Netflix’s 2020 Strategy for Battling Rivals in the Global Market for Streamed Video Subscribers The market for online vi

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Netflix’s 2020 Strategy for Battling Rivals in theGlobal Market for Streamed Video Subscribers
The market for online viewing of all types of entertainmentprograms has been in a state of rapid flux during most of the pasttwo years, and Netflix is driving hard to win a commandingleadership position in most all countries across the world instreaming movies, TV shows, and original content tosubscribers.
Before completing these exercises, be sure to read theNetflix case.
What factors are acting to intensify/weakenthe threat of new entrants into thesubscription video-on-demand industry?
Select “yes” for those statements below that are accurateand choose “no” for those that are not.
The competitive pressures associated with the threat of newentry into the market for subscription video on-demand is weak tomoderate.
(Click to select) No Yes
Trying to go head-to-head against the major Netflix and Amazon inthe online subscription segment seems unattractive to most any newentrant (the entry barriers are high).
(Click to select) Yes No
The entry threat into the market for subscription video on-demandshould be viewed as moderate to strong.
(Click to select) No Yes
A barrier to entry into this market includes the rapidly escalatingcost of licensing attractive content from movie studios and TVnetworks.
(Click to select) No Yes
The expenditure for advertising and promotion needed to drawvisitors and convert them to subscribers has decreased with thenumber of competitors in the market.
(Click to select) Yes No
The cost of developing a website with convenient video search,video recommendations, and video selection capabilities, plus thecapability to stream to many different types of devices is also abarrier to entry into this industry.
(Click to select) Yes No
The entry threat into the market for subscription video on-demandshould be viewed as weak.
(Click to select) No Yes
Entry barriers into the subscription video-on-demand industryare low with enough uncontested market for newcomers.
What factors are acting to intensify/weaken the competitivepressures associated with substitutes inthe subscription video-on-demand industry?
Select “yes” for those statements below that are accurateand choose “no” for those that are not.
Competition from substitutes is a weak competitive force,depending on the extent to which consumers prefer to watch contenton-demand versus watching movies at movie theaters or buying movieDVDs for their own personal library.
(Click to select) Yes No
Substitutes for streamed entertainment are a strong competitiveforce given that buyer costs to switch to substitutes arerelatively low.
(Click to select) Yes No
Acceptable substitutes are readily available and competitivelypriced (in some cases).
(Click to select) No Yes
The fact that consumers are familiar and comfortable with theavailable substitutes and regularly allocate time to themintensifies the strength of substitutes.
(Click to select) No Yes
The competitive pressures associated with the threat of substitutesin the market for subscription video-on-demand is moderate tostrong.
(Click to select) No Yes
Substitutes products for streaming entertainment is capped;consumers should not expect to see many more companies enter thismarket.
(Click to select) Yes No
The competitive pressures associated with the threat of substitutesin the market for subscription video-on-demand is weak.
(Click to select) Yes No