Opportunities Despite the aforementioned weaknesses Netflixs future appears to

Opportunities despite the aforementioned weaknesses

  • Liberty University
  • BUSI 690
  • Essay
  • magpie2015
  • 16
  • 96% (69) 66 out of 69 people found this document helpful

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Opportunities Despite the aforementioned weaknesses, Netflix’s future appears to be bright. This is due to the fact that the firm has multiple opportunities to continue to grow and thrive. It is important to note that cable television subscriptions continue to decline (Lee, 2014). This decline creates additional opportunities for Netflix to attract individuals who desire to view films and television programs that they would otherwise view on cable television for a fraction of the cost of a cable television subscription. Furthermore, Netflix has the opportunity to take advantage of the reality that more consumers own streaming devices (Gross, 2014). These consumers are able to use devices such as the iPhone and iPad to watch streaming content. Netflix can now reach these consumers directly through these types of devices. Netflix also benefits from the fact that new content is always being released. New films and television programs complement the organization’s offering of independent and older films. In addition, the firm has the opportunity to expand upon its current selection of original content. Although one of the Netflix’s weaknesses was revealed when the organization lost its exclusivity contracts with Epix and Starz, the firm continued development of successful original series is difficult for competitors to emulate. Threats Netflix faces several challenging threats to its future ability to sustain their competitive advantage. Amazon.com and its Amazon Prime subscription streaming service provides customers with the opportunity to stream thousands of movies and television episodes (Napoli, 2014). HBO is set to launch an online streaming service in 2015 titled HBOGO (Napoli, 2014). The service is unique in that it does not require an HBO television subscription and is also in possession of a large catalogue of original titles (Napoli, 2014). A new threat to Netflix has
arrived in the form of Coinstar’s kiosk service Redbox (Pepitone, 2012). The leaders of Netflix have acknowledged that kiosks will be the firm’s most significant competitor (The Associated Press, 2009). In addition to a significant increase in competition, Netflix is facing scrutiny in the aftermath of the approval of new net neutrality rules. Fung (2014) reports that Netflix’s chief financial officer decried the new rules after the company initially “led the charge on aggressive regulations for Comcast, Verizon and other broadband companies.” This apparent contradiction has not generated positive publicity for the firm. It should also be noted that, regardless of the political position of the organization, the federal government’s attempt to enforce net neutrality rules is a threat to any corporation that does business on the internet (Dorfman, 2014).

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