Netflix Market Structure

With today's technology boom, the wave of new business changed people's shopping and way of living. The same goes for people accessing personal entertainment. Through the Internet, people can play movies online without going to the theater or borrowing a movie box. This idea affected Reed Hastings and Marc Randolph, and founded Netflix (Netflix, 2014) in Scotts Valley, California in 1997. The company develops a subscription-based streaming platform for movies and television programs.

A year ago, Netflix traded at about $ 140 per share. Their market value is $ 60 billion. Today, Netflix's trading price is about $ 330 per share. Their market capitalization is over $ 14 billion. Yes, the company's market value has more than doubled last year. Even through the bull market overall, this is an amazing growth. It is even more wonderful for such a company. The most striking thing about Netflix is ​​that they will do it themselves in the face of huge competition. In addition to Comcast, the world's leading technology companies - all those mentioned above, including the Amazon - are entering their field in a major way. They do not need debt to promote their content plan. Hell, everyone has enough cash to purchase Netflix directly. But Netflix is ​​not only durable, it is still evolving.

Netflix will continue to dominate the market and continue to expand its customer base with new content and exclusive Netflix brand. Recently, Netflix has updated its brand identity. We have promoted a stack marketing strategy described as a series of duplicated and infinite content. I personally think that Netflix should be attempted and expanded internationally, they only start in the US; Netflix is ​​currently available in most of Canada, the UK, the Netherlands, Scandinavia and Latin America. Netflix will continue to expand to new fields / opportunities. In addition, I think that Netflix should show all programs and movies to everyone. For example, you need to include the same content in American Netflix and Canadian Netflix.

As part of its marketing strategy to produce proprietary Netflix content, Netflix announced Netflix Originals in 2013 to avoid licensing costs. These original series are accompanied by huge production costs. The great expense to create new exclusive content has made Netflix one of the biggest consumers in this category. Netflix is ​​not the only content streaming website on the Internet. You have to compete with many new and mature players such as Amazon Prime, Hulu, Hotstar, which costs a lot of marketing costs. Marketing costs primarily include advertising costs, payments to affiliates and equipment partners, and the first monthly fee per user (each new registrant's first month is free)