Question

Briefly describe each of the four major challenges that Netflix faces. Which of these four
challenges will be the most difficult to address? Why? Which challenge will be the easiest to address?
Why?

Answer 1

The four major challenges that are faced by the Netflix are; ‘Deployment of technology for the easy access’, ‘Increase in the competition in video streaming market’, ‘Getting in to the original programming and its effects, and the last one is ‘Cost for accessing content’.

The challenge in the deployment of technology is that, electronic media devices need technological support for the smooth access and working of Netflix in that devices. For that Netflix has to get in to deals with the makers of electronic media devices such as laptops, gaming devices, television sets etc, to add software’s for accessing Netflix.

Next one is a major challenge faced by Netflix, which is the high level of competition in the video streaming market, especially from amazon. Amazon and google are the main rivals of Netflix in the video streaming market, even though Netflix has a little bit superiority, the company officials need to plan very effective business strategies to compete with the amazon.

Another major challenge is the decision of Netflix to get in to original programming. But the media companies whose income are from the pay tv industries are not happy with this decision of Netflix. As Netflix has contracts with many media companies, there push back will be a headache for Netflix. Actually, media companies are in fear of loss of their market, so Netflix need to use some strategies to get their trust.

The last but not least is the problem of increase in the cost for the contents. Almost all the media houses are in the move to increase the fees for accessing their content. Which will bring a financial burden to Netflix. The studies such as Time Warners or the Universal etc are not so happy with Netflix, so it’s a challenge for the Netflix authorities to get in to terms with these studios.

          In the above given challenges, developing original programming will be the most difficult task as for achieving this company needs a lot of money and some crucial business strategies.

The simplest challenge faced by Netflix will be to make deals with the producers or manufactures of media streaming devices. It will be an easy task as company has some previous experience in this field.