For years Netflix has been entering into deals with electronics manufacturers such as Song and Samsung to include the Netflix software with their devices, allowing the end-users to access the Netflix streaming service. Netflix needs to foster the creation of technologies that allow fast and easy access to the Netflix streaming service, while providing high quality content. The second major challenge is the growth in competition in the video streaming market, Netflix is competing against Hulu, Amazons subscription service, HBO Now, Google Inc. and others to dominate the video streaming market, and, at the time of this case study, was winning the battle against the newcomers, but this lead would surely decrease as other streaming services entered into agreement with movie and television studios. The third challenge that Netflix is facing is getting involved in original programming, creating their own series and movies. Netflix has had quite a bit of success here with shows such as ‘House of Cards’ and ‘Marvel’s Daredevil’, but other video streaming suppliers have started to create and release unique content as well, and some of the major media companies are pushing back against the unique content on streaming services by removing their own content from those streaming services.
As is stated in the article, the company used to have a major competitive advantage in terms of movie selection, where, “…customers could browse through thousands of titles…” (Hitt 106). Now, the entire scope of the market has changed and Blockbuster was much too slow to respond. The recent moves that it has made will surely generate profits, but not enough to sustain the company in the long run, seeing as there is nothing that differentiates Blockbuster’s services from that of its competitors. In order to fully gain lost market share back, the company would have to create some sort of highly innovative way of viewing or renting movies that none of its competitors has already thought of; It would have to be something that is rare, difficult to imitate, not easily substituted, and able to generate above-average returns. Unfortunately, at this point it looks as if none of this will come into fruition because Blockbuster has essentially decided to latch on to other companies, creating a sort of symbiotic relationship where the company feeds off of the success of its competitors.
The competitive forces that have challenged the movie industry are YouTube, google and other online sources where customers can download and watch movies/Television shows for free. The development of the movies and TV shows online has become a major problem for the movie/tv industry. YouTube, which started up in February 2005 quickly made the most popular video sharing website in the world with over 100 million views daily. Soon enough, video clips of copyrighted Hollywood movies and television escalated on YouTube. The media had to go through $1.25 billion in damage and lost battle.
1. Who are the key stakeholders in the Netflix case? Netflix Reed Hasting (CEO of Netflix) Scotts Valley (Founder of Netflix) Marc Randolph (Software developer of Netflix) David Wells (CFO of Netflix) Andy Rendich (CEO of Qwikster) Employees of the Neflix Distributors includes film studios Shareholders Investors Partnership Company Microsoft Xbox 360 Blu-ray, Disc Players Apple Macintosh Customers Subscribers Industry analysts 2. There are several missteps by Netflis in this case. - Misconception of the demand of DVD rental Netflix could not anticipate accurately the demand of the DVD rental. They assumed that unlimited streaming service had more demand than DVD service.
IMAX films are printed on films that are 10 times larger than the 35 mm films that were used in traditional multiplexes and were projected on screens that were eight stories high and 120 feet wider. These features of the IMAX produce images on screen that are brighter and sharper than those found in conventional movie theater. IMAX entered into partnerships with AMC and Regal cinemas to screen IMAX films in multiplexes using its MPX technology. The company’s main sources of revenues were long term theater system lease and maintenance agreements, film production and distribution, and theater operation. IMAX is a brand so they don’t have to pay the same kind of talent that Hollywood has to pay which is really a high percentage of the costs.
Opportunities: a global industry, Hollywood film industry and 3D movies, and educational entertainment increasing in popularity. Threats: alternative entertainment (cable, internet/Netflix, home video, sporting events, etc. ), and movie piracy. 2. The business strategy includes both product and market development.
Video games nowadays have graphics and visuals that rival even the best looking movies and shows. Immersion and realism go hand in hand for video games for several reasons the graphics or the realism of the game draws you in and therefore you get engrossed in the game. Games today have graphics that are very visually appealing to the eye and because the graphics are so advanced people get immersed in these different worlds. One of the biggest reasons why people buy video games is for the level of immersion that only a video game can bring. Another reason why video games are so popular is because of the deep and captivating storytelling.
Though watching movies at home can be more convenient, the atmosphere and quality theaters provide make for a special event that cannot be matched by viewing movies at home. Unless one's family is highly committed to entertainment quality, a TV as big as the average movie screen (from 55-75 feet wide) is most likely not in a typical American home. Even TV screens as big as 58 inches, which are quite large and provide an incredible picture, do not come close to the size of a cinema screen. Home sound systems are improving, with surround sound, sound bars, and options like subwoofer speakers that all make the quality of the sound incredible for being located in your home. However, they still do not compare to the speakers used in movie theaters.
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.
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.