StrengthsBrand recognition: Netflix has established itself as the most popular and well recognized streaming provider in North America. Their brand is recognized all around the world and has become a household word.
Original Content: Netflix original television series, comedy specials, documentaries, and soon to be movies are highly desired by customers. Many consumers comment that they have selected Netflix over their competition because of the access to Netflix originals. |
Personalized: Netflix allows for five different profiles under the same account. This gives each profile user an individualized experience. Netflix provides recommendations to viewers based on their own preferences and viewing history.
First Mover Advantage: As Netflix was the first major player in the streaming industry they have managed to claim 30% of all Internet traffic in North America. Due to their early entry into the market, Netflix was able to establish contracts and relationships with the major movie and television show providers and in some cases has exclusive rights to the streaming privileges 6. |
WEAKNESSESCost of Content: Licensing prices are increasing and as Netflix expands internationally they are facing new taxes and costs associated with operating in various countries.
Subscription Prices: One reason Netflix has become so popular is because of it’s low subscription costs. People of all different economic statuses can afford a subscription. This has resulted in extreme customer resistance to increases in subscription fees. In the past, Netflix has attempted minor raises to subscription prices, but they experienced backlash from their customers in the form of drastic drops in stock prices . It is worth noting that all although stock prices dropped, subscription rates did not . |
Delay on Content: Currently Netflix has to wait extended periods of time before they can stream certain content . For example, in Canada, Netflix cannot stream a movie until eight months after it has premiered in theatres. Competitors are now differentiating themselves offering television shows just four days after they have aired on TV. This is a feature Netflix is not currently offering.
Subscription Sharing: Currently Netflix believes there are over 10.5 million people using their services without paying. This is because the $7.99 subscription allows for multiple users of the same account to view Netflix on two devices at the same time.Therefore only one person is paying to use the service. |