If the user decides to switch to the Netflix free movies online streaming, there are pros and cons of change. $ 7.99 monthly fee is gone, but Netflix offers free movies quality is significantly lessthan. In addition, the film's selection is more limited, usually including older and more obscure movies. Free Online Movies Another inconvenience is that the buffer / loading time, for some users, and users can access Internet device. To discuss is another competitive movie rental market,
Weaknesses: 1) Service provided to Internet users only 2) Shipment/delivery time, slower delivery service. 3) Inability to rent new releases in a timely manner. 4) High cost of building a DVD library to support the growing subscriber base. 5) Rental period was inconvenient for some customers. Opportunities: 1) The rapid adoption rate of DVD players among U.S. households 2) New relationship with studios, Netflix transition to revenue-sharing agreements with the major studios.
It offers customers “more for less”. But even though they were remarkable and they have a good strategy, they make a big mistake in 2011. First we’re going to discuss the marketing strategy of Netflix and why it was and can be an example of a good marketing strategy. But after presenting the good part of Netflix strategy we’re going to present the mistakes Netflix make. Netflix marketing strategy consists in there “more for less motto [sic]”; they offer their customer more options of movies for less money.
Everyone knows the company’s name and the association is generally positive. •Platform- Of all the major streaming services, Netflix has the best delivery system which helps keeps customers loyal. Amazon’s search engine for Prime Video (videos available for free streaming which includes free two day shipping on all Amazon orders) returns results which include videos you can purchase, Hulu Plus is jumpy and the experience is weighed down by in-show advertisements, and streaming on Time Warner’s (NYSE: TWX) HBOGo is jumpy and little things like the title of the episode in your queue is unavailable. •Content- While Netflix recently lost Viacom content, it will soon be replaced with content from Disney which will include George Lucas’s beloved Star Wars franchise. Also, Netflix has sponsored an exclusive window on some pretty good shows, including its big hit, "House of Cards."
Why? ------------------------------------------------- 1) The first challenge is the spread their usage of their service by several ways. They make partnerships with game consoles and TV manufacturers that include on their system a friendly interface for the user to watch Netflix; the big challenge is cultivating it and making it grow. Second, is the challenge of their competition with Amazon, which has started to stream movies for people that have an Amazon prime account. In this area Netflix is superior because they have a bigger library than Amazon, but even so it is still competition that will take away business from Netflix.
1. Threat of New Entrants: Because firms like Blockbuster and Redbox are so well known and have a reputable name, I think the threat of new entrants is fairly low. Not to mention, the increasing trend toward subscriptions, internet streaming, and video on demand will most definitely prevent more movie rental firms from entering the marketplace. Threat of Substitute Products: The threat of substitute products is relatively high in the movie rental marketplace as a whole. With firms like Netflix, there is an increasing amount of consumers who pay for a subscription and can stream movies directly to their TV, computer, tablet, or even cell phone.
Netflix Retail Strategy Netflix is an online retailer that rents out DVDs in multiple ways to satisfy the different consumer segments. Through its particular retail format, customers can rent DVDs and have them mailed to their homes; they can rent it and put it directly on their TVs through their Wiis, PS3s, XBOX360s, or TiVo recorders; they can download movies onto their iPhones, iPads, iPods; or they can also download movies onto their computers. Their target market is large. Originally targeting the younger, more technologically savvy generation of movie watchers, their customer base and target market has grown to encompass anyone who enjoys fast, easy, and cheap movie rentals. Established in 1997, Netlix has become a network of 15 million users and has multiple competitive advantages that give this company its particular edge.
Competition in the Movie Rental Industry: Netflix and Redbox EXECUTIVE SUMMARY This analysis will cover the movie rental industry and providing recommendations to Redbox and Netflix. Movie rental industry is rapidly changing much of the once dominant force in movie rental Blockbuster is slowly shifting to the now increasing power house Netflix for most consumers’ movie rental choice. The recommendations for Netflix in order to maintain its dominance in the field is to maintain its low cost in subscription, increase its video library, collaborate with Television providers to incorporate Netflix directly into the Televisions. Recommendations for Redbox is to maintain its kiosk location, but also move into internet streaming where they provide newer movies for its same one dollar fee. ANALYSIS Netflix, Redbox and Competitors Netflix is the world’s largest subscriptions service for streaming of online movies and TV episodes as well as sending DVD’s through mail.
With many other movie rental businesses in the market, it can make it harder for a business to keep running its business. Competitors such as Red box which have no fees or monthly plans to rent a movie because most people would prefer to rent from Red box than pay for a plan from Netflix. The five- forces deals with competition from rivals, in this case new movie rental businesses can make it harder on Netflix, by competition of current rivals. Such as, Blockbuster or Redbox. Although Blockbuster is not really doing well in business as of today.
These lead firms to use whatever resource they have as weapon to gain competitive advantage. If you at the rivalry in the online DVD rental industry, you see that it is high. Rivals in this industry carry a feebly differentiated product, which intensifies threats from rivals. In this industry, the cost to switch or change suppliers is very low; making it easier for consumers to have less brand loyalty. They can switch wherever there is a lower cost being offered.