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Netflix industry competitive structure
Netflix consumer analysis
Netflix competitive advantage
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Netflix is the world’s leading internet television network with over 69 million international subscribers. Recent studies show that Netflix is “soaring on subscriber growth” (Gensler). Despite its recent small price increase from $8.99 to $9.99 in October of 2015, Netflix subscriber growth still surpasses its own forecast (Snider). According to Statista, an informative and accurate statistics website with clients such as Google and ESPN; in 2015, Netflix has grown from 62.3 million subscribers in Quarter 1 which goes from January 1st to March 21st, to 65.6 million subscribers in Quarter 2, April 1st to June 30th and 69.1 million subscribers in Quarter 3, July 1st to September 30th. Compare these numbers to the 20 million subscribers back in
Why not Hulu or other providers? Hulu may get TV shows the day after they air but Netflix has significantly more shows and movies in general. Both Hulu and Netflix work on mobile devices, game consoles and link to social networks. Thor Jensen, author of the article Netflix vs. Hulu Plus states that “with the correct hardware, Netflix offers the best experience in streaming.” Netflix also has little to no ads, while Hulu depends on them. Offering ad free streaming has proven to be quite a leg up in the competition in terms of allowing subscribers to enjoy their favorite shows almost instantly. When compared to cable, Netflix has more recent movies and shows. It is convenient and easy to stream, one could watch it on their phone or laptop on the go. As compared to only a few years ago when consumers would have to drive to the nearest location to pick up the movie and return it within the time it is
Devices that come pre-programmed with the streaming service are more convenient and result in easier access, for example, Netflix is already set up on the X-Box console and some TV’s. The public is also intrigued by the streaming service provider because of confidence in their own product. The first month of every subscription is free. If at any reason a subscriber is dissatisfied, they can cancel any time and their credit card won’t be
Netflix and Hulu both have a large library of movies and Tv shows. The biggest differences from the two services is that Hulu offers newer tv shows that follow live tv from the major networks like The CW, CBS, FOX and many others. Netflix and Hulu share a lot of the same tv shows but Hulu gets new episodes
A critical SWOT analysis of Netflix’s social media techniques clearly shows they are ahead of the game and not backing down from rising competitors like YouTube which is gaining viewers by increasing the amount of online content.
Customers have access to the movie for up to 24 hours. Many video on demand services are now offering technologies that allow users to pause, fast forward and rewind the movies they purchase. Though the selection offered by cable companies is extremely small in comparison to Netflix, it will only be a matter of time before the number of selections will increase drastically. There are a large number of substitute products. Netflix is in the business of providing personal entertainment at an affordable cost.
The average Blockbuster store carries roughly 1,500 movie titles. Netflix carries more than 12,000 titles. It has movies that you can't find anywhere else. And Netflix uses collaborative filtering technology to send you emails that alert you to movies that you might otherwise never consider. Netflix saw the video- and game-rental market moving to DVD and built its business around that trend. Netflix doesn't rent videocassettes, only DVDs (in part because they're lighter and cheaper to mail). Netflix was able to identify and implement a strategy fo...
Low pricing has been Netflix competitive advantage since the beginning. The brand image of Netflix is the low price.
Companies like Amazon and Netflix are very effective in predicting what customers normally buy and watch. Knowing what your customers are or are not buying will allow you to position products that they are statistically likely to purchase based on recent transactions and activity. This is a powerful tool for Netflix because it keeps users engaged and actively using the service but also allows them to tailor their investments in content towards items that are more likely to keep users active on their site.
Netflix first grabbed the attention of many customers when, unlike the local video rental store, they eliminated due dates and late fees charged by traditional video rental stores. The Netflix model allows customers to pay a monthly subscription fee for which they receive as many movies as they want in a month. The subscribers order DVD’s via the firms website and delivered through the United States Postal Service. Subscribers keep the movie as long as they want and when finished return it to Netflix in a postage paid envelop.
From its inception, Netflix has become a business based on superior customer service and has subscribed its business to the market marketing management philosophy. The main purpose behind Hasting’s idea of a better way to rent and enjoy movies was how to provide that service to their clients and not have any late fees. In other words, their customers could enjoy their rentals from Netflix for as long as they wanted, and they would never have to worry about late fees again, so long big movie rental chains! This aspect alone of Netflix’s marketing plan indicates that Netflix has based their marketing plan on market orientation, “a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product,” (Lamb, 2009, p.7). Many companies that take on this philosophy are said to implementing the market concept. The marketing concept states: “The idea that social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting orga...
Reed Hastings, co-founder of Netflix headquartered in Los Gatos, CA, began the company’s operations in 1997 after receiving an enormous late charge from a movie rental he returned long overdue. However, Hastings had the desire to be different than traditional movie outlets; whereas, customers had to drive to the location, pay a certain amount for each movie they rented, and were given a deadline in which to return the movie. Instead of using a method established by other video markets “to attract customers to a retail location, Netflix offered home delivery of DVDs through the mail” which eventually led to a booming business towards streaming forms of entertainment (Shih, Kaufman, & Spinola, 2009, p. 3). Today, Netflix exists along with several competitors; however, offers the most streaming content available for viewing, and continues to grow its subscriber base both domestically and globally. Although, direct and indirect competitors, acquisition costs, and several barriers present a financial threat for Netflix, the company has managed to grow with the acclamation of partnerships, expand to international territories, and vastly increase its price in shares of stock.
Netflix and movie theaters each have their advantages, but when it comes to the four factors discussed Netflix is the clear winner. Netflix has a larger variety for a better price, while being convenient for the viewer. While
Netflix has a user-centric based policy. Individual preference data is stored in their database which enables for product/ service customization. They can expand their services and products complexity without having to further increase the level of familiarity and understanding that is necessary for the handler to utilize the products and services. This differentiator makes Netflix unique compared to competitors in their industry. The context-driven variability used allows Netflix to provide a more user-centric solution.
Video Rental and Streaming has partly been of the most significant avenues of the general home entertainment industry in the United States for many years. It promotes constructive development through various channels such as Information Technology, Public Multimedia and it also has a huge impact on people’s lives and their entertainment on demand. One of the best companies which provide this high-advanced service is Netflix, Inc (Netflix). It was incorporated on August 29th in 1997 in California by Reed Hastings & Marc Randolph; listed on NASDAQ as NFLX in 2002. Netflix is the world’s largest Internet subscription service streaming television shows and movies with over 40 million members in 40 countries (Netflix, 2013).
The best part for the consumer is that similar to Netflix, you can engage in a free 2 month trial before you commit to a monthly subscription. This helps consumers continue to evaluate in order to make sure this is the best service to satisfy their need. Also, subscriptions are monthly and can be cancelled at any
Below illustrates how Netflix ranks in other categories. Number 1 Number 2 Number 3 Number 4 Film Netflix Double Negative Real D Dreamworks Video YouTube Twitter Netflix FX Web Companies Twitter Google Zynga Netflix Learning Team A will describe and evaluate Netflix’s innovation strategy, the specific products offered to its members, and the benefits that the company brings to its customers and employees. To begin with, innovation goes beyond an invention.
1) Netflix’s currently does not have a user-friendly method for customers to stream videos onto television sets. Netflix is entering agreements with the manufacturers of game systems, Blu-ray disc players, and televisions to include software capable of streaming Netflix videos. 2) There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world.