Within the Canadian market, there are three segments that would be beneficial for CraveTV to target for their services. These markets are young adults, young parents and adults who are middle age. We believe that these segments will be able to retain the most customers and will bring in the majority of profits.
Students can prove to be a beneficial market as they are the most active and familiar with technology and its services, therefore offering a larger continuing revenue. Often living in urban areas, they are more accessible to promotions and advertisements created by the company. Typically ranging between 18-24 (2,502,472??) and enjoying relatively the same lifestyle influenced by technology, they have many free hours during the day that…show more content… Approximately 25-35 in age, they would receive more benefits out of daily usage. Typically residing in suburban areas, they will have a higher income than the previously stated segment, as they are already established in the workforce. Young adults usually have a busier lifestyle but often have others living in the household with them such as a spouse and children. This could create a higher demand for a video streaming service as not only are there more people in the household to use it but they can also easily afford it. Currently CraveTV must improve to reach this segment since many young adults have already been exposed to their competitors, such as Netflix, who have been in the industry longer. Another disadvantage to this segment is that CraveTV does not offer content for kids. Children under the age of 6 watch an average 2 hours of TV a day, while those 8-18 view approximately 4 hours. If CraveTV were to introduce content for this genre, parents would have the incentive to purchase our video streaming service, thus increasing the segment. (site kids health). There would be more of an advantage of reaching this segment once the company offers their services over the Internet because of the cheaper prices and the HBO shows. In 2015, according to Statistics Canada, there were 2,501,938 people ages 30-35, an estimate of about half of those would be young parents, 1,250,969, and would have a penetration rate of about 35 percent. This values the market at $5,003,876. With the service going on the Internet, it is estimated that there would be a 10 percent increase of the penetration and would value the segment at about
