Introduction: Netflix is one of the biggest major video-streaming networks in the world. The company announced on January 2, 2016 that they have added 130 more countries to a list that already had 60 in which they offered their services, including India. India was fairly new to this type of service and the country also had low broadband penetration and infrastructure problems, meaning lower quality videos depending on what device the consumer was using. Netflix will take all of this into consideration in order to move forward and penetrate the Indian market.
Problem Statement: The main problem Netflix has in India is the Internet penetration and speed. Netflix’s main goal is to have their consumers easily stream the content available to
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Netflix also did not have a great selection of Indian content compared to the content of other companies.
S.W.O.T. Analysis:
Strengths:
• Original content – Shows like House of Cards, Orange is the New Black and Sacred Games (first original series in India) are what brings interest to the consumers.
• Better quality – Netflix is working on producing better streaming quality with the available strength and quality of the consumers Internet connection with a data-saving mode in their mobile app.
• Brand name – Netflix is priced higher than other competitors, meaning the consumer is probably associated with middle and upper class based on wealth and can increase social status.
• Technology – Although there are problems with wireless connections in India, Netflix is known to be an innovator in video streaming.
• Large catalogue of diverse shows and movies – Netflix has a vast collection of international shows and movies that other competitors in the market do not have.
Weaknesses:
• No regional language content – Local subscribers were disappointed in the low selection of Indian content.
• Underdeveloped broadband – Netflix cannot provide their service well if slow broadband is preventing them from doing so.
Opportunities:
• Technology innovation – Netflix can work their way around the slow broadband by creating new ways to help the consumer save more data
Movie is common entertainment over the world, so Netflix has an opportunity to challenge abroad by online service platform.
The downturn of the economy has taken away many peoples disposable income and Netflix’s limited online library may have caused customers to question if it was worth it or not.
Netflix is more about movies. They have a very big selection of movies that you can choose from. They as well have many TV series. Movies and the TV series on Netflix are put onto Netflix months after they have came out. An annoying thing about Netflix is that they can take an show or movie out of their system randomly. You can be watching a show you found, and next day it is gone. The one big good thing Netflix has is a few different original TV series made from Netflix itself that can only be seen on Netflix. They probably do that so people can be interested in that show and then that means they have to use
This dimension is a main problem that Netflix is facing. The disadvantage of shifting the company business activities from DVD mail delivery to online streaming is access abilities and rights to the streaming content. Online streaming requires acquisitions of separate licenses under restricted legal rules that protect the producers’ rights; these rules are coupled with certain complication. However, DVDs business was smoother and had significant advantages, Netflix was able to distribute and deliver the DVD by mail to its customers after it purchases them, and studios were not able to legally stop this. The dramatic licensing fees fluctuations that put the business on a continuous risk are another concern for Netflix streaming industry. Studios agreements with Netflix competitors such as movies, premium cable channels and shows take away Netflix exclusive rights by being offered by other provider, this causes an unstable content on Netflix website. This discrepancy in the company website and product supply can switch customers off and hurt Netflix brand name in the industry.
Netflix can continue to offer more opportunities for partnerships and venturing into gaining opportunities to increase its market share. Furthermore, Netflix should continue to expand the content in which it offers its subscribers (Ferrell & Hartline, 2014). Moreover, by partnering with movie studios and other content providers they are able to gain more entertainment abilities faster instead of waiting long extended periods for DVD releases.
Before becoming a force in the movie streaming and internet TV industry, Netflix was originally in the movie rental industry. With competitors such as Blockbuster, Hollywood Entertainment and Redbox, Netflix rose to be the leading Internet provider for Internet television and streaming thus forcing Blockbuster and Hollywood Entertainment out of business. With the transformation of consumer viewing in the American television industry, Netflix has over 75 million members who stream more than 125 million hours of television shows and movies per day (Statista, 2016). Their repertoire includes movies and original series that allow consumers to view at anytime and on any screen in which Internet connectivity to the Internet is provided. In addition, Netflix continues to deliver DVDs within the United States to the homes of consumers.
Demography segments changes leading a company’s develop trends. It is not only analysis an area or country, but also analysis on global basis. According to world population data, the population growth from 6.1 billion to 7.2 billion from 2000 to 2015. It represent that the potential customer base could growth. Moreover, China and India’s population growth the most in the world. “In 2009, there were 284 million Internet users in China and 81 million Internet users in India” Therefore, Netflix wants to expanding their business into these countries because of population number. Also, Low monthly price build subscribers enjoy
Netflix, Inc. is the world’s leading Internet television network with over 86 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films (Netflix: Overview, n.d.). The company offers subscription service streaming movies and television episodes over the Internet and DVDs by mail. Netflix operates its business via National streaming, Global streaming and Domestic DVD; the company obtains content from different broadcast studios and other content providers through fixed-fee licenses, profit sharing agreements and straight purchases. Netflix markets its service through numerous channels which include online advertising, television/radio, and other partnerships. Headquartered in Los Gatos, CA, the company was founded by Marc Randolph and Wilmot Reed Hastings Jr. August 29, 1997.
Netflix is the largest and popular online DVD rental services company in the United States. The company is able to provide a large number (more than 100,000 DVD title) of DVD for customer. With Members paying a monthly fee of $7.99, they have quick and easy access to movies on the internet. Netflix also has free delivery service by mail for members who prefer watching it via other devices other than the internet. The wide selection of DVDs and convenience had led to 33 million members using Netflix. In addition, Netflix provides recommendation service for customer such as customer preferences. In August 26, 2010, Netflix said the member can use TV programs via PC, TV, iPad, iPhone, Wii, Xbox360 and PS3 to watch movie. The era of DVD rental stores diminishes as companies like Netflix changes consumer behavior. Consumers
Netflix have a strong brand name all over the world and build a good image in the mind of users
Netflix is the world’s leading Internet television network with over 75 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments (http://ir.netflix.com/
Netflix has specific factors that could enhance its growth or can hinder continuity of its impressive performance. Evidently, the company has strength in its branding as it is recognized in over
Netflix’s main goal is to be the first company to expand internet television. They believe that Internet TV is the future of the television industry and will soon replace linear TV. The portability, flexibility and personal aspect of Internet TV is the future and Netflix’s goal is to be the first to get there. They believe that if they can dominate this industry then they will have achieved their goals. They do this by sticking to what they have always done: they do not have advertisements, they have their low monthly fee, and their few original shows. Their strategy is to quickly expand into all aspects that are possible, while remaining profitable globally.
their employees, they allow unlimited vacation time, which is unheard of, and also 1 year of paid
Netflix is one of the most successful on-demand streaming services that exist today. When it comes to video on-demand, Netflix has created a revolution in the field of digital content. It has a major market in the entertainment section ranging from movies and TV shows to gaming consoles. Netflix has gained huge response and audience because it has the ability to stream media on almost all the electronic devices, be it laptop, PCs, mobile or televisions, providing entertainment on the go with a very economic rent. Netflix uses Dynamic Streaming over HTTP protocol for streaming media.