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Netflix Marketing Case Analysis

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Current Goods and Services
The company Netflix is known as a storehouse of content. (Investopedia, 2015) The content includes movies, documentaries, TV shows and educational programs. Viewers pay a flat monthly fee to view the videos anytime and on any type of platform. They also offer a mail order DVD rental through DVD.com. This service allows you to list DVD on a queue to be mailed for viewing and consumers are never charged a late fee.
Areas of Operation
The company’s headquarters are located in Los Gatos, California. Today Netflix has over 100 shipping locations throughout the United States. These locations serve globally and throughout the United States. Today Netflix provides services in over 60 countries throughout the world.
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This will determine how Netflix can be the best in services to sustain future growth in the current market. It is also important to evaluate revenue versus current pricing. This will help understand the impact on consumers by utilizing the price of elasticity of demand to guide us. Today, Netflix has over 60 million subscribers in 50 countries. As the demand for video rises, Netflix will expand into over 200 countries by the end of 2017. (Heisler,…show more content…
As the new videos are released or developed the demand rises. As the U.S market and International market rises and strengthens, the company is prepared to continue its expansion to improve the global sales. (Heisler, Y.n.d.).
Price Elasticity of Demand
As the demand for content increases, Netflix’s demand rises as well. Netflix claims that the largest share of their video streams market is from their library of licensed content. (Caporaso, T. 2014) It is believed that providing entire seasons versus episodes it promotes “bing-watching” habits. (Caporaso, T. 2014) To meet and maintain consumer needs, there is ongoing requests for more entertainment options. Netflix is continually expanding and updating its inventory to meet consumers’ needs and to compete with competitors.
During the expansion hike of Netflix, their competitor Amazon announced a multi-year deal with HBO. Amazon announced they were providing their prime members with HBO’s exclusive online access to in addition to the Showtime
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