Movieflix review

Running Head: BUSINESS ETHICS 1

BUSINESS ETHICS 2

Business Ethics: MovieFlix

(Name)

(University)

Prepare an essay explaining to the Leadership Team at MovieFlix why it's important to take an ethical approach to solving their business problem (the problem that you are helping them to solve).

MovieFlix should be ethical in handling competition from NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com. The pricing should be where the majority of video streaming business are located. Ethical pricing demands that firms cost their goods within reach of the customers. Willcox (2017) stated that MovieFlix has the monthly price of $ 9.95 which is higher than that of Crunchyroll.com and Mubi.com which charges $ 7 or $ 6. The price charged by MovieFlix is exploitative. It charges $ 2.95 more than then Crunchyroll.com. The unscrupulous behavior is unethical and is a matter of time before subscribers start leaving for their competitors. MoveFlix should price within a range of $1 where the majority of players operate. Using the statistics, the monthly subscription should be within $5 and $ 8.

Make sure to discuss how using good business ethics can enhance their profitability.

A fair price will ensure that MovieFlix increases their profits without pushing their rivals out of business. A fair price should be within $5 and $ 8. According to In Elsdon (2013), the fair price will increase the competitiveness of the MovieFlix among other video streaming operators. Customers will move from NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com to try out products by MovieFlix. The many sales emanate from the increased subscription and streaming fees MovieFlix gets from affordable pricing. Customers like appreciating an ethical business. The more customers, the higher the amount the subscription fees paid. Consequently, the higher subscribers will translate to higher streaming activities by the clients. MovieFlix will have utilized sales maximization profit maximization.

Describe some of the consequences that they could face if they behave unethically when trying to solve the problem that you've selected for your project.

MovieFlix can be fined and penalties imposed on the video streaming operator by the American Justice System (In Elsdon, 2013). Consumer Watchdog Groups may file defense on behalf of the consumers. The groups may cite the unscrupulous behavior of MovieFlix price cutting or overcharging the consumers. The Consumer Watchdog Groups will be agitating for fair pricing on behalf of the consumer. Where MovieFlix is found to have been fleecing customers by overcharging or driving competitors out of business via price cutting. MovieFlix will be faced with a customer backlash where they feel they are being overcharged. Customers will decide to use video streaming by competitors. The customers will result to using providers who offer cheaper video streaming services. Customers who previously used MovieFlix will move to NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com.

Discuss how you, as their consultant can help them to take an ethical approach to solving their problem.

I would ask MovieFlix to review their pricing model from cost maximization to sales maximization in their urge to achieve profitability. MovieFlix high price of $ 9.95 is based on cost maximization. Their profits are based on few sales made from high prices. Lobato (2012) stated that new customers are prevented from joining Mov as subscribers, and they sigh in favor of NetFlix, Acorn.TV, Fandor, Tubitv.com, Mubi.com and Crunchyroll.com. Sales maximization will require the prices to be reviewed. MovieFlix should review their prices to be within the range of Crunchyroll.com and Mubi.com which charges $ 7 or $ 6. The more affordable the business becomes, the more attractive it will be to consumers. More consumers will mean more subscription and streaming fees.

References

In Elsdon, R. (2013). Business behaving well: Social responsibility, from learning to doing.

Lobato, Ramon. (2012). Shadow economies of cinema mapping informal film distribution. London: Palgrave Macmillan [on behalf of the] BFI. http://public.eblib.com/choice/publicfullrecord.aspx?p=4008902.

Willcox, J. K. (2017, March 2017). 5 Streaming Sites for People Who Want More than NetFlix. Retrieved from: http://www.consumerreports.org/streaming-media-players-services/5-niche-streaming-sites/

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unning Head:

BUSINESS ETHICS

1

Business Ethics

: MovieFlix

(Name)

(University)

Running Head: BUSINESS ETHICS 1

Business Ethics: MovieFlix

(Name)

(University)