Netflix Is The World's Leading Internet Television Network

Netflix is one of the largest media companies. The company has a broad variety of venues to satisfy almost everyone’s viewing needs. While Netflix still maintains DVD.netflix.com, which allows you to pick DVD movies to be shipped to your home for as little as $4.99 a month, this document is focused primarily on their on-line streaming.

Netflix has around 75 million subscribers today which suggests that it is a very popular organisation. Netflix at the moment serves many markets across the world whinch included the US and Europe. Netflix suffers from competition from companies such as Amazon prime. Both of these companies compete to gain customers in this compact market. Netflix's corporate strategy fits in with their business level strategy as they deal mainly with DVD rental via online streaming. The deal that is in place with Warner bros has a major impact on how Netflix conducts itself. If other online streaming companies don't face this deal of not being allowed to stream their contents untill 28 days after the public release date then other companies have a competitive advantage which would lower Netflix's revenue. This would cause customers to leave Netflix as they may be able to see films at an earlier date with rival

For this paper, I chose to analyze Netflix as it piqued my interest more than others. Netflix is one of the leading Internet streaming media that provides entertainment primarily through movies, series, and documentaries. For monthly subscription price of between $7.99 and $11.99, Netflix users from all over the world have the privilege to instantly access movies and television shows streamed over the Internet on any of their devices including laptops, tablets, iPads, or even smartphones. Netflix’s vision statement says, “Becoming the best global entertainment distribution service; Licensing entertainment content around the world; Creating markets that are accessible to film makers; Helping content creators around the world to find a global audience” (Farfan 2015).

From a streaming service where its core competency is its ability to sustain popularity, range and price of its content, Netflix should utilize its market power and position in the streaming sector into the networks industry. Its subscription power is key with 1% retention equating to approximately 5% in firm value due to the tense environment it is currently competing in (Jordan, 2011, p. 4). Thus, their already vertically integrated and high acclaimed ‘Originals’ content is its strongest operational related strategy as it uses the same streaming platform as its other shows with no additional cost. By focusing on creating its own content, Netflix’s core competency essentially shifts from its ability to win bidding wars for rights to shows

Netflix has maintained the highest number of share in the online streaming industry market, but it cannot guarantee the consumers preferences nor has a control over them of which can grant its leading market position. In 2011, when Netflix decided to adjust its pricing structure, it led to major consequences and negatively impacted

Netflix growth is translated as increased numbers of subscribers. As growth in the US continues to slow considerably, it would seem imperative that Netflix look to international markets to cultivate further development and potential streaming alternatives. Netflix continues to move forward with vertical integration, which provides new options and opportunities for diversification. Furthermore, Netflix displays their integration strategy through the production of original content. Due to the fact that Netflix could not work favorable terms to get studios to licence great online content through them, they decided to enter into the studio’s business of creating the shows themselves (Steel, 2015).

According to Netflix most recent SEC 10K report here is Netflix’s core strategy and marketing strategy:

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.

Netflix is the pioneer in the Internet delivery of TV shows and movies. Their business is simple in that it provides instant streaming of TV shows, movies, original series, documentaries, and feature films all to the customer’s Internet-connected device. Customers can watch from anywhere at any time from their mobile device, computer, tablet or any Internet-connected screen. Subscribers can play, pause, and resume watching without any commercials. For customers in the United States, they can even receive DVDs delivered quickly to their front door and have no due dates or late fees. Netflix is simple and easy for everyone to use. Subscribers can navigate through the site with ease. The business is simple and convenient for users and appeals to many customers because they can enjoy movies all in the comfort of their own home. The company has three reportable segments, Domestic streaming, International streaming, and Domestic DVD. A majority of the company’s revenues are generated in the United States and a substantial amount of the Netflix’s long-lived tangible assets are held in the U.S.

Reed Hastings (co-founded) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix is recognized as one of the 50 most innovative companies, ranking number eight for “streaming itself into a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. A will describes and evaluate Netflix’s innovation strategy, the specific

Netflix is revolutionary company operating in an incredibly dynamic industry populated by both longstanding and new competitors. In one hand, Netflix has partnered with movie and television studios to provide access to feature-length movies and episodic TV shows in the same manner that existed when the medium was designed- DVD rental. In the other hand, Netflix is operating with growing role of computer-enabled devices and data transmission systems in our lives, in mind. They allow users to view media content in virtually any location with a power source and Wi-Fi connection. As a provider, Netflix has evolved with developing technology and have adapted to changes in content consumption. Hence, Netflix has had a great influence on the home entertainment environment and on the profitability of their competition.

Netflix is one of the smartest ideas to turn reality in our generation. They are currently the world’s leading Internet television network. It has over 93 million subscribers and can be viewed in over 190 countries. Netflix has more than 125 million hours of movies, shows and other cinema available for its members to watch at anytime, anywhere. Even though Netflix is now a multibillion dollar company and leading the way in its industry ,it had a rocky start and took years of time and effort before the company really gained some ground and started seeing a real profit.

Netflix is a firm that has become a global leader in the provision of streaming content that includes movies and television series and programming from around the world. Primarily, Netflix has been able to become a global dominant through the adoption of business to business and business to customer models that favor the company’s overall business model. The central argument here is that the B2B and B2C models at Netflix have more in common that there are differences.

To ensure the company will achieve stability by maintaining customer appreciation and satisfaction, Netflix must invest their time and finances into new alternative solutions. The solutions are based on what problems have presented themselves and are in best interest of the customers and the company. The main concerns at the moment seem to be the unreliability and instability of the company as the guidelines for prices and methods of delivery are constantly changing.

In Netflix’s own description of its vision for sustainable long-term future, the company describes a few critical elements necessary for growth [Netflix.com]. Its vision encompass the evolution of internet TV, replacement of “linear TV” by the internet TV, development of interactive applications, and enhancement of streaming capability to virtual limitless access capability.