The Challenges That Netflix Had to Overcome
Netflix: Push and Pushback in Streaming Video
A Case Study
Abstract
Netflix
Keywords: Netflix, video streaming, technology deployment, Reed Hastings, Marc Randolf, case study
Netflix: Push and Pushback in Streaming Video
Introduction
The movie industry has always been strong in viewership within the theaters and with the release of VHS/Beta formats, outside the theater as well. As technology has changed, so has popular media. Movies have moved from theater to VHS/Beta to DVD’s to Blu Ray, to streaming online. Netflix, founded in 1997 - during the DVD era, has taken advantage of the widely popular ideal of video rentals and made it sophisticated. Starting out with just an idea and a strong algorithm, Netflix offered customers to rent their favorite DVD’s anywhere in the country and for one flat fee. Netflix’s new and innovative approach to movie rentals started to become more than a market fad and soon local Blockbuster storefronts were closed due to the loss of revenue. Once internet commerce opened up to new and developing ideas, Netflix, again took advantage of the opportunity and started to look at a more efficient way of meeting the demand of the consumer concerning entertainment. Netflix started a new idea of streaming video directly into the homes of their faithful consumers to allow a more exciting media experience by watching directly on their at home television. This new and developing delivery system had a few challenges to address and overcome while this new initiative was implemented. The four primary challenges identified by Netflix analysts were: technology deployment, competition in the streaming video market, involvement in original programming and associated reactions of major media companies, and the cost of accessing content. (Nelson & Quick, 2013) The four challenges listed will be the discussion within this paper to identify not only what the challenges entail, but also how they can relate and impact managerial
A Case Study
Abstract
Netflix
Keywords: Netflix, video streaming, technology deployment, Reed Hastings, Marc Randolf, case study
Netflix: Push and Pushback in Streaming Video
Introduction
The movie industry has always been strong in viewership within the theaters and with the release of VHS/Beta formats, outside the theater as well. As technology has changed, so has popular media. Movies have moved from theater to VHS/Beta to DVD’s to Blu Ray, to streaming online. Netflix, founded in 1997 - during the DVD era, has taken advantage of the widely popular ideal of video rentals and made it sophisticated. Starting out with just an idea and a strong algorithm, Netflix offered customers to rent their favorite DVD’s anywhere in the country and for one flat fee. Netflix’s new and innovative approach to movie rentals started to become more than a market fad and soon local Blockbuster storefronts were closed due to the loss of revenue. Once internet commerce opened up to new and developing ideas, Netflix, again took advantage of the opportunity and started to look at a more efficient way of meeting the demand of the consumer concerning entertainment. Netflix started a new idea of streaming video directly into the homes of their faithful consumers to allow a more exciting media experience by watching directly on their at home television. This new and developing delivery system had a few challenges to address and overcome while this new initiative was implemented. The four primary challenges identified by Netflix analysts were: technology deployment, competition in the streaming video market, involvement in original programming and associated reactions of major media companies, and the cost of accessing content. (Nelson & Quick, 2013) The four challenges listed will be the discussion within this paper to identify not only what the challenges entail, but also how they can relate and impact managerial
References: Argenti, P. (2013). Corporate Communication (6th ed.). New York, NY: McGraw-Hill Dixon, W. (2013). Streaming: Movies, Media and Instant Access. Kentucky: University Press of Kentucky