Netflix Is An International Provider Of Television Series

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INTRODUCTION Netflix is an international provider of television series, cartoons, and movies. It was founded by Reed Hastings and Marc Randolph on August 29, 1997. It has its headquarters in Los Gatos, California. Seventy-five million people are subscribed to Netflix, and forty-four million of the subscribers are from the United States of America (Lieberman). Netflix was recently launched in one hundred and thirty countries such as the United Arab Emirates (UAE) and Saudi Arabia. Subscribers sign up to enjoy the various television shows and movies for a monthly fee of eight dollars (Fakhruddin). The cultural barrier, coupled with the competition in the Middle East, poses a significant challenge to Netflix; however, through critically…show more content…
Nonetheless, there are chances that Netflix suffer losses in China. Netflix might make an immense loss in China because the rival television service providers, such as Xunlei, Tencent, and Youku Tudou, have tough local competition (Osawa). 4 Most Chinese nationals have access to the free-to-air channels. According to the expert researchers, it could take three to five years to convince the subscribers to pay for the television service. Besides, the Chinese government maintains enough funds to produce and develop the China film content, such as documentaries, action movies, and dramas (Leung). The Netflix’s competitors also offer advertising services. For example, the Alibaba Company bought Youku Tudou. Alibaba is the largest website for online buying and selling of goods and services. However, Netflix offers television entertainment services only. Alibaba conducts several types of researches concerning consumer preference, which gives it a competitive advantage over Netflix. Therefore, it is difficult for Netflix to compete with companies holding crucial information about the products preferred in the market (Jaafar). Furthermore, China’s television service providers ensure that the theatrical series and movies are made available three to four weeks after release. Such promptness attracts more subscribers. On the contrary, Hollywood’s theatrical releases are made available only after a few months. As a result, Chinese prefer
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