Netflix Study Case

Topics: Renting, Reed Hastings, Want Pages: 2 (566 words) Published: November 27, 2012
As we all know Netflix is known as one of the largest online providers of movie rentals today with a wide array of selections and almost 7 million subscribers and has become very successful in the movie rental industry over the years. 1.As stated in the case study because of the U.S copyright law requires streaming rights to be purchased from TV and movie studios before being downloaded. Netflix needs to find a way that can benefit both them and the studios in order to better suite their needs financially. Netflix can generate cash that the company needs to pay off the studios by deciding that instead of offering the streaming service for free, they should incorporate their streaming videos with their current DVD rental plans allowing their customers to have the option to do as they please. For e.g. Netflix should charge their customers an extra $4-$6 on the current plans like the cable companies would normally do. 2.Netflix can convince the studios that they’re not competitors so they will agree to license their content by starting a partnership with them. Netflix along with the studios can partner together and grow a friendly business relationship so that their business can run and operate smoothly and be successful. For example Netflix can partner with Universal Pictures in which both of the companies can profit. Netflix can also have the advantage of having Universal Pictures provide them with the license, that way they can still generate profits and can put it towards other company’ goals. 3. Netflix should address their organizational challenges wisely because businesses tend to grow and a company can either benefit or not by hiring more employees. If Netflix decides to hire more employees it is up to the executive team to manage them well and make sure the company can afford the amount of workers they want to hire. Hence, they will not have to layoff or fire as many staff when they have yet to reach their particular goals. 4. Netflix is a rapidly...
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