Informatics-SAT

Unit 3 Outcome 2

Online VS Retail (Video Rental Wars)

Is online streaming services affecting the rental market

of DVD's
Table of

VS

Informatics-SAT Unit 3 Outcome 2

Background
Discussion and Research Question
Hypothesis
Assumptions
Scope of study
Source of study
Variables
Intellectual Property
Methodology
Tools used
Data collection and storage
Data Manipulation
Data Table
Data File Management
Project Management
Gnatt chart
Discussion and Data Analysis
Removing Outliers and Blanks
First Analysis of the Raw Data
Conclusion
Bibliography

Background:
Since working at a video rental store, Im curious about the declining rate of rental
stores since my job might be a risk. Im also curious weather or not I will have a job
by the end of the year.
Discussion and Research Question:
With the up rise of the online streaming services in Australia, many websites online
generally suggest that video store will subsequently decline into obscurity. News
websites like the Shepparton news suggesting 'In 1980,Video Killed The Radio Star,
but in 2015, Netflix killed the video shop' with many other reports coming to the
exact same outcome.
Hypothesis:
Video store rentals are declining due to increased use of internet streaming services
because they are more convenient for people to get movie's.
Assumptions:
1.Video stores are declining at a steady rate due to the rise of better internet
and online streaming services.
2.There wont be a lot of data relating to sales that is current since the
industry was bigger in the early 90s
3.There will be a clear relationship between Netflix, Stan subscriber number
and the decline of video store profits
Scope:
The study will be relating to many news articles (Australian and Overseas), some
industry specific data (ABS and Statista) and data that I will be able to get actually
profit statistics a video store (Little Guy Video)
Variables:
The variables are from various locations both online and primary. The control data is
always constant variable, independent value is changed and the dependant value is
measured.
Control

Australian Public

Independent

Average amount of customers

Dependant

Profits of the Video Store (Little Guy)

Intellectual property:
This data is owned by Little guy Video (No Website) and Netflix
(http://ir.netflix.com/results.cfm).

Data Integrity and Outliers:

The integrity of the data collected can be said to be 100% authentic since it is
coming either from the computer that controls the profits (Little Guy Video) but
might be slightly sued depending on wether or not the sales were put in at there
correct value. The other information is coming from various website and Netflix sales
reports published to the shareholders.
The data collected isnt able to be checked / sorted since majority of the data is
coming straight from the source and the isn't enough change month to month.

Data security and access:

I'm sure this data is protected since I have safely transferred the data from my
workplace to a new Excel document and have backed it up on usb's and email accounts
that are protected by passwords.
Data ethics and legal requirements:
This data is only on my PC and the PC at my workplace and doesnt give direct links to
people's personal information it only refers to them as a number.
Methodology:
Tools Used:
Web Browser
Microsoft Office
Word
Excel
Data Collection and storage:
1.Went to work
2.Used the computer to navigate to previous years profits (also displays customers)
3.Data written on a document on my Ipad
4.Data Transferred to Computer
5.Deleted Document on my Ipad
Data Manipulation:
When typing the data I needed onto my Ipad I excluded from writing any data that
would help me with my report and the profit data was rounded to the nearest 100 to
make a clear distinction between the months.
Data Table:
The following variables were used in this report and all of the data used is qualitative
since the data can be counted or measured.

Variables

Type

Example

Profits (Months)

Numerical

14985

Customer numbers
(Months)

Numerical

65

Data File Management:

File Name

Description

Type

Original data

The direct data from LGV

Word (Technically)

Processed data

After being manipulation

Excel

Project Management:
I completed this project in the following way;

Discussion and data analysis:

In this part of my report I will discuss and interpret the results of my investigation
into the impact that online streaming service. I will do this by annotating line graphs
that point out key points and put linear regression lines to show the trends of the
data.
Removing Outliers and Blanks:
Some of the data my be slightly skewed due to human error in the data but this wont
throw off the data since error dont occur often, usually are only about $3 mistakes
and most of the time the data is fixed through commands on the computer.

First analysis of the Data:

Graph of Profit Vs Customers

1600
1400
1200
1000
800

Profit (x10)

600

Customer (x10)

400
200

When
Netflix
came to
australia

From this data we can see that nothing really happened to the result when Netflix
was introduced in June 2015 it tended to go on its steady path with a slight decline to
customers.
Testing an assumption:

Average Internet Speed Nbn vs Old

1200
1000
800

NBN
Old

600
400
200
0
Download (Mbs)

Upload (Mbs)

This data that is have gotten off various website shows Australia average internet
speed before and after the NBN has been installed. This data explains the lack in

trend the previous graph since Echuca hasnt gotten NBN and since the estimated
minimum required internet download speed is averaged at 16mb/m (to stream at
standard definition) which is kind o hard to get constantly.
Conclusion:
The evidence collected doesnt confirm my hypothesis ' Video store rentals are
declining due to increased use of internet streaming services because they are more
convenient for people to get movies. This is an unexpected conclusion since I was
expecting a dramatic decline in profit and in customers when Netflix arrived in
Australia.
However this data will most likely change when the NBN becomes available in Echuca
since right now the average internet speed is about 15mbs when the NBN has given
results of 90mbs which would have a dramatic impact on the outcome of this result.

Bibliography:
Shepparton News
Moir, T. (2015). Netflix and kill for video store - Shepparton - mmg.com.au. [online]
Mmg.com.au. Available at: http://www.mmg.com.au/local-news/shepparton/netflixand-kill-for-video-store-1.103619 [Accessed 12 May 2016].
Netflix Fiancial Review
Australia, N. (2016). Netflix : Overview. [online] Ir.netflix.com. Available at:
http://ir.netflix.com/index.cfm [Accessed 11 May 2016].
Wikipedia
Wikipedia. (2016). List of countries by Internet connection speeds . [online] Available
at: https://en.wikipedia.org/wiki/List_of_countries_by_Internet_connection_speeds
[Accessed 12 May 2016].
How fast is the NBN
Brotchie, J. (2016). How Fast is the NBN?. [online] Howfastisthenbn.com.au. Available
at: http://howfastisthenbn.com.au/ [Accessed 15 May 2016].
WhistleOut
Hanlon, J. (2016). Is your broadband plan ready for Netflix? - WhistleOut . [online]
Whistleout.com.au. Available at:
https://www.whistleout.com.au/Broadband/Guides/Netflix-data-usage-and-speedrequirements [Accessed 15 May 2016].