Netflix Case Report
Introduction
In the recent years, Netflix has become a powerhouse in the online DVD rental and online streaming industry. They provide fast delivery of their DVDs and have thousands titles readily available to stream instantly. Being the first in both industries to grant access to the monthly subscription business model, they have been able to stay ahead of the competition and seek complete dominance over the competitors. But as with all companies they are currently facing a dilemma, which might come hurt them in the long run if they do come up with a well-planned way to fix it.
Problem
The main problem facing Netflix is that they need to find a way to continue to increase the number of subscribers that they have while also keeping up with technological advances and keeping content providers happy in an increasingly competitive industry. With new technological advances, such as Blu-ray, Netflix has to make sure that they keep up and have everything for their consumers. Also by keeping the content providers happy right now, Netflix may have the priority of new content if they decided to eliminate the online DVD rental and just run online streaming.
Industry Analysis
History
The history of the online DVD rental and online streaming industry begins with DVDs taking over the VHS in the world of movies. Back then there were only brick-and-mortar rental stores, such as Blockbuster and Hollywood Video. The first online DVD rental and online streaming companies were Magic Disc, DVD Express, Reel.com, and Netflix. As DVDs became more popular, the online DVD rental and online streaming companies also became more popular. The convenience of ordering online and having the DVD delivered in a timely manner created a problem for brick-and-mortar stores, eventually causing most of them to shut down. With the internet now as a tool for the industry, it cut the costs down of having brick-and-mortar-stores. The industry started by using the same business model as the
In the recent years, Netflix has become a powerhouse in the online DVD rental and online streaming industry. They provide fast delivery of their DVDs and have thousands titles readily available to stream instantly. Being the first in both industries to grant access to the monthly subscription business model, they have been able to stay ahead of the competition and seek complete dominance over the competitors. But as with all companies they are currently facing a dilemma, which might come hurt them in the long run if they do come up with a well-planned way to fix it.
Problem
The main problem facing Netflix is that they need to find a way to continue to increase the number of subscribers that they have while also keeping up with technological advances and keeping content providers happy in an increasingly competitive industry. With new technological advances, such as Blu-ray, Netflix has to make sure that they keep up and have everything for their consumers. Also by keeping the content providers happy right now, Netflix may have the priority of new content if they decided to eliminate the online DVD rental and just run online streaming.
Industry Analysis
History
The history of the online DVD rental and online streaming industry begins with DVDs taking over the VHS in the world of movies. Back then there were only brick-and-mortar rental stores, such as Blockbuster and Hollywood Video. The first online DVD rental and online streaming companies were Magic Disc, DVD Express, Reel.com, and Netflix. As DVDs became more popular, the online DVD rental and online streaming companies also became more popular. The convenience of ordering online and having the DVD delivered in a timely manner created a problem for brick-and-mortar stores, eventually causing most of them to shut down. With the internet now as a tool for the industry, it cut the costs down of having brick-and-mortar-stores. The industry started by using the same business model as the