Challenges and Strategy of Netflix: A Case Study

This case study examines the challenges faced by Netflix, including competition from the cable television industry and high content costs. It also explores the key elements of Netflix's strategy, such as customer-centric approaches and global expansion. Additionally, it discusses the implications of Netflix's strategy for the cable television system and its competition with Apple, Amazon, and Google.

Netflix case study

Table of Contents
Contents
Question1: What are the challenges that Netflix faces?.........................................................1
Question 2: What are the key elements of Netflix strategy today?........................................1
Question 3: What are the implication of Netflix’s new strategy for the cable television system
like Comcast?.........................................................................................................................1
Question 4: Why is Netflix in competition with Apple, Amazon, and Google and what
strength does Netflix bring to the market?.............................................................................1
REFERENCES................................................................................................................................3

Question1: What are the challenges that Netflix faces?
Answer: There are some of the different challenges that are faced by the Netflix as like the
challenge from the much larger cable television industry that is complete different technology
based model and have selling the hundreds of the TV channel that get watched by few of the
people and have raises its monthly fees so faster as compared to the rate of inflation. In the year
2017 it is the first time when the people were start using OTT streamline services that get used to
exceed the streaming services of the cable TV operators (Daidj, 2018). Thus in this Netflix get
the larger audience for streamline and make some new collaboration with the Hollywood and
New York as they are also looking forward for the different ways to distribute windows in this
Netflix get the similar treatment as like the cable system. In this the cable industry forced to
retreat the channel that are used to watch by the people and get select only the ability channels.
In this Netflix faces a challenge to produce their own original TV drama, documentation, adds
comedy and its mixture etc.
The another challenge is that Netflix has generate and develop the poor profitability as
their content cost is very high as by purchasing the old series or the new content as well thus it is
more risky for the business to get settle with the appropriate cost and price. As the owner of the
TV cable series were also shows the similar content and in addition the Hollywood movies also
take charges from the Netflix by providing the privilege of distribution their series through
different cable operator networks. Thus in this Netflix will obligated from the streamline content
by the producers and it cost to $ 12 billion as in this %6.7 in gross revenue and $5.7 in paying
the content owners thus to make the profit is bared for the Netflix. As Netflix is the deliverable
and database platform and have perform the continuous bidding as compared to the cable
operator and the internet giants (Dizon, 2018). The public also get attracted towards the popular
TV serials but the content owner didn’t get recognised and added as the blacklist otherwise have
set the price accordingly. Netflix has paying Paramount, Disney, Lionsgate a million of amount
to get the license of hit movies and shows thus the content owner charges more so as to cable
shows thus it become riskier for the Netflix to develop their own series.
Question 2: What are the key elements of Netflix strategy today?
Answer: Netflix has stand out as the most powerful and impactful strategy as they have
came out as internet brand in today market but with that in parallel get fight with a lot of
competitors as well but have used the most simple and technique didn’t get worked for the
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advanced and unique technological advancement but always focus about what is more easier for
the customers. The streaming technology of Netflix is easily understood and widespread as with
this they get more success and that is achieved by giving the better competition to the most well
known organisation as like Yahoo, Google, Amazon, Apple and the other content producer in the
framework as well as like Hulu and HBO (Dwyer, 2018). As they have deeply understand the
need and demand of the large number of customer with that possibly try to make the suitable
changes that is completely based on the customer centric approaches. They have added the
content stories by making the suitable collaboration with the different content service provider
and with this in the initial stage they have gone through with the tough competition but it is also
be more acknowledged by the market as they have been constantly bring the newness either by
gaining the profit or by loss as well. As in starting they have start to mail the older Hollywood
movies by using the postal system and then switch it up to the subscription model as in that the
customer receives the DVD on continuous basis and that is for a monthly fee. After that Netflix
try to work on the video on demand services of the streaming as from that in the year 2017
Netflix become the largest player in the market of TV service streamline and covers the 30% of
the US bandwidth. Netflix will furthermore become more popular and well recognised as in
terms of pipeline the large audience by providing both the content and the own pipe deliver as
well. The dealers and the competitors of the Netflix have the very deepen roots and with that
Netflix must always get concentrate about for the up gradation in the new talent and the
production under their streamline perhaps the price pressure as well. In addition to this Netflix
has been covered the wider platform and covers all across the world and circulate the better
service with that ensure that the speed on the streamline video as the movies will get managed
and customer get more relevance by which they will keep attracted towards the Netflix for the
longer period of time.
Question 3: What are the implications of Netflix’s new strategy for the cable television system
like Comcast?
Answer: The cable television system brings a lot of challenges for the Netflix as they are
completely processed their working through the different business model and approach (Lobato,
2019). The cable TV system always try to get limited the working practices of the Netflix and for
that retreat the service that get provided to the customers as they have circulated the TV serials,
movies to the customer with the continuous basis and suddenly Netflix has introduced that could
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garb more of the targeted customers of the cable system. They have provide the ability to their
customer to select the appropriate channel and customer have to pay for that and that is actually
those that must get watched from the audience. Thus in this Netflix bring the challenge for the
cable TV system by producing their own original TV drama and add up more documentation as
well and with that they have the right towards that streamlines that persist the happy ending of
the Netflix in the Hollywood as well. In addition the owner of the cable TV system and the
Hollywood will charges the higher amount from the Netflix and that in return of the distribution
of the content stories (Mitra, 2019). As in the year 2016 they have charges the obligation
towards the Netflix to distribute the similar content thus Netflix start producing the original
content and in starting the profit generation is less but they have make the continuous bidding in
between both the cable and the internet giants and attracts the target and the potential audience.
The interest of the customer has been changes as per the time as it is more expensive and have
repeated the similar story base with that also get that on the higher amount as well. In this Netflix
pays the millions to the Disney, Paramount, MGM, Lionsgate and take the licence as well. It is
the most risky options for the business and the growth but still Netflix start developing their own
original series. The Netflix have done with the support of the Silicon Valley entrepreneur and
simply purchase the content of all across the world and can fly over from the Hollywood and
New York. In that they have with managing more concern towards the story seller, talent agent,
producer, writers, TV series, movies, plays etc and diversify its working sector that bring more
success and development.
Question 4: Why is Netflix in competition with Apple, Amazon, and Google and what strength
does Netflix bring to the market?
Answer: As Apple, Amazon, and Google have also provide the videos, movies, series,
serials and be the content producer as well like the HBO and CBS and have started the
streamline services. In this at initial Netflix has generate the negative cash flow and that is
about $1 billion in a year. Apple, Amazon, and Google are the companies and organisation that
has been well know around all across the globe and in the Apple is the leader in the streamlines
service as to download the movies and at there the customer will have to pay to rent on the
movies and make the collaboration with the iTunes and become the world’s largest online social
media store that is to purchase the music, videos and the TV series as well. The HBO is also
being the oldest and the successful TV series of US and with that having the 140 million of
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subscriber worldwide. Amazon have offers the free streamline services to their 60 million
Amazon prime customers and taken the HBO TV series without paying the extra fees. In
addition to this Amazon has worked for the original TV series production with the title “The man
in the high castle, Mozart in the jungle, Transparent and also won the 16 emmy awards as well in
the year 2016. Apple, Amazon, iTunes have more preference and shared the largest database of
the subscribers and in addition Goggle is also actively pursuing the long term content creators for
the program of them as like the video channel and didn’t take any services to the Google users
because their services get supported additionally to the customers (Lamkhede, 2019). Thus in the
Netflix ultimately can’t compete with the content producer as like the CBS and HBO and with
the Apple, Amazon, Yahoo, Hulu and Google. In this Netflix will imitated themselves as by their
competitors and it reduces the stakeholder’s tolerance and reduces the profitability and market
share as it has been shared by all. Thus Netflix has started creation and development of the
content production and manage the new world of streaming bingeing and the content production
as well. Thus Netflix have some different strength of themselves and under this they get charges
the better opportunity for the market and offer the better services to the customer and that is
based on the subscription by which the customer get more flexibility while using the services of
the Netflix with more affordable and appropriateness too.
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REFERENCES
Books and Journals
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.
Dizon, G., 2018. Netflix and L2 learning: A case study. The EuroCALL Review, 26(2), pp.30-40.
Dwyer, T. and et. al., 2018. Comparing Digital Media Industries in South Korea and Australia:
The Case of Netflix Take-Up. International Journal of Communication, 12, p.20.
Lobato, R., 2019. Netflix nations: The geography of digital distribution. NYU Press.
Mitra, G. and et. al., 2019, August. White Mirror: Leaking Sensitive Information from
Interactive Netflix Movies using Encrypted Traffic Analysis. In Proceedings of the ACM
SIGCOMM 2019 Conference Posters and Demos (pp. 122-124).
Lamkhede, S. and Das, S., 2019, July. Challenges in Search on Streaming Services: Netflix Case
Study. In Proceedings of the 42nd International ACM SIGIR Conference on Research
and Development in Information Retrieval (pp. 1371-1374).
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