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Increase in consumer ownership of streaming devices0.1040.403.Increase in opportunities to expand globally0.0630.184.Continued opportunities to develop original content0.0640.245.Constant release of new content such as films and television programs0.0440.166.New licensing opportunities0.0430.127.Failure of competitive forces such as Redbox's Redbox Instant0.0230.068.Continuing popularity of original programs0.0440.169.Lower cost of purchasing televisions0.0230.0610.Increase in demand for streaming video0.0440.16ThreatsWeightRatingWeightedScore1.New net neutrality rules0.0220.042.Loss of contracts to competitors0.1020.203.Faster international success on the part of some competitors0.0420.084.Desire on the part of established organizations to stream video online0.0230.065.Partially-free streaming services such as Hulu0.0220.046.Overreliance on outside entities such as internet providers0.0220.047.Large corporations are entering the industry0.0830.248.Swift decline in DVD rentals0.1020.209.Emergence of rental kiosks such as Redbox0.0630.1810.Video-on-demand offerings by cable television providers0.0230.06TOTALS1.003.08Appendix C: SWOT Bivariate Strategy MatrixStrengthsWeaknesses
1. Convenience2. Swift domestic growth3. High-quality selection of independent films4. Strong value5. Original content quality6. Emphasis placed on film ratings by customers7. Customer retention strategy8. Ease-of-use9. Utilization of emerging technologies10. Strategic partnerships1. Slow international growth2. Impediments to international market participation3. Loss of exclusivity contract with Epix to Amazon.com4. Decline in DVD-by-mail subscriptions5. Expired contracts with Sony and Starz6. Difficulty with raising subscription prices7. Significant cost of acquiring content8. Slowing domestic subscriber growth9. Internet connectivity issues10. Questionable response to new net neutrality rulesOpportunitiesSO StrategiesWO Strategies1. Decline in cable television subscriptions2. Increase in consumer ownership of streaming devices3. Increase in opportunities to expand globally4. Continued opportunities to develop original content5. Constant release of new content such as films and television programs6. New licensing opportunities7. Failure of competitive forces suchas Redbox's Redbox Instant8. Continuing popularity of original programs9. Lower cost of purchasing televisions10. Increase in demand for streaming video1. Focus on leveraging opportunitiesfor expansion (S2, O3)2. Continue to focus emphasis on thedevelopment and marketing of original content (S5, O4)3. Continue to utilize customer-supplied data to better serve subscriber needs (S6, O5)4. Provide incentives for recently-