Netflix Sports: Product Overview, SWOT, and Target Market Analysis

This project proposes the introduction of Netflix Sports, a new streaming service designed to offer live sports alongside its existing movie offerings. The project begins with a product overview, highlighting the growing global sports viewership and the potential for Netflix to capitalize on this trend. ...Read More

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Product Overview
According to various global reports, sports viewership around the globe has increasingly
grown from the last decade, mainly attributable to the increased technological advancement in
the sports sector. A number of companies offer these sporting activities through both online
streaming and offline (use of set boxes) viewership. Besides, the firms within this sector have
undoubtedly reaped huge amounts of profits due to the increased number of subscribers, and the
increased sporting events around the world. Therefore, to tap into the vibrant industry, I seek to
modify Netflix services to ensure that the company offers sporting services. Just like the movie
services, the company will be able to offer sports' streaming to its millions of subscribers across
the globe. Hence, by offering sports streaming, its subscribers would not only have a range of
movies to watch but also stream various sporting activities in real-time. Therefore, by providing
these services, Netflix would modify its operations to adopt sports services.
Netflix company is considered to be the world's successful streaming company that
distributes TV shows and movies of different languages and genres to over 140 million
subscribers to close to 200 countries around the globe. The company mainly creates its movie
contents. Besides, it partners with other movie producers to gain rights to distribute their
programs and contents. The company primarily operates in three segments, that is the domestic
streaming (United States), international streaming, and the domestic DVD (Netflix. (n.d.). Even
though the company has been in operation for quite some time and has increasingly increased its
number of subscribers, a more substantial part of its customer base still feels the company should
offer more services. One of these services is introducing live sports streaming. Since the
company only provides movie streaming, some of its subscribers are forced to subscribe to other
streaming channels to enable them to keep up with the numerous sporting activities across the

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globe. This has been a burden to both movie and sports lovers who have to dig deep into their
pockets to get full entertainment. Hence, Netflix Sports would help reduce the burden offering
the two streaming services under one site and at an affordable rate compared to separate
subscriptions. I believe the introduction of Netflix Sports into the market, both the domestic and
international market, would be quite a relief to most of its customer base.
SWOT Analysis of the Product
Conducting a SWOT analysis would effectively help in identifying the Strengths and
weaknesses of the product and the key strengths that would enable the company to overcome its
shortcomings. Besides, the analysis would help in identifying the opportunities in the market that
the company could take advantage of to help mitigate the possible threats in the market
(Phadermrod, Crowder & Wills, 2019).
Strengths
 Netflix is a highly valued brand
around the globe.
 Capacity to partner with giant sports
content providers.
 Large platform for content consumers.
 Netflix Inc. strong customer
experience and relations.
Weaknesses
 Imitable business brand and content
distribution.
 Dependency on other sports producers.
 Dependency on local internet service
providers.
Opportunities
 Product diversity and growth.
 Increased internationalization.
 Increased technological advancement,
such as the development of 5G
networks.
 A large number of potential new
subscribers.
Threats
 Rivalry from existing sports streaming
companies.
 Increased rates of Cybercrime.
 Threat from cheaper competitor
offerings.
Strengths: Netflix Sport's primary strength is the highly valued Netflix brand in the
global market. Hence, an introduction of the new product would undoubtedly receive an

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overwhelming number of new subscribers. Besides, the high-value brand would enable Netflix
Sports services to favorably compete with the giant sports companies such as Sky Sports, BT
Sports, Bein Sports, and NBC Sports (Reisinger, 2020). The company's increased customer base
would enable the new service to quickly penetrate the market and attract a substantial number of
viewership, both from existing and new subscribers. Moreover, Netflix Inc.'s financial strength
enables the company to strike deals with corporate sports producers, thus enabling the company
to gain streaming rights. With the strong relationship between Netflix Inc. and its customers,
leading to improved customer experience, the new service is likely to receive overwhelming
support.
Weaknesses: Netflix has a weak business model that can easily be imitated by other
content producers and service providers. Therefore, Netflix Sports services would be easily
imitated by other firms, thus leading to increased competition due to the threat of new entrants.
Besides, since the sports services would primarily depend on different service producers, the
Netflix Sports services would likely be affected by the strategies of the content producers or
disruption of their businesses. Additionally, the subscribers to the Netflix Sports streaming
services largely depend on the internet service providers within their locality. Hence, the
ineffectiveness of these internet providers would also affect the company's sports streaming
services.
Opportunities: there exist various opportunities in the sports streaming that the company
can use to its advantage to help increase the popularity of Netflix Sports. Product diversification
strategies of the company would effectively help in marketing the new product to its potential
customers. Besides, increased technological advancements would ensure that sports streaming
services are efficient enough to provide improved customer experience. Since Netflix has

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significantly internationalized its operations, the new services would quickly penetrate the global
market.
Threats: the new service's main threat is increased competitive rivalry in the sports
industry. As of today, there are several sports channels offering sports streaming services. This
rivalry is likely to impact the product's sustainability. Moreover, other competitors are offering
relatively lower prices. The other threat is increased Cybercrime that might lead to hacking-
related activities if not effective cybersecurity measures are not put in place.
Netflix Sports' Target Market
The first step of identifying the target market for the product is by conducting marketing
research and analysis of the customer information. Information concerning the targeted
consumers will be gathered by conducting interviews, customer surveys, and the analysis of
existing Netflix customers. This will be based on the analysis of the demographics and behavior
of customers (Hanlon, 2013). The Netflix Sports services target individuals of all races, ages,
gender, education, and income as long as the potential consumers are willing and able to pay for
the monthly subscription services. However, it terms of behavioral attributes, the product targets
sports lovers or both movie and sports lovers. Therefore, the lovers of both movies and sports
would have a subscription package that offers both. Besides, there will also be a package for only
sports streaming, thus targeting primarily sports lovers. The target market will also compose of
individuals with specific lifestyle attributes such as individuals having sports and entertainment
as their hobbies (Moschis, Lee & Mathur, 1997).
This market segment is quite profitable due to the large customer base that is willing and
able to subscribe to the sports streaming channels. Besides, sporting events are perceived to
attract a lot of viewership; hence, the product performance is expected to be high. Moreover, the

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sports lovers are easily identifiable since, in every ten individuals, at least eight identify
themselves with a given sporting activity. The consumers within the market segment have
similar needs within the segment hence known as homogeneous customers. These segment
criteria make the target market to be attractive since it would be easy to meet their needs and
preferences at a go.
Product Pricing
Product pricing is one of the problematic situations that product and services developers
face in their decision making since it always essential that the products are appropriately priced
to ensure profitability. There exist various strategies that can be used for product pricing. They
include cost-plus pricing, competitive pricing, and value-based pricing (Lancioni, 2005).
However, to effectively price Netflix Sports products, the competitive pricing strategy will be
involved. The competitive pricing strategy is based on the pricing of one's products based on the
prices of the competitors. The products' global competitors include Sky Sports, NBC Sports,
Bein Sports, and BT Sports, which charge between $10 to $20 monthly, depending on their
subscription packages.
Hence, to attract a large number of customers and to gain competitive advantage through
competitive pricing, Netflix Sports should be priced at $9.5 to $18, which is open to revision
depending on the economic changes. Besides, the fees are based on the two pricing plans. $9.5
pricing plans would not provide a high definition viewing and will only be accessible to one
user. Therefore, individuals who would want high definition viewing and access to a maximum
of three users should take advantage of the $12 monthly plan. For individuals who love both
sports and movies should take advantage of the $18 plan that would enable them to stream both
movies and sports. However, this plan would only be accessible to a single user. The prices

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surcharged on the subscription of the products are quite reasonable compared to those charged by
the competitors. Besides, the pricing plans offer a variety of packages that consumers can
subscribe to based on their capabilities.

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References
Hanlon, A. (2013). The Segmentation, Targeting and Positioning model. Luettavissa:
http://www. smartinsights. com/digital-marketing-strategy/customersegmentation-
targeting/segmentation-targeting-and-positioning/Luettu, 17, 2015.
Lancioni, R. A. (2005). A strategic approach to industrial product pricing: The pricing
plan. Industrial Marketing Management, 34(2), 177-183.
Moschis, G. P., Lee, E., & Mathur, A. (1997). Targeting the mature market: opportunities and
challenges. Journal of consumer marketing.
Netflix. (n.d.). Retrieved from https://www.netflixinvestor.com/ir-overview/profile/default.aspx
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, 194-203.
Reisinger, D. (2020, February 14). 5 best sports streaming sites and services. Retrieved from
https://www.forbes.com/sites/forbes-personal-shopper/2019/01/14/best-sports-streaming-
sites-and-services/