Module 3 Case Study Analysis

Netflix: Push and Pushback in Streaming Video

MBA 530

Abstract

Netflix is a company that dominated the DVD rental market in the past. In more recent years, Netflix has stepped up their game and entered the world of streaming unlimited TV, and movies over the internet to its consumers at home by using their TV’s, PC’s, and gaming consoles. Netflix is available to stream with over 200 devices in the United States. According to the website, Reed Hastings and fellow software executive Marc Randolph co-found Netflix in 1997 to offer online movie rentals. Each year since, they have tried to remain up-to-date with technology and tapping into new markets to stay ahead of their competition.

Case Study Analysis – Netflix: Push and Pushback in Streaming Video
Like most organizations in today’s business world, there are challenges that must be faced. Netflix has transformed their business model from DVD rentals to subscriptions for online streaming. In doing this, they have encountered some challenges. It’s important for the company to keep moving forward and grow their business to stay successful in today’s growing technologically dependent world.
Four Major Challenges Online streaming video appeals to a young audience that is difficult to reach on traditional television owing to their light television viewership and heavy usage of technology to avoid advertising (Kelty, 2011). Because more people are using their mobile devices, gaming systems, and tablets, the first challenge Netflix faces is their ease of access to their streaming service. Being user-friendly is crucial to the success of Netflix. To address this issue Netflix first must ensure their service is accessible to the customers. Consumers have so many choices today of what kind of device they would like to use. Netflix must build relationships with companies like