Analysis of Netflix Digital Disruptive Tools and Competitor Comparison

This report provides a comprehensive analysis of Netflix's digital disruptive tools, examining how the company has revolutionized the entertainment industry. It begins with an introduction to Netflix and its business model, followed by an exploration of the digital tools employed, such as web-based video and AI-powered algorithms for personalized recommendations. The report then delves into a detailed discussion, comparing Netflix's strategies and offerings with those of its major competitors, Amazon Prime Video and Hulu, focusing on aspects like pricing, features, and device compatibility. The analysis highlights the advantages and disadvantages of each streaming service. The report concludes with a summary of the findings and recommendations for Netflix's future development, based on the competitive landscape and the evolving digital environment. The report uses academic references to support the findings and analysis.

REPORT WRITING ON
NETFLIX DIGITAL
DISRUPTIVE TOOLS USED BY
THE COMPANY AND
COMPARISON WITH ITS
COMPETITORS AMAZON
AND HULU

Table of Contents
INTRODUCTION...........................................................................................................................3
COMPANY BACKGROUND........................................................................................................3
FINDINGS.......................................................................................................................................3
DISCUSSION..................................................................................................................................4
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Netflix is termed out as company that offers shows, television and DVDs with help of
mail to subscribers address for a month (McDonald and Smith-Rowsey, 2016). This is mainly
aimed at bringing improvement in varied aspect of business. It can be called as flowing service
that offers members to watch the wide range of award winning TV shows, documentaries and
also has various internet connected devices. The present report is based on topic as Netflix digital
disruptive tools used by the company to undertake the analysis with its competitors amazon and
Hulu. Furthermore, report will undertake the analysis of digital disruptive tools. Also, discussion
will be given on the usage of digital disruptive tools. Lastly, recommendation will be given on
the basis of findings.
COMPANY BACKGROUND
Netflix overview has established in the year 1997. This is global organisation that has
internet delivery of TV shows and movies. Currently, membership of Netflix is now on top 50
million in almost 50 countries. It is provides that offers the wide range of commercial free
television shows etc.
FINDINGS
Digital disruption is termed out as change that can be occurred when new digital
advancement and business impacts value proposition of existing good and services. Thus,
advancement of digitalisation has affect the each enterprise. Netflix can be taken as the best
example of digital evolution of company (Lobato, 2019). Over the years, techniques has
dramatically changed all over scenario. Netflix is one of the well known serial disruptor that used
in the modern corporate history.
Therefore, Netflix has used the digital disruptive tool as Web based video. It is termed
out as to well known and continuous to be revolutionize the way individuals watch the television
and movies. Hence, the one of the main advancement of this is that Netflix allows to viewers to
show commercial and shows at their own time schedules (Shattuc, 2020). So, Netflix can be
termed out as one of the great example of disruptive innovation. This is DVD by mail model and
this turned the video rental business on its head and also assisted to push an industry titan,
blockbuster into bankruptcy. Therefore, the digital transformation of Netflix has offered wide
range of affordability, availability and accessibility to under served consumers.

Illustration 1: Netflix continuous to grow internationally
(Source: How Netflix uses big data to create content and enhance user
experience, 2020 )
Netflix was one of those company that use internet techniques to drive nearly its entire
business models. In addition to this, the online business model allowed the Netflix to gather the
huge data on its customers. Thus, digital tool as AI powered algorithm has created personalised
recommendation for the each user and this is based on preferences, demographics, history and
ratings. It also understand the needs of customers and take steps to constantly be innovating
(Burroughs, 2019).
However, Netflix uses the data processing software and traditional business intelligence
tool such as Hadoop and Teradat. This also has their open source solutions such as lipstick and
genie that collects and process big amount of information. It is the platform that has influence the
decision that shows that what content aids to create and promote to the viewers. Hence, this can
be stated that in business theory disruptive innovation is kind of innovation that is creates the
new market and value in the eyes of customers (Stein, Mongeau and Veluscek, 2019). With the
33 million users, Netflix is feast data that offers the unparalleled insights into the subscriber and
this shows up the viewing habits of the customers. Due to this feature, Netflix can be defined as
the broadcast television in its disruptive innovation.

DISCUSSION
Netflix comparison with its competitors Amazon and Hulu-:
The video services such as Netflix, Hulu and Amazon prime offers the wide range of
television programme and movies that already aired and premiered in the theatres (Fragua,
2019). In addition to this, there are number of networks that have formed their own platform in
terms to reach out consumer through digital technologies. Thus, differentiation of media
providers will be taken in the following manner as-:
Price-:
This makes the huge variation when its comes to choose streaming media service. Henceforth,
the all of the services are priced quite reasonably.
 Netflix- The cost of this is nearly $8 for the streaming membership. In order to access the
full digital library the additional cost has to be given and i.e. $8.
 Hulu plus- This is also cost approximately $8 per month. It is innovation that offers the
free version with the limited choice and also has less episodes of shows.
 Amazon prime- It is media service provides that charges about $99 per year for a
membership and this equal to the $8.25 each month. This is quite similar to above two
providers. Henceforth, additional benefits will be given and this is inclusive of two day
shipping in terms to purchase made on Amazon.com.
Plan and trials- There is no need to make immediate choice to specific one provider. Thus, test
drive can be taken to see which one need to prefer.
 Netflix- It offers the 30 day free trial membership. Although, there is need to provide the
debit or credit card number. After a free trial the plan can be cancelled with phone or
online. Else, the charges will start to get deducted after a trial of a month. It offer three
types of plan. Hence, the most basic plan is that it offers unlimited streaming for $7.99
each month (Fragua, 2019). There is addition delivery of DVD at a time. If an individual
prefers to check two DVD at a time that it cost around $11.99 per month. However, it is
the only company that offers the rental DVD and if any individual do not wish to
subscribe for streaming services that he can sign up for plan of DVD.
 Hulu plus- It provides trail period of one week. If service is not likeable that plan can be
cancel before the week is about to up. Else, automatically charges will be deducted for
full month. It is provides that offers three month free subscription with coupon code.

 Amazon prime- It is provider that offer free 30 days trial period. However, credit or
debit card number must be provided. Thus, the trial will be end after 30 days. Individual
do not get charged for a membership. It only offers one tier of pricing and service.
Features- The each media service provider has unique features that makes them attractive to
audience.
 Netflix- It offers the commercial free platform and also has the ability to rate the certain
titles and to achieve the personalised recommendation for films and shown that is based
on past rating.
 Hulu plus- This has limited commercial during the shows and movies. It has the feature
that provides the newer selection of movies and TV series than its competitors.
 Amazon prime- It offers the commercial free TV and movies. Thus, one of the best
feature of this provides is that this has free shipping and exclusive discount and sales at
Amazon.com. It is also included with membership (Fragua, 2019).
Compatible device-
 Netflix- This provides has most compatibility. In this, an individual is allowed to watch
via PC, PS3, Android, Roku, Blu-ray player and devices as IOS.
 Hulu plus- It also offers the compatibility and support for wide range of same devices
that Netflix does. Unfortunately, this is media provider that currently lacks the
compatibility for internet ready TVs and Blu-ray players. Amazon prime- This do not have huge volume of compatibility. It is slowly building its
network. It allows to watch shows via internet ready, TV, Blu-ray player etc.
Herein, the pros and cons of each service can be defined in following context as-:
 Netflix- It offers the huge selection. This is most expensive among the three options. If
an individual is settle on membership than it includes delivery of DVD.
 Hulu plus- It updates the episodes of TV faster. This media provides do not provide any
title selection as large as Netflix.
 Amazon prime- This media provider is growing at rapidly and also one of the cheapest
service available. It do not offers the feature that is as extensive as other two services.
Also, it provides the membership benefits that others do not.

CONCLUSION
From the above report, it can be summarized that Netflix can be termed out as the media
service provides that allows to show wide range of shows to customers. Thus, report has covered
the analysis on digital tools used by Netflix. Also, comparison of Netflix has been carried out
with its competitors amazon and Hulu. Lastly, recommendation has been given on the basis of
findings.
RECOMMENDATION
 This provider must have suggestions box for the potential films rather than TV series.
 Netflix must offers the individual ratings for the each season of TV series.
 It should provide notification in terms to expiry date about when certain films and TV
shows are leaving Netflix.

REFERENCES
Books and journals
McDonald, K. and Smith-Rowsey, D. eds., 2016. The Netflix effect: Technology and
entertainment in the 21st century. Bloomsbury Publishing USA.
Lobato, R., 2019. Netflix nations: The geography of digital distribution. NYU Press.
Shattuc, J., 2020. Netflix, Inc. and Online Television. A Companion to Television, pp.145-164.
Burroughs, B., 2019. House of Netflix: Streaming media and digital lore. Popular
Communication. 17(1). pp.1-17.
Stein, J.B., Mongeau, P. and Veluscek, A., 2019. Netflix and chill?: Exploring and refining
differing motivations in friends with benefits relationships. The Canadian Journal of
Human Sexuality. 28(3). pp.317-327.
Fragua, A.P., 2019. Netflix Nations. The Geography of digital distribution: by Ramon Lobato,
New York, New York University Press, 2019, 235 p., 25.00(Paperback), 89 (Hardcover),
ISBN: 978-1-479-84151-6.
Online
How Netflix uses big data to create content and enhance user experience . 2020 .[Online].
Available through: <https://www.clickz.com/how-netflix-uses-big-data-content/228201/>
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