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In: Operations Management

Please answer all the following questions in a paragraph or two. Thank you! What is Netflix...

Please answer all the following questions in a paragraph or two. Thank you!

What is Netflix and how has it changed? What are the sources of Netflix’s competitive advantage? Why or why not Netflix? (choose why you choose or choose why you do not choose netflix) If you do not use Netflix do you use a streaming service?

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Expert Solution

Netflix is an American media streaming service based on California. They provide content on demand from the vast digital content library they have. Netflix started as a small movie renting business which had lot of investment in DVD and other physical formats. They were competing against media giants like Blockbuster and had similar target audience. But they adopted the internet based solutions and transformed their business to move to a digital era. The digital transformation helped them to reach out to maximum customers and the higher access meant that the same content could be rented out to more customers at cheaper costs. The package model which the introduced helped in ensuring customers could try the solutions before purchasing them completely. Today, Netflix has become the global leader in terms of on
demand media sharing.

Netflix identified a unique business opportunity where the production houses that created movies were not able to send it directly to customers on demand. The distribution channel and the associated parties played a major role in the distribution on content across regions. Netflix identified this and engaged in deals with major production houses to sell them the rights to moves for specific period of time for certain price. Netflix would then make this content available to premium customers. This ensured the customers could watch the latest movies as and when they wanted and as many times as they wished. They only had to a small amount to get the Netflix subscription. Recently they have expanded their content library to include content from across the globe. They have invested heavily in the technology and that is enabling them to get a competitive advantage over others who are following the same business model. Currently they have patterned up with production houses to create exclusive original content for Netflix viewers. The branding done by Netflix also ensures that they are able to use the market and younger generation of viewers to their advantage. The Millennial generation prefers comfort and availability of content at their disposal all the time. Netflix was ahead of its time and identified this business proposition and executed this well to become the global giant.


Netflix provides vast access to all the major content across the globe which are being rated as the best content and which is being promoted actively across all mediums. This has helped in ensuring the required and demanded content is available on the platform. Netflix also provides the flexibility to switch between mediums (TV or mobile/tab) which provides better convenience for viewers. The commercial free content along with the provision to stop and re-watch allows greater flexibility to users and this has helped in ensuring the platform is used by majority of the community.


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