Netflix is an online video streaming services that allows the consumers to view Movies and TV shows from many different electronic devices. Netflix began in 1999 as an alternative to traditional video rental stores, where you had to drive to a store to pick out and rent a movie. Netflix instead allowed you to choose what movies you wanted to rent, and they would mail them too you, and you would return them when you were finished. As the years moved on, Netflix shifted away from mailing DVD copies, and instead moved to online streaming media. This appealed to a new growing market of young adults who preferred the low cost of the streaming service as an alternative to more expensive cable tv deals. This market has grown to include a wide range
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In a 2010 article in the New York Times, Mark Levin wrote, “Sharing is clean, crisp, urbane, postmodern. Owning is dull, selfish, timid, backward."(The Economist, 2010) Netflix used this growing trend to build its business and it’s brand. Netflix first product was DVD copies that were shipped to the consumer’s home, and then returned when the consumer was finished with the DVD. Netflix realized that people would rather rent a movie, and watch it once for a lower price, rather than own that movie with the potential of watching it as many times as they wished. That product became directly competitive with traditional video rental stores, such as Blockbuster. As technology continued to grow and add convenience to people’s lives Netflix noticed this trend, and look to enhance and change its …show more content…
Netflix has hired popular production studios and directors to create shows specifically for Netflix. In a letter to Netflix stockholders in 2013, CEO David Wells said, “Because original series can be completely exclusive to Netflix (no [TV video-on-demand], no linear, no kiosks, no theaters) we believe they will be more effective in attracting and retaining members than equivalent content that is less exclusive to Netflix (Spangler, 2013).” This is the current phase that Netflix finds itself in. Other streaming services like Hulu and Amazon Prime have started to develop their own original programming. It is now up to Netflix, or another streaming service, to find the new product development strategy for the future.
In conclusion, Netflix has used many of the basic ideas presented in our literature for the sustainability of their new product development. Marshal and Johnston say that one of the main reasons why new products succeed or fail largely depends on, “the company making bad decisions by not identifying the value proposition, designing and building a product that fails to meet customer expectations, poor marketing communications, inadequate distribution of the product, or incorrectly pricing the product (Marshall & Johnston, 2011,
In a 2010 article in the New York Times, Mark Levin wrote, “Sharing is clean, crisp, urbane, postmodern. Owning is dull, selfish, timid, backward."(The Economist, 2010) Netflix used this growing trend to build its business and it’s brand. Netflix first product was DVD copies that were shipped to the consumer’s home, and then returned when the consumer was finished with the DVD. Netflix realized that people would rather rent a movie, and watch it once for a lower price, rather than own that movie with the potential of watching it as many times as they wished. That product became directly competitive with traditional video rental stores, such as Blockbuster. As technology continued to grow and add convenience to people’s lives Netflix noticed this trend, and look to enhance and change its …show more content…
Netflix has hired popular production studios and directors to create shows specifically for Netflix. In a letter to Netflix stockholders in 2013, CEO David Wells said, “Because original series can be completely exclusive to Netflix (no [TV video-on-demand], no linear, no kiosks, no theaters) we believe they will be more effective in attracting and retaining members than equivalent content that is less exclusive to Netflix (Spangler, 2013).” This is the current phase that Netflix finds itself in. Other streaming services like Hulu and Amazon Prime have started to develop their own original programming. It is now up to Netflix, or another streaming service, to find the new product development strategy for the future.
In conclusion, Netflix has used many of the basic ideas presented in our literature for the sustainability of their new product development. Marshal and Johnston say that one of the main reasons why new products succeed or fail largely depends on, “the company making bad decisions by not identifying the value proposition, designing and building a product that fails to meet customer expectations, poor marketing communications, inadequate distribution of the product, or incorrectly pricing the product (Marshall & Johnston, 2011,