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Netflix consumer analysis
Subscription analysis of netflix
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Netflix is an online service in which people can watch television shows and movies whenever they would like without the annoying commercial breaks that normal broadcasting includes. In recent years, the number of people who prefer this way of watching television over the traditional way has continued to increase, resulting in less and less people watching live broadcast TV. While it has been proven that Netflix is cheaper than an average television bill, costing only sixteen dollars for a month’s worth of unlimited television shows and movies, too many people are beginning to switch over to this service (Ostrow 1). Also, the availability of an unlimited number of television shows has resulted in a trend of “binge-watching”, otherwise known …show more content…
Overall, despite its popularity amongst American society, Netflix has become a danger to American culture, causing less people to watch live TV, and has created a phenomenon of binge-watching which harms people's mental and physical health. The more people turn to Netflix for watching television shows and movies, the less they watch broadcast television, and the less money goes back to the television industry as a whole. Since the company’s growth in the twenty first century, it has already damaged the video rental industry as it has been said that, “Netflix has as many subscribers as the country’s largest cable company, and consumers and the business world alike have watched as it thrived while putting video store chains out of business” (Ostrow 1). Specifically, with Netflix having started out as a competing service of renting movies, it quickly became more successful than video chain stores such as Blockbuster, ultimately causing them to go out of business. Due to what the Netflix …show more content…
In fact, a Netflix survey published in December of 2013 found that sixty one percent of about one-thousand five hundred responders say that they binge-watch television regularly (Pikul 1). The majority of responders to a related survey even described binge-watching as a “welcome refuge from their busy lives” (Stelter 1). However, binge-watching can have some significant negative effects on one’s health. In general, it has been said that, “Lounging slows circulation and metabolism, making you feel sluggish … At the same time, great TV shows, with complicated narratives and emotionally complex characters, are both cognitively and emotionally taxing” (Pikul 1). In other words, while some may view the concept of binge-watching as a nice escape, it ultimately does its damage on one’s circulation and metabolism, as well as their mental health, as certain programs can be quite taxing on the brain. Also, the more one continues to lounge around and binge-watch shows, the worse these symptoms can become, perhaps to the extremes of weight gain and obesity, or the pattern can create for work- or school-related struggles as the complication of the storylines can further make one tired and have trouble doing everyday tasks.
Winn, Marie. “Television Addiction” The McGraw-Hill Reader. 8th ed. Ed. Gilbert Muller, New York: McGraw-Hill, 2003. 505-507
It may be hard to admit, but television has become an intricate part of our everyday lives. People children often find themselves sitting in front of the television screen for a longer period of time than before and this has evolved immensely over the past few years. In this article, “The Trouble with Television,” by the author Marie Winn, mentions that addiction of television is negative effects on children and families. It keeps the families from doing other things and it’s a hidden competitor for all other activities. Television takes place of play and on top of that kids who watch a lot of television grow uncivilized. Also, the author mentioned that televisions are less resourceful for children and have negative effects on children’s school achievement and on physical fitness. Although there are so many other types of addictions but the author Marie Winn’s points of argument of watching television is a serious addiction that our children and families have negative effects.
Binge watching: “viewing multiple episodes of a television program in rapid succession”, is a phenomenon that television enthusiasts have embraced with the introduction of new technologies like SVOD, streaming video on demand, television consumption platforms unique to the digital age (“binge-watch,” def. 1). Services that offer SVOD such as Netflix, Hulu, and Amazon Prime are even encouraging binge watching through their marketing practices and content creation (Greenberg). So why is binge watching, or rather binge viewing, an activity that people are participating in under the false assumption that it is a socially unacceptable guilty pleasure; an indulgence, just as eating an exorbitant amount of high-calorie foods is.
Since any other form of entertainment is considered a substitute, Netflix?s industry is in direct competition with all other forms of entertainment, whether it be reading, physical exercise, regular television, etc. If trends in popular culture move away from those related to movies, revenues may be affected.
The amount of opportunities we get to eat unhealthy food while watching TV is also a reason for becoming obese. Most of us like to enjoy a snack while watching our favorite TV show, which result to a horrible mixture. You could be eating a new opened bag of chips and the next thing you notice the bag is empty. This happens because we are too focused on whatever we are watching to realize
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.
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).
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).
In “Television Addiction” by Marie Winn, the author suggests that TV addiction and Drug and Alcohol addiction are similar in many ways. First she explains what she considers to be a serious drug addiction, such as not feeling normal without them, the need to repeat it, ignoring other pleasurable experiences, never being satisfied, damaging one’s life and ruining relationships. Then she asks us to consider the television addiction in the same light and explains why she feels that it should be. In my experience I can see how television viewing would be considered an addiction and why Winn would too. When someone allows an activity to negatively affect their productivity, relationships and
Streaming video content over the internet continues to grow in popularity with consumers for a variety of reasons, including the widespread availability of high speed internet, attractive video content, easy to use video streaming devices and the rising cost of cable television service. Some consumers use streaming video to enhance or supplement the typical offerings available from their local cable provider. Others take a more extreme approach and use streaming video as a means to eliminate the need for a cable television subscription altogether. Presently consumers cancelling their cable TV subscriptions are still considered a minority of all subscribers; nevertheless their steadily increasing numbers have earned the moniker of “cord cutters.” Those looking to ditch cable TV can also find a growing number of online resources that will ease their transition to cheaper online television viewing.
Introduction Reed Hastings (co-founder) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix was recognized as one of the 50 most innovative companies, ranking number eight for “streaming itself into a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity.
Influenced by all of society’s new obsession with binge-watching, other services like Hulu and Amazon followed shortly behind Netflix’s lead. All in all, society is forcing companies to become what we yearn or they will be left on the back burner, soon to be forgotten. We sway into on-demand entertainment with ease since we now get to watch our favorite shows non-stop. In effect, entertainment services are having to conform to society’s new desire and love for binge-watching. Our habits directly affect the successfulness of entertainment industries, whether we realize it or not.