Module 5 Discussion
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1.
Do you think that Netflix will "feel the squeeze" from Hollywood, or will it be the other way around? Explain your reasoning.
Netflix has made a reputation for having a platform that provides content purchased from other companies as well as newly created content that allowed Netflix to attract multiple users. Since the end of 2016, Netflix has gained over 155 million paid subscribers in the last 7 years which has led them to have over 230 million paid subscribers worldwide. (Stoll 2023) Having that in mind I don’t believe Netflix has felt the squeeze from Hollywood and I believe it is the other way around. Netflix has built a strong brand that allows them to be in the top category of popular streaming apps. Hollywood has become more and more competitive with Netflix by putting out newer content at faster rates than before. 2.
Netflix plans to raise prices for subscribers. Do you think this is a good idea for Netflix? Why?
Yes, I believe that is a good pricing strategy for Netflix, raising the prices is a way for Netflix to see which subscribers are really in tune with Netflix's creative content and content they purchased from other organizations. The price raise can ultimately lead to bigger profits in the short run and possibly in the long run due to Netflix's loyal subscribers that don’t care too much for a 1 or 2 price jump if given a warning.
3.
How is HBO's business model different from Netflix?
HBO's business model is different from Netflix's business model because “HBO provides most of its content through a premium cable subscription and
licensing deals with TV networks”. (Flint 2018) Netflix’s business model provides an online streaming app that allows consumers to reimagine cable tv. 4.
Is there a plausible scenario in which Netflix surpasses HBO in profitability per subscriber?
No, I believe that due to HBO cable subscription and high-quality shows, and lower production costs. I believe Netflix can never surpass them in profit. Netflix uses more money to produce multiple films a year, than HBO. Netflix has a larger catalog that may attract different subscribers, but with the enormous cost of production, Netflix will always have a lower profit than HBO.
Stoll, J. (2023, January 20). Quarterly Netflix subscribers count worldwide 2013-2022. Retrieved
April 13, 2023, from https://www.statista.com/statistics/250934/quarterly-number-of-
netflix-streaming-subscribers-worldwide/. Flint, Joe.
HBO to Talent:
You Won’t Get This Much Love at Netflix
. The Wall Street Journal. January 2018. URL:
https://wsj.com/articles/hbo-to-talent-
you-wont-get-this-much-love-at-netflix-1516031557
https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-
worldwide/
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