The Popularity Of The Television Tv

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

Netflix followed a very well structured International strategy by planning their mission statement which is mainly directed to end users. “For one low monthly price, Netflix 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.”

Netflix is an entertainment company that specializes in streaming media and online video-on-demand. Over the years, it has grown to include film and television production and other distribution services. Its business model has changed, and so has its overall production cost grown to keep up with the increased market share. As a result, its current position in the market has made it more exposed to competition from other firms, which is why it needs to develop new strategies to remain profitable. Netflix has grown over the past years despite competition and its unprofitability (Helft, 2007). Therefore, to understand its success, it is important provide a microeconomic analysis of Netflix, its history, its products, and the market.

First formed in 1991, Netflix has become today’s predominant video rental service. They offer a hybrid service allowing DVD delivery by mail as well as streaming movies and TV shows via their company website or access on 200 other devices. Their unique business process has netted them over 16 million subscribers and revenue around $500 million annually. The reason for their growing success can be attributed to a good business model and just as important, properly implemented systems. An extremely efficient supply chain management system (SCM) and customer relationship management system (CRM) have helped Netflix become the world’s largest video subscription service.

Entering and transforming the video rental industry was a large undertaking for the start-up company. The first marketing objective the company undertook was the process of building a brand. Netflix’s identity was crucial to future growth and success. Without a strong brand, competitors with deep pockets could have easily duplicated the company’s business model. Secondly, leveraging technology was critical to establishing the business and infrastructure growth. The consumer base was the final objective Netflix sought to achieve. Retaining and growing subscribers were fundamental to revenue and marketing goals.

For netflix's business portfolio they outline that their main area of focus are online DVD rentals via online streaming (Netflix ,2010). It is clear from this that netflix have outlined that they aim to provide a service that they hope many people across a broad market will be able to use. With this in mind they would be able to generate a large revenue. Netflix is operated on the basis that you pay a monthly subscription and in

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.

Also Netflix needs to prepare a better plan to recover old customers, gain new customers and make sure that the people who still have Netflix keep it. Establishing a bundle price for both online streaming and DVD rental will allow The Netflix Company to recover some market shares and remain the leading overall digital film company. The recommendations are as follows:

Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great variety of film offerings. Now they want to leverage their strengths to enter into the Video on Demand market

Netflix Inc. is in the entertainment market, which is a part of a larger video, film

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.

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.

First of all, it offers a “prepaid subscription service” that allows customers to simply subscribe and pay a fixed fee per month. This gives the customer the ability to rent unlimited movies, something never heard of in this industry. In addition, customers are also worry-free about returning movies late since Netflix did away with all late fees. It must also be stated that in contrast to other companies that offer subscription based services, Netflix has made it relatively easy to unsubscribe from the packet or service the customer has selected. One may think this is a poorly thought idea, but it has helped customers return. These returning customers are satisfied and

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.

Because users of the above websites and social media outlets overlap heavily with Netflix’s target demographic, the coverage of their selected audience will be stronger than most other forms of communication (and e-mails and letters to their