Netflix case study Essay Example for Free

Netflix vitrine study EssayNetflix offers online video streaming and DVD letting services for a flat topple to all subscribers. After reed instrument Hastings, the CEO of Netflix had announced the companys new strategy of separating its online service and DVD renting services into two accounts for its subscribers, the companys stock fell to $63 per character from $300 per sh atomic number 18 and lost 805,000 subscribers in three month. Although facing so more challenges, Reed Hastings choose to keep up his new strategies, but with a sincerely apologize for the vary and a detailed explanation of wherefore they made this decision and whats in it for current subscribers. Stock price of Netflix close on yesterday was 312.40.Problems and challenges Although it seems that Netflix has recovered from the separation strategy, but there still are some problems and challenges are waiting for the company. original of all, Netflix online streaming branch is facing fierce competition from companies equal Amazon instant video, YouTube, iTunes store, and Hulu. Second, On-demand TV go are now hot area, many big-pay TV operator such as Verizon and Comcast Corp are trying to bring on-demand TV to cable users which will offer fresher content than online streaming companies like Netflix. Third of all, The DVD rental branch called Qwikster are now competing with companies like Amazon and Redbox DVD rental. From what we tolerate see in the future, DVD service may finally run out of business and how to smear the damage to Netflix is a big problem waiting for a solution.SWOTStrengthNetflix is offering a flat fee policy, which is cheaper than Amazon and iTunes users and is easier to retain current users. A very distinctive strength Netflix put one over is that Netflix is also a producer. In this years Emmy Awards, Netflix Incs groundbreaking political thriller House of Cardstook radical an award for directing. As its name shows in Emmy, Netflix may win not only an aw ard, but many potential users. Many people may position Netflix as a company provides high tone shows than other(a) video distributors.WeaknessAlthough the stock price has gone up this year and everyone now means Reed Hastings is the one sees the future, the remaining problem is how to survive with a $7.99 monthly flat fee for subscribers and at the same time spending more than $5 billion for the next five years to get TV shows and Movie License. Customers always wants more and pay less. Huge amount of spending force Netflix to perpetrate new users in a rapid speed, but attract new users itself will be some other big spending. Although the original drama house of cards generated a big buzz for Netflix, but the equal is considerable.OpportunitiesNew technologies bring opportunities to online streaming video companies. Netflix has mobile app for both Android and ios system and it works well. great deal want to access to on-demand videos more convenient by using mobile phone an d tablets. The trend of globalization gives Netflix the opportunity to climb up itself. The fourth quarter of 2012, Netflix gained 3 million new global subscribers.Threat arguing from Amazon, iTunes, Hulu, Google TV, and cable networks may pose threat to the company. BRAD BEALE, Director of digital video content learnedness of Amazon is kn consume for its ability of picking up successful shows and get the license earlier than other companies. Hulu also spend a lot on bringing new contents in. Although Netflix is cheaper, Amazon offers rationalize instant vedio to prime membership and two-day free shipping for its customers. Also, Amazon, Apple and Google now all offer their own devices for video streaming, such as Apple TV, Kindle Fire. QuestionsQ.1. A strong consumer backlash emerged in resolution to major changes in Netflixs business model. What are some of the arguments in favor of Hasting decision to rend the company? What decisions and options are available to Hastings? We re they good decisions? 2- 3 paragraphs Many believe DVD rental business is fading because of new technologies. People no longer want to wait for the DVD to arrive. rather they want on-demand video services. Slip the company bring price lower for stream only customers and it is reasonably for them to pay for cheaper price.Put in account information is easier and benefit is longer. Hastings can choose to change the company back to the old model by listening to customers and close the DVD service a couple years later when the DVD rental industry lost all the business. I think its good decisions because the financial information shows that Reed Hastings made the good decision and wins the game. The revenue grow almost half and subscribers grow even more this year. Works CitedLaporte, N. (2013, July 1). A TALE OF TWO NETFLIX. devalued Comapny , 177, pp. 31-32. Mint. (2013, September 23). Breaking Bad, Modern Family win top Emmy Awards. (H. M. Ltd., Producer) Retrieved Septemner 29, 2 013, from Mint http//search.proquest.com.rlib.pace.edu/docview/1434860801?accountid=13044 Peterson, T. (2013, September 23). 2013 MEDIA MAVENS BRAD BEALE. Advertising get on , 84 (33), p. 1. Ramachadran, S. (2013, September 20). Cable Fights to Feed Binge TV Viewers Comcast, Verizon FiOS Vie With Netflix, Amazon for Rights to award Complete Series. (Dow Jones Company Inc) Retrieved September 30, 2013, from Wall Street Journal http//search.proquest.com.rlib.pace.edu/docview/1434160601?accountid=13044View as multi-pages