5-2 Final Project Milestone Three - Costs of Production-Overall Market-Recommendation.docx

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Running head: NETFLIX REVOLUTIONIZED ENTERTAINMENT1Netflix Revolutionized EntertainmentMargaret FuentesSouthern New Hampshire University
Netflix Revolutionized Entertainment2Netflix Revolutionized EntertainmentIn an effort to explore the competitive value of Netflix, we will analyze services andgoods produced, opportunity costs and trade-offs, comparative advantage and trade. Further,we will uncover the influences of demand and supply on the market. The streaming industryhas become a very competitive market. Hulu, with its instant access to current TV shows,Amazon Prime, with its free shipping and streaming movies and TV shows. Not to mentionmore players entering the arena, YouTube, and Apple TV. Taking all these elements intoconsideration, we will be able to determine if Netflix has competitive value in the market.About Netflix Inc.Netflix, started in 1997 by co-founders, Reed Hastings and software executive MarcRandolph. Netflix became a publicly traded company in 2002 (NFLX), with six hundredthousand members. Currently, Netflix, has more than 150 million members in over 190 coun-tries. It has risen as the top internet entertainment service company in the world. Netflix pro-vides a wide range of TV shows, documentaries, and feature films in a variety of genres andlanguages. The main attraction is the no commercial feature, play anytime, anywhere there’sinternet connection, and no contracts for streaming services. Another feature is the ability towatch shows on your computer, smartphone, gaming consoles, and other internet connecteddevices. Netflix has earned its accolades with the removal of commercials and stringent timerestraints on people’s favorite shows. This empowered the consumer to watch their favoriteshow whenever it is convenient for them. Netflix, has opened the doors to millions of homes,and will continue to be a welcomed guest for a very long time.
Netflix Revolutionized Entertainment3Supply and Demand ConditionsAt Netflix inception, DVD rentals were their biggest demand. Members would choosemovies and television series, which were mailed directly to their homes. This became the pre-ferred method instead of going to a brick and mortar store. Netflix sales soared in their onlineDVD rental subscriptions, by quickly reacting to market changes. Netflix analyzed in 1997,that people will begin to move away from the VHS demand to DVDs. This foresight, broughtdown the biggest giant of the VHS industry, Blockbuster. In 2010, Blockbuster was down toone store, and filed for bankruptcy. Today, Netflix is worth ten times that of Blockbuster in itsprime (Fiegerman, 2018).Netflix, has continued to maintain a strong customer base, even after increasing itsprices in 2007. Online DVD rentals have catapulted Netflix as a leader in the industry. DVDrentals, are inexpensive starting at $7.99 for a monthly subscription of one DVD at a time.

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Term
Winter
Professor
Bohan

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