Efficiency of Strategies: Netflix vs Amazon Prime
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This research analyzes the efficiency of strategies implemented by Netflix and Amazon Prime in the online streaming industry. It explores the competition between the two companies and their approaches to overcome challenges. The study also highlights the impact of customer relationship and the entry of new competitors in the market.
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Table of Contents
Report Title......................................................................................................................................4
Introduction......................................................................................................................................4
Project Questions.............................................................................................................................5
Aims and Objectives of the Project.................................................................................................5
Purpose of the Project......................................................................................................................6
Literature Review............................................................................................................................7
Netflix Business Context.................................................................................................................7
Amazon strategy............................................................................................................................10
Research methodology...................................................................................................................11
Ethical Considerations...................................................................................................................13
Planning.........................................................................................................................................13
Timeline.....................................................................................................................................13
Gantt chart.....................................................................................................................................14
Figure No 1: Gantt chart............................................................................................................14
Competitive Advantage of Netflix.............................................................................................18
Figure 1: Netflix being the first choice for the Americans........................................................19
Figure 2: User Base of Netflix of VoD......................................................................................20
Amazon Prime and others vs. Netflix........................................................................................20
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Table of Contents
Report Title......................................................................................................................................4
Introduction......................................................................................................................................4
Project Questions.............................................................................................................................5
Aims and Objectives of the Project.................................................................................................5
Purpose of the Project......................................................................................................................6
Literature Review............................................................................................................................7
Netflix Business Context.................................................................................................................7
Amazon strategy............................................................................................................................10
Research methodology...................................................................................................................11
Ethical Considerations...................................................................................................................13
Planning.........................................................................................................................................13
Timeline.....................................................................................................................................13
Gantt chart.....................................................................................................................................14
Figure No 1: Gantt chart............................................................................................................14
Competitive Advantage of Netflix.............................................................................................18
Figure 1: Netflix being the first choice for the Americans........................................................19
Figure 2: User Base of Netflix of VoD......................................................................................20
Amazon Prime and others vs. Netflix........................................................................................20
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Figure 3: Netflix vs. Hulu and Amazon.....................................................................................20
References......................................................................................................................................21
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Figure 3: Netflix vs. Hulu and Amazon.....................................................................................20
References......................................................................................................................................21
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Report Title
The title of the following research is “The efficiency of strategies Netflix put in place to
survive the turbulence in the market”.
Introduction
In the entertainment industry, online streaming has emerged as one of the major
contenders of the future entertainment business. Online streaming of videos and shows has now
become the most recent trend and people have slowly started to accept the recent trend. The rise
in the smartphone users have further increased the use of the different kinds of the online
platforms. Netflix has been a familiar name in the following industry as the company has been
able to gain the largest market share in the industry in the last few years. The advantage of the
following industry has been the presence of a variety of different types of the programs and
contents that has made the online application acceptable to most of the global population. Apart
from this the easy accessibility to phones and internet has been a competitive advantage for the
business organization. However, the recent rise of some other companies including Amazon
Prime and Hulu had been important for the benefits of the organization. Amazon Prime
especially as been the most important competitor of Netflix. Since the launch of the Amazon
Prime, the company has been able to gain a rapid rise in its market share accordingly. Both these
companies namely Netflix and Amazon prime have been delivering on demand video services
and have been heavily investing on the launch of the different kinds of original series for the
customers. These original series have gained huge popularity as they attract a large number of
different people which in turn leads to an increase in the profitability of the organizations. It has
been seen that Amazon has a great market share in the e-commerce industry and their stepping in
MANAGEMENT
Report Title
The title of the following research is “The efficiency of strategies Netflix put in place to
survive the turbulence in the market”.
Introduction
In the entertainment industry, online streaming has emerged as one of the major
contenders of the future entertainment business. Online streaming of videos and shows has now
become the most recent trend and people have slowly started to accept the recent trend. The rise
in the smartphone users have further increased the use of the different kinds of the online
platforms. Netflix has been a familiar name in the following industry as the company has been
able to gain the largest market share in the industry in the last few years. The advantage of the
following industry has been the presence of a variety of different types of the programs and
contents that has made the online application acceptable to most of the global population. Apart
from this the easy accessibility to phones and internet has been a competitive advantage for the
business organization. However, the recent rise of some other companies including Amazon
Prime and Hulu had been important for the benefits of the organization. Amazon Prime
especially as been the most important competitor of Netflix. Since the launch of the Amazon
Prime, the company has been able to gain a rapid rise in its market share accordingly. Both these
companies namely Netflix and Amazon prime have been delivering on demand video services
and have been heavily investing on the launch of the different kinds of original series for the
customers. These original series have gained huge popularity as they attract a large number of
different people which in turn leads to an increase in the profitability of the organizations. It has
been seen that Amazon has a great market share in the e-commerce industry and their stepping in
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the entertainment industry has been widely accepted by the large proportion of the present set of
e-customers of the enterprise. The operations of both these companies are spread across a large
number of different countries and therefore these companies are close competitors of each other
in the online entertainment industry. Both of these are competitors of each other in the digital
market and are thus involved in a competitive race to scale unlimited heights and achieve the
best in order to satisfy the customers of the business. The following paper will provide a clear
and transparent analysis of the competition in between the two companies and accordingly
address the strategies of the company.
Project Questions
The research questions will be essential for the analysis of the research as it will be based
on the different perspectives of the research. The research questions are as follows;
a. What are the issues that are faced by Netflix in the market?
b. What are the strategies that are adapted by the management of Netflix to overcome the
issues?
c. How the management of Netflix does implements the strategies to overcome the issues?
Aims and Objectives of the Project
The aim of the project is to find out the ways by which Netflix can overcome the
turbulence in the highly competitive global market and make their business sustainable and
superior in nature.
The objectives of the research are as follows;
1. To find out the issues faced by Netflix in the market
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the entertainment industry has been widely accepted by the large proportion of the present set of
e-customers of the enterprise. The operations of both these companies are spread across a large
number of different countries and therefore these companies are close competitors of each other
in the online entertainment industry. Both of these are competitors of each other in the digital
market and are thus involved in a competitive race to scale unlimited heights and achieve the
best in order to satisfy the customers of the business. The following paper will provide a clear
and transparent analysis of the competition in between the two companies and accordingly
address the strategies of the company.
Project Questions
The research questions will be essential for the analysis of the research as it will be based
on the different perspectives of the research. The research questions are as follows;
a. What are the issues that are faced by Netflix in the market?
b. What are the strategies that are adapted by the management of Netflix to overcome the
issues?
c. How the management of Netflix does implements the strategies to overcome the issues?
Aims and Objectives of the Project
The aim of the project is to find out the ways by which Netflix can overcome the
turbulence in the highly competitive global market and make their business sustainable and
superior in nature.
The objectives of the research are as follows;
1. To find out the issues faced by Netflix in the market
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2. To find out the strategies that are adapted by the management of Netflix to overcome
the issues
3. To implement the strategies of Netflix that can overcome the issues
Purpose of the Project
The main purpose of the project is to identify the different perspectives of the business
organization and also to identify the different issues that plagues the company and makes it hard
for them to carry on the normal business operations. The online video steaming industry was first
created by Netflix. However, the economic liberalization and the entry of large number of
different other companies into the same business has led to a crisis situation in the business.
Apart from these the business of Netflix is also under thereat due to the presence of the different
kinds of pirated websites that hacks the contents and videos from the Netflix site and uploads
them in other free websites. The purpose of the research will be to highlight the importance of
the present issues and to find out the possible ways to tackle the problem. The research will also
highlight on the other different areas related to the topic which includes on the study of the effect
of the customer relationship on both Amazon prime and Netflix. As said earlier, the research will
also present the possible reasons as to why the management of Netflix totally failed to see or
estimate the entry of the other competitors in the market. Lastly the research will be estimating
on whether the organization can be able to overtake Amazon prime and close down on the
market gap. Therefore, it can be said that the research will be quite important as it will study
some of the most crucial elements related to the following subject.
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2. To find out the strategies that are adapted by the management of Netflix to overcome
the issues
3. To implement the strategies of Netflix that can overcome the issues
Purpose of the Project
The main purpose of the project is to identify the different perspectives of the business
organization and also to identify the different issues that plagues the company and makes it hard
for them to carry on the normal business operations. The online video steaming industry was first
created by Netflix. However, the economic liberalization and the entry of large number of
different other companies into the same business has led to a crisis situation in the business.
Apart from these the business of Netflix is also under thereat due to the presence of the different
kinds of pirated websites that hacks the contents and videos from the Netflix site and uploads
them in other free websites. The purpose of the research will be to highlight the importance of
the present issues and to find out the possible ways to tackle the problem. The research will also
highlight on the other different areas related to the topic which includes on the study of the effect
of the customer relationship on both Amazon prime and Netflix. As said earlier, the research will
also present the possible reasons as to why the management of Netflix totally failed to see or
estimate the entry of the other competitors in the market. Lastly the research will be estimating
on whether the organization can be able to overtake Amazon prime and close down on the
market gap. Therefore, it can be said that the research will be quite important as it will study
some of the most crucial elements related to the following subject.
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Literature Review
Netflix Business Context
Netflix is an American based public company that is involved in providing internet based
and subscription based streaming media, distribution of film and television contents on the
internet and video content production (netflix.com 2019). Headquartered in Los Gatos,
California, the company is spread over a large number of different locations in Latin America,
Europe, South East Asia, East Asia and South Asia and has its subsidiaries in United Kingdom
and Singapore. The company started as an online enabled DVD rental by mail business. The
business used a monthly subscription model instead of the single rental model that was a
common feature in most of the business rental stores (netflix.com 2019). The management of the
company provided the customers with unlimited number of rentals at a fixed rate with extended
due dates. The following business model was totally new and the management of the company
was able to introduce a new kind of business in the market.
The company was also able to gain success due to the start of the wider acceptability of
the internet across the globe from the start of the 2000’s (netflix.com 2019). Apart from this the
internet connectivity was also highly improved during the following times. The change in the
speed of the internet, new connections, bandwidth increase and other kinds of specific internet
based services enabled the management of the organization to go beyond the traditional limits
and start something new and unique that led to the company gaining a special and unparalleled
competitive advantage in the market (netflix.com 2019). The company started to offer the
streaming content from the start of the year 2007 (netflix.com 2019). The start of the streaming
business saw the company moving away from its traditional business of DVD rentals. In the
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Literature Review
Netflix Business Context
Netflix is an American based public company that is involved in providing internet based
and subscription based streaming media, distribution of film and television contents on the
internet and video content production (netflix.com 2019). Headquartered in Los Gatos,
California, the company is spread over a large number of different locations in Latin America,
Europe, South East Asia, East Asia and South Asia and has its subsidiaries in United Kingdom
and Singapore. The company started as an online enabled DVD rental by mail business. The
business used a monthly subscription model instead of the single rental model that was a
common feature in most of the business rental stores (netflix.com 2019). The management of the
company provided the customers with unlimited number of rentals at a fixed rate with extended
due dates. The following business model was totally new and the management of the company
was able to introduce a new kind of business in the market.
The company was also able to gain success due to the start of the wider acceptability of
the internet across the globe from the start of the 2000’s (netflix.com 2019). Apart from this the
internet connectivity was also highly improved during the following times. The change in the
speed of the internet, new connections, bandwidth increase and other kinds of specific internet
based services enabled the management of the organization to go beyond the traditional limits
and start something new and unique that led to the company gaining a special and unparalleled
competitive advantage in the market (netflix.com 2019). The company started to offer the
streaming content from the start of the year 2007 (netflix.com 2019). The start of the streaming
business saw the company moving away from its traditional business of DVD rentals. In the
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present times, the company has over 120 million subscribers who pay for watching the contents
that are promoted and shown in the application of the company. According to, Aguiar and
Waldfogel(2018) the company has now its operations spread over 190 different countries across
the globe. The direct competitors of the company include Amazon Prime, You Tube, iFlix and
HOOQ. The success of the business and the way it implements the different elements of the
business makes the organization.
The main marketing plan for Netflix is to increase brand awareness and sales for the
company. The company now offers the freedom to the customers to steam the available movies
in their site and enjoy them. Though Netflix was the first to enter the following business and
popularize it, the gradual increase in competition and liberal economy made other large
companies to enter the following business. The entry of different such business units have made
the competition tougher for the company to survive in the market (Aguiar and Waldfogel 2018).
The management of Netflix needs to implement different kinds of the strategies in order to
ensure the success of the business. The proposal of the organization is to target a large number of
customers of different age groups. Apart from this the organization also needs to launch new
products and new services that can enable the success of the business organization in the market.
The analysis is done for determination of the different challenges that are associated with the
marketing strategies of the business organization (Aguiar and Waldfogel 2018). However, the
implementation of these policies alone cannot guarantee the success of the business organization.
The advent of internet, advancement in different digital technologies and presence of large
number of customers are serious threats to the success of the business in the market. Apart from
these the organization also faces indirect competition from different kinds of Television channels
that tends to disrupt the business of the organization. The company also faces serious threats
MANAGEMENT
present times, the company has over 120 million subscribers who pay for watching the contents
that are promoted and shown in the application of the company. According to, Aguiar and
Waldfogel(2018) the company has now its operations spread over 190 different countries across
the globe. The direct competitors of the company include Amazon Prime, You Tube, iFlix and
HOOQ. The success of the business and the way it implements the different elements of the
business makes the organization.
The main marketing plan for Netflix is to increase brand awareness and sales for the
company. The company now offers the freedom to the customers to steam the available movies
in their site and enjoy them. Though Netflix was the first to enter the following business and
popularize it, the gradual increase in competition and liberal economy made other large
companies to enter the following business. The entry of different such business units have made
the competition tougher for the company to survive in the market (Aguiar and Waldfogel 2018).
The management of Netflix needs to implement different kinds of the strategies in order to
ensure the success of the business. The proposal of the organization is to target a large number of
customers of different age groups. Apart from this the organization also needs to launch new
products and new services that can enable the success of the business organization in the market.
The analysis is done for determination of the different challenges that are associated with the
marketing strategies of the business organization (Aguiar and Waldfogel 2018). However, the
implementation of these policies alone cannot guarantee the success of the business organization.
The advent of internet, advancement in different digital technologies and presence of large
number of customers are serious threats to the success of the business in the market. Apart from
these the organization also faces indirect competition from different kinds of Television channels
that tends to disrupt the business of the organization. The company also faces serious threats
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from piracy where the contents of the company which includes the shows and the videos being
pirated and uploaded in other websites for the people (Araujoet al. 2016). This tends to disrupt
the business of the organization. The research will be providing the main perspectives that create
a turbulent atmosphere in the market for Netflix and will also highlight the different ways by
which the company will be able to ensure the success of the business.
Amazon Business Context
There is significant competition between Netflix and Amazon Prime video which has
currently emerged as a major business battle. Both of the video on demand services provide
subscription based services offering a wide range of programs. Many have opined that this is the
golden age of video streaming. The most important services that are being offered by the
companies are providing the ability to the customer to choose the exact movies, series or videos
that they would like to view and the ability to access these shows from anywhere that they can
get internet access. The availability of these applications have significantly increased the number
of people that use these services. Channels like Netflix, Hulu and Amazon prime has helped to
increase the number of audiences that view web series. Recently, it can be said that Netflix has
emerged as the dominant force in the market. Amazon Prime can also be said to be a strong
player emerging recently in the market. Despite the late entering of Amazon in a market that
already had Netflix as a dominant force, it has gained significant prominence in the market.
Netflix strategy
Netflix is already an established named in the video streaming business. According to
Samson (2018) Netflix was able to capitalize on the first mover advantage that it was able to gain
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from piracy where the contents of the company which includes the shows and the videos being
pirated and uploaded in other websites for the people (Araujoet al. 2016). This tends to disrupt
the business of the organization. The research will be providing the main perspectives that create
a turbulent atmosphere in the market for Netflix and will also highlight the different ways by
which the company will be able to ensure the success of the business.
Amazon Business Context
There is significant competition between Netflix and Amazon Prime video which has
currently emerged as a major business battle. Both of the video on demand services provide
subscription based services offering a wide range of programs. Many have opined that this is the
golden age of video streaming. The most important services that are being offered by the
companies are providing the ability to the customer to choose the exact movies, series or videos
that they would like to view and the ability to access these shows from anywhere that they can
get internet access. The availability of these applications have significantly increased the number
of people that use these services. Channels like Netflix, Hulu and Amazon prime has helped to
increase the number of audiences that view web series. Recently, it can be said that Netflix has
emerged as the dominant force in the market. Amazon Prime can also be said to be a strong
player emerging recently in the market. Despite the late entering of Amazon in a market that
already had Netflix as a dominant force, it has gained significant prominence in the market.
Netflix strategy
Netflix is already an established named in the video streaming business. According to
Samson (2018) Netflix was able to capitalize on the first mover advantage that it was able to gain
![Document Page](https://desklib.com/media/document/docfile/pages/management-business-professional-name-o-qotk/2024/09/17/748f960e-c1ae-4fcd-ba13-8e557fa0e095-page-10.webp)
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in the video streaming application business. It was one of the very first companies that came into
the video on demand service business. Netflix started its operations in 2007 when streaming
videos on mobile phones were not common. It started mainly as a video on demand site that
could be accessed from the devices such as laptops and computers. The company previously had
a DVD rental service as its core business. Some of the most important business strategies of
Netflix are internalization, localization strategy, diversification through content, marketing and
building capacity through constantly updating technology. Netflix operates in a global level and
has a diversified business offering. The company has also offered mostly original content to the
users. This has helped the company to create a unique value proposition for the customers.
Amazon strategy
Amazon as a Video on Demand Company entered the market a long time after Netflix.
The company entered the entertainment industry through its first venture called the Fire
TV.Netflix has already been successful with the video services they were offering. Cheaper
internet services available for the target customer base made it much easier for the company to
spread their business. Amazon prime has been one of the biggest drivers behind the growth of e-
commerce. Millions of users took up subscription of Amazon prime subscriptions which gave it
a significant boost. One of the diversification strategies was that the company offered both video
on demand and audio on demand services. Moreover, the Amazon company effectively used its
expertise in the e-commerce services to provide add on services with the video streaming
services of Amazon prime. Amazon e-commerce services were already present across as many
as 200 countries. This created an effective platform for Amazon to sell their products. Amazon
further improved their business by buying exclusive business rights for streaming popular shows,
movies and series.
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in the video streaming application business. It was one of the very first companies that came into
the video on demand service business. Netflix started its operations in 2007 when streaming
videos on mobile phones were not common. It started mainly as a video on demand site that
could be accessed from the devices such as laptops and computers. The company previously had
a DVD rental service as its core business. Some of the most important business strategies of
Netflix are internalization, localization strategy, diversification through content, marketing and
building capacity through constantly updating technology. Netflix operates in a global level and
has a diversified business offering. The company has also offered mostly original content to the
users. This has helped the company to create a unique value proposition for the customers.
Amazon strategy
Amazon as a Video on Demand Company entered the market a long time after Netflix.
The company entered the entertainment industry through its first venture called the Fire
TV.Netflix has already been successful with the video services they were offering. Cheaper
internet services available for the target customer base made it much easier for the company to
spread their business. Amazon prime has been one of the biggest drivers behind the growth of e-
commerce. Millions of users took up subscription of Amazon prime subscriptions which gave it
a significant boost. One of the diversification strategies was that the company offered both video
on demand and audio on demand services. Moreover, the Amazon company effectively used its
expertise in the e-commerce services to provide add on services with the video streaming
services of Amazon prime. Amazon e-commerce services were already present across as many
as 200 countries. This created an effective platform for Amazon to sell their products. Amazon
further improved their business by buying exclusive business rights for streaming popular shows,
movies and series.
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Research methodology
The research methodology will act as one of the most important chapters in the research.
The following chapter will highlight the different types of processes and methods that will be
needed to ensure the conduction of the research. The major feature of the following chapter is the
systematic approach that is used to describe the exploration of the particular topic. The
description of the different processes and methods also helps in the prediction of the
phenomenon of the research that is used by the different types of the research tools. In the
following chapter, the research will evaluate the different kinds of the methodological tools that
will include the likes of the philosophical stances, research designs, research approaches along
with the selection of the type of data to be used for the research (Kumar 2019). Apart from the
providence of the above said information, the research will be also providing a clear and
transparent justification on the selection of the different kinds of the methods to be used in the
research.
The research will use the interpretivism research philosophy in order to complete the
study. The use of the interpretivism research philosophy is essential for the following research as
because interpretivism method can be said to be as the best possible method for the following
research. The use of the interpretivism method can be also useful due to a number of reasons.
The interpretivism methods will ensure the analysis of the data in a positive manner. The
interpretivism research philosophy will also act as an important tool for the identification of the
different perspectives of the research that will help analyze the secondary research methodology
in a much better manner. On the other hand, the research will be using the deductive research
MANAGEMENT
Research methodology
The research methodology will act as one of the most important chapters in the research.
The following chapter will highlight the different types of processes and methods that will be
needed to ensure the conduction of the research. The major feature of the following chapter is the
systematic approach that is used to describe the exploration of the particular topic. The
description of the different processes and methods also helps in the prediction of the
phenomenon of the research that is used by the different types of the research tools. In the
following chapter, the research will evaluate the different kinds of the methodological tools that
will include the likes of the philosophical stances, research designs, research approaches along
with the selection of the type of data to be used for the research (Kumar 2019). Apart from the
providence of the above said information, the research will be also providing a clear and
transparent justification on the selection of the different kinds of the methods to be used in the
research.
The research will use the interpretivism research philosophy in order to complete the
study. The use of the interpretivism research philosophy is essential for the following research as
because interpretivism method can be said to be as the best possible method for the following
research. The use of the interpretivism method can be also useful due to a number of reasons.
The interpretivism methods will ensure the analysis of the data in a positive manner. The
interpretivism research philosophy will also act as an important tool for the identification of the
different perspectives of the research that will help analyze the secondary research methodology
in a much better manner. On the other hand, the research will be using the deductive research
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approach as the deductive research approach can be seen as the best possible research approach
perfectly suited for the research. The deductive research approach will help the research to be
totally based on the secondary sources of information which will ensure the reliability of the
sources of the different kinds of information. The selection of the deductive research approach
will also allow the research to conduct the analysis in a proper and effective manner that can be
helpful for the success of the research. The gathering of different forms of data from different
kinds of secondary research articles is another main advantage of the following research. The use
of the selected theory and models has been used to effectively find out the issues and also the
different ways to mitigate the issues concerning the management of Netflix (Flick 2015). The
research design has also been one of the most important elements in the project. The descriptive
research design will be the best suitable for the following research as the research will involve a
deep understanding of the different factors and perspectives of the problems faced by the Netflix
management and will also analyze the different sources of mitigation of the issues. Apart from a
deep understanding, the cause and effect of the rationale of the following research will also help
to analyze the future occurrences. The ability to predict the accurate future happenings will help
the research to mitigate the issues faced by Netflix in an easy process. The samples of the
research are generally collected from a wide range of different people based on different
demographic factors like age, gender, religion, income, ethnicity and many more as such. The
research will be conducted using the systematic sampling technique in order to gather the data to
analyze the research in a proper manner. The use of the systematic probability sampling
technique helps to avoid any form of bias within the research. The data has been collected by
means of the interview transcript. The following research has used the secondary research
articles for the conduction of the research. The use of the secondary research articles has helped
MANAGEMENT
approach as the deductive research approach can be seen as the best possible research approach
perfectly suited for the research. The deductive research approach will help the research to be
totally based on the secondary sources of information which will ensure the reliability of the
sources of the different kinds of information. The selection of the deductive research approach
will also allow the research to conduct the analysis in a proper and effective manner that can be
helpful for the success of the research. The gathering of different forms of data from different
kinds of secondary research articles is another main advantage of the following research. The use
of the selected theory and models has been used to effectively find out the issues and also the
different ways to mitigate the issues concerning the management of Netflix (Flick 2015). The
research design has also been one of the most important elements in the project. The descriptive
research design will be the best suitable for the following research as the research will involve a
deep understanding of the different factors and perspectives of the problems faced by the Netflix
management and will also analyze the different sources of mitigation of the issues. Apart from a
deep understanding, the cause and effect of the rationale of the following research will also help
to analyze the future occurrences. The ability to predict the accurate future happenings will help
the research to mitigate the issues faced by Netflix in an easy process. The samples of the
research are generally collected from a wide range of different people based on different
demographic factors like age, gender, religion, income, ethnicity and many more as such. The
research will be conducted using the systematic sampling technique in order to gather the data to
analyze the research in a proper manner. The use of the systematic probability sampling
technique helps to avoid any form of bias within the research. The data has been collected by
means of the interview transcript. The following research has used the secondary research
articles for the conduction of the research. The use of the secondary research articles has helped
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13
MANAGEMENT
the research information to be valid and reliable. The main sources of the research will be
different kind of secondary journals, books, articles, research papers and internet sources.
Ethical Considerations
Ethics forms an important part of modern research. The presence of ethics is essential for
the conduction of the research. On the other hand its absence can lead to the failure of the
research. The very first and foremost need or necessity for the conduction of the research in a
disciplined and ethical manner requires the researcher to ensure the secrecy about the identity of
the managers and also their responses. The identification of the managers and their responses
needs to be kept secret in order to provide the safety and security to them. The responses or the
data collected from the managers must be protected and disclosed from other people by means of
implementing the data protection law. The research must also ensure to not force anyone to
provide selective responses as it can hamper the results of the study. There are also cases when
the researcher had tried to manipulate the responses according to a specific set of choices.
Therefore such a situation must be avoided in all respects as such a situation can change the
acceptance of the research and will lead to its cancellation. Therefore it is essential for the
researcher to stay honest and ensure the success of the research accordingly.
Planning
Timeline
MANAGEMENT
the research information to be valid and reliable. The main sources of the research will be
different kind of secondary journals, books, articles, research papers and internet sources.
Ethical Considerations
Ethics forms an important part of modern research. The presence of ethics is essential for
the conduction of the research. On the other hand its absence can lead to the failure of the
research. The very first and foremost need or necessity for the conduction of the research in a
disciplined and ethical manner requires the researcher to ensure the secrecy about the identity of
the managers and also their responses. The identification of the managers and their responses
needs to be kept secret in order to provide the safety and security to them. The responses or the
data collected from the managers must be protected and disclosed from other people by means of
implementing the data protection law. The research must also ensure to not force anyone to
provide selective responses as it can hamper the results of the study. There are also cases when
the researcher had tried to manipulate the responses according to a specific set of choices.
Therefore such a situation must be avoided in all respects as such a situation can change the
acceptance of the research and will lead to its cancellation. Therefore it is essential for the
researcher to stay honest and ensure the success of the research accordingly.
Planning
Timeline
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Gantt chart
Figure No 1: Gantt chart
Source: (As created by the Author)
MANAGEMENT
Gantt chart
Figure No 1: Gantt chart
Source: (As created by the Author)
![Document Page](https://desklib.com/media/document/docfile/pages/management-business-professional-name-o-qotk/2024/09/17/3f0a514c-3b9a-4411-96a5-0b453528f799-page-15.webp)
15
MANAGEMENT
Figure No 2: Netflix Business Model
Source: (Babones 2018)
As seen in the above figure Netflix has come a long way since its early years, when the
company was just an online DVD rental mail company. According to, Babones(2018) the
strategy taken by the management of the organization at that time was the best as the company
invested exactly in the right area as because the demand for the online stores was at a huge rise at
that particular time. Though there were high chances of Netflix not surviving the initial storm,
the company based on the clever strategies taken by the management not only survived, but was
also able to outlive other such technological powerhouses like Blockbuster, Hollywood Video
and Movie Gallery(Burroughs 2019). The discovery of the web address dot.com both shaped as
well as destroyed the sustainable future of many of the companies dealing with online
technologies. Netflix was few such companies which survived and was able to enter into new
MANAGEMENT
Figure No 2: Netflix Business Model
Source: (Babones 2018)
As seen in the above figure Netflix has come a long way since its early years, when the
company was just an online DVD rental mail company. According to, Babones(2018) the
strategy taken by the management of the organization at that time was the best as the company
invested exactly in the right area as because the demand for the online stores was at a huge rise at
that particular time. Though there were high chances of Netflix not surviving the initial storm,
the company based on the clever strategies taken by the management not only survived, but was
also able to outlive other such technological powerhouses like Blockbuster, Hollywood Video
and Movie Gallery(Burroughs 2019). The discovery of the web address dot.com both shaped as
well as destroyed the sustainable future of many of the companies dealing with online
technologies. Netflix was few such companies which survived and was able to enter into new
![Document Page](https://desklib.com/media/document/docfile/pages/management-business-professional-name-o-qotk/2024/09/17/755afcf6-bf3f-4dc5-a207-4b60e2ce622e-page-16.webp)
16
MANAGEMENT
segments in order to ensure its sustainability for the future. On the other hand the study of Daidj
and Egert(2018) has stated that the advent of the technology along with the advent in online
technology was one of the most important elements of the business. With the passage of time
large business organizations like Amazon and Wal-Mart also entered the business. However, the
Strategical prowess and the presence of a dynamic leadership quality among the organization
made the difference. The company has been able to grow their market share to 140 million
subscribers in the last 20 years which can be termed as the best possible achievement for the
business organization. For a company to attain success and ensure the best results, it is essential
for the organization to implement the business strategies in the most proper and effective
manner(De Souza 2017). The implementation of the strategy also needs the best time as the use
of the different strategies at the most suitable times has been helpful for the success of the
business.
The management of leadership along with its efficient and dynamic leadership quality has
been able to address the different issues related to the organization and has also been able to
make the organization a perfect place to ensure the success of the business in the market(De
Souza 2017). The first task to be done by the management of Netflix to establish and maintain
itself in the business market included the positioning of the brand. The very first and foremost
factor for the sustainable competitive advantage is to position the brand inside the mind of the
customer. The way to enter the mind of the customer is as follows;
a. Becoming a leader-Becoming a leader in an existing product/service category is utmost
essential for the business organization for its success(digitaltrends.com 2019). Netflix
with its unique business concept and huge experience in the following field fulfills all the
different categories.
MANAGEMENT
segments in order to ensure its sustainability for the future. On the other hand the study of Daidj
and Egert(2018) has stated that the advent of the technology along with the advent in online
technology was one of the most important elements of the business. With the passage of time
large business organizations like Amazon and Wal-Mart also entered the business. However, the
Strategical prowess and the presence of a dynamic leadership quality among the organization
made the difference. The company has been able to grow their market share to 140 million
subscribers in the last 20 years which can be termed as the best possible achievement for the
business organization. For a company to attain success and ensure the best results, it is essential
for the organization to implement the business strategies in the most proper and effective
manner(De Souza 2017). The implementation of the strategy also needs the best time as the use
of the different strategies at the most suitable times has been helpful for the success of the
business.
The management of leadership along with its efficient and dynamic leadership quality has
been able to address the different issues related to the organization and has also been able to
make the organization a perfect place to ensure the success of the business in the market(De
Souza 2017). The first task to be done by the management of Netflix to establish and maintain
itself in the business market included the positioning of the brand. The very first and foremost
factor for the sustainable competitive advantage is to position the brand inside the mind of the
customer. The way to enter the mind of the customer is as follows;
a. Becoming a leader-Becoming a leader in an existing product/service category is utmost
essential for the business organization for its success(digitaltrends.com 2019). Netflix
with its unique business concept and huge experience in the following field fulfills all the
different categories.
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17
MANAGEMENT
b. Becoming first in any kind of new project or service category-As said earlier, the
management of the business organization was the first to start the business that involved
the likes of the digital technology.
c. Niche Market- The management of the company was able to implement the niche market
strategy which had been one of the major reasons behind the success of the business
organization(digitaltrends.com 2019). The niche market strategy has helped the
management of the business organization to focus on a selected number of customers and
clients. The choice of the selected number of customer and clients has helped the
management to choose the most effective niche market strategies that was more likely to
have an impact on the customers.
d. Niche Market of Netflix- The growth of the internet and rise in the online activities and
services by the other companies in the global market was one of the most important
considerations for the business organization. The niche market of the company must have
boundless and limitless SKU’s which even a massive retail store cannot take stock. This
acts as a huge advantage for the different kinds of online stores(digitaltrends.com 2019).
Apart from this the organization has developed a potential customer base which has
helped it to attain the opportunity where the customers would someday prefer to do
online.
Apart from the above mentioned strategies the management of Netflix operates the
business based on some specific conditions. This includes the likes of;
a. Providing effective solutions to non-consumption- Users generally are averse to try
different kinds of new things or change the routine as they are afraid of the unknown
outcome. Consumers at that time had little exposure to online buying. According to the
MANAGEMENT
b. Becoming first in any kind of new project or service category-As said earlier, the
management of the business organization was the first to start the business that involved
the likes of the digital technology.
c. Niche Market- The management of the company was able to implement the niche market
strategy which had been one of the major reasons behind the success of the business
organization(digitaltrends.com 2019). The niche market strategy has helped the
management of the business organization to focus on a selected number of customers and
clients. The choice of the selected number of customer and clients has helped the
management to choose the most effective niche market strategies that was more likely to
have an impact on the customers.
d. Niche Market of Netflix- The growth of the internet and rise in the online activities and
services by the other companies in the global market was one of the most important
considerations for the business organization. The niche market of the company must have
boundless and limitless SKU’s which even a massive retail store cannot take stock. This
acts as a huge advantage for the different kinds of online stores(digitaltrends.com 2019).
Apart from this the organization has developed a potential customer base which has
helped it to attain the opportunity where the customers would someday prefer to do
online.
Apart from the above mentioned strategies the management of Netflix operates the
business based on some specific conditions. This includes the likes of;
a. Providing effective solutions to non-consumption- Users generally are averse to try
different kinds of new things or change the routine as they are afraid of the unknown
outcome. Consumers at that time had little exposure to online buying. According to the
![Document Page](https://desklib.com/media/document/docfile/pages/management-business-professional-name-o-qotk/2024/09/17/f30f2d3e-02ba-41d0-8e2d-acd5a4b15ff1-page-18.webp)
18
MANAGEMENT
research of Faklaris et al. (2016) they had this fear of buying goods of unknown quality
over the internet. But movie cassettes were pure commodities. A copy of a movie in one
store would be identical to the same movie in any other store.
b. Entry Barriers- There are different kinds of entry barriers to the organization that leads
to the barriers in entry of the business in different markets. The entry barriers have to be
removed by the organization in order to get the maximum positive results.
Competitive Advantage of Netflix
According to the study of, Lobato (2018) the investors and the shareholders of Netflix are
in a thrill ride for the last few years. Though there have been some problems now and then, the
share of the company is on an upward rise each and every time. The only reason behind such a
success lies in the fact that the management of Netflix has attained a considerable competitive
advantage that is unparalleled and tough to compete with. However, the management had to take
some steps in order to attain such a strategy. This includes, spending a healthy sum of money in
order to ensure the success of the business in the market. Netflix has been continuing to spend
huge amount of its budget content into original shows and movies that has radically changed the
user content of the popular site and has shown a huge increase in the number of years(Oideet al.
2017). Apart from this, the strategy behind the production of owns original web series has been
helpful as the management of Netflix has shifted from their original strategy to license content
under ownership of other studios. Though the strategy has been proven right in the last few
years, experts in the market believe that a huge outburst of people will be happening in the
coming years which will make them even more powerful than their current position(Joseph Borst
and Reiman 2016). There will be an inflection point a few years down the road when this
strategy starts to pay figurative dividends, driving enough member growth and loyalty to
MANAGEMENT
research of Faklaris et al. (2016) they had this fear of buying goods of unknown quality
over the internet. But movie cassettes were pure commodities. A copy of a movie in one
store would be identical to the same movie in any other store.
b. Entry Barriers- There are different kinds of entry barriers to the organization that leads
to the barriers in entry of the business in different markets. The entry barriers have to be
removed by the organization in order to get the maximum positive results.
Competitive Advantage of Netflix
According to the study of, Lobato (2018) the investors and the shareholders of Netflix are
in a thrill ride for the last few years. Though there have been some problems now and then, the
share of the company is on an upward rise each and every time. The only reason behind such a
success lies in the fact that the management of Netflix has attained a considerable competitive
advantage that is unparalleled and tough to compete with. However, the management had to take
some steps in order to attain such a strategy. This includes, spending a healthy sum of money in
order to ensure the success of the business in the market. Netflix has been continuing to spend
huge amount of its budget content into original shows and movies that has radically changed the
user content of the popular site and has shown a huge increase in the number of years(Oideet al.
2017). Apart from this, the strategy behind the production of owns original web series has been
helpful as the management of Netflix has shifted from their original strategy to license content
under ownership of other studios. Though the strategy has been proven right in the last few
years, experts in the market believe that a huge outburst of people will be happening in the
coming years which will make them even more powerful than their current position(Joseph Borst
and Reiman 2016). There will be an inflection point a few years down the road when this
strategy starts to pay figurative dividends, driving enough member growth and loyalty to
![Document Page](https://desklib.com/media/document/docfile/pages/management-business-professional-name-o-qotk/2024/09/17/784d68fc-846b-4621-8ff2-85af75b3083d-page-19.webp)
19
MANAGEMENT
outweigh the new content costs. According to, Lindholm(2019) Tax-saving accounting tricks,
like depreciation and amortization, don't figure into this entirely cash-driven tactics. The
company has also been careful on the selection of the contents as because contents have been the
key for the success of the organizations in the last few years.
Figure 1: Netflix being the first choice for the Americans
Source: (netflix.com 2019)
MANAGEMENT
outweigh the new content costs. According to, Lindholm(2019) Tax-saving accounting tricks,
like depreciation and amortization, don't figure into this entirely cash-driven tactics. The
company has also been careful on the selection of the contents as because contents have been the
key for the success of the organizations in the last few years.
Figure 1: Netflix being the first choice for the Americans
Source: (netflix.com 2019)
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MANAGEMENT
Figure 2: User Base of Netflix of VoD
Source: (Johnson 2018)
Amazon Prime and others vs. Netflix
Figure 3: Netflix vs. Hulu and Amazon
Source: (Huang et al. 2015)
The above figure is a clear example of the situation in the current market for all the three
different video streaming companies. While Hulu and Amazon has made just $1.5billion and $17
billion revenue respectively, the whooping amount of revenue earned by Netflix clearly
determines its strength in the market and ascertains it’s superiority in the video streaming market
of the globe. Though Amazon and Hulu is priced cheaper than Netflix, the sheer content size and
the availability of different languages and contents makes it the winner in all
categories(amazon.com 2019). Apart from the above mentioned perspectives of comparison, the
presence of advantages of availability and adaptability to different media sources makes Netflix
the winner again. According to, Gonzalez(2017) the channel is available in all different media
MANAGEMENT
Figure 2: User Base of Netflix of VoD
Source: (Johnson 2018)
Amazon Prime and others vs. Netflix
Figure 3: Netflix vs. Hulu and Amazon
Source: (Huang et al. 2015)
The above figure is a clear example of the situation in the current market for all the three
different video streaming companies. While Hulu and Amazon has made just $1.5billion and $17
billion revenue respectively, the whooping amount of revenue earned by Netflix clearly
determines its strength in the market and ascertains it’s superiority in the video streaming market
of the globe. Though Amazon and Hulu is priced cheaper than Netflix, the sheer content size and
the availability of different languages and contents makes it the winner in all
categories(amazon.com 2019). Apart from the above mentioned perspectives of comparison, the
presence of advantages of availability and adaptability to different media sources makes Netflix
the winner again. According to, Gonzalez(2017) the channel is available in all different media
![Document Page](https://desklib.com/media/document/docfile/pages/management-business-professional-name-o-qotk/2024/09/17/95f4e24d-4e0d-43af-9eb7-3a4cb37b4800-page-21.webp)
21
MANAGEMENT
devices as well as some cable boxes. Apart from this Netflix has a great functionality and it is
relatively much easier to find out the contents. The website also has the capability to suggest
contents to people according to the choices of the different customers. Over the years the
company has changed its algorithm, dropping 5-star ratings for a thumbs up system, and in the
process, it seems to find a way to push its own content above all others(Hiller 2017). On the
other hand, we love the fact that its interface is universal regardless of device or brand, including
HDTVs, gaming consoles, Rokus, and Blu-ray players, so you won’t have to learn to use a new
interface.
References
Aguiar, L. and Waldfogel, J., 2018. Netflix: global hegemon or facilitator of frictionless digital
trade?. Journal of Cultural Economics, 42(3), pp.419-445.
Amazon.com. (2019). Amazon.com: Amazon Prime. [online] Available at:
https://www.amazon.com/gp/prime [Accessed 23 Apr. 2019].
Anon, (2019). [online] Available at: https://www.trustedreviews.com › Opinion [Accessed 23
Apr. 2019].
Araujo, J., Oliveira, F., Matos, R.D.S., Torquato, M., Ferreira, J. and Maciel, P.R.M., 2016.
Software Aging Issues in Streaming Video Player. JSW, 11(6), pp.554-568.
MANAGEMENT
devices as well as some cable boxes. Apart from this Netflix has a great functionality and it is
relatively much easier to find out the contents. The website also has the capability to suggest
contents to people according to the choices of the different customers. Over the years the
company has changed its algorithm, dropping 5-star ratings for a thumbs up system, and in the
process, it seems to find a way to push its own content above all others(Hiller 2017). On the
other hand, we love the fact that its interface is universal regardless of device or brand, including
HDTVs, gaming consoles, Rokus, and Blu-ray players, so you won’t have to learn to use a new
interface.
References
Aguiar, L. and Waldfogel, J., 2018. Netflix: global hegemon or facilitator of frictionless digital
trade?. Journal of Cultural Economics, 42(3), pp.419-445.
Amazon.com. (2019). Amazon.com: Amazon Prime. [online] Available at:
https://www.amazon.com/gp/prime [Accessed 23 Apr. 2019].
Anon, (2019). [online] Available at: https://www.trustedreviews.com › Opinion [Accessed 23
Apr. 2019].
Araujo, J., Oliveira, F., Matos, R.D.S., Torquato, M., Ferreira, J. and Maciel, P.R.M., 2016.
Software Aging Issues in Streaming Video Player. JSW, 11(6), pp.554-568.
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22
MANAGEMENT
Babones, S., 2018. Netflix & Amazon battle for a piece of India’s 500M smartphone audience,
but which strategy will pay off?.
Burroughs, B., 2019. House of Netflix: Streaming media and digital lore. Popular
Communication, 17(1), pp.1-17.
Daidj, N. and Egert, C., 2018. Towards new coopetition-based business models? The case of
Netflix on the French market. Journal of Research in Marketing and Entrepreneurship, 20(1),
pp.99-120.
De Souza, A., 2017. Amazon Prime Video's Strategy to Grab Audiences from Netflix: Pay top
Dollar for Top Programmes.
Digital Trends. (2019). Netflix vs. Hulu vs. Amazon Prime | Streaming Services Compared |
Digital Trends. [online] Available at: https://www.digitaltrends.com/home-theater/best-on-
demand-streaming-services/ [Accessed 23 Apr. 2019].
Faklaris, C., Cafaro, F., Hook, S.A., Blevins, A., O'Haver, M. and Singhal, N., 2016, September.
Legal and ethical implications of mobile live-streaming video apps. In Proceedings of the 18th
International Conference on Human-Computer Interaction with Mobile Devices and Services
Adjunct (pp. 722-729). ACM.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Gonzalez, R.A.M., 2017. The Nostalgia Economy: Netflix and New Audiences in the Digital
Age.
MANAGEMENT
Babones, S., 2018. Netflix & Amazon battle for a piece of India’s 500M smartphone audience,
but which strategy will pay off?.
Burroughs, B., 2019. House of Netflix: Streaming media and digital lore. Popular
Communication, 17(1), pp.1-17.
Daidj, N. and Egert, C., 2018. Towards new coopetition-based business models? The case of
Netflix on the French market. Journal of Research in Marketing and Entrepreneurship, 20(1),
pp.99-120.
De Souza, A., 2017. Amazon Prime Video's Strategy to Grab Audiences from Netflix: Pay top
Dollar for Top Programmes.
Digital Trends. (2019). Netflix vs. Hulu vs. Amazon Prime | Streaming Services Compared |
Digital Trends. [online] Available at: https://www.digitaltrends.com/home-theater/best-on-
demand-streaming-services/ [Accessed 23 Apr. 2019].
Faklaris, C., Cafaro, F., Hook, S.A., Blevins, A., O'Haver, M. and Singhal, N., 2016, September.
Legal and ethical implications of mobile live-streaming video apps. In Proceedings of the 18th
International Conference on Human-Computer Interaction with Mobile Devices and Services
Adjunct (pp. 722-729). ACM.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Gonzalez, R.A.M., 2017. The Nostalgia Economy: Netflix and New Audiences in the Digital
Age.
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23
MANAGEMENT
Hiller, R.S., 2017. Profitably bundling information goods: Evidence from the evolving video
library of Netflix. Journal of Media Economics, 30(2), pp.65-81.
Huang, T.Y., Johari, R., McKeown, N., Trunnell, M. and Watson, M., 2015. A buffer-based
approach to rate adaptation: Evidence from a large video streaming service. ACM SIGCOMM
Computer Communication Review, 44(4), pp.187-198.
Johnson, D., 2018. Reluctant Retailing: Amazon Prime Video and the Non-Merchandising of
Kids' Television. Film Criticism, 42(2).
Joseph, V., Borst, S. and Reiman, M.I., 2016. Optimal rate allocation for video streaming in
wireless networks with user dynamics. IEEE/ACM Transactions on Networking (TON), 24(2),
pp.820-835.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Lindholm, J., 2019. The Netflix-ication of sports broadcasting.
Lobato, R., 2018. Rethinking international TV flows research in the age of Netflix. Television &
New Media, 19(3), pp.241-256.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Netflix.com. (2019). Netflix United Kingdom – Watch TV Programmes Online, Watch Films
Online. [online] Available at: https://www.netflix.com/ [Accessed 23 Apr. 2019].
MANAGEMENT
Hiller, R.S., 2017. Profitably bundling information goods: Evidence from the evolving video
library of Netflix. Journal of Media Economics, 30(2), pp.65-81.
Huang, T.Y., Johari, R., McKeown, N., Trunnell, M. and Watson, M., 2015. A buffer-based
approach to rate adaptation: Evidence from a large video streaming service. ACM SIGCOMM
Computer Communication Review, 44(4), pp.187-198.
Johnson, D., 2018. Reluctant Retailing: Amazon Prime Video and the Non-Merchandising of
Kids' Television. Film Criticism, 42(2).
Joseph, V., Borst, S. and Reiman, M.I., 2016. Optimal rate allocation for video streaming in
wireless networks with user dynamics. IEEE/ACM Transactions on Networking (TON), 24(2),
pp.820-835.
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MANAGEMENT
Oide, M., Takahashi, A., Abe, T. and Suganuma, T., 2017. User-Oriented Video Streaming
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MANAGEMENT
Oide, M., Takahashi, A., Abe, T. and Suganuma, T., 2017. User-Oriented Video Streaming
Service Based on Passive Aggressive Learning. International Journal of Software Science and
Computational Intelligence (IJSSCI), 9(1), pp.35-54.
Rezende, C., Boukerche, A., Ramos, H.S. and Loureiro, A.A., 2015. A reactive and scalable
unicast solution for video streaming over VANETs. IEEE Transactions on Computers, 64(3),
pp.614-626.
Roberts, R., 2017. Live TV, Netflix, Amazon, the Universe!. In Mastering Media with the
Raspberry Pi (pp. 209-216). Apress, Berkeley, CA.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Venkatesan, R., Shively, D. and Venkatesan, R., 2017. Netflix, Inc.: The Customer Strikes
Back. Darden Business Publishing Cases, pp.1-7.
Wayne, M.L., 2018. Netflix, Amazon, and branded television content in subscription video on-
demand portals. Media, Culture & Society, 40(5), pp.725-741.
Wenzel, P., Mahle, I. and Pätzmann, J.U., 2016. Streaming Services & Service Design: An
Analysis of Netflix and Amazon Video Based on the Gap Model by Parasuraman, Berry &
Zeithaml. Markenbrand, 5(5/2016), pp.20-31.
Yi, S., Li, C. and Li, Q., 2015, June. A survey of fog computing: concepts, applications and
issues. In Proceedings of the 2015 workshop on mobile big data (pp. 37-42). ACM
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