COMPETITIVE POLICY2Netflix, Inc.It is an American entertainment corporation established in 1997 and operates in the entertainment industry. They specialised in providing streaming media service and DVD by mail service. The organisations operate in more than 180 companies and generated revenue ofUS$8.83 billion in 2016 financial year. In their beginning, the company focused on providingDVD on mail facility, but their operations expanded with the introduction of streaming mediafacility, which gained Netflix an international spot. The reason for selecting Netflix is that company has a monopolistic advantage over its competitors such as HBO Now, Apple iTunes, hula or Amazon Prime Video. At their peak time, the company’s internet traffic data amount to 37 percent in North America, which is higher than every other competitor combined, and they had more than 89 million active subscribers. Netflix’s Strategy Netflix has updated their strategy to expand their stream media service over different countries. The company provides original as well as other source’s content, to their subscribers. As of March 2016, the firm offers more than 1197 TV shows and 4335 movies totheir users. The company is focusing on enhancing their services worldwide; they already have their operations in more than 180 countries. With the popularity of the home internet, Netflix has become an essential part of people’s life. Many video stores or DVD retail stores have closed due to the popularity of Netflix. In North America, the giant video rental service Blockbuster has been closed due to the popularity of Netflix (Adhikari et.al. 2012). As per Jenner (2016), in order to increase the number of users, Netflix focuses on improving their services before their competitors, like high-quality content (4K resolution), simple UI design, licensing more content and producing more original services. The company focus their resources on analysing the watching habits of their users and recommend content based on their preferences. They also analyse illegally downloaded TV shows and movies from torrents to learn about customer’s behavior in most European countries. This assists Netflix inenhancing their user’s base which is more than 89 million subscribers.Business ModelFollowing are the key principles of Netflix business model which provide them a competitiveadvantage over its competitors:
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