Netflix's Competitive Advantage

Netflix is a leading internet entertainment subscription service. Netflix’s subscription service allows members to access a multitude of television shows and movies for a set monthly price. Netflix has been extremely successful in accurately predicting the changes in the video and movie marketplace. They used the name Netflix with the expectation that movies would move from DVD to online streaming rather rapidly (Cohan, 2013). In 2007, with 6.3 million registered members they began offering online streaming, today they boast 74 million subscribers in over 50 countries (See what’s next, n.d.). As new technologies and services emerge it will become increasingly difficult for Netflix to retain a dominant share of the marketplace. Other streaming services have made significant inroads already. Competition has risen significantly in the past few years. Companies such as, Amazon Prime have experienced significant and impressive growth. Even Walmart has entered the internet streaming market to share in this growing method of convenient movie watching. DirecTV, Time Warner, DISH Network, AT&T, and Verizon are all companies that have created more competition in the …show more content…
In the past year I replaced my cable service with Netflix and Hulu. I utilize Hulu because they provide access to current network and cable television shows. Netflix I use for movies and original programming. I have considered moving from Netflix to Amazon Prime, however Netflix still offers more content and is much easier to use. Video streaming, original programming and the ease of use or placement are strategic areas to focus on for maintaining their competitive advantage. Forging good business relationship and partnerships to provide access to new release films would also be beneficial to remaining competitive in this quickly evolving