Netflix As A Provider Of A Subscription Service For Streaming

1250 WordsJun 1, 20165 Pages
Through innovation, the media streaming provider, Netflix, has achieved competitive advantage in the global market. Netflix operates as a provider of a subscription service for streaming movies and television episodes over the Internet. Originally founded in California in 1997 as a mail order DVD rental service with a flat monthly subscription rate, allowing consumers to benefit from an unlimited number of rentals and no late fees, Netflix has grown to dominate their market and experience minimal direct competition by seizing the “first to market” competitive advantage. Now known as the primary provider of Internet only streaming media, Netflix has grown to have a market capitalisation of US$41.1 billion (as of May 2016) from their previous US$3 billion (in January 2013). Netflix succeeded in basic terms by keeping it simple. From the beginning of the DVD rental service to the creation of an online streaming website it has been able to keep the processes easy and corner its market. Reed Hastings, the C.E.O and co-founder of Netflix took advantage of two emerging technologies, DVDs and websites. His idea was simple, why not combine the two and deliver DVDs to the homes of consumers and provide them with a simple website from which they can order films. Hastings marketed his service at the two things he believed every individual wanted to save on, time and money. However, after a few years of enjoying the success from the DVD rental service Hastings felt confident that films
Open Document