Netflix Case Study
Netflix Case Study
Table of Contents
1. Part one (A)
1.1 UK Market
The home entertainment business in the UK has been evolving as the years pass by, but the entrance of new technologies changed completely the way of doing business in this area. The new trend of streaming and video on demand have taken the market and changed customer’s behavior creating opportunities for the companies that are willing to take a chance.
Companies such as Netflix, have taken advantage of this business not only increasing their sales but boosting the economy of the countries where they have activity, as John Reynolds, The Guardian British journalist says: “Growing demand for streaming services such as Netflix helped the UK home entertainment sector increase its revenues in 2013 for the first time in five years to £5.3bn.”
While home entertainment retailers struggle due to the strong online competition and some of them are obligated to reduce their number of stores, the TV and film streaming service Netflix grew its subscriber base in the UK and other international markets by 1.6 million in the last quarter of 2013. A summary of the market growth can be seen in the following chart.
According to the Entertainment Retailers Association (ERA), Internet derived sales, which includes home delivery, digital download and streaming; represent the 60% of UK home entertainment market. In which the fastest-growing sector was video-on-demand subscription including Netflix and Amazon-owned LoveFilm / Amazon Instant Video. Kim Bayley, general director of ERA said, “The entertainment revolution has been driven by new and existing retailers taking huge gambles and investing in technology and new delivery mechanism.”
UK market has shaped itself on a way that consumers are privileged by choice; this is precisely what triggers all of the VoD players in the market to offer their most special deals. VoD players now try to innovate in order
Table of Contents
1. Part one (A)
1.1 UK Market
The home entertainment business in the UK has been evolving as the years pass by, but the entrance of new technologies changed completely the way of doing business in this area. The new trend of streaming and video on demand have taken the market and changed customer’s behavior creating opportunities for the companies that are willing to take a chance.
Companies such as Netflix, have taken advantage of this business not only increasing their sales but boosting the economy of the countries where they have activity, as John Reynolds, The Guardian British journalist says: “Growing demand for streaming services such as Netflix helped the UK home entertainment sector increase its revenues in 2013 for the first time in five years to £5.3bn.”
While home entertainment retailers struggle due to the strong online competition and some of them are obligated to reduce their number of stores, the TV and film streaming service Netflix grew its subscriber base in the UK and other international markets by 1.6 million in the last quarter of 2013. A summary of the market growth can be seen in the following chart.
According to the Entertainment Retailers Association (ERA), Internet derived sales, which includes home delivery, digital download and streaming; represent the 60% of UK home entertainment market. In which the fastest-growing sector was video-on-demand subscription including Netflix and Amazon-owned LoveFilm / Amazon Instant Video. Kim Bayley, general director of ERA said, “The entertainment revolution has been driven by new and existing retailers taking huge gambles and investing in technology and new delivery mechanism.”
UK market has shaped itself on a way that consumers are privileged by choice; this is precisely what triggers all of the VoD players in the market to offer their most special deals. VoD players now try to innovate in order
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