Netflix has been hugely successful, both with its no gimmick, unlimited access pricing, and its unique differentiation strategy. In early 2011, Netflix began procuring original programming to air exclusively to its users. The well acclaimed political drama House of Cards starring Kevin Spacey, debuted on Netflix in February 2013 as an original Netflix series. The esteemed series has been nominated and has won countless awards, including nine primetime Emmy nominations with three wins in 2013. Other Netflix originals include Orange is the New Black, and the fourth season of Arrested Development. These television shows have been described as nothing less than addictive and amplified the binge watching habits of users. The critically acclaimed nature of Netflix’s original programming has also contributed to the acquisitions of new subscribers.
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Netflix features a “profile” function that allows multiple users to access a shared account simultaneously. This feature tracks up to five users’ viewing habits and history in order to create individualized video recommendations and suggestions. The profile feature also gives users the ability to connect to their Facebook accounts to share movies or TV shows they’ve enjoyed with their friends as well as see what their friends have recommended. Netflix’s algorithm for analyzing each user’s viewing habits allows them to create the illusion of “hand-picked” films and TV shows. This service has generated a competitive barrier for potential new entrants, as hours of consumer profiling would be incredibly difficult to obtain.
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