Analyzing Netflix and its Competitors in Relation to Wark's Concept of the Vectoral Class

Analyze Netflix and its competitors in relation to Wark’s concept of the Vectoral class
Student’s name
Institution Affiliation(s)

Introduction
Netflix is one of the world’s largest Video subscription service businesses that allow its
subscribers to rent DVDs by order mail or by internet streaming. Its disruptive technology drove
out the store based model of DVD rental and made it automated, digitalized, and more efficient.
It offers a variety of options through it on-demand catalogs and prides itself in its propriety smart
systems that recommend similar genre movies to people upon opting for one, generating more
sales (Taylor, 2018). It offers a variety of packages for different people based upon their needs,
frequency of viewership, and volume of orders. Its target market includes all genders ranging
from 15-65 years of age with a household income of more than $30,000 dollars annually. It
caters to a variety of people differing in their ethnic backgrounds by offering several foreign and
international films as well. According to Wark, the vectoral class is driving the world to the brink
of disaster. However, vectoral class firms like Netflix also open up the world to the resources for
overcoming their own destructive tendencies (Wark, 2004).
Due to the technological nature of its business, Netflix invests heavily into its research
and development, almost 6-7% of the total revenues. It faces competition from movie studios and
other similar video streaming services like Vudu, Hulu, Verizon, HBO, etc. and aggressively
aims at maintaining its competitive position by gaining first rights over videos through
sustainable relationship swath the suppliers (Feinberg & Johnson, 2017). It also aims at elevating
the whole customer experience through quick and efficient service and developing a stronger
recommendation system that is a driver of continuous sales. Netflix’s propriety system is
developed in-house and is a trade secret that enables it to safeguard its competitive advantage.
Use of technology to maintain logistics and customer/ supplier relationships have helped Netflix
become the huge brand it is today (Nguyen, 2018). The vectoral class monopolizes information
1

and data just like other classes monopolize capital and land. Vectoralists, like Netflix control the
vectors along which information is abstracted (Wark, 2004).
With the increasing threat of technology and more market competition, Netflix focuses of
making it's a business more efficient through the development of newer in-house systems,
maintaining relationships with studios, Initiating collaborations with electronic companies for
devices and plans to grow internationally. It incentivizes creativity for its teams, making it an
exemplary HR policy for market success. In the future, Netflix can maintain and grow its market
share by investing in web marketing through social media content, contests, and trial period
options and consider feedback to cater to the customer needs better (Dupont, 2017).
How Netflix uses information technology to maintain its competitive edge
Netflix offers an online service that allows video streaming as well as DVD rental
system. However, their operations are all managed by systems that help them manage inventory,
logistics, and customer relationships. Netflix is able to generate more order due to its smart
recommendation system that suggests movies according to the likes of the subscriber on the basis
of their trends and comparing them with those who have previously watched such movies. The
operations at Netflix are so automated that the employees seldom interact with any subscribers
directly (Mohammed, 2018). The whole process of viewing the catalog to ordering and
delivering is maintained by their smart in-house propriety system. Their supply chain
management system identifies the closest route to the subscriber’s location, making the delivery
faster and more efficient. Netflix does anticipate the future competition that may emerge as a
result of the endless opportunities that the internet offers. “Nothing protects the vectoralist
business from its competitors other than its capacity to qualitatively transform the information it
possesses and extract new value from it.” (Wark, 2004).
2