Netflix is a streaming service that allows consumer to watch their favourite consumers shows on demand in the comfort of their own home. Netflix has been developing their brand image as one of the best streaming providers that exist in our society and have proven to do so by having over 60 million subscribers and 40 million subscribers in the United States. With the large amount of subscribers in the United States alone, Netflix has shown to be a clear choice over the competition such as Hulu and Apple, slowly driving the competition out of the market. This will allow Netflix to obtain a monopoly market in the near future with steadily increasing subscribers the service provider is secures. To become an international streaming service giant, Netflix has plans to expand into 6 european
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Equity is shown through fairness. As Netflix is a large overseas company, licensing cost for movies/ and shows will occur, making the market fair for local small streaming companies to strive. Since Netflix has yet to dominate the european market for streaming services, they are forced to set their starting prices equal to their competitors. Since the result of Netflix being in Europe, acquires higher cost for the dominating company as suppose to local competitors, is fair the market is very equitable. Once Netflix obtains a certain amount of increased subscribers, as projected earlier, they will own majority of market share creating a monopoly like market. Netflix will then be able to raise prices since there is only one seller of their product. This will cause them to maximize profits by increasing prices will demand stays the same at that give increased price. This will cause the market to be inequitable because it is controlled by one
Equity is shown through fairness. As Netflix is a large overseas company, licensing cost for movies/ and shows will occur, making the market fair for local small streaming companies to strive. Since Netflix has yet to dominate the european market for streaming services, they are forced to set their starting prices equal to their competitors. Since the result of Netflix being in Europe, acquires higher cost for the dominating company as suppose to local competitors, is fair the market is very equitable. Once Netflix obtains a certain amount of increased subscribers, as projected earlier, they will own majority of market share creating a monopoly like market. Netflix will then be able to raise prices since there is only one seller of their product. This will cause them to maximize profits by increasing prices will demand stays the same at that give increased price. This will cause the market to be inequitable because it is controlled by one