Netflix use of the cloud to create business value
While most companies struggle with digital transformation and disruption, Netflix evolved and took over a leading position. The company entered the digital age and slowly increased both its market share s and its revenues. In 2014 for instance, the firm revenue reportedly hit more than 5 billion dollars. Towards the end of 2015, the company was said to have close to 70 million subscribers from all over the world. Currently, the company is available in 190 nations, and there is no doubt the number of subscribers is going to increase in the near future. To understand how a small movie rental business turned to be the leading internet streaming giant in the world, individuals ha ve to analyze the company’s use of cloud technology. Netflix use of cloud technology shows that the company is evolving with time, and as the technology change, it is also changing with it. The company always evolved, and this enabled it to always adapt to new markets (Lüsted, 2013) . Any successful business enterprise would acknowledge that markets never stay the same and such a business will change as the market also changes. Netflix use of cloud technology has certainly proven this to be true.
Netflix cloud strategy
The fact that the company is complexly an online-enabled business that uses the general framework or principles of electronic commerce means that it highly depends on technologies related to digital and internet communication. In order for them to reach a global audience and still managed to maintain its regional market, Netflix chose to use virtualization or cloud computation (Gunther, 2017) . The company’s journey to cloud computing started in 2008 after experiencing some major data corruption and was unable to ship DVDs to their subscribers. That is when the company realized that it is time to move from single points of failures such as databases to a more reliable distributed system in the cloud. Netflix chose Amazon Web Services (AWS) as their cloud provider since AWS offered them the broadest set of features and services, and at the same time also offered them the greatest scale. Cloud computing has given the firm a number of advantages such as being able to operate without a need to build server infrastructures and physical network. In addition to that, the company has also involved itself in the development of software.
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Compare the cloud strategies of Netflix and HBO
To figure out which original show should be made, Netflix prefers mining its data. On the contrary, HBO’s decisions are not driven this way. HBO unlike Netflix, program their shows but not the audience data. Additionally, while Netflix promotes its television shows across a vast number of publishers, HBO, consequently use a small number of video publishers. However, both companies promote more Television series than the average. From the perspectives of an audience, entertainment and music categories dominate the most. The interesting insights, however, are got from residue. Whereas Netflix mainly focuses on science and technology, news and politics, HBO, on the other hand, puts more focus on comedy and gaming channels (Gunther, 2017) . Generally, the primary distinction between HBO and Netflix’s digital activity can be seen in the genre focus and distribution strategy. In addition to that, Netflix is known to use YouTube Channels and many publishers in order to deploy multiple Television shows. On the contrary, HBO put more focus on promoting comedy shows, and they address their audience with the help of comedy and gaming channels.
Reference
Gunther, D. (2017). S trategic analysis of netflix inc . New York, NY : GRIN Publishing.
Lüsted, M. (2013). Netflix . Minneapolis, MN: ABDO Pub.
