high cost of content licensing, therefore Netflix had no choice other than adding original
programing to its streaming offering (Ferrell and Hartline, 2014).
Netflix can acquire online video content through licensing agreements with studios and as a
result, Netflix does not have any influence on its suppliers (Ferrell and Hartline, 2014).
studies maintain full control over their productions and the quality of their product therefore can
control the terms and conditions with Netflix (Ferrell and Hartline, 2014).
Compared to Hulu
and Amazon, Netflix’s position is rather weak.
Netflix has started to create original programming and compete head on with the major studios
because they do have licenses to other original programming (Ferrell and Hartline, 2014). Netflix
has experimented with adding original programming to its streaming service (Ferrell and
The program received a large enough audience that declared the trial a success
(Ferrell and Hartline, 2014).
The Netflix exclusive programs included House of Cards and
Orange is the New Black (Collider Staff, 2016).
Both of these have been very successful mini-
series even by the larger studio standards (Collider Staff, 2016).
Netflix has proven that it can
be successful in the production of original movies and mini-series using their own original
It is up to Netflix to collect detailed information from its audience to know what they
watch and what they like in programming (Molofsky, 2015).
If Netflix will keep on the cutting
edge of technology and unique original programing, they should be around for a very long time.
Ferrell, O. C., & Hartline, M. D. (2014). Marketing Strategy: Text and Cases (6th ed.). Mason,
OH: SouthWestern/Cengage Learning.
Grotta, A. (2015). Netflix: Finding the Next Hit Business Model. Harvard Business School.