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netflix strategy

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KEY SUCCESS FACTORS
Technology
Technology is the most important factor to thrive in the market. Technological advancements will help lower the operational costs for Netflix. However they need to have great content quality. Innovation stands out in their technology. As long as there are innovative strategies executed, Netflix will be equipped to handle fierce competition. Netflix’s success will depend on its product differentiation and content quality, provided with its innovation, high quality and performance delivery. The industry will move towards mass customer distribution and the profits can be achieved by more subscriptions. (Paramesh 2013).
Distribution
In order to be successful at an online market, Netflix must have an efficient distribution network that allows fast delivery of DVDs. The future of content delivery is through streaming. According to Netflix CEO Reed Hastings, “Over the coming decades and across the world, Internet TV will replace linear TV. Apps will replace channels, remote controls will disappear, and screens will proliferate. As Internet TV grows from millions to billions, Netflix, HBO, and ESPN are going to lead the way”. (Hastings 2013)
As the Internet gets faster, more available and more reliable, Internet TV will grow exponentially. According to Hastings, this will be achieved by every TV will have Wi-Fi and apps. Smart TV adapters (Roku, Apple TV, etc.) will get more powerful and less expensive. Tablet and smartphone viewing will increase. Tablets and smartphones will be used as interfaces for Internet TV. Streaming Ultra high definition (4k) video will happen before the linear TV supports 4k video. Most important advancement is going to be in Internet video advertising. It will be personalized an...

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Hardy, Robert. "Netflix Expanding into Original Movies? Here's How It Could Affect Independent Filmmakers." No Film School Netflix Expanding into Original Movies Heres How It Could Affect Independent Filmmakers Comments. Nofilmschool, 30 Oct. 2013. Retrieved from Web. 13 June 2014. http://nofilmschool.com/2013/10/netflix-expanding- original-movies-independent-filmmakers/
Shields, Mike. "First Netflix and Amazon. Now Yahoo to Get Into TV Programming Game." CMO Today RSS. The Wall Street Journal, 05 Apr. 2014. Retrieved from Web. 06 Apr. 2014
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