Advantages And Disadvantages Of Netflix

803 Words 4 Pages
While there has been a recent increase in the number of people attending theaters to see first run movies, this has not affected the number of individuals and families in our society who have adopted Netflix as an accepted venue for entertainment. Research has shown that 9 out of 10 families have some form of cable and internet in their homes and many of them subscribe to Netflix.
The idea behind Reed Hastings, starting the company in 1997 was triggered by the fact that he was faced with an outrageous late fee after returning a movie from a video rental company. He concluded that he could provide potential customers the entertainment they wanted from the comfort of their own homes with little or no hassle. Soon Netflix became a
…show more content…
The advantage Netflix has over its competitors is that they maintain a large number of titles for viewing. Another of the many competitive advantages is their continued growth. The massive scale of this company is not simply US based; it is global. With the scale of growth Netflix has experienced, it has allowed them to expand content and distribute the cost over a larger audience. This allows the costs to remain low. Reed Hasting refers to this as the virtuous cycle. It is said that the higher subscriber numbers and the higher content spending, raises the bar for the …show more content…
To compare a few, Hulu has services similar to Netflix, but does not offer the wide selection of old and new movies held by Netflix. Hulu has a service called Hulu Plus which offers a large collection of television shows that are in the current season, but their movie selection is small in comparison to that of Netflix. In addition, Netflix movies come with none of the interruptions from advertisements which accompany the Hulu Plus service.
Netflix and Amazon both offer a free trial month for consumers to try out their services. Of the three services, Amazon is reported to have the weakest presentation. According to consumer feedback, Amazon is the most difficult to maneuver through when looking for specific content. While Amazon also offers ad free television programs, it doesn’t have the library that Netflix offers with Amazon reporting 40,000 programs compared to Netflix offering 100,000. Demanding consumers in today’s market react to variations such as these when they calculate their investment in

Related Documents