The subscription system of Netflix is a web-based system that allows customers to order DVD online using a web service that quickly delivers by mail movies they can keep as long as they want. The software system is vast and complex and which helped Netflix changed the video distribution industry. First, the system computes who gets what movie next. This can be very challenging but at the same time is very important to support its subscription based business model and allow even low-frequency watchers to get movies appropriately. Second, the system allows calculating which movies will be in demand.
Push and Pushback in Streaming Video 1. a. Fostering deployment of technology that enables user-friendly, ease of access to the Netflix streaming service. b. Initiative of Netflix to get into original programming. c. Growing competitions from businesses such as Amazon.com, allow people to stream videos at no charge. d. Fees that studios charge Netflix for access to the studios’ content.
Netflix will give customers more value for the money. Netflix will achieve best-cost status by delivering attractive attributes such as, Better customer service, website features, faster delivery, and offering a wider selection of DVD's at a lower cost than their competitors. Netflix can operate at a level lower than their rivals mainly due to experience and the learning curve. Netflix is incorporating a hybrid of low cost and differentiation targeting value
EXTERNAL ENVIRONMENT ANALYSIS • • • • Situational Analysis Industry Analysis Competitive Environment Analysis Environment Trends SITUATIONAL ANALYSIS • Politics/Legal – Governmental regulation – little regulation – Supplier agreement – start rent DVD after 28 day DVD in market. • Socio-cultural – Changing in customers’ buying behavior – Changing in customers’ watching method – Customers’ perspective about price, time and quality of services. SITUATIONAL ANALYSIS cont.. • Technological – VHS to DVD - become one of the companies adapt this technology – Changing to stream online – digital age – Wide-spread in gadgets market – PSP, Blue Rays Player and others • Demographic – Increase world population – 6.1 billion in 2000 to 7.2 billion in 2015 SITUATIONAL ANALYSIS cont.. • Economic – Customers can watch a movies without paying more. • Socio-cultural – Most of the people like to watching movies – Changing customers buying behavior INDUSTRY ANALYSIS • Threat of new entrants/ barriers to entry – low entry barriers – Industry leader – Customer loyalty is weak • Power of suppliers – Suppliers own content that company needs. – Licensing deals – Legal issues INDUSTRY ANALYSIS cont.. • Power of Buyer – Customer loyalty is weak (price changes) – Majority of revenue is from customers • Product Substitutes – Alternative methods of receiving content – On demand, purchasing INDUSTRY ANALYSIS cont.. • Intensity of rivalry among competitors – Many competitor – Few emerging market
Pc, Mac, iPad, iPhone, Wii, PS3). The over all goals for Netflix are simple: to build the world’s best Internet movie service and to deliver a growing subscriber base and earning per share every year. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve?
A mere decade and 4 million subscribers later, Netflix has taken on established video rental companies such as Blockbuster, Hollywood Video, and Wal-Mart and emerged as the leader in innovation and customer service. In addition to betting that the Internet would be the future of the video rental market, Hastings made a few other key predictions that helped him develop a
Alexander Johnson English 100 March 29 2013 Professor Dellasanta Movie Cinema and Netflix Online There are different ways to experience a movie but two of them are almost alike, Netflix and Cinemas. The Movie Cinemas are too costly,and Netflix is an at home movie theatre experience that is cheaper. The Movie theaters cost per each movie while netflix you can pay one month of and get all the recent movies that just came out on dvd and television shows you might have missed. As the whole movie theatre experience goes you can basically get that at home with netflix but you just have to connect to a television or a projector. The reliability of a movie loading at home on a laptop or computer is faster and you do not have to wait for the previews to end.
Netflix MBA 530 March 15, 2015 Dr. Drew Gold Netflix Netflix was founded in 1997 by Reed Hastings and Marc Randolph. Originally, the company offered seven day online rentals to its members in DVD format (Nelson & Quick, 2013). By 2007 Netflix introduced stream movies and TV shows from its members personal computers. The convenience of streaming has continued to make Netflix a highly valuable video company. “Netflix is the world’s leading Internet television network with over 57 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original series, documentaries and feature films” (Netflix, 2015).
Viacom is leader in entertainment media operating in cable and other pay television services industry as well as in motion picture and video tape production industry. It comprises many popular TV networks as MTV, BET, Comedy Central and may other, also on the film production- Paramount Pictures. Viacom's content reaches over 520 million households worldwide in over 160 countries and territories. Problem: The main problem is increase portion of digital media, which allow access entertainment in new ways and greater speed, that therefore decrease the portion and revenues of film and media market, more worth is makes using piracy content. To analyze company I will use SWOT analysis to analyze internal (strengths & weaknesses) and external (opportunities & threats) environments: Strengths * Strong brand recognition- allready 578 million viewers across 162countries.
At the height of the movie rental industry revenues hit $11.6 billion (“Video Tape Rental” 2012). Blockbuster Video was the largest video rental company in the US and around the world until it was bought by Dish Network in 2011 (Sakthi Prasad 2011). The movie rental industry was attacked by digital rentals since pay per view emerged, but it wasn’t until digital rentals online became popular that any real dent was made in the video rental revenues. Netflix emerged with a new concept of renting DVD’s via mail order with no late fees and as long as a customer desired to have the DVD. Their business concept included a subscription with unlimited rentals at one movie at a time.