1. INTRODUCTION
Video streaming service is one of growing business in the recent years. Many streaming service providers are available in market and there is a lot of competitive edge between those. Some of the providers are Amazon Prime Instant, Hulu, Vudu, ITunes and each has its unique feature.
Netflix is one of the America’s largest movie rental service and in addition provides the subscribers with internet based video streaming service. (Netflix Competitive Advantage, 2010). It was started in 1997 headquartered in Los Gatos, California. (Netflix, 2014). Netflix has more than 40 million subscribers who have access to more than 100,000 titles as on mid-2013 (Netflix, 2014). They have more than 42 shipping locations and ships over 1.575 million DVD’s to subscribers on daily basis (Netflix Competitive Advantage, 2010). In USA the highest ISP speed is 2.97Mbps which is provided by cable vision-optimum. Netflix together with YouTube accounts holds for over 50% of downstream traffic on fixed networks. Its design and traffic management play key roles on its network infrastructure (The ISP Speed Index, 2014). The main strategy of Netflix is to attract more subscribes to the online video streaming service. Amazon, Blockbuster, Walmart, Redbox were some of the competitors of Netflix in movie rental.
Netflix consumes about 29.7% of peak downstream traffic because of its online video streaming service. (Adhikari, et al., 2012). The network architecture of Netflix should be well organized to support the features of high availability and scalability. Netflix previously had its own data center to host the services and functions required for efficient video streaming availability to its customers. Currently, Netflix has adopted cloud techn...
... middle of paper ...
...flix. (JUNE, 2012 15). The netflix tech blog. Retrieved from http://techblog.netflix.com/2012/06/netflix-operations-part-i-going.html
NETFLIX OpenConnect Appliance deployment guide . (2014, March). Retrieved from http://oc.nflxvideo.net/docs/OpenConnect-Deployment-Guide.pdf
Rayburn, D. (2012, August 13). Netflix’s New CDN Is Good News for Everyone. Retrieved from www.streamingmedia.com: http://www.streamingmedia.com/Articles/Editorial/Featured-Articles/Netflixs-New-CDN-Is-Good-News-for-Everyone-84306.aspx
Rouse, M. (2011, March). Content delivery network (CDN). Retrieved from http://whatis.techtarget.com: http://whatis.techtarget.com/definition/content-delivery-network-CDN
Services, A. p. (2014). Amazon web services. Retrieved from http://aws.amazon.com/s3/
The ISP Speed Index. (2014, February). Retrieved from www.neetflix.com: http://ispspeedindex.netflix.com/
Netflix. The. Reed Hastings and Marc Randolph, 29 Sept. 2009.
§ Emerging competition from digital cable and satellite companies that offer movies on demand. Time Warner digital cable offers video on demand library consisting of a few hundred selections and growing. Users can purchase a movie with the touch of a button for about $4.00. Customers have access to the movie for up to 24hours. 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.
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...
In today’s technology boom, the new waves of doing business have transformed the way people shop and live. The same happened the way people access personal entertainment. With Internet, people can stream movie online without have to go theater, or the rental movie box.
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
Netflix was established by Marc Randolph and Reed Hastings in 1997 in California. Initially, the company offered a DVD-by-mail service for a monthly, flat rate subscription fee. Videos were sen...
With languages available in English, Japanese, Portuguese and Korean, founded in 2007. It services includes television production, digital distribution, media services provider and web syndication. It has over 12 million subscribers as of May 2016. Its primary objective towards television series, carrying current and past episodes of series from its owners respective television network and various content partners. Before now it was partite into free and paid tiers, with free services limited in the number of content that is accessible via PC only, only a paid service with larger library of content and access via Hulu application for various mobile and connected
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.
As the firm moves forward, top managers must pay attention to staying unique to sustain a competitive advantage. Netflix does not own their content, nor do they have any tangible assets. Netflix is a part of a broad range of network users. As technology continues to grow exponentially, Netflix will have to be readily adaptive to change and innovation. Technology never stops growing and evolving, therefore, Netflix’s business platform should never stop growing and evolving. At the same time, they must be careful to remain user friendly and customer centric by keeping the technology at a level where users will not have to obtain a certain set of technological skill sets.
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 Digital Video Recorder used in modern entertainment systems can now be replaced with an easy to use streaming video devices. As the online video libraries grow to include more content, eventually streaming set top boxes will provide this functionality, without the need to schedule recordings or manage space used by previous recordings. One additional advantage, often referred to as TV Anywhere, allows viewing of online content from a variety of devices, as long as an Internet connection is available. Now the real motivation that drives many Americans to consider these alternative options is money.
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. Digitally offering television shows is an area of competition that has previously been controlled by
I choose Netflix for my final project because the Netflix brand itself has continued to rise and become a household name for all ages and I am and continue to be impressed with the dynamics of Netflix as they have developed their own series and movies that are specific to only their brand. In this project, I will address some aspects of the business and technology based on most important Netflix’s history timeline shown below. The launch of the first DVD rental as well as a sales site, Netflix.com in the year 1998.
Woollacott, Emma. "Netflix Checks Piracy Stats To Help It Decide What To Buy." Forbes. Forbes Magazine, 16 Sept. 2013. Web. 23 Jan. 2014.