Netflix

Netflix

Introduction

Netflix Company was originally set up advanced Internet portal, but at first engaged in renting movies on DVD -ROM, using the business model of DVD by mail exclusively in the U.S. (this business is the company develops so-far). And only in 1999 began to create an Internet Service Video on Demand, gradually developing the business of digital rental video movies to the Internet, using the technology of streaming media. Netflix have a competitive advantage and they also have the ability to offer low price product. There are no late fees to late customers. There is no due date, whenever you want to get the product you can have it and there is no due date of return the product back. Netflix is giving large selection of their products and its free shipping opportunity to their customers.

Discussion

Product market strategy

With the increasing number of options for obtaining audiovisual content either movies or TV shows via the web and the constantly changing market. Hand in hand with Netflix, one of the largest companies in the rental of content in the United States comes with a new alternative consumption.

The proposal is based on Netflix offers a monthly subscription of $ 7.99 USD. This subscription enables customers to instantly watch episodes of TV shows or movies through a computer or television without using DVDs. The main objective of this change in strategy is to replace the current business model is based on income and mailing of DVDs. In the first instance seek to increase the catalog of electronic content available to end all online service is generating a significant cost reduction in both product management and in customer service and immediacy of content consumption.

Netflix has its new marketing strategies. Netflix, the giants of movie rental stores in the U.S., revealed new strategies to follow in the competitive market and address the growing number of digital options regarding the content of movies and TV episodes. Netflix, the movie rental store on the Internet, introduced a new subscription plan for $ 7.99 a month that allows instantly view TV episodes and movies via a computer or TV without having to receive DVD email.

In addition, Netflix announced a price increase in other types of subscriptions, as the company has invested more money in content after a five-year agreement with Epix, a new television channel offering movies at Paramount, Lionsgate and MGM. Also, the decision is based on the fact that it has been observed that an increasing user makes use of material available on the Internet.

"Netflix members watch more movies and TV episodes over the Internet than using the DVD delivery service to home, and we expect this trend to continue," said Jessie Blecker, vice president of marketing for the company. Experts say that Netflix is trying to convince users that the service exclusive movies online is a good choice, despite offering only 20% of its entire catalog in this option. Netflix was based on traditional marketing to complement its search engine and connect subscribers ...