Netflix Research Paper

774 Words2 Pages
bulb-icon

Recommended: Market structure of Netflix

On August 29th, 1997, Reed Hastings graced the world with the laziest, but most successful movie and television streaming and distributing service, that no one has managed to even come close to with success. Since that day, Netflix has continued to climb up the latter of success and has crushed anyone that has tried to get in their way. Companies like Amazon, Hulu, YouTube, and even cable television providers are struggling to keep up with the success of the ever growing streaming giant. Netflix has had it shares of challenges and does have some weaknesses, but this powerhouse isn’t going anywhere any time soon. One of the biggest challenges Netflix faces is providing content that viewers want in other countries. Netflix may be amazing and …show more content…

In an article written by Julia Greenberg for Wired Magazine, she discusses the effect that this has on users and what the consequences of Netflix’s actions would be. Greenberg says “Netflix has long known that the path to growing its global audience isn’t just making its streaming service available in a country—it also needs to offer the stuff that people in that country want to watch… International users have happily paid for Netflix and used VPNs to get access to Netflix’s content in the US despite Hollywood’s groans over its content licenses. (Greenberg) Netflix can face many legal problems from big Hollywood companies by letting users illegally access content that they don’t have the rights to, and Netflix would have to take the fall. This brings up the challenge of keeping users happy and let the …show more content…

In 2014, Netflix raised its basic package from $7.99, to $8.99, and users were not happy. The one-dollar hike in processes were met with unhappy welcomes. Each quarter, Netflix is experiencing some type of loss, and the price is something that they need to figure out. The one weakness they have is the commitment that users have made with a cheaper price, and how to go about making more money to create new and better content that the consumers want, without loosing members, they would have their business model

Show More
Related

  • Netflix Case Analysis

    1032 Words  | 3 Pages

    A major strength that Netflix has is their ability to push for such innovation. They have reached new lengths since their start in 1997. From in-mail DVDs, to streaming media on smartphones and tablets, it’s unbelievable to witness this in the making. I think the world is a little shocked on the technological advances of Netflix. What they have done so far is spectacular and it is all because of innovation. New ideas and new strategies developed over the last fifteen years has lead Netflix to where they currently stand today. They currently have a subscriber base of over 700, 000, offering thousands of titles on many different devices. This was made possible because of their ability to innovate and strive for new technological advances. I consider Netflix a very brilliant company. Their strengths are very clear, but this isn’t to say that they have no weaknesses. Netflix has far more competitors now, than they had 15 years ago. I would say that their biggest weakness is not offering enough newer content. Some of their competitors such as Hulu, offer a ridiculous amount of new content. Netflix seems to have a large amount of titles, but majority of these titles are older titles. They need to offer newer titles more often than less. With the company advancing and technology on the rise, the younger population aren’t into the older titles. The younger population now take up a good chunk of the customer base. Netflix must

    Read More

  • Netflix Inc.

    1391 Words  | 3 Pages

    Netflix Inc. incorporated in 1997 and made its first public offering in 2002. Netflix is an online movie rental service which provides its 3,000,000 subscribers access to over 40,000 DVD titles. Although Netflix stocks nearly every title available on DVD, it does not stock titles containing adult content. The Netflix program allows subscribers to rent as many DVD’s as they want, and keep them for as long as they want. Three DVD’s can be out at a time, as soon as one is returned the next DVD on the subscriber generated movie list is shipped out. The DVD’s are delivered for free by the United States Postal Service from regional distribution centers located throughout the United States. Netflix can have most titles delivered to 90% of its subscribers within one business day of the shipping date.

    Read More

  • Dystopian Impact Of Netflix

    1109 Words  | 3 Pages

    Netflix is one of the most successful companies in the 21st Century, they have changed the entertainment business is such a profound way that it can never be the same again. It has many utopian effect and interpersonal Netflix brings so much value to the user that it has been set apart in a new category. It delivers to the user any movie or TV show they could ever want at the click of a button, they give more option for entertainment then every before offered at a price that cannot be beaten. Netflix’s extremely inexpensive costs along with their plethora of option blows away all competition and without a doubt makes it the best interpersonal option for all consumers. Netflix is an

    Read More

  • Netflix SWOT Analysis

    1425 Words  | 3 Pages

    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.

    Read More

  • Netflix Financial Ratios

    850 Words  | 2 Pages

    Netflix has a unique business model. The company strategy focuses on differentiation. Netflix works to outcompete its competitors through the differentiation of its service. Netflix places customer experience above all else. The company prides itself in knowing that customer experiences is directly related to company financial viability, and with that known, the company works to ensure that each user has a great experience with the Internet streaming service. Netflix is a brand that is focused, not one that simply tries to do everything. By focusing on the entertainment industry, Netflix is able to

    Read More

  • Netflix Market Structure

    1515 Words  | 4 Pages

    The idea inspired Reed Hastings and Marc Randolph, and then they founded Netflix in Scotts Valley, California in 1997 (Netflix, 2014). The company comes into play by developing a subscription-based streaming platform for movies and television shows. Unlike the traditional movie rental businesses such as Blockbuster and Redbox, Netflix’s innovation offers service via Internet, and it does not have any physical stores but instead delivers DVDs through postal mail in the U.S. Since then, Netflix has become the world’s leading internet television network with constant growth of customers to over 48 millions members in more than 40 countries in the North America, Europe, and the Latin America (Netflix, 2014). In this analysis, the main focus is examining the current market environment for Netflix. It identifies the type of market structure that Netflix is currently competing. The analysis also expands on the competitions, product differentiation, pricing strategy, and measuring the level of easy entry-and-exit.

    Read More

  • Netflix Case Study

    1320 Words  | 3 Pages

    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.

    Read More

  • Netflix"s Approach to Marketing

    1147 Words  | 3 Pages

    Netflix - Watch TV Shows Online, Watch Movies Online. (n.d.). Netflix. Retrieved March 13, 2012, from https://signup.netflix.com/MediaCenter/Facts

    Read More

  • The History of Netflix

    2022 Words  | 5 Pages

    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.

    Read More

  • Value Discipline In Netflix

    1232 Words  | 3 Pages

    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.

    Read More

  • Netflix´s Competitive Advantage and Strategies

    1715 Words  | 4 Pages

    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).

    Read More

  • Netflix

    1034 Words  | 3 Pages

    The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard...

    Read More

  • Netflix Challenges

    1005 Words  | 3 Pages

    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

    Read More

  • Hulu's Business Model

    1186 Words  | 3 Pages

    TV lives outside the cable box. Entertainment is now available at any time on almost any device, whether a television or a tablet, and in the era of cord cutting, video streaming services are quickly evolving and steadily usurping the throne of traditional TV networks. While Netflix may be synonymous with streaming, its competitors should not be dismissed, as the digital marketplace is ever-changing and often tumultuous. Among the myriad of streaming services available in the US, one of the earliest to emerge was Hulu, which, to this day, continues to provide popular network shows and original programming to its subscribers across multiple platforms.

    Read More

  • Netflix: Every Household In The United States

    783 Words  | 2 Pages

    For people nowadays, local television networks are simply boring, that is why almost every household in the United States have Netflix. It is basically a streaming media that distributes movies and television series. They also offer video-on-demand online as well as DVD by mail, they also distribute online. Netflix has got to be the most popular streaming media nowadays, which is why a the phrase, “Netflix and Chill”, became a thing especially to millennials.

    Read More

More about Netflix Research Paper

Open Document