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Is there any positive or negative publicity issue about your company in the past three years? If yes, please discuss at least one most recent issue.

Category: Social Sciences Paper Type: Online Exam | Quiz | Test Reference: APA Words: 1050

 Despite the success made by Netflix, there are also some critics or issues that have to face by this company. One of them has appeared to be the negative publicity issue regarding its content. The reason behind this is due to the lowest quarterly growth of its subscribers throughout the last three years. These dissatisfying numbers of Netflix subscribers have clearly presented that the investment which made by Netflix in its unique content has neglected to convey the sustainable and maintainable competitive advantage to legitimize its assessment. This licensed content loss issue has as well expanded the competition, and definitely more significant prices for its future, which simply means that the investors ought to expect additional number of dissatisfying subscribers that would surely be advancing.

Thus, it has appeared that this giant media company has lack of ability to monetize its content if compared with Disney, its strong competitor. In fact, on July 18, 2019, Netflix stock was reported to drop 11%. In addition to this, some economists have even compared Netflix with Disney by presenting the fact that, Disney is a company that has succeeded in generating about  in growing Free Cash Flow or FCF ever since 2011. On the other hand, Netflix has succeeded in burning roughly  in growing FCF ever since 2011. The reason might be due to Disney has famous as the best example if we speaking about monetizing its content. All of its content even have lead the company to gain big revenues from box office, merchandises, etc. Hence, if Netflix will be compared with Disney, then the trajectories of these two giant companies could not be more inverted (Trainer, 2019). The figure below details the losses made by Netflix due to its inability to monetizing its content if compared with Disney.


Source: https://www.forbes.com/sites/greatspeculations/2019/02/05/reality-is-closing-in-on-netflix/#37ad67755ed0

 E). Did the company run different advertisements in a foreign country? Please describe the similarities and (or) differences don’t complete it makes simple.

Netflix's worldwide development is a major factor in the prosperity of this huge company. By 2017 Netflix was working in more than nations, and, at the moment, near  of its approximately  subscribers come from outside the United States. Over 2018 second quarter, for the first time, its worldwide streaming incomes have succeeded in surpassing its local streaming incomes. This is a momentous accomplishment for an organization that was merely existed in the United States preceding to 2010, and for around  nations by 2015.

Netflix's prosperity can be credited to its strategy which could be used by other companies that hope to grow all-inclusive can utilize as well. Netflix didn't attempt to enter all the market place at the same time. Instead of this, the company has been deliberately choosing its underlying adjoining markets by observing the topography and intuition separation or saw contrasts between each market. For instance, the most punctual worldwide development of Netflix, in 2010, was to Canada, which is topographically near and shares numerous likenesses with the United States. Netflix was in this way ready to build up its globalization abilities in areas where the challenges and difficulties of "foreignness" were less intense. By doing this type of marketing strategy, the company figured out how to extend and upgrade its center capacities which go further than its hometown market place. Along with the Internet growth in general, followed by the progress on smart TVs, tablets, and phones, Netflix has been presenting to the world that its market strategy is, indeed, a great example for other growing companies. In this regard, the company will have the capability to extend its combination of both global and local content. Hence, some of business and marketing analysts have named this strategy performed by Netflix as exponential globalization (Brennan, 2018 ).

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Although, Netflix also faced negative publicity about its craze in the young generation. A number of website articles and research studies discussed that Netflix content is highly attractive for the youngster which is provided without limitation about time and usage. Because of this youngster are spending too much time on Netflix while watching television shows and movies. Such a situation is causing to increase health issues and depression among youngsters. Apart from this, it is also claimed by the researchers and bloggers that Netflix excessive use also causes to generate a negative impact on the academic achievement of students. This negative publicity had bad impact on overall usage of Netflix apps as in some families parents have set restrictions on their children to control their excessive use of Netflix.

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Three Streaming plans are:

Basic: The basic plan is for new members who want to avail limited benefits with an affordable price package. In this package, the user can only use this account on a single screen to watch different shows. 

Standard: In this plan, members would have to pay a monthly amount for activation. However, prices are relatively more than basic package/ plan prices. In this plan, members can also take additional packages such as unlimited streaming and HD videos. Members can also use the same account on two screens at the same time.    

Premium: In this plan, clients are given VIP services. Members interested to watch HD videos can buy this plan. Although, it will also enable to enjoy 4k viewing. Members can watch television shows and videos on 4 different screens at the same time by using a premium account (O'Connell, 2019).  

References of Netflix

Brennan, L. (2018 , October 12). How Netflix Expanded to 190 Countries in 7 Years. Retrieved from https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years

Kelson, K. (2017). Netflix and Its Impact on Society. Retrieved from medium.com: https://medium.com/@10805833/netflix-and-its-impact-on-society-8357bcb96a22

O'Connell, B. (2019). How Much Does Netflix Cost and What Are the Subscription Options? Retrieved from www.thestreet.com: https://www.thestreet.com/technology/how-much-is-netflix-14795014

Trainer, D. (2019, February 5). Reality Is Closing In On Netflix. Retrieved from https://www.forbes.com/sites/greatspeculations/2019/02/05/reality-is-closing-in-on-netflix/#37ad67755ed0

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