Opportunites
International Expansion: Advances in technology and changes to countries streaming laws is making it possible for companies like Netflix to expand to new international markets. Although Netflix is already available in over 40 countries around the world, there is still a lot of room for expansion. International expansion also brings with it the opportunity to expand into different cultural markets. Advances in Technology: As technology rapidly improves it is becoming easier for companies like Netflix to grow. They are able to support more subscribers on their network and ensure their material is compatible with all types of devices. Advances in technology are also making it more difficult for customers to stream movies illegally; therefore more people are willing to turn to a subscription company for their viewing needs. |
Streaming Trend: A recent trend among consumers has been to move away from cable and television services by switching to subscription companies that are can offer them more viewing privileges for less money . This has become very popular in North America, and specifically among young adults.
New Content Providers: As streaming becomes more popular, more content providers are becoming eager to get involved. Disney, for example, recently entered into licensing agreements with Netflix, giving them the rights to stream their material. Having the licensing agreements with highly sought out content providers can set Netflix apart from their competition. |
Threats
Saturated Market: In recent years, many strong competitors have entered the streaming market such as Amazon and HBO. This is a large threat to Netflix because the content Netflix streams can also be streamed using various different companies 5. These competing companies are also trying to differentiate themselves. One popular technique is providing the same content but quicker than their competition.
Legal Barriers: As companies, such as Netflix, begin expanding into international markets, they are faced with new legal restrictions. Every country has a unique set of laws regarding licensing, streaming, taxes, and privacy, that can be rather costly to overcome. These legal restrictions can also act as barriers to entry. Companies need to appropriately filter their content to abide to laws and regulations. |
Rapid Technology Advances: Although advances in technology can be viewed as an opportunity for Netflix, if can also pose a severe threat. Improvements in technology are making it easier for competitors to replicate Netflix’s product at comparable costs. The barriers to entry are becoming less intimidating to the competition and the Internet is making it possible for them to make a strong and fast impression on consumers.
Internet and Data Restrictions: Many internet and data providers are putting a stop to unlimited internet. Customers will start paying based on their usage. This could take away the appeal of cheap streaming companies, such as Netflix, because although access to their content is cheap, their customers internet bills could increase substantially. |