How Netflix Has Changed The Television Industry

Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

Q 1. Some of Netflix’s capabilities and core competencies are mentioned in the case. Go

1. Netflix’s original marketing strategy offered several flat-rate monthly subscription options; in which, members could stream movies and shows via the Internet or have disks sent to their homes in a pre-paid and pre-addressed envelope. Free from the despair of due dates and late fees, members could keep, up to, eight movies at a time. Upon the return of a disk, Netflix would automatically mail out the next movie from the customer’s video queue. Members were able to change and update their queues as frequently as they liked. The sheer innovation of Netflix’s strategy encouraged several competitors to enter the market to compete directly,

“Netflix has revolutionized how we watch television. Personally I think it is for the better,” daid Byrne. “If I have two hours before I need to leave the house I can watch two to four episodes of something and it let's me think about where the story is going while I am at work.”

The following is a case study of Netflix, Inc. an American-based company that provides the streaming of online media to consumers in North America, South America, and parts of Europe. This case study will provide a brief overview of the company’s history along with four present-day challenges that the company will face as it tries to stay ahead of the competition. In its discussion of the present-day challenges that Netflix, Inc. faces the discussion will also relate the proposed challenges to the managerial challenges of globalization, diversity, and ethics. After each of the four anticipated challenges have been addressed then this paper will provide an analysis of the steps that Netflix, Inc. has already taken to keep the

Netflix began in 1997 as a revolutionary idea by CEO Reed Hastings and software executive March Randolph. Before long, in 1999 Netflix launched its major line of business, the online subscription service, which radically changed the way consumers viewed movies and television. For a young company in an innovative and growing industry, Netflix has set itself up for a tremendous journey. The company has had much success due to its adaption of a modern business model and strength in operations management. Its continued reliance on and improvements of operation management principles is necessary to continue growing and bringing in profits.

As the world entered into the 21st Century, humanity has witnessed an ecology of innovation that ranges from artificial hearts and livers to iPods to Bluetooth technology to smartphones and many more ("21st Century Inventions That Made an Impact”). Each with its own unique attraction has become a catalyst in nature for how individuals think, act and live. Along with these state of the art developments, Netflix has become the cutting – edge service for internet streaming media. Deemed as “a worthless piece of crap” from Wall Street analysts, Netflix with tremendous leadership gained control of their industry and swiftly transformed the delivery of movie rentals ("How Netflix Beat Blockbuster: An Exemplar of Emerging Technologies”). Faced with impossible odds, we will discover how Netflix was able to survive, conquer and prosper as the emerging technology in their industry.

Strengths Brand name - Netflix has established a brand name that is widely recognized and many studies have shown that the company has a stronger brand identity among its competitors. It serves more than 65 million users in over 40 countries, Netflix is the dominating subscription streaming video service. They have the largest collection of videos and continues to build up its library with its own original content and higher quality movies. Netflix has become the most favored subscription video streaming service in America, and is found in more than 36% of U.S. homes as compared to its competitors such as Amazon Prime Instant Video at 13% and Hulu Plus at 6.5%. The name itself, is intertwined with the online movie streaming industry. Large amount of content – Not only does Netflix have a variety of content from well-known companies such as Disney, it also has international and original content as well. Netflix streams 4,335 movies, 1,197 shows, and 133 movies and shows of its own original content. Some of Netflix’s well know pieces include “House of Cards” and “Santa Clarita Diet.” This mix of original and well-known content contributors creates a loyal customer base.Easy user experience/platform – Netflix has devised a way to use specific algorithms to collect data in order to adapt itself to each user uniquely. This cuts down on the time users need to invest when searching for specific content. If the user doesn’t find the content they are looking for in this manner, Netflix also separates its content into categories, making it easy for users to simply search for the types of movies or shows they would like to view. A user can also search by title name in the search bar or search by genre. Netflix can even personalize each user experience by allowing their customers to create multiple viewer profiles.

Essay – The future of the Film and Television industry with the effect of pay-tv and streaming services

Netflix exhibits dominant economic characteristics in the online movie rental business. They enjoy strong market size and growth rate when compared to rivalry competition. The number of rivalries are increasing, and the market remains dominated by only a few sizeable rivalries like Blockbuster Video, Wal-Mart, Walt Disney Movies and Movielink’s Downloadable Movies. Netflix is determined to offer new and innovative technology to sustain their competitive advantage.

The case study “Equity of Demand: The NETFLIX Approach to Compensation” includes information regarding the company, named Netflix. The case study provides useful information regarding the organizational culture of Netflix. The case is usually associated with the practices of Human Resource Management. It shows how organizations like Netflix can come up with different strategies in order better keep the employees motivated and directed towards goal achieving behavior. It is extremely important for organizations running around the globe to find ways of keeping employees motivated and satisfied in order to increase employees’ productivity. Employees can be seen as backbone for any type of organization running around the globe. It is because the productivity of employees is directly related with the productivity of an organization. The better the employees perform the better the organization would be in terms of customer satisfaction, brand awareness, customer loyalty, profitability and so on so forth. Normally, organizations have different compensation plans to pay the employees for their efforts they make. For instance; some organizations would use money as a source of motivating employees. Such organizations will pay high amount

Currently, there are only a few stores in existence; “it continues to operate in Alaska and Texas for those last of the hardcore video renters”. Blockbuster will soon be extinct.

This essay will provide insights and sufficient background to understand Netflix’s success and difficulties the company is facing.

Netflix was founded by Reed Hastings and Marc Randolph in 1997 and was originally based out of Scotts Valley California. The business model that they were working towards was to create a company that would offer online movie rental service made available by streaming media as well as DVD’s that could be ordered online and delivered to the customers’ homes. (Wheelen, Case 12). Netflix had a strategic plan to undercut the competition in an effort to stress the market and force weaker competition out of the field. This was a very successful plan and over a period of years it was able to force the closings of most of its competing market to include the mega giant Blockbuster video. Using a business

Starting off as a mail-only service in August of 1997, the service rapidly bloomed into an online, paid source for thousands of movies, series, and other TV shows. Although their streaming option is the most favored, Netflix still offers users the opportunity to order DVDs and other forms of tangible movies. All in all, Netflix holds a multitude of positive and negative effects on society, both which include instant accessibility, immediate forms of entertainment, binge-watching, and unproductivity. Lastly, Netflix may soon become an overwhelmingly large company that takes the television and video distribution industries by storm due to its growing popularity and its ability to be cheaper than regular cable