Competitive Advantage Of Netflix

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Register to read the introduction… Any alteration in copyright law that influences an ability to distribute these contents to subscribers may perhaps considerably affect business. The reason is these contents can signify large segments of the company’s product offering. Netflix depends upon content licenses from entertainment studios since it does not actually produce any contents, and any changes in the licenses could ruin its business model (Fritz, …show more content…
Several services such as “Video on demand” (VOD) or something else provided by Comcast, could be a substitute for Netflix’s service if Comcast enhance movies library equivalent selection of titles as it is much more convenient and has a constant position. Some members watch less than the representative two or three movies per month package from Netflix and they will shift to the instant pleasure they get if using “On Demand.” This content is tendered from those providers to mobile devices as well. It must be very important for Netflix maintaining the continuously technology changes in order to prolong their success.
Threat of new entrants
Netflix is obliged to remain the rising recognition of e-commerce as an competitive advantage and enlarge their content library of streaming movies as well as improve their high-definition online streaming. If this attempt is holdup, more “well-situated” denotes of renting videos and movies like VOD would capture. It can be possible because the reasonably priced entry barriers in this industry associated with streaming content as a result of the enormous sum of streaming content could be available to prospective providers.
Bargaining Power of
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4.1. The emerging trends
As 2013 Netflix strategic plan of Logan Kriete’s report mentioned, there are three promising movements that can be considered: second screen engagement, video gaming and network neutrality.
* Second screen engagement: means the extending of the TV viewing experience by interacting with supplementary content delivered at the same time on another relevant screen, like smartphones or tablets. It is beneficial and positive to Netflix since the company is capable of maximizing on customers who use this application enjoying content and sharing community media integration with subscribers’ other connections.
* Video gaming: with more than three billion hours for each week spent worldwide on this, the design of new cross-platform storytelling or new transmedia franchise might be decidedly attractive to the company. Besides, it would be enjoyable to consumers and profitable for Netflix’s original series by integrating casual and mobile games and constructing in-house

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