Question

1) Does Netflix have a strong brand? Offer evidence demonstrating why the firm’s brand is or isn’t strong. How is a strong brand built?

2) Who are the rivals to the Netflix streaming effort? Do any of these firms have advantages that Netflix lacks? What are these advantages?

3) Is Netflix a friend or foe to the studios? Make a list of reasons why they would ‘like’ Netflix, and why studios might be fearful of the firm. What is disintermediation and what incentives do studios have to try to disintermediate Netflix?

4) What advantages does Netflix have over premium cable television channels? What advantages do these channels have over Netflix? Do you think this is a winner-take-all market, or that there is room enough for multiple players?

5)What has been the impact of Netflix move from single plan pricing to separate pricing for streaming and DVD-by-mail? What factors motivated this move? Do you think splitting the service into separate plans was a wise move? Why or why not? What errors did the firm make in the ‘Qwikster debacle’? What could the firm have done differently? Do you think this would have had a positive impact on the firm? Why or why not?

Thank you

Answer 1

1) Does Netflix have a strong brand? Offer evidence demonstrating why the firm’s brand is or isn’t strong. How is a strong brand built?
Yes, i believe Netflix has a very strong brand. The customers of the Netflix are loyal and the organization always reserve the top rank position in customer satisfactions survey. The year after Walmart and Blockbuster launched the substitute effort, the rate at which customer left from the Netflix is below 4%. The Churn rate remained stable over the long time. It indicates that customer remained loyal to the firm over the challenging recession. building a strong brand specially online is possible by offering exceptional customer value.
2) Who are the rivals to the Netflix streaming effort? Do any of these firms have advantages that Netflix lacks? What are these advantages?
Some of the Netflix rivals includes: Amazon,Apple,HBO,Vudu, dish networks,Google,Comcast's and Dish network.

• HBO will not allow Netflix to have any of its shows such as Hollywood show Games of Thrones, it is extremely popular show, it also provides the HBO Go for the subscribed customer of it's channel on cable.
• Amazon is determined to expand it's streaming efforts,it integrates it's own streaming effort into customer device and television, expanding it's content library.
• Apple's model based on the rentals which can be played on iPods ,Apple TV ,PCs and MACs.
• Microsoft offers online purchase and rental service in order to get the content of TV via Xbox.
• Hulu offers Various subscription based and ad supported PC streaming service.
• Google offers thousands of movies and television shows over YouTube based on rental as well as ad-supported. It also provides Google play store and google Play TV service.

All these rivals have better and clear established path for the living room TV compared to Netflix. Many of these Rival firms are deep pocketed one.

3) Is Netflix a friend or foe to the studios? Make a list of reasons why they would ‘like’ Netflix, and why studios might be fearful of the firm. What is dis inter-mediation and what incentives do studios have to try to dis intermediate Netflix?

Netflix is a friend to Studios, it helps the Netflix to gain the audience where there was none for unreleased titles, with not using much promotion. Studios may fear Netflix in the areas such as revenue sharing or directly interfacing the customer. Nexflix gains it's most of the revenues from back catalog titles at zero additional market cost. They focus their revenue generation and budget on current titles which released on other theaters. dis-intermediation is removing the organization from the firm's distribution channel , hence it will cut it's revenues. Studious will try networking with the different market players like Apple or TV producers By providing the effective cost in streaming licensing , which in turn provide the diverse opportunities for removing dependency and sell content on DVDs and streaming using TV, apart from getting on board building aspects.
4) What advantages does Netflix have over premium cable television channels? What advantages do these channels have over Netflix? Do you think this is a winner-take-all market, or that there is room enough for multiple players?

Netflix has one asset which is too much stronger that what it's rivals has, specially cable TV networks with Growing and detailed treasure trove of information. This data asset will helpful in making more accurate recommendations, help the firm in defining the cost for content acquiring and improve the customer interface design and also provide the creative decisions in original program offering. Many of the cable television channels are negotiated exclusive access to the content because they try to differentiate them from another. Suppose if Showtime or HBO has the exclusive right to broadcast a film, Until the time any exclusive pay television time windows loses it is pulled from Netflix. The partnership with the cable network such as Epix and Starz helped Netflix provide the access to the some content which is locked up inside the networks windows. Such effort of deals can get caught up in licensing details. For ex: With the deal with Starz , the Sony titles are available on Netflix. They were pulled from Netflix when the subscriber goes increasing that a contact cap specify that maximum number of the subscriber can stream with Sony content was exceeded the limit.