and affordable prices, it makes the consumer are need to think twice before deciding which service that they should join. In their early days, both Netflix and YouTube are serving different market in the competition. Netflix are competing inside the subscription based video rental service and YouTube on their free video service. But as the both company are growing and developing, they are trying to enter the new market. It started by Netflix that creating their streaming service and later on followed by other competitor such YouTube.

YouTube also trying to compete inside the subscription based streaming service by created YouTube Red and YouTube TV. However, Netflix already leading the way before YouTube launching their program which make Netflix are the one who taking the market. And it makes YouTube have to works hard on how making the current customers of subscription based streaming service to see YouTube Red and YouTube TV as one of choice for them when it comes into choosing subscription based streaming service. YouTube also need to expand their YouTube Red and YouTube TV into full global service, because until today their services is still limited to few countries only. By expanding their services, they can fully compete with other subscription based streaming service on the global scale.

         On the other hand, YouTube are the winner in the free video sharing market. There are only few company that competing with YouTube in this market segment. With the value proposition that YouTube offers, it makes YouTube are standing out compare to another competitor on the free video sharing business.

          Lastly, from this research paper we can learn on how Netflix and YouTube creating an innovative business model, a unique value proposition, and how the competition inside the video streaming business. Business model that they have on their companies is becoming one of the factor that makes their company success. With a unique value proposition that they offered to the market, makes them being the lead competitor on the market. Above all, As the competition in the streaming industry are becoming more competitive every time, both Netflix and YouTube still need to develop with their services in order to stay in the competition. It is really necessary for them to keep innovate and develop new services which their competitor do not have.









 C?NZ.2Gershon, R. A. (2015). Digital Media and Innovation Management and Design Strategies in Communication. Thousand Oaks: SAGE Publications.