Netflix Competitor Analysis

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Competitor analysis: The biggest competition that the Netflix model is seeing is in the streaming market. Netflix’s competitors are Wal-Mart, Best Buy,, Blockbuster, Hulu, Time Warner Cable, Comcast,, Dish Network, Lovefilm, DirecTV Google Play, and Apple iTunes. According to numbers from NPD in January 2012, Netflix had a market share of 55 % of the overall industry. Their biggest competitors are Amazon, Blockbuster and Priceline. Technology analysis: Netflix operates a subscription-based movie and TV-show rental website and streaming services. Customers set up individual online accounts, were they can choose their favorite movies, they make a payment plan, and decide delivery options. Instead of heading to the video rental store, DVDs are sent through the mail in a postage-paid return envelope. A key component of their technology is a software recommendation algorithm that tries to maximize the number of movies rented by each customer by suggesting movies they might like, based on their previous ratings what you previously streamed and other users ratings. The algorithm is called Pragmatic Chaos, and uses machine learning techniques to find that, for example, the rating system people use for older movies is very different from that used for a movie they just saw. Using this algorithm, they could also find out that people use Netflix differently depending on what day of the week it is. It showed that people for example used Netflix more on Fridays than on Mondays. Among the rapidly expanding base of devices streaming from Netflix are among others the, Nintendo Wii, Microsoft Xbox 360 and Sony PS3 consoles. Also different Blu-ray disc players, internet-connected TVs, home theatre systems, digital video recorders and internet video players. In addition to this you can stream from Apple iPhone, iPad and iPod touch, as well as Apple

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