Netflix is a content provider that provides media content to the global market. In the recent past Netflix has been experiencing a significant growth pattern especially in its international subscriber base. Even though its domestic subscriber growth has been slowing down, the company has shown vibrancy in its general business growth. The company was able to increase its domestic subscriber base by about 1.5 million. The big question to ask is what type of competitive strategy the company employs to stay relevant in the market.
Its main competitors like Hulu and Amazon invest a lot of resources on quality content. However, Netflix has decided to focus on original content. The company also aims at working on a broad array of content to satisfy the tastes of its diverse global market. Its strategy is to focus on original content which will be used to drive growth. Unlike its competitors, the company does not intend to stream live sports or events. It plans on adding movies and stand up comedies to diverse its business operations. The company aims at building a portfolio of movies with the ability of attracting and retaining subscribers. It lays much emphasis on demand commercial free viewing and not on live and ad-supported programs. The company main strategy has always been investing in high quality movies and shows which have more appeal than live programs. The strategy has been working for Netflix because it has been able to distinguish it from its main competitors due to its strong content. Even though most of the companies are increasing their content budgets the main difference comes in the allocation of such budgets. Netflix’s strategies in budget allocation are different from its competitors. The company has been able to carve a niche for itself as an on demand content provider and not a live streaming company. This type of strategic focus is expected to drive the company’s growth for a long time to come (Trefis, 2017).
Delegate your assignment to our experts and they will do the rest.
References
Trefis Team (2017).A Closer Look At Netflix's Content Strategy . Forbes.
