Netflix Case Analysis
NETFLIX
By Roxanne Meyer
Netflix is an American provider and the world’s leading internet subscription service of on-demand streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and Ireland and flat rate DVD-by-mail in the United States. Netflix members can instantly watch unlimited films and TV episodes streamed over the internet to more than 700 devices for about $7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the video game industry could be an option, however various factors such as competitors, viability and sustainability of the company as a whole need to be further analyzed in order to assess whether this proposal is feasible.
Competitor Analysis
AREA | NETFLIX | HULU | BlOCKBUSTER | REDBOX | market share | 55% | 35% | 5% | 5% | Subscribers | 23.6 mil | 24 mil | low | 12 mil | Brand Popularity | HIGH | LOW | MED-HIGH | MEDIUM | start date | 1998 | 2007 | 1985 | 2003 | Revenue in 2011 | 705.7 mil | 420 mil | bankrupt | 363.9 mil | Revenue increase from 2010 | 29.00% | 48% | | | Growth in customers | 30% | 50% | | 30% | (in 2011) | | | | |
Netflix 's success has inspired a number of other DVD rental companies both in the United States and abroad, but none of the purely online companies appear to approach Netflix in terms of market share or revenues as can be seen above. Hulu is a close second in terms of Market share and it can be seen that its entry into the market was nearly a decade later than that of Netflix , which places netflix in the advantageous position of the more experienced firm. The cheapest subscription fee of Netflix, Hulu and Blockbuster (online) is all around $7.99 which is an extremely competitive price and thus forces the public to choose between these online movie services based on brand, quality and popularity. With Regards to popularity in terms of Brand, netflix seems to be the leader but one has to consider
By Roxanne Meyer
Netflix is an American provider and the world’s leading internet subscription service of on-demand streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and Ireland and flat rate DVD-by-mail in the United States. Netflix members can instantly watch unlimited films and TV episodes streamed over the internet to more than 700 devices for about $7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the video game industry could be an option, however various factors such as competitors, viability and sustainability of the company as a whole need to be further analyzed in order to assess whether this proposal is feasible.
Competitor Analysis
AREA | NETFLIX | HULU | BlOCKBUSTER | REDBOX | market share | 55% | 35% | 5% | 5% | Subscribers | 23.6 mil | 24 mil | low | 12 mil | Brand Popularity | HIGH | LOW | MED-HIGH | MEDIUM | start date | 1998 | 2007 | 1985 | 2003 | Revenue in 2011 | 705.7 mil | 420 mil | bankrupt | 363.9 mil | Revenue increase from 2010 | 29.00% | 48% | | | Growth in customers | 30% | 50% | | 30% | (in 2011) | | | | |
Netflix 's success has inspired a number of other DVD rental companies both in the United States and abroad, but none of the purely online companies appear to approach Netflix in terms of market share or revenues as can be seen above. Hulu is a close second in terms of Market share and it can be seen that its entry into the market was nearly a decade later than that of Netflix , which places netflix in the advantageous position of the more experienced firm. The cheapest subscription fee of Netflix, Hulu and Blockbuster (online) is all around $7.99 which is an extremely competitive price and thus forces the public to choose between these online movie services based on brand, quality and popularity. With Regards to popularity in terms of Brand, netflix seems to be the leader but one has to consider