Segment Analysis Of Netflix

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The two segments of the general environment that would rank highest in their influence on the Netflix are technological segment and demographic segment. According to Netflix (n.d), “Netflix is the world’s leading Internet television network with over 81 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.” The technological segment of Netflix includes new innovations and new devices (Mit Technology Review, 2013). According to Mit Technology Review…show more content…
According to Smith (2015), “the new model should give Netflix customers better-looking content while using 20% less bandwidth. That’s a huge deal for customers, particularly in areas with slow internet speeds across the US and abroad.” The technological segment affects Netflix in many ways. For example, the technology helps Netflix to be a leader in the online video streaming service and DVD industry over other competitors, including Amazon prime and Hula (Williams, 2015). The technology makes Netflix attract more subscribers in a very short time (Williams, 2015). According to Williams (2015), “Netflix is certainly streaming at scale. The company has 65 million subscribers worldwide streaming 100 million hours of content a day making it the clear leader in the…show more content…
The threat of substitute products is very high in Netflix because there are many ways in which anyone can get a movie, including illegal downloading from internet, borrowing from friends, and buying from retailers (Bowen, Daigle, Dion &Valentine, 2014). According to Bowen et al., (2014),” substitute product to the movie rental industry are wide in number and include physically attending a movie, watching television, surfing the web or even playing a video game.” Also, people can watch their favorite movies, and television episodes by buying DVD, watching on TV, and going to movie theater (QU, Mahboubi & Cho, 2015). According to QU et al., (2014), “though a ticket for one movie may cost $10, the same amount Netflix charged for unlimited access to movies and shows for an entire month, movie theaters show the latest movies with the most popular stars, while contents licensed to Netflix could be more obsolete and less popular.” Netflix attempted to prove itself and to face the threat of new substitutes by many ways. For example, Netflix made some attempts among movie theater chains in order to encounter the threat of new substitutes (Reisinger, 2016). According to Reisinger (2016), “in October, Netflix made some enemies among movie theater chains, including AMC, after the company released its first major feature film Beats of No Nation. While Netflix agreed to offer
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