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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the following paragraph where instructor stated Discuss customer some]
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.
[Add
the following paragraph where instructor stated who]
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